What is 360-degree feedback?
360-degree feedback – also known as multi-source or multi-rater feedback assessment – is a mechanism for gathering feedback.
This feedback process uses multiple raters, such as peers, direct reports, and managers, as well as self-evaluation.
360 feedback helps employees to receive confidential and anonymous feedback from the people who work around them.
Performance or development?
360 feedback can be used for both performance management and development programs. However, there is considerable controversy over whether 360s should be used for evaluation as well as development or reserved purely for development.
Some argue that using 360 feedback for evaluation will ruin its proven value for development because raters will be less candid, ratings will be less accurate, political forces will be at play, and recipients will be less accepting of feedback. Other problems can arise if 360s have administrative consequences like implications for pay or promotion.
Who can give an employee 360-degree feedback?
360 feedback should be given by those who work directly with the person who’s receiving the feedback. This can include supervisors, colleagues, direct reports, customers, and vendors.
Assessments vary according to an employee’s placement within the organisation. Some 360s target HiPOs (high-potential employees) or C-level leadership and executives, whereas others may target the grassroots level (e.g. field employees), managers or frontline leaders, or mid-level management (e.g. Directors or VPs).
How to implement a 360-degree feedback program
A 360-feedback assessment is designed to work within a training and talent management program that is meant to grow and develop your people.
However, it’s important that it’s customised to suit your company’s specific set of needs. The primary purpose of 360s has always been employee development, but there is an increasing trend of companies using 360s within performance review systems.
Be wary of isolated metrics
360s should not be used as an isolated metric in talent management conversations. They are most useful as one input among others. This means they’re best used as a way to provide additional and critical context to objective performance metrics.
Step 1: Have a clear vision across the organisation
Having a clear vision and direction for the organisation helps everyone to work towards a common goal.
This clear vision should be understood and shared broadly and also aligned to business priorities and goals for the organisation.
You can then translate this into leadership competencies and behaviour statements. These will help you to capture the organisations unique needs for both current and future success.
Step 2: Communicate effectively
360-degree feedback is only effective if everyone involved thoroughly understands the process.
When communicating to raters and those being rated make sure to include:
- The purpose of the 360 feedback assessment
- Confidentiality guidelines
- How the data will be used
- What behaviours will be rated
Raters should be provided guidance on how best to tailor feedback based on their own experience with the person they’ll be rating.
It’s important that they’re guided not to let one experience overshadow all others, and that they provide specific examples on what the person they’re rating does well – as well as what they could do differently.
Consider including in the survey invitations an outline of the process timeline, who to reach out to with questions or concerns, and expectations for next steps.
You might also want to consider structured training for each of these groups: rater training, subject/participant, HR partners.
Step 3: Help employees to choose raters
The right people, or ‘high-quality raters’ are those who can provide meaningful feedback based on quality interactions.
High-quality raters will be those who can provide meaningful feedback based on quality interactions.
Making sure that raters have worked closely enough with the individual being assessed will help to:
- Ensure the person who’s being rated can be confident in the feedback being provided. Plus, they’re more likely to act on the feedback if they have trust in their raters’ credibility and motives
- Give enough detail in their feedback for it to be meaningful
In most cases, subjects should be able to choose their raters, but should do it in collaboration with their manager or someone from HR.
This will also help lay the groundwork for the development conversations to follow.
Questions for employees when choosing their raters:
- Has this person had ample opportunity to observe your behaviour and/or work closely with you?
- Do they understand the expectations and nature of your work?
- Do you feel comfortable discussing feedback with them?
Set minimum and maximum expectations for the number of raters. There should be enough raters to protect the confidentiality of their feedback. But balance this with the time involved – the more raters involved in the evaluation process, the longer it will take.
Step 4: Make sure you’re asking the right questions
An open-ended question asking for opinions of an employee’s performance – both good and bad – isn’t helpful. It’ll give you an unorganised cacophony of data. There are better ways to ask.
Every organisation has unique characteristics, a distinct culture, and a wide variety of leadership needs.
It’s crucial that the content in the 360 should be aligned with how leaders are evaluated (from a broader performance perspective).
As well as the knowledge, skills and abilities required for the employee to meet their objectives and priorities – it’s also important that their strengths and weaknesses complement the larger growth and development model across the organisation.
Step 5: Send, monitor, and nudge
Use your 360-degree feedback tool to send the 360 assessment to each participant.
Monitor to see how the process is going. Make sure to give a deadline that’s realistic, but still keeps it front of mind. If lots of people are having difficulties or aren’t on board you may have to revisit step 2.
Step 6: Share and plan
Share the resulting reports with employees and help them create a plan of action for improvement. Ideally, this will be done with their manager who can talk them through their ratings and what they suggest next steps should be.
It’s important that these 360-degree feedback sessions are kept positive. They shouldn’t be an opportunity to berate, but rather a chance for the employee to learn and grow.
Pros and cons of 360-degree feedback
When done effectively, the benefits of 360-degree feedback include:
- Increased employee self-awareness
- A balanced view of the organization as well as the broader growth & development strategy and expectations
- Identifying strengths and weakness in employee skill sets in order to build on or improve upon them
- Building a culture of feedback that allows for open communication
- Ensuring successful succession planning
- Generating an optimal flow of identifying training opportunities
When done poorly, some of the downsides of 360-degree feedback include:
- Fear of retribution or anxiety over poor working relationships in the future
- People feeling overburdened by the workload involved
- Heavy costs of getting consultants to facilitate the process
- Lack of follow-up leading to apathy around the effectiveness of the process
Learn more: Advantages and Disadvantages of 360 Feedback
How to get the most out of 360-degree feedback
Keep it confidential
If employees believe their responses won’t be kept confidential, this can lead to issues related to honesty in giving feedback, increased fear of retribution, negative experiences, and/or organisational culture decline.
Ensure that confidentiality is built-in, maintained, and clearly communicated. Raters provide more useful feedback when they know they cannot be identified.
Carefully consider costs
This doesn’t just mean the monetary costs, but time commitment for your people too. Make sure that there are parameters around your process. This should include length of 360 assessment, and number of raters.
Don’t just listen, act
It’s crucial that feedback is actioned. An employee needs to be given resources to help them if they’re given poor feedback in a particular area.
A lack of follow-up around what happens after going through feedback means that the process becomes pointless. It will also damage future attempts at carrying out effective 360s as employees will be apathetic about how useful it’ll be.
Make sure that you can provide the resources needed in order to help support them if needed.