The Feedback Revolution: Why Top Companies Encourage Employees to Grade Their Managers

by Srikant Chellappa Sep 27,2024
Engagedly
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You know sometimes feedback can be uncomfortable, right? And for some reason, the moment you mix feedback with workplace hierarchy, things get even more awkward. Picture this: you’re supposed to give feedback to the person who signs off on your performance reviews, promotions, and raises.

Sounds like a fun conversation, right? Yet, something interesting is happening in the modern workplace. Top companies are flipping the script, encouraging employees to provide direct feedback to their managers. Wait, what? Why would any manager sign up for this?

Spoiler alert: it’s a game-changer for businesses. In fact, it’s become a revolution. Curious to know why? Let’s dive into how and why companies are giving employees the green light to grade their bosses—and what this shift means for the future of work.

A Brief History: Why Feedback Was Always Top-Down

Traditionally, feedback in the workplace has been, shall we say, a bit of a one-way street. Managers give feedback to employees—full stop. Performance reviews focus on the person in the subordinate role, while managers, seemingly immune to scrutiny, float above the fray.

Why was it like this? Well, part of it is rooted in corporate culture. For decades, leadership was synonymous with authority, not transparency or vulnerability. Feedback from employees? That was seen as unnecessary, even disrespectful. The assumption was, that managers knew how to manage. Feedback? Not required, thank you very much.

 

Enter the Modern Workplace: Open Communication Wins

But things have changed. Today’s workforce—especially Millennials and Gen Z—values transparency, open communication, and growth. And let’s be honest, it’s hard to grow without knowing how you’re doing. That’s why many companies have recognized that feedback should be a two-way street.

According to a 2023 Gallup poll, companies that foster open communication, including feedback for managers, see significantly higher engagement and lower turnover rates. Employees today don’t just want to be heard; they want to know their thoughts make a difference. And the most effective way to achieve this? Allow them to rate and give feedback to their managers. 

The Benefits of Employee Feedback for Managers

Okay, let’s play a quick game of “What If?” What if employees could offer constructive feedback for managers? What if the person reviewing your work every quarter suddenly became the one on the receiving end? Here’s why this topsy-turvy approach works:

Boost in Managerial Accountability

When employees know they have a voice, managers are motivated to step up their game. It’s simple. If you know your team is going to rate your leadership, you’re going to pay more attention to how you lead. Managers are no longer untouchable—they’re accountable.

Creating a Culture of Growth

Companies that collect feedback from all directions create an environment of continuous improvement. When managers receive feedback, they can work on their weaknesses, just like employees do. This culture of mutual growth fosters an inclusive and forward-thinking workplace where everyone is improving.

Breaking Down Communication Barriers

There’s no better way to make employees feel comfortable speaking up than making it a part of the culture. Once employees are accustomed to giving feedback for managers, the lines of communication open up in all directions. Suddenly, feedback becomes a regular occurrence—not just during awkward annual reviews.

Case Study: Adobe’s Check-In Feedback System

Adobe, a tech giant known for its creativity tools, has embraced upward feedback through its innovative “Check-In” system. Instead of traditional annual reviews, Adobe implemented regular, real-time feedback sessions where employees assess their managers’ leadership skills and communication abilities. The goal? Continuous improvement and open dialogue.

The feedback, which remains anonymous, allows employees to be candid without fear of repercussions. Managers receive actionable insights, enabling them to address weaknesses quickly. Since launching the system, Adobe has seen increased engagement and more agile leadership, fostering a collaborative and growth-focused work environment.

 

The Downside: What Could Possibly Go Wrong?

Before we go ahead and paint a perfect picture, let’s get real for a second. Allowing employees to grade their managers isn’t all sunshine and rainbows. There are potential pitfalls. One glaring issue is that feedback can sometimes feel personal or biased. It’s hard for people to separate their feelings from objective criticism—especially when emotions run high.

Also, there’s the classic concern of retaliation. Sure, you can give feedback, but what happens if your manager figures out it was you who left the not-so-glowing review? Can you say “awkward meetings”? This is why many companies ensure that the employee’s feedback for managers remains anonymous.

Real Talk: Managers Need Thick Skin

Now, let’s break the fourth wall for a minute. If you’re a manager reading this, you might be wondering: “What about me? How do I handle this feedback revolution without crumbling into a heap of insecurity?” Fair question. The truth is, grading managers only works if they’re prepared to receive criticism with grace.

No one likes to hear they’re not doing a great job, but that’s where thick skin comes into play. Managers who embrace feedback as a tool for growth will come out ahead. After all, even top-performing leaders have areas to improve. 

 

The Impact on Employee Engagement and Retention

Alright, we’ve spent plenty of time talking about the perks for managers, but what about the employees themselves? After all, they’re the ones driving the engine of any company. How does this whole “feedback revolution” shake things up for the workforce on the ground level? Spoiler alert: the results aren’t just noticeable—they’re transformative.

