Leverage A Culture Of Feedback And Engagement To Improve Retention

Understanding the business value of a technology-enabled culture of feedback

Employers today are in a difficult position. Employees have more power than ever before when it comes to job choice. Given today’s historically low unemployment rates – the lowest in about 50 years – employees have the freedom to switch jobs and companies almost at will. It is a “buyer’s market” for the employed and job seekers alike, creating an environment in which companies and HR teams are fighting an ongoing battle to protect their talent pool.

 

With a tight recruiting market and seemingly limitless options for employees, companies are seeking new ways to retain talent through the practice of employee engagement. Leading organizations are creating and leveraging a “culture of feedback” that drives engagement and addresses retention issues through ongoing improvements to the employee experience. When employees feel that their feedback is well-received, understood and acted upon, it creates a positive cycle between employer and employee. In turn, this process drives engagement, job satisfaction and ultimately retention.

A culture of feedback is based on a combination of feedback forums, including employee surveys, All Hands, live Q&A opportunities, polling, peer feedback, and manager feedback. Most central to feedback culture is the ability to effectively coach and mentor employees. Most managers are promoted based on their business contributions, not on their ability to lead people. 

According to a recent Gallup study of 2.5 million manager-led teams in 195 countries, organizations choose the wrong manager 82 percent of the time, and most managers do not have the innate skills to effectively coach and develop their direct reports. As a result, it becomes critical that managers have the right tools, support and resources to lead their teams to their highest potential.
 
It begins with listening and aggregating feedback in a way that makes sense for the individual employee and his or her manager. When it comes to evaluating job performance and offering feedback, employees want to receive information that helps them do better in their jobs. It keeps them engaged and interested, because it fosters the belief that the company that employs them is invested in their career journey. And when they give their manager feedback, they expect that it will be acknowledged and acted upon. This requires the following:
 

 
An effective culture of feedback and engagement can serve as additional “currency” in today’s retention battle. Particularly in the tech sector, the modern employee is conditioned to ask for pay increases on a more frequent basis than in the past; a common sentiment is that employees can leave for another company and get a raise any time they desire. But feedback and engagement strategies can encourage workers to stick around. Employees are more satisfied than companies realize when they feel their professional development and career growth is invested in. They understand that these types of non-monetary benefits – including the opportunity for internal mobility – are of real value, as well.
 
If employees are inspired to work to their highest potential and productivity, they are more likely to stay with a given company for career challenges and personal growth. That’s why more and more employers and employees understand the business value of a technology-enabled culture of feedback.