Time to take market shares with better leadership

Caroline, your remarks on the working conditions of communicators, as highlighted in Skandia's report Sveriges sjukaste yrke, draw attention to an urgent issue.

However, it's time we elevate this debate. The problem extends beyond vague roles and workplace stress — it’s about the lack of industry expertise in leadership positions, which poses a serious threat to both a company's financial health and business growth.

When leadership lacks insight into the strategic importance of marketing and communications, budget misallocation becomes a dangerous risk that no business can afford in today’s fast-moving world.

Background

Recently, Caroline Thunved, Secretary General and CEO of Sveriges Kommunikatörer, urged Sweden's leaders and managers to take immediate action to improve the working conditions for communicators, following the release of Skandia’s latest report, Sweden's Sickest Profession. Skandia’s report highlights that communicators (yes, an outdated and misleading term) are particularly affected by mental health issues — with over 40% of all sick leave cases within the sector coming from this profession — due to unclear leadership, increasing demands, and technological stress.

The critical role of communication in business

Marketing and communication have never been more integrated into a company’s success — or failure — than today. In an era where social media and digital presence play a decisive role in both brand building and direct sales, a leadership team’s lack of understanding of these areas can be devastating.

Skandia's report reveals that communicators not only suffer from mental health issues — with 4 out of 10 employees on sick leave attributed to this profession — but also deal with broad and often misunderstood job descriptions. This ambiguity comes at a high cost. Companies that fail to invest in strengthening these areas, and in supporting their marketing professionals, are not just fostering inefficient work environments; they are also losing business opportunities.

Misaligned budgets – a business risk

The biggest threat isn't just to individuals but to companies themselves. Skandia’s report confirms what many already know — companies that ignore these areas fall behind in competition, risk losing relevance, and miss out on key business opportunities. This is a perilous downward spiral in a world where social media and digital strategies are playing an increasingly crucial role in shaping customer experiences and brand identity.

The risk of lost business and growth opportunities is real. Companies that under-prioritise their marketing and communications budgets often fail to capitalise on growth opportunities. A forward-looking strategy for budgeting and marketing investment can yield tangible results in increased return on investment (ROI).

The Gartner study "The influence of marketing communications strategy on consumer purchasing behaviour in the financial services industry in an emerging economy" highlights the risk of brands that fail to personalise their communications properly risk losing up to 38% of their customers.

"This situation promotes marketing communication as one of the most essential activities that financial institutions rely on to mitigate the perceived risks and to satisfy consumers’ quest in understanding financial products." — The Gartner study

This demonstrates how critical it is for businesses to invest in the right marketing strategies that foster personal connections and trust with their audience​.

A McKinsey study sympathizes brand-building and performance marketing synergies. This imbalance reduces ROI and stunts long-term growth.

"Lead with commerce media. With the potential to generate $1.3 trillion in enterprise value, commerce media—a new form of advertising that closes the loop between media impressions and commerce transactions and allows retailers and brand partners to reach people across the internet—is creating a paradigm shift in digital advertising." — McKinsey

During times of uncertainty, those who cut marketing budgets risk losing brand visibility and customer loyalty, leading to a detrimental impact on future revenue​.

Connecting these dots is under-prioritised in businesses, and more studies need to raise awareness of those issues. However, one thing is absolutely clear: When marketing and communication departments are underfunded or when those with industry expertise are absent from strategic decision-making tables, the result is misaligned budgets.

In other words, there is a massive potential for corporates in blending corporate finance and marketing thinking.

Business growth through effective leadership

We must start recognising marketing and communication for what they truly are—core components of business growth. Marketing is no longer a mere support function but a critical driver of growth.

By having knowledgeable leaders who understand these areas, companies can not only create healthier work environments but also ensure that investments are made in strategies that drive growth. Those who succeed in navigating today’s landscape will be the ones who understand that communication is not merely a cost centre, but an essential investment. Clear and present leadership, with insight into how communication and marketing strategies affect business, is key to long-term success.

It’s time for leaders and boards to realise that they must budget for communication and marketing as critical factors in business development, rather than treating them as superfluous or secondary functions. Failing to make this shift will mean losing even more business opportunities and exacerbating the burdens carried by those already under significant strain in the industry.

If we are to create a sustainable and successful working environment for communicators — and at the same time maximise business opportunities — it will take more than internal dialogue. It requires action, investment, and strategic focus from leadership to ensure that the right priorities are set, and that communication becomes a central part of the business strategy.

Leadership’s role in business growth

In other words, leadership must recognise the centrality of marketing and communication to business development. Without the right leaders — those who truly understand the strategic value of these functions — companies risk failing in today’s competitive and fast-paced business environment.

Budgeting for marketing and communication must become a priority at the leadership level. Leaders need to shift their perspective, seeing these departments not as cost centres, but as core components of growth and value creation.

The path forward

Action is needed to create sustainable, successful working environments for communicators and fully capitalise on business opportunities. This includes:

• Investment in marketing and communication teams.
• Strategic focus on how these departments contribute to overall business growth.
• Recognising the importance of having industry experts at the decision-making table.