Most leaders believe they’re giving helpful feedback. But too often, what they think is constructive comes across as demoralizing, ineffective or outright damaging. The difference? The best leaders don’t just give feedback — they coach, communicate with care, and create an environment where employees feel seen, heard and valued.

Gallup and Workhuman research shows that employees who receive valuable feedback are five times more engaged and 57% less likely to experience burnout. Yet too many leaders fall into the trap of delivering feedback in a way that crushes morale instead of driving improvement.

The solution? Feedback needs to be an ongoing, trust-based conversation, not a one-time critique. It must be framed as coaching, not criticism, and delivered in a way that accounts for more than just words. Your tone, body language, facial expressions and energy play just as big a role as the message itself.

Here’s how to be more effective at giving feedback — step by step.

Related: Employee Feedback Is Only Effective If It’s Done Right. Here’s How to Make Sure It Lands.

Step 1: Shift your mindset — feedback is a gift, not a gotcha

Leaders often hesitate to give honest feedback for fear of being seen as negative. But avoiding feedback doesn’t create a culture of psychological safety; it creates a culture of guessing and stagnation. The best employees want to grow, and they need clear, constructive input to do so.

Key shift: Move from a criticism mindset to a coaching mindset. Think of your team as business athletes. Just as elite performers rely on coaches to refine their skills, employees need guidance, encouragement and practical ways to improve.

Ask yourself:

When you see feedback as an investment in someone’s success, it changes the way you show up.

Step 2: Presence and delivery matter more than you think

The most overlooked part of feedback? How you show up.

Your body language, vocal range, gaze and facial expressions all send a message before you say a word. To curate a warm and inviting atmosphere conducive to accepting constructive feedback, adopt an open posture, connect visually, show concern and care with facial expressions that are authentic and congruent to what you’re saying, and use a conversational tone and cadence. Otherwise, they may feel tension, judgment or discomfort instead.

You silently communicate to the world all day through your body language and presence. Be intentional about how you are perceived. Convey, instead of betray, your message.

Key shift: Feedback isn’t just about what you say but how you make people feel. You need to be fully present, engaged and emotionally attuned.

What to do:

• Make eye contact: Remove distractions and see the person in front of you; stay “on gaze!” Not in an intimidating way, but with warmth and attentiveness.

• Adopt an open posture: To signal partnership as opposed to power, face your employee with open arms and gestures that invite conversation, seated at the same level.

• Mind your facial expressions: Are you showing genuine curiosity and care or unintentionally conveying frustration?

• Be intentional with your vocal delivery: Vary your pitch and pace. Speak as you would in conversation. Too fast or too slow, too high-pitched or too low-pitched, and your message may be misunderstood.

Effective leaders don’t only plan what they’ll say; they are also intentional about their presence or how they “show up.”

Ask yourself:

• Is my nonverbal communication reinforcing my message, or undermining it?

• Am I making this a safe, productive space for the other person to engage?

Related: Your Words Only Tell a Fraction of the Story — Here’s Why Tone and Body Language Actually Matter More

Step 3: Start with strengths, not weaknesses

Too often, feedback begins with what’s wrong rather than what’s working. But neuroscience shows that people are more open to feedback when they feel seen, valued and capable.

Starting with acknowledgment sets a positive tone and reinforces that feedback is coming from a place of support. “I always like to start conversations by sharing how my team members’ strengths have had a positive effect on our business outcomes,” says Kristi Snyder, Chief People Officer at Enthuse Marketing Group. Framing the conversation around strengths helps both parties enter the discussion with a constructive, growth-oriented mindset.

Key shift: Flip the traditional feedback approach. Start with acknowledgment before diving into areas for improvement.

What to say:

By opening with a question, you create a loop of engagement rather than a top-down critique. Employees get to explain their thinking first, which makes them far more receptive to guidance.

Step 4: Ask more, tell less

Great leaders use feedback as an opportunity to understand before they correct. Instead of leading with here’s what you did wrong, try leading with curiosity.

Key shift: Replace statements with open-ended questions to uncover insights and encourage self-reflection.

What to ask:

• “What was your thought process behind this approach?”

• “What challenges did you run into?”

• “How do you think we could refine this?”

By letting employees talk first, you gather context, acknowledge their thinking and collaborate on solutions rather than dictate them. Approaching situations like this makes sure employees feel heard and increases buy-in.

A reminder: Acknowledgment is NOT agreement. Giving employees space to explain their reasoning allows leaders to correct misunderstandings while still respecting their perspective.

