How Startups Create a Feedback-Driven Culture

TechRound Team

4 months ago

—TechRound does not recommend or endorse any business advice or practices. All articles are purely informational—

Nearly every employee asks these questions, some out loud, most in silence. The difference between a company that succeeds and one that struggles is whether these questions get answered.

Startups move fast. Too fast, sometimes. With hiring, building, and launching, it’s easy for feedback to fall to the bottom of the priority list. That’s a mistake. If you’re not listening to your employees or providing them with feedback, you’re neglecting a vital part of your business.

Right now, 2 in 5 employees aren’t getting any feedback and it’s stunting their growth and that of the business. A stagnant workforce leads to a stagnant startup, whereas in comparison, a strong feedback culture gives you a competitive advantage.

Why Employee Feedback is Important in Startups

Starting with your employees, the smart, driven, and capable people you hired. They want to excel, but wanting success isn’t enough. They need direction and a way to share their ideas on how your startup works.

When you give them that, they’ll be more engaged. They’ll strive for more because they understand what is expected and how to improve. In fact, Gallup found that 80% of employees who receive meaningful feedback are fully engaged.

This engagement directly impacts the success of your startup. Engaged employees collaborate better, innovate faster, and work harder. They’re invested in the startup’s success because they understand that you’re invested in their growth and value their input.

How To Develop a Feedback-Driven Culture

To build a feedback-centered startup, you need to begin from the moment an application hits your inbox. This means communicating at every stage, from the screening call to the interview. For instance, after an interview, if you decide not to move forward, you could send clear and respectful feedback with specific reasons and suggestions for improvement.

To make this easier use tools like recruitment software to schedule emails providing updates and feedback every step of the way. At the end of the process you could even send a survey asking about their experience to help you improve your hiring process in the future.

Once an employee has accepted the role, communication and feedback needs to continue flowing through the onboarding stage. Schedule meetings during and after they’ve completed their training to check in with how they’re doing, and discuss areas they could improve.

Remember, feedback is a two-way street. By encouraging candidates to talk about how they found the process you’re showing you value their input, right from the start.

Promote Open Communication

Your employees need to trust you. They need to know they can come to you and your management team with any concerns or ideas they have without fear of punishment or judgment.

So how can you promote open conversations at your startup?

Introduce an open door policy: This encourages your team to come to you at any time, for anything
Lead by example: Even the greatest managers come across challenges. When you’re open about them, it sets a powerful precedent for your team to do the same
Hold regular town hall meetings: Get your whole company together to discuss your startup’s progress, your goals, and your culture. Encourage participation from employees of all levels, giving even the junior team members a platform to share their thoughts

As well as giving them the chance to talk, you also need to actively listen. This means that you shouldn’t interrupt them or rush to solve a conflict. Show empathy and reflect on what they’ve said. If there’s an issue, ask for specifics, then work together on a solution. If they have an idea, take it seriously and discuss how it can be implemented or respectfully explain why it can’t be. You want your employees to feel heard and comfortable with sharing their ideas with you.

Introduce Regular Performance Reviews

Annual feedback is ineffective. A once-a-year review does not drive growth, it documents history. For a company to succeed, feedback has to be continuous and ongoing.

HR leaders recognise this. In fact, 60% have said that frequent or continuous feedback is a top priority for them. Yet a lot of startups fail to act. They assume employees understand where they stand, that managers are providing guidance, and that progress will happen organically.

These assumptions can be costly with a 2023 study revealing that 73% of Gen Z workers and 52% of non-Gen Z employees would leave if they didn’t get frequent feedback from their managers.

Now, it’s understandable how a new company that is growing quickly may struggle to find the time to provide regular performance reviews. But there are platforms, like performance management software, that can help. Tools like these can track progress, facilitate meaningful feedback that goes both ways, and support employee development. So be sure to look into how software can help automate and streamline feedback.

Use Dedicated Feedback Tools

Feedback should be clear, timely, and actionable. But too often, it’s vague, inconsistent, or simply forgotten. If you’ve ever left a performance review thinking you didn’t receive any feedback or weren’t listened to, you’re not alone. Maybe your manager said, “You’re doing fine, just keep it up.” Or worse, the only time you receive feedback is when something goes wrong. That kind of ambiguity helps no one.

Some companies rely on casual check-ins. But, the best companies make feedback a priority and use tools to keep it on track. Tools like:

Performance management software: This software helps track progress, set goals, and make feedback easy to give and receive
360-degree feedback surveys: Get feedback from everyone – your peers, managers, and team members. It gives a fuller picture of performance
Pulse surveys: These are quick, anonymous surveys to check in on how employees are feeling and where they may need more support
Project retrospectives: After a project, get the team together to talk about what worked, and what could be improved in the next one. You could use project management tools here to identify any bottlenecks and get real-time insights
1-on-1 templates: These are simple frameworks to make sure feedback is clear and useful, not just a casual chat

Feedback doesn’t work if it’s random or vague. Using the right technology can help feedback become a regular part of your company’s growth.

Recognise and Reward Feedback

We all like to hear that we’re doing a good job. If we have excelled at a certain project, for instance, being praised on this can make us feel seen and appreciated.

However, recognition doesn’t need to stop at performance alone. The act of providing feedback is a skill. One that requires you to be a great listener, have good emotional intelligence, and communicate your thoughts and feelings in a constructive and thoughtful way. In fact, McKinsey & Co found that nearly 25% of employees feel their managers lack the skills to conduct effective performance reviews.

It can also take courage to suggest improvements or changes. So, when your team is actively contributing to you becoming a feedback-driven startup, be sure to recongise and reward them for this. Here’s how:

Public recognition: Give them a small shoutout in a company-wide meeting, or in front of their peers
Private recognition: Take a moment to personally thank, or praise the employee in person, or via email
Treats or meals: Offer a free lunch or some office treats

This will reinforce the value you place on feedback and encourage others to speak up in the future.

Evaluate and Refine Your Approach

Like with most things in the business world, there isn’t a one-size-fits-all way to create a workplace culture. The truth is, that what works for one startup may be completely unsuitable for another. So, how can you guarantee that your approach is actually working the way that you want it to?

The first step involves taking a magnifying glass (metaphorically speaking, of course) to your feedback processes. Ask yourself questions like:

Is feedback being delivered regularly and consistently, or is it happening only when something goes wrong?
Are employees clear about what you’re telling them?
Does the feedback they’re getting help them grow or are they left more confused?
Are you receiving constructive feedback from your employees?
Does your team know what feedback tools are available to them? Can they use them?
Is feedback resulting in action and improvement, or is it just a formality?

From fostering clear, open communication tactics like active listening, to introducing automation tools, these steps can help create a well-rounded approach. A positive feedback culture can benefit more than just individual development, it can boost team dynamics, sparks innovation and drive overall performance across the organisation.