Why Feedback Is Essential for Employee Retention

Author: David Godden, published: Oct 25, 23

Employee retention is a major challenge for businesses of all sizes.

In a competitive job market, employees have more choices than ever when it comes to where they work. This means that businesses need to find ways to differentiate themselves and create a workplace where employees feel valued, challenged, and supported.

One of the most important factors in employee retention is a consistent and open feedback loop.

Regular feedback helps employees to understand their strengths and weaknesses, and it gives them a clear roadmap for improvement. It also shows employees that their managers are invested in their success and that their contributions are valued.

Despite its obvious importance, feedback is often overlooked by companies. A recent study by Gallup found that only 30% of employees feel like they receive regular and meaningful feedback from their managers. This is a missed opportunity for businesses to improve their employee retention rates and create a more engaged and productive workforce.

There are many reasons why feedback is so important for employee retention, such as:

Feedback helps employees to learn and grow

When employees receive feedback on their performance, they are able to identify areas where they need to improve and take steps to address those areas. This helps employees to develop their skills and knowledge, and it makes them more valuable to their company.

Feedback helps employees to feel valued and appreciated

When employees receive positive feedback, it reinforces their positive behaviours and motivates them to continue performing at a high level. When this feedback is constructive, it shows that their managers are paying attention to their work and that they are committed to helping them succeed.

Feedback helps to create a more positive and productive work environment

When employees feel like they are receiving regular and meaningful feedback, it fosters a culture of trust and respect. Employees are more likely to be engaged and productive in a workplace where they feel valued and supported.

There are several things that companies can do to improve the quality and frequency of feedback, such as making feedback a regular part of the performance management process, creating a culture where feedback is welcomed and providing training to managers on how to give effective feedback.

Here are some specific tips for giving and receiving effective feedback:

For givers of feedback:

Be specific - don't just say "good job" or "needs improvement." Instead, focus on specific aspects of the employee's performance and provide concrete examples.
Be timely - give feedback as soon as possible after the event occurred. This will help the employee to understand the impact of their behaviour and make necessary adjustments.
Be constructive - focus on what the employee can do to improve, rather than simply criticizing their performance.
Be respectful - remember that feedback is meant to help the employee, not to put them down.

For receivers of feedback:

Be open to feedback - remember that feedback is a gift. It is an opportunity to learn and grow.
Ask clarifying questions - if you don't understand something, ask your manager to explain it further.
Be receptive to change - be willing to take the feedback on board and make the necessary changes to your performance.
Follow up - after receiving feedback, take some time to reflect on it and develop a plan for improvement. Then, follow up with your manager to let them know what steps you are taking to address the feedback.

By taking some of the steps above, companies can create a workplace where employees feel valued, respected, and supported. This will help to reduce employee turnover and improve the company's bottom line.

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Learn about Thymometrics' range of anonymous employee feedback solutions to help your business retain your people and let them flourish - email us at hello@thymometrics.com or call +44 (0)1223 750 251.