^We are in the midst of layoff season. While the world is shocked to see large internet companies like Meta and Twitter fire employees, the Indian startup scene has also suffered. So, what led to this, what is happening now, and what is yet to come? ‍

Race to Mass Layoffs?

Adding to the difficulties in Silicon Valley is the possibility that Amazon will announce layoffs that will affect up to 10,000 workers. Following Microsoft, Twitter, Snap, Meta, and Twitter, Amazon is the next big tech company to lay off employees. There has also been a decrease in recruiting at Apple and other companies. 

In the wake of fears of a worldwide recession, technology companies, traditionally large spenders, are now turning to cost-cutting.

Mass Firings: What Led to This?

From January 1 to June 1, 2022, the market capitalization of the top 30 technology companies decreased by $4.3 trillion. These 30 companies represent the majority of the value of the global tech market.

At least $5–6 trillion was lost in the global listed tech market as a whole. The top 30 businesses account for $4.3 trillion of this. In actuality, the combined contribution of Apple and Microsoft to this market value decline is close to $1 trillion. 

From June to August 18, the market value of the top 30 tech companies experienced a $900 billion recovery.

What's the situation in India?

Many edtech companies have let go of employees, including Byju's and Unacademy. It was reported that Unacademy had laid off 1,150 employees, while Byju's laid off 550 employees, not far behind Vedantu, which had laid off 624 employees.

Meanwhile, MFine laid off 600 workers, Ola fired 500 people, and Cars24 reported 600 job losses. In all cases, layoffs were caused by tighter monetary policies and a correction in the stock market.

How About the Attrition Rate?

In addition to layoffs, IT organizations have experienced high attrition rates. Labor costs and the cost of acquiring talent led to squeezed operating margins for all IT majors during the previous quarter.

During the first quarter of FY23, Indian IT companies spent, on average, 57% of sales on employee salaries, with some, like Infosys, raising their top performers by one or two digits. TCS's attrition rate for Q4 of FY22 was 19.7%, much higher than Infosys's 17.4%.

In Q4FY22, HCL Technologies experienced an increase in attrition from 21.9% to 23.8%. However, Wipro has managed to keep attrition rates relatively stable, dropping from 23.8% to 23.3% between April and June.

^The art of giving feedback, especially for those new to leadership, can feel like navigating a minefield. It's natural to feel anxious about how your words might be received, and the impact they could have on your working relationships. But in today's fast-paced, ever-evolving work environment, feedback is not just important, it's essential.

In a world where change is the only constant, leaders need a clear picture of what's working and what isn't. They need the unfiltered perspectives of their team members to make informed decisions and adapt their strategies effectively.

For employees, constructive feedback is a lifeline. It's a chance to understand their strengths and areas for improvement, to feel valued and heard, and to grow both personally and professionally.

But here's the catch: feedback, like any powerful tool, can be used constructively or destructively. When delivered thoughtfully, it can inspire, motivate, and bridge the gap between potential and performance. But when handled carelessly, it can create resentment, defensiveness, and a breakdown in trust.

Reframing Feedback

Let's move beyond the traditional view of feedback as a performance evaluation. Instead, let's see it as a catalyst for growth, a two-way street where both leaders and employees can learn and develop.

For new leaders, mastering the art of feedback is about more than just pointing out mistakes. It's about creating a culture of open communication, where everyone feels safe to share their thoughts and ideas. It's about recognizing achievements, fostering professional development, and building trust with your team.

Five Strategies for Thoughtful Feedback

So, how can you provide feedback that's not just constructive, but also empowering and motivating? Here are five strategies to consider:

1. A Skill, Not a Talent

Effective feedback isn't something you're born with; it's a skill honed through practice and dedication. Research shows that training in feedback techniques can significantly improve leaders' ability to deliver constructive criticism and foster positive outcomes. So, invest in your development by reading articles, watching videos, or even attending formal training sessions. Observe experienced leaders and learn from their techniques.

Remember, practice makes perfect. Start by giving feedback in low-stakes situations to build your confidence and refine your approach. Reflect on your experiences and identify areas for improvement. Over time, you'll develop a natural and impactful feedback style.

2. Intentions Matter

Your intentions play a crucial role in how your feedback is received. If your motive is to criticize or belittle, it will likely trigger defensiveness and resentment. However, if your intention is to genuinely help the recipient improve, your message will be more likely to resonate and inspire action.

Research in psychology supports this. Studies have shown that when people perceive feedback as being motivated by a desire to help them learn and grow, they're more likely to accept it and act on it.

So, before giving feedback, take a moment to check your intentions. Ask yourself: "Am I trying to help this person improve, or am I simply venting my frustration?" If your motives aren't pure, it's best to postpone the conversation until you're in a more constructive mindset.

3. Choose the Right Moment

Delivering feedback at the wrong time or in the wrong setting can significantly diminish its effectiveness. Imagine receiving critical feedback in front of your colleagues or during a high-stress situation. It's unlikely to be well-received.

