Can a Feedback Culture Really Improve Profitability?
Feedback can make or break an organization. Unfortunately, many HR executives and managers struggle to provide employees with regular feedback. More than 60% of employees want daily or weekly feedback as they believe it could improve their skills and help them grow.* Unfortunately, most companies miss out on peer review opportunities and therefore the team can’t perform its best.
Why Feedback Matters
Employees that do not receive clear, timely, and honest feedback often lack direction and do not perform to the best of their abilities. It ultimately reduces profitability and wastes a lot of potential, man-hours, and money. What’s more, our research shows that around 24% of employees tend to leave their organizations if they do not receive feedback.*
However, when directors, managers and HR executives provide their team with regular assessments and recognize their efforts the team’s efficiency improves. Creating a culture of feedback means creating teams that get great work done.
Why Do Leaders Struggle to Give Feedback?
Receiving and giving feedback can be stressful. Employees often get scared when they learn they are about to be evaluated by their peers or higher-ups. They tend to view evaluations as threats and try to steer clear of them. Unfortunately, the absence of a feedback culture is one of the biggest reasons for most companies’ lack of engagement and feedback process. It is an exercise in futility and mostly leads to unintended consequences of feedback either being too nice or not providing useful possibilities for learning new ways to grow.
Feedback Culture Can Improve Profitability
Every organization wants to achieve high profits. However, obtaining that goal is impossible if your company’s most critical resource, the people, do not have a sense that their work is valued. Managing people with a focus on how we appreciate attention can improve profitability by tenfold, and the only way to do that is by incorporating a healthy feedback culture.
A regular peer review system of feedback can help employees improve in areas where they are lacking. It can help them feel more engaged and purposeful, motivating them to perform well. Incorporating a neuroscience-based feedback system like BackFeed+ can make the difference for your organization. This HR application is perfect for an organization’s performance management and could increase its profitability by motivating teams with timely and unbiased feedback.