The Adverse Impact of Negative Feedback on Employee Performance and Workplace Culture
For organizations to thrive, employees must continuously improve, but how organizations approach employee development is key.
As a consultant, I am well-versed in the ways organizations, at times, neglect workplaces as sites of human connection in favor of focusing on productivity and performance. Though employee performance is of course paramount to business success, great performance is a byproduct of healthy, interconnected work environments. Employees thrive when they feel their skills are valued, when they feel connected to their coworkers, and when they feel their work is purposeful.
I find that workplaces particularly struggle to humanize employees and prioritize connection when it comes to assessing performance. Companies often ignore the importance of psychological safety, empathy, and kindness during the feedback and annual review process.
Instead of embracing a growth model wherein companies assess how employees are improving, many annual review processes search for perfection and may take a punitive approach as a way to push employees to improve performance. There is evidence that feedback processes may perpetuate racial bias, gender discrimination, and other forms of exclusion.
For organizations to thrive, employees must continuously improve, but how organizations approach employee development is key.
Feedback and Transformative Justice
Workplaces can learn a lot about healthy feedback practices from activists who deploy transformative justice. Transformative Justice is a philosophy and framework that seeks to address harm, conflict, and violence in a way that focuses on healing, restoration, and transformation, rather than punishment or retribution. Transformative Justice focuses on mitigating isolation and shame for those that enact harm or make a mistake and frames the community as a site of care, restoration, and rehabilitation.
Like Transformative Justice processes, feedback frameworks should focus on preserving employee self-esteem and maintaining interpersonal connection. Many employees leave performance reviews thinking I did badly, therefore I am a failure. This internal monologue only serves to negatively impacts performance and disrupt organizational belonging. The ultimate goal of feedback is for employees to grow and improve. For feedback to be efficacious and transformational, workplaces must move away from shame-based and punitive feedback and instead embrace a coaching-centered approach. When properly given, feedback is a wonderful opportunity to deepen workplace relationships and support employee development. Managers who can get curious, stay open, and remain encouraging when offering feedback will experience both an increase in employee performance, and an increase in team cohesion, trust, and psychological safety.
Unfortunately, instead of embracing a coaching approach, negative feedback is the tool most commonly used in organizations to improve employee performance. While feedback in general can be instrumental in enhancing employee growth and development, it is important to recognize that negative feedback, if not properly delivered and managed, can have adverse effects on employee performance, self-esteem, and psychological safety.
I. Emotional and Psychological Distress, Damage to Self-Confidence
Negative feedback can evoke strong negative emotions such as anger, frustration, and demotivation in employees.
It can lead to feelings of incompetence, self-doubt, and low self-esteem, affecting an individual's overall well-being.
This loss of self-confidence can hinder future performance and limit an employee's willingness to take on new challenges.
Source: (Brown, 2019)
IV. Strained Relationships and Collaboration
Constant exposure to negative feedback can strain relationships between supervisors and employees, leading to decreased trust and cooperation.
Negative feedback that is perceived as unfair or biased can create a hostile work environment, hindering effective collaboration.
Source: (Fernandez, 2021)
V. Reduced Productivity and Performance
Negative feedback can lead to a decline in productivity as employees may become preoccupied with criticism rather than focusing on their tasks.
Employees may exhibit performance anxiety and become more prone to making mistakes, resulting in subpar performance.
Source: (Smither, London, & Reilly, 2005)
VI. Retention and Turnover Concerns
When employees receive excessive negative feedback without sufficient positive reinforcement, they may become dissatisfied and more likely to consider leaving the organization.
High turnover rates can have detrimental effects on organizational culture and productivity.
Source: (Griffeth, Hom, & Gaertner, 2000)
Best Practices for Giving Constructive Feedback
Giving hard feedback can be challenging, but with the right approach, managers can ensure that it promotes growth, maintains trust, and upholds diversity and inclusion values. Check out my feedback checklist below!
Establish Psychological Safety: Cultivate an environment where employees feel safe to express themselves without fear of judgment or retribution. Build trust and emphasize that feedback is a tool for growth, not criticism.
Check Your Biases: Be aware of your own biases and how they may influence your perception and delivery of feedback. Approach feedback with an open mind and ensure that it is based on objective observations and performance standards.
Recognize Diversity: Consider the unique backgrounds, experiences, and perspectives of individuals when delivering feedback. Acknowledge and appreciate the diverse strengths and contributions they bring to the table.
Be Specific and Objective: Provide clear and specific examples of the behaviors or actions that need improvement. Ground your feedback in observable and measurable terms, avoiding generalizations or assumptions.
Focus on Behaviors, not Personality: Direct feedback toward specific actions and outcomes, rather than making personal attacks or character judgments. This helps employees separate their identity from the feedback and focus on improving their performance.
Balance Criticism with Support: Alongside areas for improvement, highlight the employee's strengths and past successes. Emphasize that feedback is intended to help them grow and succeed and that you have confidence in their ability to improve.
Use Active Listening: Create a space for open dialogue by actively listening to the employee's perspectives and allowing them to share their thoughts and concerns. Demonstrate empathy and validate their feelings, fostering a collaborative approach to addressing the feedback.
While giving feedback, it’s important to frame the process as collaborative and to invite direct reports to share their needs and perspectives. Some guiding questions to ask when giving feedback:
How can we support your professional development and growth in a way that aligns with your unique skills and aspirations?
Are there any barriers or challenges you've encountered that may be impacting your performance, and how can we address them together?
In what ways can we enhance the inclusivity and accessibility of our work environment to better support your performance and success?
What strategies or resources do you need to overcome any obstacles and achieve your goals?
Key Takeaways
While feedback can play a valuable role in employee development, organizations must recognize the potential adverse impacts that negative feedback it can have on employee performance. By understanding the emotional and psychological effects of negative feedback, organizations can implement strategies to minimize its detrimental consequences and move towards embracing a coaching-centered feedback approach. By delivering feedback constructively, framing growth as collaborative, fostering a supportive work environment, and emphasizing continuous learning, organizations can ensure that feedback becomes a catalyst for growth rather than a hindrance to employee performance.
Recommended Readings
Thanks for reading! Interested in getting to know more about me and my work? Here’s what I am up to this month:
Leading the curriculum development for Pride in the Pew’s Black Church Equality Fellowship.
This summer, I am serving as The Philadelphia Inquirer’s Summer Diversity Consultant. I’ll be training their staff all summer long via a variety of workshops to upskill the organization in key DEIB competency areas.
This week, I’ll be hanging out with the organization OpenSesame in order to provide a workshop for its DEI lecture series.