We investigate whether workplaces adopting human resources management (HRM) practices that enhance face-to-face communication (FTFC) among employees are more productive than workplaces that do not use such arrangements. The underlying rationale is that facilitating employees’ physical proximity and verbal interaction makes knowledge sharing within organisations more effective with a subsequent positive effect on labour productivity. We test this hypothesis using data on around 500 British trading establishments from the linked 2004 Workplace Employment Relations Survey and Annual Business Inquiry, for which both measures of value added per employee and information on HRM practices are available. We find a positive association between productivity and FTFC in social networks established through four HRM practices, namely problem-solving groups, teams, meetings made up of senior managers and employees, and meetings of line managers and employees (specifically, this association is found for teams and problem-solving groups involving a moderate percentage of employees at the workplace). However, this result holds only provided that workplaces adopt FTFC on a continuous basis.