Performance Feedback That Actually Inspires Growth: A Guide for Nonprofit Leaders

Here's a question worth sitting with: What if the way you're giving feedback is actually driving your best people away?

The research suggests it might be.

Only 14% of employees strongly agree that their performance reviews inspire them to improve. That means 86% of these conversations are doing nothing, or worse, actively disengaging the people you're trying to develop.

You've probably heard feedback like this before. Maybe you've even delivered it:

"You need to be more strategic."

"Work on your communication skills."

"Think bigger picture."

It sounds professional. It checks the box. But it gives people nothing to act on. Employees leave these conversations confused, deflated, and sometimes quietly updating their resumes.

And it's not just employees who feel this way. 95% of managers say they aren't satisfied with their company's performance management processes either.

Everyone hates it. So why do we keep doing it the same way?

The problem isn't feedback itself. People actually want it. 82% of employees appreciate receiving feedback, and 65% say they want more of it. The problem is how we're delivering it.

Why Most Feedback Falls Flat

The research confirms what so many of us have experienced: 80% of employees now prefer ongoing feedback over traditional annual reviews. And yet, only 27% of workers say the feedback they receive actually helps them work better.

The gap between what people need and what they're getting is enormous.

Here's what's going wrong:

Feedback is too infrequent. When conversations happen once or twice a year, stakes feel impossibly high. Every word carries extra weight. Small issues become big surprises.

Feedback is too vague. "Good job" doesn't help anyone grow. Neither does "needs improvement" without specific examples and actionable guidance.

Feedback flows one direction. Traditional reviews position the manager as judge and the employee as defendant. There's no space for dialogue, questions, or mutual learning.

Feedback focuses on the past. By the time you're discussing something that happened months ago, the opportunity to learn from it has passed.

For nonprofit teams, where people are often already stretched thin and deeply emotionally invested, poorly delivered feedback doesn't just hurt morale. It drives away the passionate people your mission depends on.

Feedback That Fuels Growth

Great feedback isn't about pointing out what went wrong. It's about helping someone become who they're capable of becoming.

Here's how to shift your approach:

Lead with curiosity, not judgment.

Before you deliver your perspective, ask for theirs.

• How do you think that project went?

• What would you do differently?

• What felt hardest about that situation?

Nine times out of ten, people already know what they need to work on. When they articulate it themselves, they're more invested in improving.

Be specific and behavioral.

Vague feedback ("be more professional") is impossible to act on. Specific feedback ("when you interrupted during the board meeting, it made it harder for the executive director to make her point") gives someone something concrete to change.

The formula is simple: describe the behavior you observed, explain the impact, and discuss alternatives.

Balance recognition with development.

Research shows that recognition increases engagement by 23%. But many managers save all their positive feedback for formal reviews, if they deliver it at all.

Make recognition part of your weekly rhythm. Catch people doing things well. Be specific about what you noticed and why it mattered.

When development feedback comes in the context of regular recognition, it lands differently. People can hear it because they're not bracing for criticism.

Make it a conversation, not a presentation.

The best feedback sessions feel like coaching conversations, not courtroom proceedings. Ask questions. Listen to understand, not just to respond. Be genuinely curious about their experience and perspective.

And don't forget to ask for feedback yourself. "What could I do differently to support you better?" Models vulnerability and builds trust.

The "Feedforward" Approach

Leadership coach Marshall Goldsmith pioneered the concept of "feedforward," focusing on future possibilities rather than past mistakes.

Instead of: "You didn't handle that donor meeting well."

Try: "Next time you have a challenging donor conversation, what might you do differently? Here's what I've found helpful..."

This simple reframe transforms feedback from criticism into problem-solving. It positions you and your team members as partners working toward the same goal, rather than adversaries debating what went wrong.

Tying Feedback to Mission

Here's what makes feedback in nonprofits unique: your people chose mission over money. They're there because they care.

Effective feedback honors that motivation.

When providing developmental feedback, connect it to impact:

"I want to talk about something because I know how much you care about the families we serve. When documentation isn't completed on time, it delays their access to services. Let's figure out how to make this easier for you."

When providing recognition, connect it to purpose:

"The way you handled that crisis with the Johnson family, your calm presence, your quick thinking, that's exactly why you're so valuable to this team. You made a real difference for them."

Mission-connected feedback reminds people why their growth matters beyond their own career development. It's about becoming better stewards of the work.

Creating a Feedback Culture

Individual conversations matter, but culture matters more. Here's how to build an environment where feedback is welcomed rather than dreaded:

• Normalize it. Talk about feedback openly. Share your own growth areas. Ask for input regularly, not just when there's a problem.

• Make it frequent. The more often feedback happens, the lower the stakes for any single conversation. Weekly check-ins make quarterly reviews feel like natural continuations, not inquisitions.

• Celebrate learning from mistakes. When someone takes accountability for an error and grows from it, recognize that publicly. Show your team that mistakes aren't career-ending—they're growth opportunities.

• Train your managers. Most managers have never been taught how to give feedback effectively. It's a skill that can be learned. Invest in developing it.

The ROI of Better Feedback

Organizations that embrace continuous feedback see 40% higher employee engagement and 26% improvement in performance. Employees who receive meaningful feedback in the past week are four times more likely to be engaged at work.

For nonprofits, where turnover is expensive and institutional knowledge is precious, these numbers translate directly to mission impact.

When your team is engaged, they serve your community better. When they're growing, your organization grows. When they feel seen and supported, they stay.

Better feedback isn't just a "nice to have." It's strategic infrastructure for achieving your mission.

Start This Week

You don't need a new system. You don't need software. You just need to change how you show up in conversations.

Pick one team member. Schedule twenty minutes. Go in with genuine curiosity about their experience and perspective.

Ask: "What's one thing going well that we should keep doing? What's one thing that's not working that we should change?"

Then listen. Really listen. And respond as a partner, not a judge.

That's the beginning of feedback that actually inspires growth.

Want to build a feedback culture that retains your best people and develops your emerging leaders? HR TailorMade helps small nonprofits create performance management systems that actually work, tailored to your culture, your mission, and your budget. Schedule a free 30-minute strategy session to explore what's possible.

Educational Resource: SHRM offers excellent guidance on reimagining feedback to drive engagement and growth, practical strategies for leaders ready to transform their approach.