Step 5: Deliver feedback with directness and care

Feedback shouldn’t be sugarcoated, but it also shouldn’t feel like an attack. The secret? Balance directness with care.

Key shift: Avoid vague platitudes (“You did great”) and harsh bluntness (“This was bad”). Instead, use clear, actionable and supportive language.

What to say:

• Instead of “Your presentation was weak,” try: “I see the effort you put in. Let’s strengthen the data to make it even more compelling.”

• Instead of “You handled that customer situation poorly,” try: “I appreciate how you followed the process. Let’s explore ways to make it more adaptable.”

Related: How to Give Constructive Feedback That Actually Empowers Others

Step 6: Follow up and reinforce progress

The biggest mistake leaders make? Giving feedback once and never revisiting it. Without reinforcement, even the best feedback fades into the background.

Key shift: Feedback shouldn’t be a one-time event — it should be an ongoing dialogue.

What to do:

• Circle back in a week to see what’s changed.

• Recognize progress (even small wins) to reinforce learning.

• Keep feedback alive in regular conversations, not just performance reviews.

Great leaders don’t go it alone

The most remarkable leaders and elite performers lean on coaches to hone their skills. Many of the most effective leaders actively work with executive coaches to refine their ability to deliver impactful feedback. They recognize that feedback is an art — one that can be mastered with guidance, practice and expert insight.

Feedback is meant to bring people closer and move the organization forward, but it must be delivered expertly. Mastering feedback isn’t just about what you say — it’s about how you say it and how it makes people feel. Whether you’re a seasoned executive or an emerging leader, investing in expert coaching can elevate your ability to guide, inspire and develop your team.

Feedback is your leadership superpower. Use it wisely.

Kevin O’Leary is ready for a TikTok to deal to get done.

On Instagram, the long-time “Shark Tank” investor posted a recent television interview (conducted in his signature pajama pants) and told his followers that the TikTok “clock is ticking.”

“We’re on our second 75-day extension,” O’Leary told Fox Business. “I speculate that there will not be a third.”

Related: President Donald Trump Extends TikTok Ban Deadline Again — Here’s What to Know

The deadline for a TikTok deal was April 5, but it was extended for 75 days a second time earlier this month. President Trump wrote on Truth Social the same day that his administration is “working very hard” on a deal to “save” the app.

In the interview, O’Leary added that he doubts any S&P 500 company would want to pay the penalty of $5,000 a user if a ban goes through, and added that any speculation of a possible lease deal was “shut down three weeks ago.” Meanwhile, the 75 days will be up in mid-June.

“Anyone who wants to buy this thing now faces rewriting the algorithm,” O’Leary said, adding that it is all up to President Xi Jinping of China and that he “hasn’t decided if he’s going to sell it or not.”

O’Leary has teamed up with billionaire former Dodgers owner Frank McCourt in “The People’s Bid” for TikTok. Reddit co-founder Alexis Ohanian has also joined the team.

AI startup Perplexity also submitted a bid to merge its business with TikTok’s U.S. division for more than $50 billion.

Amazon and Applovin also recently (separately) submitted bids.

Despite the red tape, O’Leary noted that he is “100% still interested” in buying the social media platform.

“Frank McCourt and I have been working on this for so long, we aren’t giving up,” O’Leary said.

Related: Amazon Just Submitted a Bid to Buy TikTok, as AppLovin and Other Tech Companies Make Offers Before the Looming Deadline

Most individuals and entrepreneurs start a business with the excitement of financial freedom and being their own boss to build something meaningful. Everyone knows the obvious business costs, such as rent, payroll and marketing.

However, there are hidden business costs that can erode profit margins, strain cash flow and catch even the most experienced founders off guard.

Related: 4 Expenses You Can Avoid When You First Start Your Company

1. Employee turnover and hiring costs

According to studies, replacing an employee can cost 50% to 200% of their annual salary. This factor is underestimated by many people who face further cost, workflow and productivity loss. Recruitment fees, training, lost productivity and cultural impact all add up.

The reasons why employee turnover is expensive:

• This includes the fees to post a job on LinkedIn and Indeed

• The commission of a recruitment agency (mostly 20-30% of a new hire’s salary)

• Time spent on interviewing and onboarding

• It reduces efficiency as new employees ramp up

To reduce these costs, businesses must invest in retention strategies. You must offer competitive salaries, create a strong company culture and make employees feel valued.

