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15.11.2023
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Why continuous feedback is so important in the company

A few years ago, an appointment with the boss could only mean one thing: Something had gone very wrong and now there was a threat of consequences. If there was feedback, it was equated with negative criticism. Meanwhile, positive results were often taken for granted and were not worth mentioning. In the meantime, the importance of an appreciative feedback culture is becoming increasingly important. Feedback helps with self-assessment and improves performance. However, a good feedback culture does not develop in a company by itself, but is the result of a process that must be shaped by everyone involved.

What does the term feedback culture actually mean?

Everyone has probably heard the term "feedback" before. It is a form of feedback that is given in both private and professional contexts and relates to a specific performance or behavior. There are two types of feedback: praise as confirmation and negative criticism, which is intended to lead to a change in behavior. Both forms contribute to personal development, but in different ways.

The introduction of a feedback culture in the company

But what does it actually mean when a feedback culture is established in a company? Introducing a feedback culture means creating a working atmosphere that is characterized by openness, trust and effective communication. In such a corporate culture, it will eventually become a matter of course for employees to receive regular feedback on their work, but also on their behavior within the team or towards customers.

If a company has created a firm feedback culture, regular feedback is given between employees and managers regarding working methods, performance and their external impact. In such an atmosphere, it is possible to express criticism or contribute new ideas at any time without fear of consequences. The overarching goal of a functioning feedback culture is for employees to be able to communicate freely and without fear with colleagues and across hierarchical levels.

Good reasons for a mature feedback culture in the company

"Feedback culture" is often used as a buzzword in the modern corporate landscape. And rightly so, as it contributes to corporate success on many levels.

● Communication of goals and expectations

Feedback meetings allow employees to express their own wishes and expectations of their job and area of responsibility. A few years ago, this aspect had no relevance at all. It was about what a company expected from its employees and how well these expectations were being met. Employees' expectations were then automatically met with the monthly salary payment. In times of a shortage of skilled workers, however, companies need to find ways to retain their employees. An important component of this is a good feedback culture.

● Comparison of external and self-perception

There is often a discrepancy between how you perceive yourself and how others perceive you. What you perceive as very good and successful may be perceived very differently by others. Regular feedback helps to recognize and address these differences.

● Creating security

Feedback gives employees clarity about how well they are performing their tasks. This understanding promotes self-confidence and eliminates uncertainty. Employees know in concrete terms that their work performance is seen and how it is assessed. This ultimately allows them to concentrate much better on their tasks. This enables employees to concentrate better on their tasks.

● Reduction of misunderstandings and frustration

Through regular feedback, misunderstandings in communication can be quickly uncovered and clarified. A continuous exchange also prevents frustration from building up over a longer period of time. If issues are addressed directly, they can be cleared up just as quickly.

● Promotion of a better working atmosphere

Feedback creates transparency and strengthens trust and understanding among employees. They know their role in the team and always have someone to talk to about things that they feel are not going well. In such an environment, employees experience more enjoyment at work, which has a positive effect on motivation and leads to better work results.

What characterizes a positive feedback culture?

One of the most important characteristics of a good feedback culture is that it must not have a punitive or controlling function, but must be designed for further development. Feedback must take place across hierarchies and create a trusting framework.  

These are the characteristics of a good feedback culture in companies:

  • Regularity
    In a positive feedback culture, feedback is not a sporadic activity, but a continuous process. Employees receive regular feedback on their performance and there are clear mechanisms for exchanging feedback.
  • Constructiveness
    Feedback must always be constructive and aims to improve performance. It does not only focus on mistakes, but also emphasizes positive aspects to the same extent. Feedback must contain clear and specific information to support employees in their further development.
  • Openness
    A positive feedback culture promotes communication at all levels. Employees feel encouraged to share their thoughts and ideas and managers are open to dialog. There is an atmosphere of trust.
  • Recognition
    Good performance should not be taken for granted, but recognized. Employees feel valued and motivated when the employer sees their successes.
  • Reciprocity
    Feedback is not only given top-down, but also bottom-up. Employees not only receive feedback from superiors, but also mutual feedback that promotes teamwork and collective learning.
  • Clarity
    Instead of generalized formulations such as "You work well", concrete facts and examples should always be given. "You work in a very structured way" or "You have achieved excellent sales figures in recent months" is much better. After the interview, everyone should know what their strengths are and what they need to work on.
  • Learning orientation
    In a positive culture, feedback is seen as an opportunity for further development. It is not just about evaluating past performance, but also about how to improve in the future.

Important rules for giving feedback

Giving feedback in such a way that the right message is sent and received is an art in itself. You have to find the right words for every message and non-verbal signals also play an important role. The most challenging task is to communicate your perception of a person without offending them. Feedback should be geared towards future opportunities to learn from mistakes and should only be given when it is helpful.

