Employee Experience / Blog / Employee Engagement

How to Effectively Measure the ROI of Employee Engagement

August 22, 2023

Change only works when people get behind it—and that’s where employee feedback change management becomes a game changer. When employees feel heard and involved, trust grows, resistance drops, and teams stay aligned during even the toughest transformation efforts. Their day-to-day experience gives leaders the reality check they can’t get from the boardroom: what’s working, what’s not, and what needs to change before the change.

Done well, employee input becomes a strategic guide for smarter decisions, smoother transitions, and a culture where people feel respected—not blindsided. Let’s break down how organizations can turn feedback into momentum, clarity, and lasting change.

Key Takeaways:

  • Employee feedback is essential for successful change management—74% of front-line problems never reach top management without it.Feedback-driven change reduces resistance, builds trust, and increases adoption rates by making employees active participants, not passive recipients
  • Follow a clear framework: establish channels, communicate openly, collect consistently, act transparently, and evolve based on insights
  • Data shows the urgency: 40% of employees don't believe feedback leads to change, and a third are actively looking for new jobs as a result
  • Poppulo enables effective feedback loops through real-time sentiment tracking, centralized dashboards, and integrated change communications that turn employee input into actionable strategy

Why Employee Feedback Matters in Change Management

The "Iceberg of Ignorance" reveals a sobering reality: only 4% of front-line issues reach top management, 9% reach middle management, and 74% stop at supervisors. Yet employees see 100% of what's actually happening. This disconnect doesn't just create blind spots—it actively undermines change initiatives before they begin.

Improves transparency and trust

When leaders ask for feedback—and actually act on it—it shows employees their voices matter. This builds trust and psychological safety. Nearly half of employees say their feedback doesn’t lead to change, and a third of them start looking for new jobs. Ignoring feedback isn’t just risky—it’s costly.

Encourages two-way communication

Feedback turns communication from one-way announcements into real conversations. Instead of simply sharing decisions, leaders open space for questions and ideas. And that matters, because frontline employees understand problems and customer pain points better than anyone else.

Reduces resistance and boosts morale

People often resist change because they feel powerless. When employees see their input shape decisions, they feel ownership instead of frustration. That sense of agency lifts morale and reduces pushback.

Drives better alignment with strategy

Feedback helps leaders see whether their strategy actually works in the real world. Employees can call out gaps early, so teams can adjust before investing time and resources into plans that won’t stick. This alignment is what makes change initiatives succeed instead of stall.

Understanding and Addressing Change Fatigue

Recognizing early signs of fatigue

Change fatigue refers to the cumulative weariness and resistance that individuals and organizations experience when undergoing frequent or prolonged periods of change. This exhaustion stems from the emotional and cognitive strain of adapting to new processes.

In 2022, the average employee experienced TEN planned enterprise changes - an increase of eight changes since 2016 - according to Gartner research.

So we can agree that employees today are overwhelmed and, in some cases, fatigued by constant change. This can manifest in a growing sense of cynicism and a collective doubt in the value of planned changes due to past experiences of unfinished or poorly executed initiatives. Secondly, the cognitive load of continuous change can hamper employees' ability to fully comprehend and integrate new processes, leading to errors and inefficiencies.

You can guess the results of this level of upheaval. Decreased productivity. Low morale. Increased stress levels. And ultimately, poor organizational performance and reduced employee engagement.

Addressing change fatigue proactively is essential to sustain organizational growth. Leaders must not only acknowledge but address and act on employees' concerns. Honest communication about the reasons for change and its benefits must be provided. Implementing changes gradually and allowing time for learning and adjustment can also alleviate the strain.

The role of feedback in mitigating burnout

Employee feedback is an invaluable tool that holds multifaceted significance in organizational growth.

Remember, employees should not be viewed as workers who are simply “receiving the change.” Rather they should be recognized as active stakeholders in the process - helping to actually shape the change. Employees’ firsthand experiences and insights offer a unique contribution that can guide effective decision-making.

Soliciting and valuing employee feedback goes beyond mere data collection; it nurtures a culture of inclusivity and respect. This principle mirrors countless scenarios in everyday life. When people feel heard, they feel good about themselves. When employees feel heard, they feel more engaged and loyal to their employers. And as we already know, this can enhance productivity and innovation.

