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Feedback is an essential tool for the development of employees and teams, especially in this new “BANI” world (an acronym for brittle, anxious, nonlinear, and incomprehensible), which describes the current paradigm where communication is crucial. In this context, many companies are already implementing a culture of continuous feedback as a way to foster both individual and organizational growth while also motivating and retaining talent.

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According to PwC’s “Global Hopes and Fears 2023” study, 50% of professionals actively seek feedback, while 49% provide feedback to their colleagues. These numbers indicate a significant openness to feedback in the workplace, although there is still a long way to go in this regard.

Feedback Culture vs. Performance Evaluation

According to the Harvard Business Review, traditional performance evaluations have been abandoned by more than a third of U.S. companies. The biggest limitation of these evaluations, according to experts, is their focus on holding employees accountable for what they did in the past year rather than improving their performance in the present and future. That is why many organizations are adopting more frequent and development-oriented conversations between managers and employees. Some of the reasons for implementing a continuous feedback culture include: 1) A labor market with a shortage of workers creates pressure to keep employees satisfied and engaged in company life; 2) A rapidly changing business environment demands agility, justifying regular (feedback) conversations with employees; 3) Prioritizing growth over accountability (which focuses on past problems) fosters teamwork. Other companies are testing hybrid approaches, such as assigning employees performance ratings across multiple dimensions alongside regular feedback on development and career progression. Although there is no single model, it is widely accepted in modern management that the ability to listen, engage, ask questions, and, most importantly, make employees part of the solution in company matters on a continuous basis is fundamental for both individual and business growth.

5 Steps for Continuous Feedback

The best way to prepare employees and teams to give and receive feedback is through training programs that effectively and continuously develop their skills. Giving and receiving feedback are skills that can be developed, and like any other skill, they should be cultivated and practiced regularly. Here are some steps to implement a continuous feedback culture:

1. Choose a feedback model, such as the “OIO” model (Observation, Impact, and Opportunities): Observation: What do I think we do very well? Where do I see room for improvement? Impact: What was the impact of how we handled the situation? Opportunities: What opportunities exist for improvement in the future?
2. Leaders should practice what they preach: When employees see leaders modeling strong feedback practices, they are more likely to adopt the same behavior. Leaders must practice humility and be open to receiving feedback from all levels. (Studies show that top leaders receive the least feedback, even though they need it the most!)
3. Create a safe environment for feedback: Effective feedback will not happen in a hostile or intimidating setting. Employees need to feel psychologically and emotionally safe, knowing that giving honest feedback will not lead to negative consequences. This starts with building trust-based relationships where employees can be themselves and speak up when issues arise.
4. Structure feedback sessions: Instead of waiting for feedback to happen naturally, schedule and allocate time for it. Informal conversations by the coffee machine are great, but formal feedback should also occur through one-on-one meetings, retrospective meetings after projects, or 360º degree surveys.

Maintain an open mind when giving and receiving feedback: Encourage employees to resist the urge to be defensive and instead see feedback as a positive tool for learning and growth. Even if they do not agree with the feedback given, staying open to it ensures that learning happens.

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A continuous feedback culture might be exactly what many organizations are missing. Developing skills in this area and fostering a positive feedback culture makes a significant difference. It is time to move from a paradigm of “continuous process improvement” to a new reality of “continuous people evolution,” as this alignment is what truly drives results.

Article by Sérgio Almeida, in partnership with Vida Económica.