Listen Up! How Feedback is the Secret Ingredient

In the fast paced world of business, time is tight, budgets are tighter, and retaining top talent can be a daily challenge. But there’s one incredibly cost effective, transformative tool often overlooked by smaller businesses: employee feedback.

Listening to employees isn’t just good practice….it’s smart business. Done well, it can improve morale, engagement, retention and potentially fuel idea generation. Read on to discover the potential challenges in balancing constructive feedback without negatively impacting your teams.

1. Stronger Company Culture

Surveys, reviews, questionnaires and net promoter scores are all powerful tools to gather valuable insights from both employees and clients, helping to uncover trends, identify unmet needs and spark innovative ideas. All of which can help drive your business and teams forward, helping to improve internal processes as well as reveal new opportunities to explore.

Listening fosters a psychologically safe environment where trust, inclusion and growth thrive, which is critical for attracting Gen Z and Millennial talent.

2. Improved Innovation and Problem Solving

Employees on the front lines often spot issues or inefficiencies that leaders miss. Tapping into that insight fuels smart innovation. Listening to feedback allows identification of potential issues before they escalate, whether dissatisfaction, team conflicts or client complaints, early detection can help address the root cause before it escalates.

3. A Happy Team is a Productive Team

Gallup’s 2023 global workplace study found that engaged employees are 23% more productive. Engagement starts with being heard.

Employee morale can significantly improve when colleagues feel that their opinions are valued, and have a forum to be heard. This can enhance a sense of belonging and connection to the Company. With increased morale, this can impact productivity and motivation.

4. Self-Development and Growth

Listening to feedback encourages a culture of self-development. When employees provide feedback on their experiences and needs, it helps you understand how to support their personal and professional growth. Offering the tools, resources, and opportunities they need to develop can increase job satisfaction and retention.

5. Reduced Turnover and Better Retention

According to the 2023 CIPD Good Work Index, employees who feel heard are twice as likely to stay with their employer. Replacing an employee can cost SMEs thousands…money that could be better spent elsewhere.

Think of your last leaver…could feedback have prevented their departure?

How to implement feedback loops, without breaking the bank:

There are many great initiatives businesses can adopt. Many of our clients  use the HR Information System BreatheHR, which has features such as employee net pulse survey (for Regular Plans and above), kudos and the 1:1 performance sections that they utilise.

Other low cost ways include:

• Monthly 1:1 meetings with a feedback agenda
• Google, MS Forms or Survey Monkey forms
• Team forums after key projects or busy periods
• Open door policies that are genuinely followed through

Quick win: End every team meeting with a 2-minute ‘Stop / Start / Continue’ round of feedback.

Listening is Leadership

Listening to feedback isn’t a ‘nice to have’, it’s essential for survival and success. By creating a culture where voices are heard and valued, you’re not just improving the workplace, you’re building a business that people want to be a part of.

Sources: Gallup, CIPD, LinkedIn