Feedback plays a pivotal role in fostering employee engagement and ownership of change. When individuals see their suggestions translating into action, they develop a sense of ownership in the organization's journey. It’s easy to detach from a process you do not feel involved in - less so when your personal suggestions and opinions have been woven into the plan.

To recap, a feedback-driven culture encourages open communication and breaks down hierarchical barriers. Bringing employees on board not only harnesses a wellspring of insights but also nurtures a sense of belonging, collaboration, and empowerment, culminating in a more resilient and dynamic workplace.

Building a Feedback-Driven Culture

Leadership modeling and psychological safety

Building a feedback-friendly culture is paramount for organizational success. A culture that values open communication actively encourages the free flow of ideas, concerns, and suggestions. No tokenism here… no cursory “Of course, we welcome any comments” at the end of company presentations or internal emails without any real forum or dedicated system for facilitating a two-way dialogue. We are talking about creating an environment that genuinely empowers employees to voice their opinions - without fear!

Creating a safe space for feedback entails promoting active listening, emphasizing constructive criticism, and ensuring anonymity if necessary. Leaders must showcase receptiveness to feedback and acknowledge its role in growth. Referring back to comments and suggestions when taking employees through plans demonstrates to employees how their input is valued and leads to problem-solving and innovation.

Creating feedback rituals and channels

Google and HubSpot exemplify the rewards of a feedback-centric culture. Google's "Googlegeist" survey solicits opinions, fostering a sense of ownership and camaraderie. HubSpot's "Culture Code" emphasizes feedback as a cornerstone, contributing to high employee engagement. The outcomes include enhanced teamwork, lower turnover rates, and a competitive edge.

Collecting Employee Feedback Effectively

Surveys and pulse checks

Your feedback is really important to us! This form should take no longer than 3 minutes to fill out! Your opinion matters!

Sometimes, these requests can become background noise. That's why it’s essential to reinforce through multiple channels that employee input is valued.

Employing a range of diverse channels such as town halls, one-to-one meetings, focus groups, suggestion boxes, surveys, and pulse surveys ensures a comprehensive understanding of employee sentiments. Plus, employees can choose their preferred channel. Make giving feedback easy and accessible!

Crafting feedback questions involves specificity and relevance. No wasted space, please! We are looking for clear, unbiased questions tailored to garner actionable insights. Using Likert scales or open-ended questions can elicit valuable qualitative and quantitative data.

Listening sessions and open forums

Anonymous feedback is somewhat of a double-edged sword… By removing the potential for confrontation or judgment, anonymous feedback encourages employees to share information on sensitive issues such as workplace conflicts, bias, or concerns about management practices that they might otherwise be loath to disclose. This transparency in communication helps organizations gain deeper insights into the challenges, issues, and areas that need improvement. It unveils valuable perspectives that might not have surfaced otherwise.

However, there is also the capacity for misuse here - false information, malicious intent, etc. Not knowing the author or their position within the organization can make it tricky to address feedback properly.

Digital channels and platforms (e.g. Poppulo)

Bottom line: organizations should encourage open dialogue and provide multiple avenues for employees to voice their opinions openly, as a combination of both approaches can provide a well-rounded perspective on organizational dynamics and enable leadership to follow up on feedback in a meaningful way.

Analyzing and Acting on Employee Feedback

Quantitative vs. qualitative insights

Gathering the feedback is only the first half of the job - now for the hard work.

8 Steps to Successfully Extracting Meaningful Insights and Acting on Them

  • Start by aggregating feedback from your various sources, such as surveys, reviews, and one-on-one discussions.
  • Look for recurring themes, sentiments, and issues. Utilize data visualization tools to spot patterns more easily.
  • Segment your data. Consider specific demographics, such as employee status, pay levels, and tenure. Patterns and trends can also emerge when examining and comparing different cohorts.
  • Quantify your data as much as possible. When building out surveys, look for numeric scores as much as possible - this makes it much easier to express results and show improvements after future surveys.

