Feedback is a powerful tool for improving performance, fostering professional growth, and strengthening organizational culture. However, in order for it to be effective, it is necessary to have a structured plan that allows both leaders and employees to share constructive feedback regularly and clearly.
Here’s how to create an effective feedback plan for your team:
1. What is the Employee Feedback Plan (EFP)?
The Employee Feedback Plan (EFP) is a unique and advanced methodology we have developed at Hrider to manage the implementation of feedback processes at all levels within organizations. This plan is designed to provide a comprehensive and detailed view of employee performance, potential, and well-being at every stage of their career within the company.
The EFP is based on Hrider’s accumulated experience after conducting thousands of feedback processes with organizations worldwide. Thanks to this vast experience, we have created a talent management system that not only focuses on evaluation but also promotes development and employee retention by integrating feedback into each critical phase of the employee journey.
The main goal of this plan is to have accurate, real-time data that allows us to manage each phase of the process effectively. Through the EFP, we aim to deeply understand each member of the organization, their performance, needs, and expectations, in order to make the best possible decisions to drive their growth and well-being, and consequently, the company’s success.
2. Importance of Having a Feedback Plan
· Alignment with the Company: One of the most important benefits of having a feedback plan is aligning employees with the company’s values, purpose, and strategic goals. Frequent and well-directed feedback helps employees understand how their work contributes to the overall success of the organization. When employees receive clear feedback on their performance and how it aligns with the company’s vision and goals, they improve their understanding of organizational expectations and feel more connected to the company’s purpose. This not only boosts motivation but also enhances consistency in executing the organizational strategy, making it easier to achieve long-term goals.
· Data-Driven Decision-Making: Implementing a structured feedback plan provides constant, updated, and objective information about employee performance. This information is critical for making more informed and strategic decisions. Without clear and measurable performance data, management decisions may be subjective and based on assumptions. A well-designed feedback plan ensures that decisions, from performance evaluations to resource allocation, are based on concrete facts and a clear view of team performance, resulting in more efficient and effective management.
· +20% Increase in Productivity: Studies have shown that employees who receive consistent feedback perform significantly better, leading to an increase in productivity. According to a study by McKinsey, companies that invest in identifying and developing talent experience a 54% increase in labor productivity. Frequent feedback allows employees to adjust their performance in real-time, solve problems more efficiently, and optimize their efforts, benefiting not only the individual but also improving operational efficiency at the organizational level. A more productive team directly contributes to the company’s success.
· 30% reduction in Talent Turnover: Employee turnover is one of the biggest challenges many organizations face. However, a structured feedback plan can help reduce turnover by up to 30%. When employees feel that the company cares about their development and is willing to offer valuable and relevant feedback at every stage of their career, they become more engaged and loyal. Continuous feedback shows employees that the company is invested in their personal and professional growth, which increases their motivation and job satisfaction. The feeling of being heard and valued, coupled with constructive feedback, creates a culture of trust and belonging that reduces talent loss, a phenomenon that can cost companies significant amounts of money in recruitment, training, and adaptation.
· Better allocation of resources: A well-designed feedback plan also enables better resource allocation, meaning companies can identify areas for improvement within processes, teams, and projects. By receiving detailed feedback on employee performance, inefficiencies or weaknesses in organizational operations can be detected that would otherwise go unnoticed. This allows time, effort, and resources to be redirected toward activities and projects that generate more value. Rather than allocating resources to generic training or projects with no tangible impact, companies can focus their efforts on the most critical areas, maximizing return on investment. This also contributes to optimizing budget usage and ensuring resources are used efficiently.
· Fostering Innovation and Continuous Improvement: Frequent feedback not only helps improve employee performance but also fosters an environment of innovation and continuous improvement. When employees receive constructive and specific feedback, they can adjust their performance, correct mistakes, and improve their skills. Furthermore, feedback allows organizations to detect problems or opportunities before they become major challenges. This encourages teams to be in a constant learning mode and adapt to changes, resulting in a more flexible organization prepared to face market challenges. An environment where feedback is valued creates a culture of innovation, where employees are motivated to propose ideas and solutions to improve the company’s processes and products.
3. Employee Feedback Journey
We have created this plan based on our experience, with thousands of processes carried out with organizations using Hrider worldwide.
It is about having data to manage each phase of the employee’s journey better. Knowing our people at every moment of their experience in the company to make the best decisions.

3.1. Onboarding
The onboarding process is crucial for integrating a new employee into the company. According to the State of the Workplace Study 2023-2024, published by the Society for Human Resource Management (SHRM), 69% of employees are more likely to stay with a company for three years or more if they experience a structured and effective onboarding process. This highlights the importance of offering an organized, clear welcome that provides all the necessary tools for the employee to feel part of the team from day one. A well-managed onboarding process creates a positive impact on long-term talent retention.
3.2. Performance
Performance evaluations are essential for identifying areas for improvement and growth opportunities within the organization. According to a Mercer survey, 85% of organizations that implement performance evaluations report that these contribute significantly to identifying development and growth opportunities for employees. This not only allows employees to know how they are meeting expectations but also provides leaders with a clear vision for making more informed decisions regarding promotions, task assignments, and training plans.
3.3. Potential
Employee potential is key to projecting long-term company growth. According to a Harvard Business Review report, companies that implement potential evaluations see a 25% increase in profitability. By identifying employees with the greatest potential to take on leadership roles or higher responsibilities, organizations can more effectively plan for their future workforce and reduce risks associated with lack of succession in key positions.
3.4. Skill Matrix
Skill matrices are tools that help organizations manage talent more accurately and effectively. According to a study by Deloitte and Gallup,
companies that use advanced talent management tools, including skill matrices, are 1.3 times more likely to be industry leaders and 30% more likely to outperform their competitors in terms of revenue and market growth. Matrices help identify the specific skills needed to achieve strategic goals, which facilitates efficient resource allocation and the development of the right personnel for the company’s success.
3.5. Individual Development Plan
The
individual development plan (IDP) is a fundamental tool for employee growth within the organization. According to Harvard University,
70% of employees who participated in individual development programs experienced an increase in productivity, leading to a 15% increase in company revenue during the course of one year. An effective IDP not only benefits the employee by enabling professional growth, but it also directly impacts organizational results by improving efficiency and performance.
3.6. Work Environment
The
work environment is a critical indicator of employee well-being and the company atmosphere. Deloitte research indicates that
organizations that regularly monitor the work environment can experience up to a 65% reduction in absenteeism and a 25% decrease in employee turnover. A positive work environment promotes greater employee satisfaction and engagement, which in turn contributes to retention and increased productivity. Monitoring and addressing work environment issues allows companies to create a healthier, more collaborative atmosphere.
3.7. Offboarding
The offboarding process is just as important as onboarding, as it impacts the perception the employee leaves with regarding the organization. According to a report by Bersin by Deloitte, replacing an employee can cost up to 213% of their annual salary. A well-managed offboarding process not only minimizes this cost but also provides an opportunity to gather valuable feedback on the reasons for leaving, which can help improve future retention. Additionally, a respectful and professional exit ensures the employee maintains a positive image of the company, which is crucial for organizational reputation and future collaboration opportunities.
Conclusion
Hrider’s Employee Feedback Plan (EFP) is designed to provide companies with a comprehensive tool for managing every phase of the employee journey. From onboarding to offboarding, through performance evaluations, skills development, and individual plans, this data-driven approach enables informed, strategic decisions to optimize talent within the organization. Implementing an EFP not only improves individual performance but also contributes to the collective success of the company, fostering a stronger, more productive organizational culture focused on continuous development.