Creating an inclusive workplace where everyone feels valued and heard is essential but challenging. A major barrier is the “broken feedback loop” — when employees share their thoughts and ideas prior to a big decision, but then company leaders make the decision without any explanation or transparency. When this happens, employees can’t anchor in the “why” behind the decision to be able to make sense of it, nor can they clearly understand how the decision impacts their day-to-day work or changes how they’re being evaluated. This lack of explanation can do serious damage, triggering threats and undermining a sense of inclusion.
When leaders make decisions in isolation, it erodes trust. The 2023 Edelman Trust Barometer highlights that amidst an uncertain economic climate, trust in business is more crucial than ever. Employees are increasingly looking to their employers for stability and ethical leadership. When their input seems to vanish into thin air, it’s a major blow to their sense of relatedness and fairness and can undermine their trust in the organization.
It’s also incredibly demotivating. Gallup’s 2023 State of the Global Workplace report paints a bleak picture: Only 23% of employees are truly engaged at work. Unexplained decisions fuel this disengagement, threatening individuals’ sense of autonomy and status. Why bother putting in the effort if your ideas are just going to be ignored?
And let’s not forget about stress. A 2022 study in the Journal of Occupational Health Psychology found a clear link between feeling unfairly treated at work and increased stress and anxiety. Unexplained decisions can feel incredibly unfair, leaving people feeling anxious and undervalued, impacting their sense of fairness and status.
The SCARF® Model: understanding threats and rewards
The NeuroLeadership Institute’s SCARF® Model helps us understand why unexplained decisions are so damaging. It highlights key social domains that drive our behavior: Status, Certainty, Autonomy, Relatedness, and Fairness. Unexplained decisions can trigger the following threats:
- Diminished sense of value and importance (Status).
- Loss of clarity and predictability (Certainty).
- Feeling powerless and unheard (Autonomy).
- Disconnection and isolation from the team (Relatedness).
- Perception of inequity and favoritism (Fairness).
The road to an inclusive feedback culture
To mitigate SCARF threats and foster a more inclusive environment, we need to prioritize transparency, communication, and constructive feedback. Here are some solutions:
- Status: Recognize and value everyone’s input, even if their ideas aren’t the final choice. This shows respect and reinforces their importance to the team.
- Certainty: Clearly communicate the reasons behind decisions. Transparency builds trust and reduces anxiety.
- Autonomy: Involve team members in decision-making whenever possible, giving them a voice and sense of control.
- Relatedness: Foster open communication and collaboration to build strong team connections and a sense of belonging.
- Fairness: Maintain transparent and inclusive decision-making processes, demonstrating a commitment to equity.
A broken feedback loop isn’t just an inconvenience — it’s a major obstacle to building an inclusive workplace. By prioritizing transparency and open communication, and actively addressing the SCARF domains, we can create an environment where everyone feels valued, respected, and empowered to contribute their best.
