Employee feedback: how to build trust, communication and success

Effective employee feedback has the potential to transform how organisations operate, driving better communication, higher productivity and stronger engagement. Yet many businesses struggle to approach feedback constructively or integrate it into their day-to-day operations. 

Let’s take a minute to explore how employee feedback can be used effectively, offering actionable advice for managers and employees alike.

Related: How can you improve the employer-employee relationship?

What is employee feedback?

At its core, employee feedback refers to the information exchanged between employees and their managers or peers about performance, behaviours or workplace experiences. It is a two-way conversation — managers provide feedback to guide performance and growth, while employees share insights that can help improve processes or highlight challenges within the organisation.

Employee feedback can take many forms, from informal one-on-one discussions to formal performance reviews or employee surveys. When approached thoughtfully, it encourages open dialogue and helps align individual efforts with organisational goals.

We like to stress that employee feedback is only truly effective when it works well both ways — employees need a voice and they need to feel empowered to use it.

Why employee feedback matters

Employee feedback is more than just a tool for performance improvement. It plays a significant role in shaping workplace culture and driving engagement. In fact, employee feedback can benefit businesses in a number of ways:

• Improved performance: Timely, actionable feedback provides clarity on expectations and helps employees focus on meaningful goals.
• Better decision-making: Employees often have unique insights into operational inefficiencies or customer concerns that management may not see.
• Higher engagement: A workplace where feedback is valued creates an environment where employees feel heard and appreciated.

Research highlights the importance of this practice. According to a study published in Harvard Business Review, 72% of employees believe that feedback from their managers would improve their performance.

Types of employee feedback

To use employee feedback effectively, it is important to understand its various forms:

• Constructive feedback: Focused on areas for improvement, this type of feedback is best delivered with specific examples and actionable suggestions.
• Positive feedback: Recognising accomplishments and celebrating success builds morale and encourages employees to continue performing well.
• Developmental feedback: Designed to help employees grow in their roles, this type focuses on long-term skill-building and career progression.

A combination of these types creates a balanced approach that drives improvement while maintaining morale.

Best practices for giving and receiving feedback

When it comes to giving and receiving feedback, here are our best practices, based on our years of experience in the area:

When giving feedback

• Be specific: General comments like “Good job” or “We don’t get enough training opportunities” lack actionable details. Instead, pinpoint the specific behaviour or result and explain its impact. For example, say, “Your presentation yesterday was clear and engaging, which helped clarify the project goals for everyone.”
• Deliver feedback promptly: Feedback is most effective when it is timely. Whether recognising success or addressing areas for improvement, provide feedback as close to the relevant event as possible to maximise its relevance and impact.
• Create a dialogue: Treat feedback as a two-way conversation rather than a one-sided critique. Encourage the other person to share their perspective and explore potential solutions together. This approach builds mutual understanding and leads to actionable outcomes.

When receiving feedback

• Listen with intent: Stay focused on what is being said without interrupting or becoming defensive. If something is unclear, ask questions to gain a full understanding before responding.
• Adopt a growth mindset: View feedback as a chance to enhance your skills or approach. Frame it as an opportunity to learn and grow rather than a personal criticism.
• Be proactive about feedback: Don’t wait for formal reviews to seek input. Regularly ask for constructive feedback from peers, managers or direct reports to identify areas where you can improve and make a stronger impact.

Tools and techniques for effective feedback

Using the right tools and methods can enhance the quality of employee feedback:

• Regular one-on-ones: These meetings provide a consistent opportunity to share feedback in a relaxed setting.
• Pulse surveys: Short, frequent pulse surveys capture employee sentiments in real time, offering insights into overall morale and workplace issues.
• 360-degree feedback: 360 feedback gathers feedback from multiple sources, including peers, managers and direct reports, providing a well-rounded view of performance.

Overcoming challenges in employee feedback

Despite its benefits, there are challenges that organisations must navigate when introducing a feedback culture:

• Fear of criticism: Employees and managers may avoid feedback due to concerns about negative reactions. Training on delivering feedback constructively can address this.
• Lack of follow-through: Feedback without action creates frustration. Managers should demonstrate how they are acting on feedback to build trust.
• Inconsistent communication: Feedback must be a regular practice rather than a sporadic event. Scheduling recurring check-ins can make feedback part of everyday operations.

The role of employee feedback in organisational success

The link between employee feedback and organisational success is well-documented. Companies that prioritise feedback tend to experience higher productivity, better innovation, and improved retention. A workplace where employees feel valued is one where they are more likely to contribute their best efforts.

For example, one report found that organisations with strong feedback practices are 1.5 times more likely to experience above-average financial performance. This really goes to show that consistent, meaningful feedback can have a huge impact not just on employees but on the broader business.

When feedback is integrated into the workplace culture, it strengthens relationships, aligns goals and supports a thriving organisation. By prioritising dialogue and acting on insights, businesses can create a workplace where employees feel valued and empowered.

If you want to understand your workforce better, get in touch today to organise an employee survey that captures the insights you need to move forward.