Neuroscience tells us that our brains are more receptive to feedback when we're in a calm and relaxed state. So, choose a time when both you and the recipient are free from distractions and stress.

Additionally, provide feedback while the context is still fresh in everyone's mind. This ensures clarity and avoids misunderstandings.

Example:

• Don't: "Hey, remember that presentation you gave last month? I think you could have done a better job with the visuals."
• Do: "I wanted to chat about the presentation you gave yesterday. I think the content was great, but the visuals could have been more impactful. Let's brainstorm some ideas for next time."

4. Focus on Behavior, Not Identity

Feedback that focuses on personal traits or abilities can trigger defensiveness and hinder growth. Instead, focus on specific behaviors or actions that can be improved. This approach encourages a growth mindset and empowers the recipient to take action.

Research in psychology has shown that feedback is most effective when it's specific, actionable, and focused on behavior rather than personality.

Example:

• Don't: "You're not a very good communicator."
• Do: "During the meeting yesterday, I noticed you interrupted your colleagues a few times. It might be helpful to practice active listening and allowing others to finish their thoughts before sharing your own."

5. Create a Two-Way Street

Feedback shouldn't be a one-way street. Encourage your team members to share their thoughts and perspectives with you. This not only helps you improve as a leader but also fosters a culture of open communication and trust.

When seeking feedback, acknowledge the courage it takes for someone to share their honest opinions. Be receptive, listen actively, and express gratitude for their insights.

Remember, feedback is a gift that offers an opportunity for growth and development. By embracing it with humility and openness, you can create a workplace where everyone feels valued, heard, and empowered to reach their full potential.

Tips for New Leaders

While the five strategies we've discussed provide a solid foundation for giving and receiving feedback, let's go a step further. Here are some unconventional tips to help new leaders truly master the art of feedback and create a thriving feedback culture within their teams.

1. The "Feedback Sandwich" is Stale

The traditional "feedback sandwich" approach, where you sandwich negative feedback between two layers of positive feedback, is often seen as insincere and manipulative. It can also dilute the impact of your message and leave the recipient confused about the key takeaway.

Instead, embrace directness and honesty. Be clear about the areas for improvement while maintaining a respectful and supportive tone. Research shows that people appreciate direct feedback, as long as it's delivered with empathy and a genuine desire to help them grow.

Example:

• Don't: "You're doing a great job overall, but I think you could improve your time management skills. Otherwise, keep up the good work!"
• Do: "I've noticed that you've missed a few deadlines recently. I understand that things can get hectic, but it's important to prioritize your tasks and manage your time effectively. Let's work together to create a plan that helps you stay on track."

2. Ask, Don't Tell

Instead of simply telling someone what they did wrong, ask questions that encourage them to reflect on their own performance. This approach empowers them to take ownership of their development and discover their own solutions.

Studies have shown that self-generated insights are often more powerful and long-lasting than those imposed from the outside. By asking open-ended questions, you stimulate critical thinking and create a collaborative environment where learning and growth can thrive.

Example:

• Don't: "You need to be more organized."
• Do: "How do you feel about your current organizational system? Are there any areas where you feel you could improve? What strategies have you tried in the past that have worked well for you?"

3. Celebrate Small Wins

Don't wait for annual reviews to give positive feedback. Recognizing and celebrating achievements, no matter how small, can significantly boost morale and motivation. Research in positive psychology highlights the importance of positive reinforcement in fostering a sense of accomplishment and encouraging continued effort.

Make it a habit to acknowledge your team members' contributions regularly. A simple "thank you" or a public shout-out can go a long way in creating a positive and supportive work environment.

4. Make it a Conversation

Feedback shouldn't be a monologue. Encourage dialogue and create a space where employees feel comfortable sharing their perspectives and asking questions. This fosters a sense of mutual respect and collaboration, making the feedback process more meaningful and productive.

Research shows that two-way communication enhances understanding and promotes buy-in. When employees feel heard and understood, they're more likely to accept feedback and take action.

5. Lead by Example

As a leader, be open to receiving feedback yourself. This demonstrates humility and creates a culture where feedback is seen as a valuable tool for everyone, not just a management prerogative.

Studies have shown that leaders who actively seek feedback are perceived as more effective, trustworthy, and approachable. By embracing vulnerability and showing a willingness to learn and grow, you set a powerful example for your team.

Nurturing a Feedback-Rich Culture

Giving and receiving feedback is an ongoing process, not a one-time event. By fostering a culture of open communication and continuous learning, you can create a workplace where feedback is embraced as a tool for growth and development.

Remember, effective feedback isn't just about correcting mistakes; it's about unlocking potential, building trust, and inspiring your team to achieve their best. So, take a deep breath, embrace the challenge, and start nurturing a feedback-rich culture in your workplace today.