The State of the Sector 2011 survey findings were revealed by internal comms consultancy Gatehouse alongside the Institute of Internal Communication.
More than one third of respondents said they had no dedicated internal comms budget and a further 27 per cent had less than £10,000 at their disposal.
Half of respondents predicted that their budgets would be cut further in the coming year.
Nearly 40 per cent identified re-engaging employees as their number one professional challenge, with communicating strategy and direction a close second (30 per cent) and communicating cost-cutting ranking third (20 per cent).
A spokesman for Gatehouse said: 'This suggests a difficult time for communicators during the coming year as they focus on delivering bad news and improving morale, while also working at instilling a sense of direction and purpose.'
Only six per cent of the organisations surveyed did not have a dedicated internal comms person.
Twenty-one per cent said there were more than 20 people in their internal comms function.