How Internal Communities Deliver Tangible ROI for Businesses

Internal communities are the backbone of organisations that foster collaboration, innovation, and employee satisfaction. These digital ecosystems—whether built on platforms like Slack, Microsoft Teams, or bespoke intranets—help employees share knowledge, connect across departments, and work collectively toward common goals. For companies considering the investment, the question is no longer if there’s a return but how much value they stand to gain.

This article will explore how internal communities can improve key business outcomes like retention, productivity, and innovation. We’ll also unpack the metrics and methods to measure their success, the challenges organisations might face, and lessons from companies that have already achieved significant ROI.

Why Internal Communities Matter

Boosting Employee Engagement and Retention

According to Gallup research, engaged employees are 17% more productive and 87% less likely to leave their jobs. Internal communities play a vital role in creating this engagement by offering a space for employees to:

• Find support: Communities connect employees to peers who understand their challenges, building camaraderie.

• Share wins and struggles: Platforms like Microsoft Viva allow teams to celebrate successes and problem-solve collectively, improving morale.

Driving Innovation Through Collaboration

Internal communities foster environments where ideas flow freely, enabling employees to work together across geographic and departmental boundaries. When silos are broken, collaboration thrives.

• Crowdsourced solutions: Employees can brainstorm and test ideas collectively, often leading to unexpected innovations.

• Faster feedback loops: Internal communities expedite idea validation, reducing the time from concept to execution.

Enhancing Organisational Knowledge Sharing

A well-structured internal community ensures that institutional knowledge—often locked away in emails or individual minds—is accessible to all employees.

• Knowledge hubs: Platforms like Confluence or SharePoint house guides, FAQs, and employee-generated content.

• On-demand learning: Employees can upskill by engaging with community resources or participating in peer-led training sessions.

Measuring the ROI of Internal Communities

Key Metrics to Track

Organisations should track both quantitative and qualitative outcomes to demonstrate ROI. Key metrics include:

1. Engagement metrics: Active users, posts, and participation rates.

2. Cost reductions: Savings on training, support, or operational inefficiencies.

3. Employee satisfaction: Measured through surveys and eNPS.

Calculating Cost Savings

One of the easiest ways to measure ROI is by quantifying cost savings:

• Training efficiencies: Self-service communities reduce reliance on expensive in-person training sessions.

• Support reductions: Employees using communities to solve issues can alleviate pressure on IT or HR teams.

Demonstrating Revenue Impact

Internal communities indirectly contribute to revenue by:

• Improving employee performance.

• Enhancing customer satisfaction through better-trained and more engaged staff.

Challenges in Achieving ROI

Common Pitfalls in Internal Community Management

Building a community without clear goals or engagement strategies often leads to failure. Common issues include:

• Lack of participation: Employees don’t engage because they don’t see the value.

• Unclear purpose: Communities without well-defined goals often stagnate.

Balancing Cost with Value

While implementing a community may seem costly, the long-term returns far outweigh the initial investment. Examples of costs include:

• Licensing fees for platforms like Slack or Workplace by Meta.

• Staff hours spent moderating and managing the community.

By focusing on the measurable impact—such as productivity gains or cost savings—leaders can build a strong case for continued investment.

Cultural Shifts Required for Success

Internal communities flourish in organisations that value transparency and collaboration. Resistance to these cultural shifts can impede success.

Case Studies: Companies That Made It Work

Example 1: Knowledge Management Community Success

Deloitte’s “D Street” helped consultants reduce project preparation time by 25%, enabling them to focus more on delivering value to clients.

Example 2: Innovation Through Collaboration

Atlassian’s “ShipIt” days, combined with its internal community tools, have led to enhancements to products like Jira Service Management and Trello.

Example 3: Improving Employee Satisfaction

Salesforce’s “Chatter” connects employees in real time, boosting satisfaction scores and creating a stronger sense of belonging.

Wrapping Up: Building the Case for Internal Communities

Internal communities are no longer a luxury—they’re a strategic necessity. They deliver measurable ROI by improving retention, fostering innovation, and facilitating knowledge sharing. While the initial setup requires investment, the long-term financial and cultural benefits far outweigh the costs.

Thanks for reading this far! See you in the next one :)

If you want to learn more about building internal communities, I’m delivering a workshop on this specific topic in January.

The Community Experience Series is a workshop format and includes time for questions from attendees. We will learn from stakeholders who are part of the leadership of Cambridge University in the UK and their internal community project.

You can explore the membership of Led by Community to access this event for FREE.