Prioritizing actionable themes

  • Categorize feedback into positive and negative aspects and then prioritize based on frequency and impact. By identifying the most pressing and common concerns, you can figure out the root causes.
  • Establish connections between employee engagement/sentiment and business results. Integrate and assess your engagement data alongside essential information from your HR management systems.
  • Record and benchmark all feedback and results

Communicating back to employees (“You said, we did”)

  • Take action - and involve your employees. Involving employees in decision-making based on their feedback fosters a sense of ownership and engagement. Create forums like focus groups or cross-functional teams to brainstorm solutions. Acknowledge contributors and implement suggestions when feasible.

Microsoft acted on employee suggestions to revamp its performance evaluation system, leading to more holistic assessments. These instances underline the positive impact of heeding employee input, driving meaningful organizational changes, and improving overall employee satisfaction. In the past, Microsoft had a traditional annual performance review process that many employees found to be time-consuming, demotivating, and not conducive to growth and development.

This feedback prompted the company to reevaluate its approach to performance evaluations. The transformation of Microsoft's performance evaluation system based on employee feedback not only improved the overall employee experience but also contributed to a more innovative and agile organizational culture.

This example highlights how analyzing employee feedback and making strategic changes can lead to a more engaged workforce and positively impact company-wide operations.

Overcoming Resistance and Change Fatigue

Building trust with transparency

What strategies can organizations employ to overcome resistance to change?

  • Involving employees in the change process can create a sense of ownership and reduce resistance
  • Provide comprehensive training and support to help employees adapt to new processes.
  • Leaders should clearly articulate the rationale behind changes and emphasize the potential benefits to build buy-in.
  • Regularly check in with employees to assess the impact of changes and make necessary adjustments.
  • Transparent communications play a pivotal role in managing employee concerns during change. Throughout the process, be open about the reasons for change and potential challenges. Sharing progress updates and acknowledging any difficulties along the way will create a sense of unity and purpose.

“…as you begin to understand the fixed and growth mindsets, you will see exactly how one thing leads to another — how a belief that your qualities are carved in stone leads to a host of thoughts and actions, and how a belief that your qualities can be cultivated leads to a host of different thoughts and actions, taking you down an entirely different road.”

Carol Dweck, Ph.D.Stanford researcher and professor who coined the terms “fixed” and “growth mindset.”

Aligning actions with employee voice

Fostering a positive change mindset involves creating an environment where continuous learning is valued. In the workplace context, this translates to a supportive culture that values employee well-being and offers resources for coping with change. “Failures” are viewed as opportunities for improvement. Recognizing and celebrating small successes along the change journey enhances morale and motivation. And resilience, well-being, and positivity are prized above all else.

These combined efforts lead to a culture of adaptability and enable successful, sustainable transformations.

Practical Framework: 5 Steps to Embed Feedback in Change Initiatives

Moving from theory to practice requires a systematic approach. Here's a framework for making employee input in change management operational:

1. Establish Clear Feedback Channels

Make it easy and obvious for employees to share input. Set up consistent, accessible channels—pulse surveys, focus groups, digital suggestion tools, or dedicated feedback time in team meetings. The goal: employees always know where to give feedback and trust it reaches the right people.

2. Communicate Why Feedback Matters

Explain exactly how feedback will be used. Specific context ("We’re gathering input to identify challenges before rollout") drives engagement far better than generic messages. Be honest about limits—if some decisions are final or resources are tight, say so. Authenticity builds trust.

3. Collect and Analyze Consistently

Feedback isn't a one-off task. Gather input throughout the change process using a mix of quantitative scores and open-ended questions. Segment results by teams, roles, or tenure—different groups experience change differently, and patterns often appear only when you compare.

4. Act and Report Back

Feedback only works when employees see it lead to action. Assign ownership for reviewing input, identifying themes, and making decisions. Then close the loop: tell employees what you heard and what you’re doing. Even if a suggestion can’t be implemented, explain the reasoning and what alternatives you’re offering.

5. Evolve Strategy Based on Feedback

Use ongoing insights to adjust your approach—extend timelines, add training, or rethink parts of the change entirely. Microsoft did this when it redesigned its performance evaluation system based on employee input. Flexibility doesn’t derail your goals; it helps you achieve them more effectively.

Case Study: Implementing Change through Employee Feedback With Poppulo

Let’s take some inspiration from a global powerhouse and Poppulo customer—McDonald’s.

