In an era of constant organisational change, companies are struggling to communicate effectively with their employees. Gallagher’s 2026 Employee Communications Report reveals a startling disconnect, while change management is the top-ranked communications skill for HR and internal communications (IC) teams, 61% of organisations still operate without a formal change communication strategy.
The global report, which surveyed over 1,300 communications and HR professionals across 40 countries, also highlights a surge in information overload, with 83% of respondents citing it as a growing challenge.
The report underlines that over-communicating can backfire, as employees inundated with messages are 30% more likely to lose trust in leadership and 24% more susceptible to burnout.
Resource and budget pressures widen the gap
The report points to chronic under-resourcing in IC teams. Nearly 70% of organisations employ fewer than six communications staff, whether they have 500 employees or 50,000.
Budget limitations exacerbate the problem, one in five firms allocates less than $20,000 for IC, and one-third have no budget at all.
As change becomes the norm rather than the exception, the report warns that these constraints create an unsustainable workload for teams tasked with keeping employees informed and engaged.Employee Value Proposition remains underutilised
The report also shows that while Employee Value Propositions (EVPs) are prioritised, few companies have embedded them effectively in day-to-day communications.
Only 15% maintain an active, socialised EVP, while 37% have none in place. Desk-based employees are more likely to understand EVPs than frontline workers, with in-person town halls proving most effective for the latter.
Overwhelmed employees and rising burnout
Employee burnout is reaching a critical tipping point, with 81% of internal communications (IC) professionals rating it as a “moderate or significant impact” risk within their organisations.
The report also highlights that 83% of respondents view information overload as a growing problem.
Finding the right balance between necessary messaging and excessive noise is a constant challenge. High message volume contributes to increased risk perception, reducing productivity and focus. Employees often tune out communications they don’t perceive as relevant, meaning important messages can get lost in the shuffle.
The manager communication challenge
The report also emphasizes the renewed importance of manager communication capabilities. Yet 87% of respondents identified managers lacking skills and capacity as a moderate or significant risk.
Despite this, only 21% of organisations actively use manager toolkits, essential tools to ensure messages reach employees effectively.
As trust in leadership drops and technology evolves, the report stresses that building human connections through face-to-face interactions and leveraging managerial influence remain critical to effective internal communication.
AI adoption in communications still in infancy
Despite interest in AI tools, 63% of organisations are still experimenting, and 75% report AI maturity as ad hoc or discussion-only. Only 5% have achieved optimised integration, leaving governance and implementation gaps that could hamper communication efforts.
William F. Ziebell, Global CEO of Gallagher’s Benefits & HR Consulting Division, said, “In a fluid business and technological environment, change communication, EVPs and AI tools are high on organisations’ agendas. But without a structured approach, internal teams risk overloading employees with urgent messages that fail to land. Effective communication depends on equipping IC and HR teams with the resources to deliver the right message at the right time.”
Ziebell emphasized the enduring value of human insights. “Employees want to know their feedback is being heard, and in-person events and town halls remain the most effective forum for engagement,” he added.