Internal communications is traditionally seen as a backwater function, little more than the production of low-budget company newsletters, often by public relations or human resources specialists on the point of retirement.

But the role is being propelled to the top of the business agenda as the relationship between the board and its employees becomes ever more important to the leadership team, according to a report to be published next month.

The new, more aggressive breed of internal communicators can offer vital insights into the mood of the workforce, many of whom may also be shareholders.

The report's author, Nick Helsby, head of Watson Helsby executive search consultancy , says some chief executives are beginning to nurture their “int comms” managers and directors, relying on practitioners to offer unique advice on how staff should be handled.

While newsletters and staff satisfaction surveys remain central to the employee feedback process, the internal communications function is now using electronic message and response systems such as company intranets, as well as executive visibility programmes, to improve contact between the CEO and staff.

“Internal communicators are there to build relationships with internal stakeholders and carry back to management vital messages about how they are feeling,” says Mr Helsby. “They should not be seen as message boys for HR.”

“Just as external communications should be telling the board how best to convey a message to the City or to the media, his or her internal counterpart should be using their unique knowledge to advise directors on how to manage the dialogue with staff, some of whom may be in different time-zones, countries and cultures.”

In assessing the rise of the int comms role, together with its budgets, Watson Helsby interviewed 37 senior practitioners in organisations as diverse as Barclays, the BBC, Consignia, PwC, Tesco and Unilever.

In 67 per cent of cases, internal and external communicators worked together in the corporate communications department.

The report argues that most internal communicators feel comfortable with this set-up, which reduces the hostilities that can crop up when internal and external staff are in separate departments.

The tendency to put internal communications staff into the “corporate” category is also helping to build a new relationship with the CEO. “Traditionally, CEOs haven't appreciated what the internal communications function is all about and have failed to appreciate the benefits to a business of having the best people possible handling it,” says Mr Helsby.

“Today, particularly in organisations where the CEO is very dialogue-orientated, he is starting to understand more about the commercial value of employee communications and is looking to expand the int comms role accordingly.”

Interestingly, many respondents in the survey said they would feel “very unhappy” about reporting to HR. Most viewed human resources as too “process driven” to help an organisation become truly employee-focused.

There was also disquiet among the 10 per cent of the sample who reported to marketing. “Internal communications will always be an also-ran in a discipline that is so preoccupied with the public,” said one respondent.

The report argues that, in future, HR, communications and marketing will be “integrated into a new function, whose remit will encompass people, communication, culture, change and knowledge management”.

It does not, however, hazard a guess as to which department will undertake ownership of this function.

If internal communications specialists are poised to take over the currently vacant position of employee representative, as the study suggests, they will have to sharpen up their act.

“Younger CEOs in particular have some interest in whether their staff are vaguely satisfied or dissatisfied with their lot,” says Mr Helsby, “but a more pressing issue is what will be the impact on the business if they are dissuaded from doing X, or how will the bottom line be affected if we introduce Y?”

“In order to gain the respect of the board, the head of internal communications needs to learn to speak the language of business and quantify the financial impact of investing more in internal stakeholder communications. Talking vaguely about the joys of a more engaged workforce simply isn't enough unless it can be backed up commercially.”

Internal communications is not a recognised career choice for graduates, says the report, with 47 per cent “falling into it” from PR or communications, 11 per cent hailing from HR and 8 per cent having a background in journalism.

Although at present the salaries range between £50,000 and £60,000, Watson Helsby says basic packages of £60,000 to £80,000 are now becoming more common.

The report makes the point that talented and ambitious internal communications professionals can not only exercise “enormous influence at board level”, where the issue of internal stakeholders is writ large, but also earn more than the “newsletters-only” brigade.

Among current CEOs, internal communications is gaining in importance, says the report, although external relations, twinned with corporate reputation, is still a priority.

As one respondent puts it: “He is supportive and committed to internal communications but what still keeps him awake at night is the media and the City.”