2. Office space and utility costs

Securing office space is a crucial decision for any business, but it’s essential to assess your needs before committing to a lease or purchase. Consider how much space you require now and how it may change as your business grows.

If you’re a startup with an uncertain future, opting for flexible office solutions like Regus, ShareDesk or LiquidSpace can be a cost-effective alternative to long-term leases. These shared workspaces provide scalability without the financial burden of a permanent office.

Beyond rent, there are additional expenses to factor in, including office furniture, equipment, utility bills, receptionist services and meeting spaces.

3. Equipment maintenance and upgrading

As an entrepreneur, you likely know the essential equipment required to provide a service or for item production. But mostly, smaller equipment is ignored. Basic office equipment includes computers, papers, desks, chairs, scanners and copiers.

From office furniture to computers, wear and tear is inevitable. Most companies neglect to replace or upgrade their office equipment, which is a bad idea. Typical maintenance costs include:

• Upgrading outdated computers and software

• Vehicle maintenance for delivery or service-based businesses

• Repairing office equipment like printers, HVAC systems or kitchen appliances

Regular maintenance can extend the life of business assets and prevent costly breakdowns.

4. Software and subscription creep

Most businesses need software to automate communication, project management, accounting and marketing tasks. A few essential subscriptions can quickly spiral into hundreds or thousands of dollars in recurring costs.

Hidden costs include:

To save these unessential hidden costs, conduct regular audits of your software stack to eliminate redundant or unutilized subscriptions.

Related: 8 Unconventional Ways to Cut Costs in Your Business

5. Payment processing fees

Whether you realize it or not, you are paying transaction fees if your business accepts credit card payments. Payment processors like Stripe, PayPal, and Square typically charge 2.9% + 30¢ per transaction, which can eat into profits, especially for high-volume businesses.

Other payment-related costs include:

To minimize fees, consider negotiating rates with processors. You can offer customers ACH, wire payments or pass fees when possible.

6. Regulatory compliance and legal fees

You need to stay compliant to do business in your community. Laws and regulations vary by industry. Mostly, businesses pay for:

• Business licenses and permits

• GDPR or CCPA compliance tools (to handle customer data)

• Employee labor law compliance (HR policies, mandatory training)

• Annual tax filing and bookkeeping

If you ignore compliance, this can result in hefty fines or lawsuits. It can be a cost that should never be overlooked. You must consult with legal experts and keep up with regulatory changes to prevent costly mistakes. Another way is to opt for strategies to reduce your legal liability.

7. Cybersecurity and data protection

You can’t hope that your systems are safe. Cyber threats can be expensive. A single cyber attack can cost a small business hundreds of thousands of dollars in recovery, legal fees and lost customer trust.

Hidden costs of cybersecurity come in the form of:

• Installing a firewall and antivirus software, and doing security audits

• Costs for employee training on phishing and scams

• Ransomware recovery and lost business due to downtime

• Legal liabilities if customer data is compromised

Small businesses are easy targets for cyber threats, so it’s non-negotiable to invest in cybersecurity.

8. Shrinkage and inventory loss

Retail and ecommerce businesses lose revenue due to theft, damaged goods and errors. Known as “shrinkage,” this hidden cost is overlooked but can account for up to 2% of total sales.

What causes shrinkage?

• Shoplifting or employee theft

• Damaged or expired inventory

• Administrative errors in tracking and fulfillment

You can use a strong inventory management system software and opt for loss prevention strategies to mitigate these costs.

9. Marketing and customer acquisition costs (CAC)

To attract new customers, many businesses rely on paid ads, SEO, social media and influencer partnerships. However, the return on investment isn’t always immediate.

Hidden costs in marketing:

• Rising costs of PPC (pay-per-click) ads due to competition

• If the campaign is poorly targeted, it can waste the budget

To lower CAC, focus on organic growth strategies like content marketing, email marketing and referrals.

Related: 9 Business Expenses You Can Reduce or Eliminate to Save Thousands

10. Time

Time is the most undervalued resource. Entrepreneurs spend countless hours on admin tasks, customer support and problem-solving instead of revenue-generating activities.

You can reclaim time by:

• Automating repetitive tasks with software

• Delegating or outsourcing an employee for non-core activities

• Setting boundaries for yourself to prevent burnout

Your time is an investment; spend it wisely to maximize efficiency and profitability.

I recommend setting aside 20% of your revenue for unexpected expenses to prevent financial leaks before they become serious problems. Budget for the real costs, not just the obvious ones.