  1. Increased Engagement: Employees Start Caring (A Lot More)

When employees feel that their voices genuinely matter and that their input is being considered by leadership, something magical happens—they start caring more. Engagement skyrockets. But what exactly does that mean? 

Let’s break this down with some data. According to a study from Gallup, highly engaged workplaces see a 21% increase in profitability compared to less engaged ones. Why? Because employees who feel they have a say in how the ship is being steered are far more likely to work harder, put in that extra effort, and come up with innovative ideas. 

  1. Lower Turnover Rates: Breaking Free from the ‘Bad Boss’ Cycle

Let’s talk about turnover. It’s the corporate equivalent of a leaky faucet: irritating, costly, and totally preventable with the right tools. High employee turnover often has a direct line back to bad management. And honestly, no one wants to work under a boss who doesn’t seem to care, communicate, or provide growth opportunities. 

But here’s where the feedback for managers process comes in like a rescue mission. When employees know they have a safe, structured way to voice their concerns about leadership, they’re far less likely to start mentally drafting resignation letters. Instead of silently suffering under ineffective management, they can speak up and suggest changes. This feedback loop allows managers to course-correct before employees feel the need to walk out the door. 

  1. Stronger Workplace Relationships: From Feedback to Friendlier Teams

Now, I know what you might be thinking: isn’t giving feedback to your boss a recipe for awkwardness? In the short term, maybe. But long-term? It’s actually a powerful tool for building stronger, healthier relationships within the workplace. The initial awkwardness wears off, and what’s left is a more transparent, open, and collaborative environment.

Think about it this way—when feedback becomes a normal part of the work culture, communication barriers dissolve. Employees feel more comfortable sharing their thoughts, and managers become more approachable. This fosters mutual respect and a deeper understanding between teams. 

 

How Companies Can Encourage Feedback for Managers

So now that we’ve established how employee feedback transforms engagement, reduces turnover, and strengthens workplace relationships, how can companies get this right? After all, it’s not as simple as launching a feedback survey and calling it a day. The success of feedback systems depends heavily on the execution. Let’s dive into some practical tips for making sure this feedback loop becomes an organic part of the workplace culture.

  1. Make It Regular: Frequency is Key

Here’s the thing about feedback—it can’t be a one-off event. If employees only get one opportunity a year to provide feedback, it’s not going to have much of an impact. Top companies know that feedback needs to be woven into the fabric of everyday work life.

The key is to normalize feedback by making it frequent and part of the culture. Many successful companies hold quarterly feedback reviews, while others go for more informal monthly check-ins. Even quick “pulse checks” through surveys or one-on-one meetings can go a long way in creating an environment where feedback is continuous, rather than something employees dread once a year. 

  1. Anonymity is Crucial: No Fear, Just Facts

Now, let’s talk about the elephant in the room—fear of retaliation. Employees won’t give honest feedback if they’re worried it might come back to bite them later. This is why anonymity is essential in any feedback system. 

Anonymous feedback systems, whether through surveys, digital platforms, or third-party facilitators—remove that fear. They allow employees to provide candid, constructive criticism without the added anxiety of it affecting their relationship with their manager.

  1. Provide Training: Managers Aren’t Born Ready

Giving and receiving feedback is a skill, and like any skill, it requires training. For many managers, the idea of getting graded by their team can be uncomfortable at first. That’s why the best companies invest in training programs to help managers embrace feedback and turn it into actionable insights.

These programs don’t just teach managers how to receive feedback without getting defensive; they also teach them how to act on it effectively. It’s all about creating a growth mindset, where feedback is seen as an opportunity for improvement rather than an attack on character.

The Future is Feedback

So, where does this leave us? The feedback revolution is here to stay, and it’s transforming the way companies operate from the top down (or should we say, bottom-up?). The days of managers sitting comfortably on their thrones are over. Instead, we’re moving towards a more collaborative, transparent, and feedback-driven workplace where everyone has a voice.

By allowing employees to offer feedback, companies not only improve leadership but also boost employee morale, engagement, and retention. It’s a win-win, even if it comes with a little discomfort.

 

FAQs

What is upward feedback?

Upward feedback is when employees provide feedback for their managers, allowing them to assess leadership and managerial qualities.

How can companies ensure employee feedback is honest?

Anonymity is the key to ensuring honest feedback. Many companies use anonymous surveys to encourage candid responses without fear of retaliation.

What are the benefits of employee feedback for managers?

Benefits include improved managerial performance, better workplace communication, and a more engaged workforce.

Are there any risks to employees providing feedback for managers?

Potential risks include biased or emotional feedback, but these can be mitigated through structured and anonymous processes.

Author
Srikant Chellappa
CEO & Co-Founder of Engagedly

Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast. He is currently working on his next book, Ikigai at the Workplace, which is slated for release in the fall of 2024.

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