Here's Why You Should Seek Constructive Feedback from Employees

Date: March 01, 2018

Asking for criticism can make your business better, but it can be tough for business owners and employees. Here’s how to do it right.

Honest employee feedback can improve your business and make small business owners better leaders, but it can be intimidating for employees to open up to the boss. Three business leaders share how they’ve fostered an open-door policy with employees at their businesses.

Know how to ask for feedback

The easiest way to encourage employees to provide honest feedback is to simply ask for it. But your employees’ responses will depend heavily on how you ask and how you respond.

“A great time to ask for criticism is at the end of a one-on-one [meeting] after the other person has gotten through the things they wanted to talk about,” says Kim Scott, a Belmont, California-based CEO coach and author of The New York Times bestselling book “Radical Candor.”

It’s critical to embrace the discomfort once you’ve asked the question, Scott says. “Nobody wants to tell you what they really think. The most likely first response you’ll get is ‘everything is fine.’ To push the person out of their comfort zone, shut your mouth and count to six. Almost nobody can endure that much silence. They’ll say something.”

Once you’ve received the feedback, your response is equally critical. “Listen with the intent to understand, not to respond,” Scott says. “A simple way to do this is to say, ‘Just to make sure I understand,’ and then repeat back what you think you heard without any judgment at all.”

Finally, it’s necessary to act on the criticism to show that you value the employee’s feedback. If you agree with the problem, fix it or outline what steps you plan to take to fix it, and thank the employee for providing their feedback.

If you disagree, you must respond carefully. “Don’t lie, but also don’t demand examples or cross-examine the person,” Scott says. “Find the 5 to 10 percent of what was said that you can agree with. Then, ask for a day or so to think about the rest and actually think about it. Offer the person a full explanation of why you disagree. Don’t drag the disagreement on forever. Listen, challenge, but commit together to a course of action that moves you forward even if you disagree.”

RELATED: 10 Tips for Asking Good Exit Interview Questions

Use anonymous surveys

For some small business owners, asking for feedback directly and responding without defensiveness might not be possible. If you know this about yourself, an anonymous survey can be a good alternative to encourage honest feedback without conflict.

Another advantage of anonymous surveys is that they make it easier for some employees to be honest. “While your company should strive to create a culture in which everyone feels comfortable sharing their thoughts, ideas, and opinions, it can be scary for employees to take that leap, especially if their opinions include constructive criticism,” says Greg Besner, founder and CEO of CultureIQ in New York City.

Third-party administrators like National Business Research Institute, Qualtrics, and HighGround can add an extra layer of anonymity to the process, and they also compile results in a transparent report that will allow you to be open with employees about the responses and how you plan to take action on them.

Use this report to provide employees with an action plan for how you plan to respond to their feedback. This transparency may also encourage future candor. “When employees see that their leadership team is committed to improving your organization’s culture, those employees will be more likely to share their feedback,” Besner says.

Be transparent and available

The more information you provide employees about the business, the more likely they will feel comfortable being honest with you. “I’ve always found my team is more open with me when I am open with them,” says Bob Mason, managing partner at the Daedalus Group in Albuquerque, New Mexico. “[Make] sure they know what’s happening. How’s the business doing? What are the key metrics you’re tracking and why? What do you see in the future? When they ask what your concerns are, tell them. I’ve always found my teams respond much better when I don’t keep unnecessary secrets.”

Be sure you’re offering absolute honesty. “If you aren’t honest with your team, they will not be honest with you,” Mason says.

Finally, don’t hide in your office. Spend some time with your employees where they are doing the work. “Your team is much more likely to come to you if you go to them,” Mason says. “Get out where they are. See what they’re doing. What concerns them? What gets in their way? When they see you are interested in their issues, they will be more likely to be honest with you.”

RELATED: How Do Employees Affect Your Small Business’ Financial Performance?

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