Top 3 Reasons Why Employee Feedback Systems Are Important For An Organization's Success

Published on:
Fri Sep 22 2023
Employee Experience

In order to build-up and cultivate a positive and uplifting working environment, capturing feedback is really important for any organization. Employee feedback is basically the information exchanged among each other within an organization about their performances, skills, and teamwork or any other concerns one may have about the work culture or environment. The concept here is to encourage employees to provide positive or even negative feedback so that all the bad habits or inefficient practices can be corrected, and everyone can follow best practices while working towards companies’ goals and ambitions.

Employee feedback holds a significant place in a company’s overall success, it is one way you can understand the concerns of your employees, their overall progress and growth, their state of mind, and what drives their passion and loyalty towards your business making their experiences truly transformative through the quality of your conversations and a problem-solving attitude. According to, the following can enhance employee happiness:

  • Regular, constructive feedback and reviews from management
  • Proper training and resources, so employees are well-equipped to tackle their job
  • Benefits like health insurance, assisting with gym memberships, or offering paid time off
  • Rewards and incentives for excellent performance
  • Good company culture

What is the Employee Feedback system and why it is important?

Feedback is essential for any company’s success, and a good employee feedback system is the method used for capturing and analyzing feedback data, and then using the results to drive improvements that have a great impact on the Customer Experience, brand success, and overall success of an organization.

By encouraging an environment where peers feel comfortable in sharing feedback with one another helps strengthen the company’s core and ultimately helps to empower the beliefs of the organization. With a great feedback system, an organization can create and achieve distinctive employee experiences.

Let’s talk about the reasons why it is important to have an Employee feedback system in place and how to set up the same within an organization.

1. Employee attrition rate can be improved:

With the help of an understanding among co-workers achieved through a regular exchange of feedback. Employees tend to quit as soon as they feel unheard or misunderstood, and they stick around for longer with an organization where they feel like their opinion holds ground and where their voices are heard. According to PWC, “Employees most committed to their organizations put in 57% more effort on the job and are 87% less likely to quit”.

2. More clarity in their job roles and what is expected out of them:

A proper feedback system helps employees understand the job expectations and helps them communicate the challenges or roadblocks they might face while working towards their goals. Clear expectations help improve productivity levels. According to a report published by, “Companies with highly engaged employees have a 27% operating margin”.

3. Conducting regular Feedback sessions and sending out employee satisfaction surveys:

This can help companies overcome minor grievances or problems faced by employees, which in case ignored, can gradually grow into major ones. This only makes sense to be able to flag up an issue with an employee, a co-worker, or even a leader, as soon as it gets noticed. This helps in promoting enthusiasm among peers, boosts positivity, and improves company culture, also feedback helps pick up any glitches that can potentially or even minutely convulse the positivity quotient, while also maintaining transparency in the decision-making processes. According to Gallup, “Employees who report that they are not adequately recognized at work are twice more likely to say they will leave in the following year”.

Pro tip: Organizations grow and succeed when employees are happy, it’s the thumb rule for any business in order to improve their customer satisfaction scores they also need to focus on improving their employee satisfaction scores first. Companies, where employees feel positively motivated and work together towards a common purpose, are more successful than others. Employee feedback, if taken into accounts in a timely manner, keeps the corporate ship on an even stride towards success and profitability.

At Dropthought we believe that to build a sustainable relationship with an employee, we must value their feedback. We believe in building a situation-based and feedback-centric employee engagement plan that will not only help businesses to leverage the data collected abundantly but also if done right this can turn into a long-lasting opportunity to improve Employee attrition while also boosting positive company culture.

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