The Hidden Cost of Poor Communication and How to Fix It in the New Year

Every year right before New Year’s, there is a flurry of goal setting that focuses on large visible goals like increasing revenue or expanding to a new location. And do not get me wrong, those are great goals. But often it is the smaller habits that create ripple effects with far-reaching rewards or consequences. One of the most overlooked and costly of those habits is communication.

Poor communication rarely shows up as a single, obvious problem. Instead, it appears quietly in missed expectations, repeated mistakes, frustration, and disengagement. Time is lost clarifying what should have been clear. Trust erodes when people feel unheard or uncertain. Over time, these breakdowns add up to lower morale, reduced productivity, and burnout. These are the hidden costs many leaders do not realize they are paying.

Most of us believe we are good or even great communicators. But even strong communicators have blind spots. Communication shapes how teams function, how trust is built, and how confidently people do their work. When communication is unclear or inconsistent, people are left to fill in the gaps on their own, and that is often where misalignment begins.

One common challenge is making assumptions instead of seeking clarity before making decisions. When expectations are not clearly stated, teams spend unnecessary time reworking tasks or correcting misunderstandings. What could have been a quick clarification turns into frustration for both leaders and employees.

Another area I see often with clients is a lack of active listening. In many conversations, people are already thinking about their response instead of fully listening to what the other person is saying. When leaders miss what is being communicated, they miss early warning signs of disengagement, performance concerns, or burnout. Those missed signals can become much larger problems later.

Silence is another part of communication that is often overlooked. While it can feel uncomfortable, intentional pauses create space for reflection and understanding and can prevent conversations from moving too quickly.

As we head into the new year, addressing the hidden cost of poor communication does not require a complete overhaul. It starts with small, intentional changes.

Slow the pace of your communication. Do not feel pressured to fill every pause in meetings or one-on-one conversations. Giving people time to think and respond can surface concerns before they turn into resentment.

Practice being fully present. Focus on listening rather than planning your response. Many costly workplace issues show up first in small conversations. When leaders listen closely, they can address challenges early instead of reacting later.

Be clear and direct in your expectations. Clarity saves time, reduces stress, and builds trust. When people know what is expected of them and why, they are less likely to feel frustrated or disengaged.

As you plan your New Year’s goals, consider including communication as part of that reflection. Poor communication carries real costs, even when not immediately visible. Strong communication is one of the most effective ways to protect your time, your team’s energy, and the health of your organization in the year ahead.

Jennifer Ericson, SHRM-SCP, is a consultant focused on leadership, culture, and people strategy. She also serves as a SHRM-CP instructor and board member of Yuma’s SHRM chapter. You can reach her at hello@JenniferEricson.com.