The Feedback Dilemma: Fixing Problems, Not People

By Anish Singh, co-founder of All Things People (ATP HR Tech Pvt Ltd.): I’ll never forget a conversation I had with the CEO of a Unicorn startup. During our discussion, he proudly explained their approach to employee feedback.

“We use a tool that reveals who is saying what. If an employee’s name comes up two or three times in negative feedback, I have a conversation with them. Essentially, I’m telling them to ‘think about what they want to do next,’” he said—a thinly veiled warning to align with the system or leave.

The outcome? Participation in feedback surveys plummeted from 80%+ to just 20%. The situation was even more dire among middle managers and above, where participation had all but disappeared.

When employees know their input is being monitored and attributed back to them, the dynamics of feedback shift in deeply problematic ways.

Similarly the recent Yes Madam episode, which appears to have been a PR stunt, still sheds light on a deeper workplace issue: the misuse of employee feedback tools. Yes Madam, which provides at-home beauty and salon services, has drawn significant attention for its handling of employee terminations.

Reports suggest that employees were fired based on their responses to an internal survey about workplace stress. The leaked email from the company’s HR department stated that employees who reported significant stress levels would be let go immediately to prevent them from remaining in a stressful work environment. This decision reportedly affected around 100 employees.

My question to CEOs and HR leaders: Just as doctors take the Hippocratic Oath—a solemn pledge to uphold ethical standards and prioritize patient well-being—shouldn’t corporations adopt a similar ethical commitment? This could be an “Oath of Confidentiality,” ensuring that employees feel secure to voice their concerns and contribute to improving workplace culture without fear of retribution.

If employees lack the freedom to express their thoughts openly, how can we expect to build truly exceptional workplaces? Psychological safety isn’t just a buzzword—it’s a fundamental prerequisite for fostering trust, innovation, and growth.

It’s time we recognize that safeguarding employee voices is essential for creating thriving organizations. A Harvard Business Review study found that teams with high psychological safety outperform others by up to 35%, yet it’s one of the most overlooked components of workplace culture.

Feedback, when handled well, can be hugely energizing. Here are key principles to get it right:

1. Ensure Anonymity: Tools and surveys must prioritize confidentiality. Employees need to trust that their feedback cannot be traced back to them unless they choose to identify themselves.
2. Focus on Systems, Not Individuals: Feedback should be used to address systemic issues, not to single out employees. For example, if multiple comments highlight poor leadership in a department, the focus should be on training or support for leaders, not punishing whistleblowers.
3. Communicate Outcomes: Employees need to see that their feedback leads to action. Closing the feedback loop builds trust and encourages ongoing participation.
4. Cultivate a Listening Culture: Leaders must model openness by inviting feedback and responding constructively. This requires a shift from a punitive mindset to one that values growth and learning.

To conclude, call for actions would be: Listen. Listen. Listen II Act. Act. Act II Improve. Improve. Improve. Building a culture is not a milestone, it’s a journey. When people feel their voices have been heard, and there’s a clear follow-up on actions taken or not taken, they are more likely to invest discretionary effort—often multiplied, as research shows.

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