Employee engagement is one of the most valuable traits a business can have. With engaged employees comes a positive work culture and low turnover rates. While there are many tools to enhance engagement, employee feedback is a strong contender. One Gallup study found that 80% of employees who had received “meaningful feedback” over the last seven days were fully engaged at work.
However, even meaningful feedback can lose its impact over time.
The Power of Continuous Feedback
Annual feedback systems have been the trusted method for most businesses for decades, but they have recently experienced a downward trend. Workhuman’s 2022 The State of the Annual Review revealed that only 31% of the workforce receives annual reviews, whereas 38% receive reviews on a quarterly or monthly basis.
While annual reviews can have a place in the workforce, employers have begun realizing it should not be the sole feedback strategy. A Betterworks study found that companies implanting continuous feedback systems saw better results across the board than those that only completed annual reviews. Continuous feedback systems increased productivity in 66% of companies, compared to annual reviews, which only affected 35%. Companies with continuous feedback also experienced a higher increase in performance, motivated and engaged workforces, and employee retention.
Continuous feedback systems aren’t just for employees. They’re for HR professionals to benefit from as well. HR teams who implement continuous feedback systems are 50% more satisfied with the performance process and are 24% more likely to recommend this approach to performance reviews.
By integrating these strategies, HR professionals can build a system that enhances employee performance while fostering a culture of continuous growth and engagement.
Empowerment Through Open Communication
Designing a strong culture of feedback begins at the top. When leaders seek and implement employee feedback, they lay the foundation for an environment of trust. Leaders should also learn how employees prefer to give and receive feedback to ensure this is a collaborative process rather than top-down. Some employees may prefer giving anonymous feedback while receiving one-on-one reviews, or they might prefer one-on-one reviews in all cases. By opening the floor to employee preferences, the general anxiety associated with employee reviews can be soothed with more comfortable settings.
Additionally, fostering peer-to-peer feedback channels not only empowers employees but also promotes skill development and mutual support across the team. Leaders can allow employees to review their peers’ work or train team members in relevant skills where more development is needed. By creating multiple avenues for feedback, leaders can cultivate a culture of continuous growth and improvement.
From Feedback to Tangible Results
Employee feedback systems are nothing without including a way to measure employee progress. With the right key performance indicators (KPIs), leaders can have a clear view of just how effective their feedback system is.
On an individual scale, their employees’ productivity, morale, job satisfaction, and overall engagement with the company. However, HR should acknowledge that if asked these questions, responses may be skewed as employees may want to seem positive. To counteract this, encourage anonymous surveys where possible.
On a broader scale, HR teams can assess the effectiveness of the feedback system by tracking company-wide metrics such as retention and turnover rates across different teams. Leaders can also evaluate employee development and promotions as metrics for success, as employees who receive continuous productive feedback can grow within their careers.
Success Through Feedback Mastery
A well-implemented employee feedback system is essential for employee engagement, a positive work culture, and reduced turnover. Ultimately, a culture of open communication and thoughtful measurement of feedback effectiveness will empower both employees and HR professionals to achieve sustained success.
