The Crucial Role of Leadership Feedback in Fostering Retention and Cultivating a Positive Organizational Culture

In the dynamic landscape of modern workplaces, effective leadership isn’t just about giving orders; it’s about fostering an environment where individuals thrive, feel valued, and contribute their best. At the heart of this lies the power of feedback.

In this blog, we delve into why leadership feedback is indispensable for both employee retention and nurturing a vibrant organizational culture. But first, let's look at some data around employee feedback.

Top Employee Feedback Statistics*

• 96% of employees say getting regular feedback is a good thing.
• Employees who receive recognition from management are 69% more likely to do better work.
• 64% of employees say their workplace has an employee feedback program.
• 41% of employees have left a job because they felt they weren’t listened to.
• 20% of employees don’t share feedback with employers.
• Only 10% of employees say they’re engaged after receiving negative feedback.

So what benefits does having a culture of feedback deliver? Below are quantifiable outcomes driven by good feedback processes.

Building Bridges of Trust
Leadership feedback serves as a bridge between leaders and their teams, fostering trust and transparency. When leaders provide constructive feedback, it demonstrates that they are invested in their employees’ growth and development. This cultivates a sense of trust, as employees feel supported and valued, knowing that their leaders have their best interests at heart.

Empowering Growth and Development
Feedback, when given effectively, acts as a catalyst for personal and professional growth. Constructive feedback highlights areas for improvement while also acknowledging strengths, empowering employees to continuously enhance their skills and capabilities. This culture of growth not only benefits individual employees but also contributes to the overall success of the organization.

Fostering a Culture of Open Communication
Leadership feedback sets the tone for open communication within an organization. When leaders actively seek feedback from their teams and provide it in return, it encourages a culture where ideas are freely exchanged, challenges are addressed collaboratively, and innovation thrives. This open dialogue promotes a sense of belonging and ownership among employees, leading to increased engagement and satisfaction.

Driving Employee Retention
One of the most significant impacts of effective leadership feedback is its role in employee retention. Not surprising, almost half of HR Leaders, 47%, say employee turnover is a challenge and a costly one at that.** Studies have consistently shown that employees who receive regular feedback and feel valued by their leaders are more likely to stay with their organization. By providing meaningful feedback, leaders demonstrate their commitment to their employees’ success, which, in turn, fosters loyalty and reduces turnover rates.

Linking Feedback to Organizational Culture
The relationship between leadership feedback and organizational culture is symbiotic. A culture that values feedback fosters continuous improvement, adaptability, and resilience, essential qualities in today’s fast-paced business environment. Conversely, a toxic culture, where feedback is either absent or punitive, can stifle innovation, hinder collaboration, and drive talented employees away.

Getting Feedback on Leadership
How often do employees get the chance to provide feedback on their leaders?  Unless a company has an annual 360 process, employees have very little opportunities to share their true assessment of how they feel their leaders are leading.

Yet, studies prove that allowing a process of reciprocal feedback- leaders to employee, employee to leader- has the potential to drive more productivity and better overall results for the company.

How often do employers ask for feedback? Here’s a breakdown from AllVoices’ survey of 817 employees:

• 23.7% ask for feedback once per month.
• 23.5% ask once per quarter.
• 20.3% ask weekly.
• 19.3% ask once per year.
• 13.1% never ask for employee feedback.

What Models Can Be Used To Provide Effective Feedback?

All feedback is not created equal. If handled or given inappropriately, feedback can have a negative impact on interpersonal relationships within the organization and employee/volunteer job performance. 

 

The best approach for feedback is to use a Survey tool that supports both forms of feedback, employee and leaders. Furthermore, consistency is critical and should be done quarterly at best and annual at least. We use a customizable survey tool created in a simple and easy format that takes into account each businesses special characteristics and culture.

Harms and Roebuck (2010) developed two models of providing effective feedback to give praise and constructive criticism described below. While an older model, it still works brilliantly.****

B.E.T. Model for Positive Feedback

B – Behavior. Describe the specific observations of desired or positive behaviors the volunteer or employee is displaying.

E – Effect. Discuss how the volunteer or employee’s behavior is beneficial to the organization or team.

T – Thank you. Showing appreciation and thanking the volunteer or employee for their contributions.

B.E.A.R. Model for Negative Feedback

B – Behavior. Explain the current behaviors or actions the volunteer or employee is taking that are negatively impacting the organization or team.

E – Effect. Describe the impact of these behaviors on the organization or team.

A – Alternative. Provide suggestions or recommendations to the volunteer or employee on how to change their current behaviors and actions.

R – Result. Describe the outcomes or results that would occur if the volunteer or employee adopts the suggested changes and recommendations.

Within these models, we can employ several strategies to ensure we communicate effectively with our employees and leaders. Sherman (2019) provides several strategies that can be used in conjunction with the two models which you see adapted below.

1. Give feedback promptly. Do not wait to give feedback to your employees or leadership, as issues will be more difficult to address the longer you wait to discuss them.
2. Give specific and factual feedback. Be very clear and specific when giving feedback and base your feedback on observations and facts without including hearsay and opinions.
3. Allow employees and leaders to contribute their own thoughts and perspectives to the feedback session.
4. Create concrete goals and benchmarks for your employee, and action plans for your leaders. Schedule a follow-up meeting to discuss their progress.

Summary
In conclusion, employee and leadership feedback is not just a tool for performance management; it’s a cornerstone of organizational success. By providing constructive feedback, leaders and employees empower their teams to grow, foster trust and open communication, and ultimately drive employee retention and cultivate a positive organizational culture. Investing in effective feedback mechanisms isn’t just beneficial; it’s essential for building resilient, high-performing teams ready to tackle the challenges of tomorrow.

For further insights on the interplay between leadership feedback, retention, and organizational culture, or if you or your management team would like to demo our feedback platform, please reach out to us here.

Author: Carla Zilka, Co-founder NexGen Human Capital

References:

*Workhuman
**Workhuman

***All Voices

****Bauer, S., & Lim, D. (2019). Effect of communication practices on volunteer organization identification and retention. Sustainability, 11(9), 2467.