Listening to your employees is a powerful and disruptive thing to do, and it has the potential to transform the way you manage your organization.
Your employees crave feedback.
Whether negative or positive – they want to know it all. Why?
Because they want to know how they can be better employees. Because getting a clear picture of performance helps identify weaknesses to be improved as well as strengths that can be leveraged. Because being heard makes employees feel valued.
This feedback goes both ways, too. You stand to learn as much from your employee’s and they do from you. Which is another important reason to take what they say seriously. Employee feedback makes a huge impact on engagement. Managers giving little or no feedback fail to engage up to 98% of their work force.
So, voice of the employee is critical to business. There are many benefits. Here’s 20 of them:
1. You motivate better performance
Work is more meaningful to people who’ve had a role in shaping the agenda. Companies that create a positive feedback culture, where employees have an on-going opportunity to give ‘always-on’ feedback are more invested, and productive. And the kind of feedback you give matters too. Managers focusing on employee strengths are one third more likely to manage actively engaged employees compared with managers focusing on weaknesses.
2. You attract and keep talent
By giving your talent a voice, and paying attention to their feedback, you’ll be able to hold on to them for longer, in satisfactory roles. A consistent feedback culture empowers your talented employees to grow with the organization, and it makes it easier for you to know what their drivers and values are.
3. You spot HR issues sooner
You can better predict what’s coming next. Because you’ll know important data, like which department will have the biggest turnover. Comments and feedback will alert you early on to issues effecting engagement so you can do something about them before they become complicated, costly HR problems.
4. You develop better products
Running a holistic, integrated, and real-time feedback system means issues – in house or with your product, also come to your attention much faster. You save not only time, but headaches along the road. And you’ll be guaranteed an actionable and constructive suggestions to run your business better.
5. You embrace change
Change is inevitable in any organization, but the way it is implemented doesn’t have to be negatively disruptive or exclusively top down. Your workforce becomes more open to change when it is discussed openly, when people can give their views, voice their concerns and have them heard. Adopting a feedback culture, demonstrates to employees that people and inclusion matter when it comes to the change process.
6. You are more profitable
You will have double the success of businesses with less engaged employees. Because people care a whole lot more about company success, when they work for a company they know cares about them. Employee engagement is a predictor of business profitability.
7. You have less missed days
The amount of missed days per year goes down in businesses that implement 360 degree or continuous feedback. Especially from your most valued, talented employees who understand where they are in their career path.
8. Your work place is a safe space
The quality in your workplace gets a huge spike too where there’s regular employee feedback. Businesses with engaged employees report 48% fewer safety incidents and 41% less product defects.
9. Your customer satisfaction increases
Your customer service sees a direct improvement. For example, Morrison Talent Management saw a 1% increase in client satisfaction for every 2% they engaged their employees.This trends holds across industries and business categories. It’s true that behind every satisfied customer, there’s a happy employee.
10. You manage change better
We see it all the time at Questback. Companies that manage employee feedback see drastic reductions in employee turnover, anywhere up to 10% in one year. The knock on effects of this, from lowered recruitment costs to productivity, are staggering.
11. You find more fixes
Imagine a retail company implements a pulse feedback system and finds that a recent structural change has caused a disgruntlement issue. An employee in the same survey, who would not otherwise have a say in HR processes, submits a suggestion which not only quickly provides the solution, but leads to a spike in productivity and engagement.
This is the power of employee feedback. Every company has undetected but significant problems, as well as in-house solutions, which implementing real-time feedback can uncover. Transformation can happen all the time.
12. You uplift your teams
Appreciation issues, where people feel undervalued or undeserved – become history. Because, employees are able to tell you how they feel, and you can tell them what you think, people feel better. There’s more trust. This kind of caring, two-way relationship between employees and management and senior leadership, makes companies not just feel better, but work better.
13. You nurture learning
A feedback culture makes it easier for older employees to expand their comfort zones by learning from younger ones, and vice versa younger employees can readily tap into experience and wisdom of seniors. Millennials for example, can share their Social Media skills with older members of the team. Employees are eager to share what they know, whether its helping to run the business better, or to help expand a colleague’s skill set. A feedback system facilitates a culture of shared learning.
14. Your ideas are sharper
Running employee listening campaigns, asking targeted questions in short pulse surveys for example, you’ll start having more creative, and collaborative ideas to improve your business. As Steve Jobs said, “Creativity is just connecting things”. And the more people’s dots you have to connect, the better the ideas.
15. You know where you stand
Many companies, like Google, let people rate managers and work processes. The ratings can be anonymous or public (even liked or down-rated for a “double-loop” effect). This means, one way or another, managers can know in real-time how they’re performing and how employees feel about management processes. Although it might be daunting, todays employees are more connected and used to rating than any time before, so its better for a company to be ahead of the curve, and ask for opinion directly.
16. You have better parties
Office parties become a lot more enjoyable when they’re attended by a group of people who feel inspired. Once you implement employee feedback seriously you start to create an infectious company culture that passes on to your results (and your parties).
17. You cut turnover costs
It’s cheaper to keep (and engage) your existing employees than to hire new ones. Feedback systems are not expensive in todays’ online world. Don’t choose expensive and cumbersome (and unsatisfactory) annual surveys, choose pulse or ‘always-on’ surveys which are relatively cheap and very simple to run and will repay huge dividends in employee retention.
18. You build community
Colleagues become better connected and work-place loneliness becomes a thing of the past. Companies that do employee feedback drive more commitment and passion in the organization.
19. Your eNPS increases
Your employee net promoter score goes up when you make employee feedback a habit. One study found that engaged employees had 37% eNPS over just 10% for less engaged teams. The e-NPS is a variation on the customer NPS, and instead of asking if you’d recommend your business to a friend, it asks simply would you recommend working at this company to a friend?
20. You inspire leadership
In an employee feedback culture managers are never oppressors, but mentors. Coaching and helping, rather than micro managing and complaining are the norm. This creates a positive leadership psychology and an environment where innovation, better practices, and deeper engagement can not just happen, but flourish.
Time To Get Serious…
Feedback doesn’t have to be awkward or hard to manage. Implementing a holistic, integrated and real-time feedback system will bring very quickly a lot of these great benefits for your business.
Hearing, and responding to the voice of employee is vital to business. It can give you the accumulative, strategically-won competitive advantage that lifts everything.
Does your company have an employee feedback culture? What tools and technologies are you using?
To see for yourself how our enterprise feedback platform can improve your workplace culture and employee experience, sign up for a Precision Feedback demo.
This post is originally from the Questback blog.