It’s unfortunate today, that many leaders are ill equipped to develop their teams or lack the knowledge as to how demographics have changed and that their approach must change from traditional performance review models. Generational shifts demonstrate that by 2030, Millennials and Gen Z will have grown to make up 66% of the workforce. This group expects instant, ongoing feedback, vs annual reviews. Failing to meet that expectation will mean risking the loss of top talent.
When feedback is infrequent or poorly delivered, organizations today risk high attrition, disengagement, and unaddressed performance issues. Here’s why:
Even if your Leaders are aware of this dynamic shift, 37% of managers still feel uncomfortable giving feedback to their direct reports. This disconnect between manager comfort level and employee expectation reflects a critical communication gap that impacts team morale and business performance.
In short, feedback isn’t just about performance but also about building trust, encouraging learning and development, and improving retention.
The shift away from annual reviews to real-time feedback is becoming a strategic necessity because organizations that provide regular feedback are seeing 30% higher revenue growth and are 4.2x more likely to outperform competitors.
If you are still relying on outdated models, here are four warning signs your feedback culture needs work:
Harvard research reveals that negative or vague feedback rarely leads to improvement and employees may avoid working for certain managers or roles entirely, resulting in workarounds that normalize dysfunction rather than solving the root cause.
Without consistent, constructive guidance, employees become uncertain about expectations, leading to stress, reduced productivity, and morale decline.
We have found that the most effective feedback requires structure, emotional intelligence, and a coaching mindset. We recommend the following:
Their concerns often result in vague, infrequent, or overly positive feedback that fails to improve performance. In our experience, many leaders deflect the issue saying “they can’t handle criticism” rather than recognizing the skills gap is in their own inability to communicate regularly and effectively.
The good news? Adopting the process, approach and regularity for effective feedback is a learned skill. And like all leadership and teamwork skills, it too can be developed with the right tools and support.
We have found that the most effective feedback requires structure, emotional intelligence, and a coaching mindset. We recommend the following:
1. Proven Feedback Frameworks
2. Structures for Continuous Feedback
3. Emotional Intelligence Development
4. Active Listening Skills
5. A Coaching Mindset
This transition requires moving away from providing feedback only when corrective action is required toward feedback as a support mechanism that demonstrates your employees are valued and that your company has a vested interest in their success. While you may have responsibility for direct reports, remember that they also may need to coach others, so your example and oversight should trickle down.
While it will take some work to adopt this new practice, you will find that regular effective feedback is a model for establishing conversations as great opportunities to grow talent, improve morale, performance and develop a culture of engagement.
If you’re ready to develop your Leaders’ ability to adapt to an effective regular feedback model, The Poirier Group has firsthand experience! We have employed regular feedback as normal practice for many years which in part has resulted in differentiating our consulting team in this industry, earning us significant recognition and awards for consulting, culture and delivering an exceptional consulting experience for our clients.
When you are ready to transform your workforce for the future, we’ll demonstrate what is possible and how to get you there! Contact us today to find out.
