How To Use Feedback For Employee And Company Development

A company that seeks to develop has to lay down a strategic plan that will help steer the business to success.

Part of the plan includes using feedback to assess the performance of employees and other stakeholders in the business.

The feedback can either be helpful information or criticism of your products or how you provide your services. 

Providing feedback is essential in employee development in different ways, such as understanding each employee’s strengths and weaknesses.

The data can help them analyze their potential and how they can develop their skills and, in turn, help your company grow.

The best choice of feedback collection is using a 360 degree feedback process as it helps you gather all-around feedback on an individual or a group of people working on a developmental plan.

With enough reliable feedback, you can use it to improve your employees and develop your company in the following ways:

Improve Communication And Teamwork

Communication between team members and managers in an organization is vital in creating a culture of trust and openness.

Frequent feedback can improve the level of communication in your team.

Your team can use the feedback as a challenge to better themselves and also advocate for transparency within the group.

When your team communicates with each other, they can handle challenges better as they help each other.

Communication also improves collaboration as employees understand how their performance will affect other team members.

This helps in bringing the best out of each individual and the company in general.

Feedback Is A Learning Tool 

Both your employees and the management can learn a lot from the feedback that they get. For instance, employees can identify the gaps in their skills, be it interpersonal or hard skills.

They can then upskill or find a way to close the gap by learning more about the areas they’re lacking.

This will also help them in developing their careers in the future. 

Second, if the management receives feedback from employees or other parties, they can identify management issues that may be causing the employees to underperform.

As such, management can then design ways to appreciate them. It’ll also help them quickly identify some key areas that can be changed to improve the company.

Employees will feel more appreciated if their feedback is used to make changes in the company, which could help increase their productivity.

Clearer Understanding Of Expectations 

Feedback can help employees understand what’s expected of them.

The feedback could be about their current behavior or performance and how it’s supposed to be.

It then acts as a guiding principle for employees to adjust themselves to meet the required standards.

Employees who know what they have to do, how to behave, and what to achieve will help build an excellent culture in your company.

They’ll form part of a good company value that customers and other stakeholders will appreciate.

Reduce Defensiveness And Promote Constructive Criticism 

Assessing an employee’s performance from one point, like the manager’s, may make them more defensive or take it personally.

However, that shouldn’t be the purpose of feedback in an organization, as feedback is meant to make people better rather than feel attacked.

To bypass such challenges in an organization, you can use the 360-degree feedback technique to provide different perspectives of an individual.

The feedback from different sources is always unbiased, and your employees will take it as constructive criticism rather than personal attacks on them.

They can then compare individual assessments with the feedback and work on improving themselves rather than getting defensive.

As they work on the negative sides of the feedback, they improve their performance and interactions and contribute to a better company.

Use Feedback As A Motivational Factor

Using constructive criticism can help motivate your employees as you tell them how things should be done rather than judging them.

Positive feedback tells your employees that you believe in them and that they can achieve goals sooner if they change how they work or behave.

Moreover, because feedback comes from people they interact with daily, employees will likely take it positively and work toward bettering themselves.

If there’s negative feedback, employees will want to change it by working better to get positive feedback on the next assessment.


Gathering feedback from your team or customers is essential in assessing the strengths and weaknesses of your team.

If you get more people to provide feedback, it reduces bias and gives your employees better insights into their performances and what they need to improve. 

The feedback will play a significant role in developing skills, motivating teams, increasing collaboration, and creating a productive culture in a company.

Therefore, feedback should be encouraged within any growing company.