More than half of the U.S. workforce is guessing whether they’re meeting their employers’ standards right now. 

According to Gallup research, only 46% of U.S. employees clearly know what’s expected of them at work. That number has dropped 10 percentage points in just a few years. 

Think about what that means. Your best people might be wondering if they’re actually succeeding, and you have no idea they’re questioning it. 

What Happens When Employees Don’t Know If They’re Succeeding? 

The same research shows that just 30% of employees strongly agree someone at work encourages their development. When people don’t know if they’re succeeding and don’t feel supported in getting better, they disengage. Or worse, they quit. 

Corporate America has a massive problem with employees “riding it out” well past their expiration date because there’s no clear employee performance management system. People aren’t happy, but they’re coasting because they can. 

Why Do Feedback Gaps Cost You Your Best People? 

Here’s a simple management truth: there’s nothing worse than somebody feeling like what they are doing doesn’t matter and isn’t really important. And that’s exactly the conversation you’re having with employees when you don’t provide regular, clear feedback. 

My husband experienced this at a corporate job where he was required to do monthly reports. Not once did he receive feedback on them. So he tested his manager by embedding a note in the spreadsheet to see if anyone actually looked at it. The boss never mentioned it. 

Eventually, my husband stopped updating the reports entirely. He just kept submitting the same old data because it seemed like no one cared anyway. That’s the cost of no feedback loop: good employees stop caring because they don’t know if anyone else does. 

How Do You Create Systems Where Employees Self-Diagnose Performance? 

I also once worked for a company where I never got feedback. That experience changed everything about how I lead today. I committed to ensuring everyone on my team would always know where they stand. No guessing. Clear expectations from day one. 

The solution? Create feedback loops where employees can self-diagnose their performance. 

Here’s how to give employee feedback effectively: when you have a new hire, help them understand why you hired them and what problem they’re solving for you. If they understand the problem, they’ll know the tasks they need to do and the priority order to complete them. Then give them clear performance metrics so they can answer this question themselves: Am I achieving the goals or not? 

This is the foundation of self-managing teams. When expectations are crystal clear and measurable, people don’t need you hovering over them constantly. 

What Are the Best Performance Review Alternatives? 

I use a two-tier employee performance management system across every role in my company:  

Level One: This is the standard, the baseline. Level Two: This is actual bonus territory. You’re going above baseline expectations and helping the business meet its vision, so you are rewarded with merit pay.  

Everyone knows exactly what these two levels look like for their specific role. They can self-report: Am I meeting expectations or not? I don’t have to micromanage because the system does the work.  

The key is being ruthlessly clear about what “good job” means. I’m not naturally a big kudos person. I expect people to do quality work. But leaders like me who are judicious with praise need to be even clearer about expectations.  

How Often Should You Give Employee Feedback? 

Every month, we hold what I call scorecard meetings. We discuss how our core values apply to each department, what success means in practical terms, and how everyone’s performing against their metrics. 

Most importantly, everyone sees their scorecard. There’s no hiding, no wondering, no guessing. 

These aren’t traditional performance reviews where people sit nervously hoping for good news. These are transparent conversations where everyone already knows where they stand because they’ve been self-diagnosing all month long. 

When someone’s struggling, I don’t start with “Why aren’t you performing?” I ask: “What can I do to help? Why are you struggling? What’s happening?” Maybe they need a different role. Maybe they need to transition out. But you can’t know until you have the conversation. 

Who’s Responsible for Employee Performance Clarity? 

Here’s what many business owners don’t want to hear: if your employees don’t know whether they’re succeeding, that’s your fault. Not theirs. 

The challenge is we want an easy fix. We don’t want to sit down and think deeply about why we hired each person, what their function is, and what a good job looks like in measurable terms. That’s hard work. It requires clarity from you first. 

Building stronger connections with your staff starts with you doing the difficult thinking work to define success clearly. 

Ask yourself: What problem does each person solve? What tasks do they need to complete? What does baseline performance look like versus exceptional performance? If you can’t answer these questions crisply, neither can your employees. 

What Are the Employee Engagement Best Practices That Actually Work? 

When you create proper feedback loops, three things happen: 

First, you stop being the performance police. Your team manages their own productivity because they can see exactly where they stand. 

Second, you catch problems early. Your monthly scorecards reveal issues immediately, before they become terminations. 

Third, you make difficult conversations easier. When someone consistently performs at baseline or below, and they’ve had clear feedback all along, the conversation becomes straightforward. You’ve been clear. You’ve measured. You’ve offered help. If nothing’s improved, everyone knows what comes next. 

Avoiding the drip of dysfunction in your workplace culture requires these honest, ongoing feedback systems. 

How to Build Employee Feedback Systems: Your 4-Step Process 

Stop letting your employees guess whether they’re succeeding. Here’s your step-by-step guide: 

Step 1: Define the problem each person solves. Why did you hire them? What specific challenge do they address? 

Step 2: Establish clear, measurable performance standards. What does baseline look like? What does exceptional look like? 

Step 3: Create regular scorecard check-ins. Monthly works well for most businesses. Make it transparent. Show everyone where they stand. 

Step 4: When people struggle, lead with support. Ask how you can help before assuming they’re not capable. 

Frequently Asked Questions About Employee Feedback Systems 

How do I know if my employees understand their job expectations? Ask them to explain what success looks like in their role. If they can’t articulate it clearly, you have a clarity problem. 

What’s the minimum frequency for performance feedback? Monthly scorecards work well, but employees should be able to self-diagnose daily using clear metrics. 

How do you give feedback without micromanaging? Create systems where employees can see their own performance metrics. The system provides feedback, not you. 

What if an employee consistently performs at baseline but not higher? That’s fine. Baseline is what’s required to keep the job. Not everyone needs to be exceptional. 

How do you handle employees who struggle to meet even baseline expectations? Start by asking what support they need. Maybe they’re in the wrong role. The clear metrics make these conversations easier. 

Want feedback loops that actually work? Let’s build them. Click here to schedule your free consultation 

About the Author 

Anne Lackey is the Co-Founder and CEO of HireSmart Virtual Employees, where she helps businesses scale with full-time, highly trained remote staff. With decades of experience in business operations and systems, Anne is a recognized expert in virtual staffing, process efficiency, and team building.