Giving and receiving feedback is one of the most impactful contributions inside a startup.
Feedback done right is an excellent way of giving other person our thoughts on their performance (both bad and good), their evolution, and suggestions for improvement. Feedback done right is an excellent way of making the people we work with grow, both as professionals and individuals.
Since feedback will not only influence the individual person but also the many other people and actions happening in the company, its impact on a startup has a multiplier factor.
Impact of Feedback on Startup = Individual Feedback * Actions Inside Startup
Besides performance, there’s other factor on which feedback has also a huge impact: motivation.
When all our basic needs are secured, when we have food in the table, when we aren’t afraid to die with a bullet or sickness, when we have good friends, etc, then the most important aspect for our motivation and happiness is self-actualization — the need for learning new things and becoming better selves.
Maslow defined a set of needs that tend to lie in a hierarchy: when a lower need is satisfied, one higher is likely to take over.
Due to this, feedback will (many times subconsciously) have a great influence on why people like to work on your company, and thus influence when deciding to stay or leave you to a competitor.
That’s why giving feedback plays such a great role in a startup — feedback has a huge impact making your company better, happier, and more motivated to achieve great things.