In The Lion's Den, we often hear Jesper Buch cheekily say: "Yes, yes, it's a fine product you have. I'll give you that. But I'm really interested in knowing when I can expect to get my investment back." If Feedwork were to sit in the hot seat at DR's film studio one day, the same question could be expected. Because yes, we need to be able to talk to each other, and it's important that employees are happy and motivated. But what about the bottom line? Is it even profitable in the long run to invest in feedback?
There's no doubt that feedback creates profit in ways other than downsizing and streamlining. Instead of cutting the number of employees, feedback training is about investing in employees. So, the starting point for the profit a healthy feedback culture will create is related to the effects it has on employees.
Unmotivated employees cost money
As you can read in the article on motivation, feedback is essential for creating motivation in employees. In fact, Hackman & Oldham believe that without feedback, motivation cannot exist. But is it really so bad if employees don't always feel fully motivated? After all, they still come in and work 9-16?
A Gallup survey shows that lack of motivation and unhappiness costs the US between 450-550 billion dollars. 450-550 billion dollars! Money lost due to a lack of productivity caused by unmotivated employees. It's an unfathomably high amount, but I think most people can recognize the effect it has on their work performance if they are generally unmotivated at work. Lunch breaks get longer, social media gets a little too much attention, too many irrelevant conversations with your other unmotivated colleagues, etc.
No feedback? Goodbye and thank you
Not only are unmotivated employees unproductive, but the lack of feedback also results in employees changing jobs faster - which in turn costs the bottom line. In fact, the rate of rapid turnover is 14.9% lower in companies that use regular employee feedback.
There are significant costs associated with high employee turnover. A job posting must be created, candidates must be interviewed, other employees must work extra hours until the new position is filled, and then the new employee must be trained. Josh Bersin from Deloitte estimates that losing an employee costs the equivalent of 1.5-2.0x the new employee's annual salary. All in all, losing employees is expensive, and feedback increases the chances of them staying - so why not invest in feedback?
Now let's focus on the positive!
As you can see from the above, a lack of feedback can have a significant negative impact on employee productivity, motivation and well-being. But it doesn't have to be all negative. A healthy feedback culture also has a number of positive consequences that every company wants.
Learn about: authentic leadership and focus on the positive
Innovative employees? Yes, please!
Today, most businesses survive by being innovative. They need to be innovative, adaptable and agile to compete with other businesses. But how can a company be innovative and agile if its employees aren't? If the employee never receives feedback, there's a good chance they'll keep doing what they've always done. Because apparently, it works. But maybe it doesn't?
If you want employees who are innovative and creative, feedback is a necessity. A survey by Officevibe shows that 92% believe that constructive feedback is an effective tool to increase performance. By being recognized for what is done well and having things pointed out for improvement, employees can develop themselves and their abilities, which drives productivity, innovation and creativity. And as mentioned, feedback leads to better wellbeing and motivation. Studies show that employees who thrive are 3x more creative than employees who don't.
Conclusion: Feedback can be seen on the bottom line
If you want motivated employees who don't leave your company and offer innovative and creative solutions, feedback is the way to go. All of these things combined will be reflected in the bottom line, as employee efficiency increases, hiring costs decrease and revenue can increase based on innovative solutions. In conclusion, feedback is not only beneficial to the wellbeing of employees in the workplace, but is just as relevant to the company's growth and profit goals.
Another way employees can increase their work performance is by increasing their self-belief. Find out how this can be done in this article.
.png)
