"Why Not Asking for Feedback Could Be Your Most Expensive Mistake"
Posted on 8th October 2024 at 11:27
Asking for employee feedback can feel like a daunting task, especially for smaller companies. You might be concerned that it will cost more in time, money, and resources than it's worth. However, research shows that the benefits of listening to your employees far outweigh the costs. In fact, ignoring employee feedback could cost your business far more in the long run.
In this blog, we’ll explore why it's vital for SMEs to gather employee feedback, how it can improve your business, and some quick, low-cost ways to implement feedback systems that don't break the bank.
Why Listening to Employees is Crucial for Business Success
Research from the CIPD emphasises that employee voice—the ability for employees to express their views, suggestions, and concerns—is a critical factor in workplace satisfaction and business performance. Their 2022 report found that 87% of employees who feel heard by their employer are more engaged at work. Engaged employees are more productive, innovative, and less likely to leave the organisation, reducing the costs associated with recruitment and retention.
David Lewin, a renowned expert in employee relations, has linked strong employee feedback mechanisms to higher organisational performance, as employees who feel listened to tend to be more motivated and committed to their work. Similarly, John Purcell’s research highlights the strong relationship between employee voice and organisational success. Involving employees in decision-making leads to improved workplace morale, better problem-solving, and enhanced innovation.
Will Gathering Feedback Really Cost a Fortune?
Contrary to common misconceptions, gathering employee feedback doesn’t need to involve expensive surveys, consultants, or time-intensive processes. In fact, some of the most effective feedback systems are simple, low-cost, and can be easily integrated into everyday business operations.
The CIPD's 2023 Good Work Index found that 51% of employees in SMEs cite poor communication as a key factor in low morale. This is an area where feedback mechanisms can make a huge impact without major investment. Small changes in how you gather feedback and communicate with your employees can improve satisfaction and reduce turnover—saving money on recruitment and training.
Simple, Cost-Effective Ways for SMEs to Gather Employee Feedback
Here are some cost-effective methods small businesses can use to gather employee feedback:
1. Regular One-on-One Check-ins
Scheduling short, informal one-on-one meetings between managers and employees is one of the easiest ways to gather feedback. These conversations can happen weekly or monthly, lasting just 10-15 minutes, and provide employees with a safe space to raise concerns, suggest improvements, or share ideas.
2. Anonymous Suggestion Boxes
Whether physical or digital, suggestion boxes allow employees to share their thoughts anonymously. This method is low-cost and quick to implement, helping you gather honest feedback, especially on sensitive issues. A free digital option, such as Google Forms, can easily be shared with the team, making it even more accessible.
3. Pulse Surveys
Pulse surveys are short, focused surveys sent out regularly (e.g., monthly or quarterly) to check the mood and engagement of employees. Free tools like SurveyMonkey or Typeform make this process simple and affordable. According to research by the CIPD, pulse surveys can improve employee engagement by 30% when used consistently, as they provide actionable insights in real-time.
4. Team Huddles or Town Hall Meetings
Host regular team meetings or town halls where employees can freely discuss their concerns, ideas, and suggestions. These meetings can be short and informal, but they foster a culture of transparency and give employees a platform to feel heard. Research from Gallup shows that teams with high employee engagement experience 41% lower absenteeism and 21% higher profitability.
5. Peer Feedback Systems
Encouraging employees to give feedback to their peers can create a more collaborative work environment. You can set up informal team discussions or peer review sessions that focus on improvement rather than criticism. This method promotes open communication, trust, and shared responsibility for business outcomes.
Long-Term Benefits of Employee Feedback
Cary Cooper, a leading expert in organisational psychology, highlights that when employees feel heard, it improves their overall well-being. This, in turn, reduces absenteeism, turnover, and workplace stress—all costly problems for SMEs. According to the CIPD, employee turnover can cost businesses up to £12,000 per person, including recruitment, onboarding, and lost productivity. Listening to employees can reduce this risk by creating a workplace where people want to stay.
In the long term, regularly gathering feedback from your employees enhances business agility. It allows you to spot small issues before they escalate, identify innovation opportunities, and adapt to change more smoothly. In a highly competitive market, businesses that listen to their employees are better positioned to succeed.
The Importance of Acting on Feedback and Communicating Results
Listening to employee feedback is only half the battle. The real value comes when businesses act on the insights they receive and communicate those actions back to their team. Research from Gallup shows that only 10% of employees strongly agree that their leaders act on the feedback they provide. This disconnect can lead to frustration, disengagement, and ultimately, turnover. When employees see that their feedback leads to tangible changes, they feel valued and are more likely to continue contributing ideas. It’s crucial for companies to not only gather feedback but also follow through by implementing changes where possible. After taking action, businesses should clearly communicate what steps have been taken, either through team meetings, emails, or updates during one-on-ones. This fosters a culture of trust and transparency, reinforcing the idea that employee voices truly matter.
Conclusion: Asking for Feedback Won’t Cost You a Fortune, Ignoring It Will
The costs of ignoring employee feedback—low morale, high turnover, and missed opportunities for innovation—far outweigh the costs of gathering it. By implementing simple, cost-effective feedback methods, SMEs can cultivate a more engaged, productive, and loyal workforce.
In summary:
Engaged employees are more productive: 87% of employees who feel heard are more engaged.
Pulse surveys can boost employee engagement by 30%.
Businesses with high employee engagement see 41% lower absenteeism and 21% higher profitability.
Turnover costs UK businesses up to £12,000 per employee—listening to employees can prevent this.
Start small with simple systems like suggestion boxes, regular check-ins, or peer feedback sessions. By embedding a culture of listening, you’ll reap the long-term benefits of a happier, more productive workplace without spending a fortune.
Sources cited in this blog:
CIPD (2022). Employee Engagement: What it is and why it matters. Chartered Institute of Personnel and Development.
CIPD (2023). Good Work Index 2023: Annual Survey Report. Chartered Institute of Personnel and Development.
Gallup. (2016). How Employee Engagement Drives Growth. Gallup, Inc.
Purcell, J. (2014). Voice and Participation in the Modern Workplace. Journal of Industrial Relations.
Lewin, D. (2010). Employee Voice and Organizational Performance: Evidence from Research on Labour Relations. Human Resource Management Journal.
Cooper, C. (2013). Well-being, Productivity and Employee Voice. Organizational Psychology Review.
Tagged as: #BusinessGrowth, #BusinessInsights, #CIPD, #EmployeeFeedback, #EmployeeVoice, #EmployeeWellbeing, #EngagedEmployees, #FeedbackCulture, #HRStrategies, #LeadershipDevelopment, #OrganisationalPerformance, #SmallBusiness, #SMBSuccess, #WorkplaceCulture, #WorkplaceEngagement
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