Feedback should:  

  • constructive by offering prospects for the future.
  • be descriptive so that evaluations and interpretations are avoided.
  • be formulated objectively - personal insults are absolutely taboo.
  • be specific. Generalizations and sweeping statements make it difficult for the recipient to identify the problem.
  • be formulated subjectively. You should always talk about your own observations and impressions and not those of others.
  • should not be exclusively negative. It makes it easier for recipients to accept suggestions for improvement if they realize that they are not just being criticized. The positive sides must always be seen as well.

Important rules for accepting feedback

As the recipient of criticism, you initially find yourself in a passive role. This makes it all the more important to see negative feedback as an opportunity for personal development.

The following is important when accepting feedback:

  • let the other person speak.
  • do not justify or defend themselves.
  • accept the opinion of others.
  • If necessary, please feel free to ask comprehension questions.
  • be grateful for the feedback.

Taking stock: What is the current state of feedback culture in companies?

In 2020, Haufe conducted a study and took stock of the feedback culture in companies. More than 250 companies were surveyed. 91% of the specialists and managers questioned were convinced that a feedback culture is very important and should be given high priority. However, there was still a lack of implementation. Only 55% of respondents stated that the current feedback culture is not yet good. Only 12% rated the status quo in this area as very good. So although there is awareness of the importance of a feedback culture, there is still considerable potential for optimization in terms of implementation.

What are the challenges for companies?

The study also reveals the possible reasons why the findings have not yet been successfully implemented in practice. One of the main reasons is a lack of trust. This seems understandable, as hardly any of the employees will have the courage to express criticism to their superiors by the deadline. In order to establish a good feedback culture, relationship work is required in advance. Insufficient training and, ultimately, organizational hurdles also pose a challenge.

How a feedback system helps your company move forward

There is no doubt that it takes work just to create the organizational structures for continuous feedback. However, there are also decisive advantages for the company. Employee feedback helps to discover development opportunities - both at company level and at employee level. Feedback creates development opportunities.

By eliminating disruptive factors promptly, processes can be made smoother and more effective and disruptive factors can be eliminated. Constructive feedback creates a special sense of appreciation, which also increases employees' loyalty to the company. They identify with their employer and develop intrinsic motivation. Instead of doing things by the book, these employees think for themselves and show initiative. The company also becomes more attractive to potential new candidates, as word of an appreciative working environment spreads quickly.

Measures to establish a good feedback culture in the company

Every company is structured differently and must therefore find its own ways to introduce a functioning feedback structure. An important basic prerequisite for the development of a feedback culture is transparency in communication. Feedback is not a one-way street, but is mutual. Only when employees have insight into important business processes and can understand decisions can they form an opinion about them. There should also be an open error culture in which mistakes are not punished but seen as a valuable learning experience.

The development of a feedback culture is not a project that is completed within a certain period of time, but a permanent, ongoing process. The first step is usually regularly scheduled feedback meetings. As a counterbalance, anonymous employee surveys can also provide an authentic picture of the mood. In order to create a basis of trust, managers should always set a good example. They should actively give feedback themselves, be open to criticism or, at best, ask for it and also own up to their own mistakes. In this way, they create a safe place for employees where they can receive opinions, but also give them.

Communication training, such as that offered by the Stage Academy, encourages both employees and managers to learn how active listening and constructive feedback work. Regular workshops are also a good idea here.

There are also technical possibilities to support the growth of a feedback culture. Platforms or employee apps create quick ways to give spontaneous feedback instead of waiting for the next appointment.

It is worth creating a feedback plan

As previously mentioned, creating a feedback culture is not a one-off task, but a process. Feedback follows a cycle that should roughly consist of five steps.  

  1. Observation
    Analyze exactly what is happening in your team. Who is doing which tasks and to what quality? Where is there potential for improvement? What is already running optimally? Good observation is an important basis for authentic feedback.
  2. Preparation
    Before the actual feedback, the interview should be thoroughly planned. Think about the goal of the conversation and what you would like to achieve with your employee.
  3. Feedback meeting
    The feedback meeting should take place in a protected setting and preferably in private. This is where observations are addressed and opportunities for change are identified.
  4. Set a new goal
    A new goal should be set during the meeting, the result of which can then be the subject of the next meeting. Determine together which goal is to be achieved and in what time frame.
  5. Follow-up
    It is then your task to check whether the goal has been achieved. At the same time, the observation from step 1 continues and the cycle starts all over again.

Conclusion: Why a feedback culture is so important for companies

Establishing an appreciative feedback culture is an important success factor in every company today. Whereas in the past feedback was mostly expressed in the form of negative criticism, today decision-makers have become aware of the value of continuous, appreciative and balanced feedback for self-development and performance improvement. An established feedback culture is characterized by openness, trust and effective communication. It enables regular feedback between employees and managers. In practical implementation, however, there are still a few hurdles to overcome. The first step is to create a basis of trust and an open error culture in order to establish a solid foundation for an open feedback culture.

If this is successful, companies benefit in the long term because they can quickly identify development potential, eliminate errors and build on strengths. This ultimately also increases employee loyalty and motivation, as employees gain self-confidence and come to work in the morning with a clear conscience that their performance and commitment have been recognized.

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