McDonald’s recognized that the success or failure of their three-year modernization program hinged on the buy-in of their two thousand franchise owners! To this end, they adopted a people-centric approach to business transformation. The IC team understood that the sheer magnitude of the project and the rate of change meant that franchisee feedback had to inform and drive the process.

To address the challenge, the communications team developed a dual approach, which involved consistent monitoring of franchisee sentiment through quarterly surveys. At the same time, they crafted a wide range of content customized to align with the anticipated shifts in owners' attitudes throughout the three-year initiative.

“This human, people-centric approach, allied to the hard data gleaned from the frequent polling analytics, resulted in what Emily Nichols of McDonald's called ‘creating content for every mood; formulating content based on audience sentiment’… and was a resounding success. “

How the communications team achieved success;

The success of the change process relied entirely on the complete alignment and engagement of the franchisees. McDonald’s honed in on the fact that these were real people who needed transparent, consistent communications throughout the three years.

Franchisee sentiment was assessed regularly. Surveys were disseminated via the Poppulo platform, and the insights gathered were subsequentlyutilized to shape the communication strategy.

Based on the feedback, the content was then refined accordingly. The communications team correlated sentiment with business priorities and the brand's operational schedule, ensuring the creation of timely, pertinent content - precisely when needed.

Resulting from this sentiment polling was one of the most ingenious and innovative strategies in the triumphant execution of the business plan: pairing individuals who had effectively executed the changes with those who were uncertain or encountering challenges.

The lesson learned? Maintaining a robust and transparent understanding of their audience's emotions, backed by data, guaranteed that the communications team won leadership endorsement for their people-centric strategy.

To learn more about this inspiring case study, listen to this webinar recording here.

How Technology Can Strengthen Feedback Loops

Managing employee feedback at scale requires technology—manual tracking simply can’t keep up when hundreds or thousands of people are involved across different locations and initiatives.

Real-time employee sentiment tracking

Modern tools offer quick pulse surveys that deliver instant insight into how employees are experiencing change. Instead of waiting for annual surveys, leaders can identify concerns weekly or even daily and make adjustments before issues grow.

Centralized data dashboards

When feedback comes from different channels—surveys, meetings, suggestion tools, or social platforms—it needs one place to land. Centralized dashboards pull everything together, highlight trends, compare groups, and show how sentiment shifts over time. This turns scattered input into actionable data.

Integrated with change communications

The best systems connect feedback directly to communication efforts. If a concern surfaces, you can address it immediately through targeted messaging. When you implement an employee suggestion, you can notify those who raised it and share the update broadly.

See how Poppulo helps you track sentiment in real time and turn feedback into action.

Request a demo

Conclusion

Employee feedback emerges as a linchpin in the triumphant execution of change initiatives. It serves as a compass, guiding organizations through uncharted territories, ensuring realistic strategies, and uncovering unforeseen challenges.

The transformative potential lies in recognizing that employees are not just recipients of change but integral contributors to its success.

Furthermore, building a feedback-driven culture is akin to laying a foundation for perpetual enhancement. It transcends individual projects, fostering an environment where learning is continuous, innovation flourishes, and adaptability becomes second nature.

So let’s harness the untapped power of employee feedback. By actively seeking, valuing, and integrating their insights, organizations can fortify their change initiatives. Embrace a feedback-driven ethos not just for momentary success but for a sustainable journey towards excellence, where evolution is driven by those who know the ground reality best – your employees.

FAQ

Why is employee feedback important in change management?

It reveals how employees feel, what they need, and where resistance might occur—helping leaders plan smarter and avoid blind spots.

What are the best ways to collect employee feedback during change?

Use multiple channels: pulse surveys, town halls, focus groups, 1:1s, anonymous forms, and digital tools that make feedback easy and ongoing.

How can feedback reduce resistance to change?

People resist less when they feel included. Feedback builds ownership, trust, and a sense of partnership in the change journey.

How do I act on employee feedback effectively?

Analyze themes, prioritize issues, communicate your actions, and follow up regularly. Closing the loop is key.

How can Poppulo support feedback in change programs?

Poppulo provides real-time sentiment analytics, multi-channel communication insights, and dashboards that help leaders understand employee reactions and adjust strategy quickly.


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