360 Degree Feedback: Insights and Implementation

Gain a comprehensive understanding of 360-degree feedback and how it helps employees develop through diverse perspectives. Learn about its benefits, potential drawbacks, and best practices for successfully implementing a 360-degree feedback system.

By Brad Nakase, Attorney

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Table of Contents

1. What is 360 degree feedback?

2. What information needs to be a part of 360-degree feedback?

3. What makes 360-degree feedback so important?

4. Benefits and drawbacks of 360-degree feedback

5. Best practices for putting in place a 360-degree feedback system

6. 360-degree feedback survey

7. Example questions for 360-degree feedback

8. Software for 360-degree feedback

9. To sum up

What is 360 degree feedback?

Employees that receive 360-degree feedback receive insightful opinions about how they get along with people from a variety of perspectives. They get a more comprehensive and unbiased perspective as opposed to being restricted to the opinion or prejudice of a direct supervisor. Employees may be motivated to put in more effort toward their development if they recognize that others might not regard them as they would like.

We will get into the specifics of 360-degree feedback in this post.

The employee evaluation technique known as 360-degree feedback, sometimes referred to as multi-rater or multisource feedback or 360 review, gathers comments regarding performance and opportunities for development from a variety of sources.

It consists of evaluations and comments from peers, direct reports, and supervisors—internal stakeholders with whom the employee has a close working relationship. Self-evaluation is another way to get feedback.

Feedback from external stakeholders, such as suppliers, vendors, and customers, may also be incorporated. 720-degree feedback is the term used to describe this expanded range of raters.

The 360-degree feedback system has been primarily utilized by managers and leaders, but as organizations shift away from traditional top-down, single-source performance monitoring and feedback, it is becoming more and more popular with all employee categories. It is becoming recognized as a useful instrument for staff development since it provides a comprehensive analysis of areas for growth and strengths.

What information needs to be a part of 360-degree feedback?

Asking the correct questions is necessary to get enough feedback. You want to know what skills, attitudes, and behaviors workers exhibit in the course of doing their duties.

Organizations must customize their 360-degree feedback form to meet the requirements and values of their evaluation. Usually, questionnaires address the following areas:

Communication abilities
Soft talents and interpersonal interactions
Cooperation and teamwork.
Possessing both managerial and leadership skills
Creativity and originality
Organizational objectives and the desired culture being upheld
Human Capital Innovations’ OD/HR/Leadership expert Jonathan Westover highlights the significance of making sure feedback is directed on actions and behaviors rather than personal attributes or characteristics. By doing this, you can make sure that the feedback is unbiased and concentrated on the areas where the worker can genuinely improve.

What makes 360-degree feedback so important?

360-degree reviews don’t only highlight objectives and accomplishments; they also provide a variety of viewpoints on how people operate. Well-informed criticism from a variety of sources makes a unique contribution to the development of employees.

It helps them identify their areas of strength and improvement when they observe how their actions and methods of working effect various groups of individuals. This insight shows what needs to happen in order for the personnel to succeed in their current roles and reach their long-term professional objectives.

Tara Furiani, the keynote speaker and consultant for “Not the HR Lady,” says that this approach is also more open and accessible, which may encourage more employee engagement and a feeling of responsibility.

The importance of 360-degree feedback is demonstrated by a case study example provided by Talent for Growth, a leadership development business.

In order to successfully navigate the difficulties facing higher education, Bucks New University in the United Kingdom sought to cultivate a strong leadership team. In order to foster a feedback-oriented culture, improve the caliber of faculty-student connections, and prioritize leadership development, they launched a 360-degree feedback program. A year later, when the managers were surveyed, all of them said that their direct reports had made improvements that were clearly paying off.

Benefits and drawbacks of 360-degree feedback

360-degree feedback has its limitations even though it can be a very useful tool for leadership and staff development. Let’s examine these kinds of feedback’s advantages and disadvantages in more detail.

The advantages of 360-degree feedback

Employees and the organization as a whole can benefit from a well-executed 360 degree review system. Among these advantages are:

Creating a competitive advantage: The organization will be in a better position to compete because of its emphasis on leadership development and better behavior from managers and leaders.
Better customer loyalty and service: Input from both internal and external consumers identifies particular areas where staff members can make improvements to improve the customer experience. Customers are more inclined to stick with a business that they interact with positively. Positive ratings from 360 degrees for bank managers were linked to customer loyalty, according to Smith and Walker’s (2001) research.
Increased productivity and teamwork: Taking responsibility for how people interact with one another fosters better cooperation and communication. Higher productivity and improved performance follow from this. Conway, Lombardo, and Sanders (2001) discovered that team member evaluations and direct reports accounted for a larger portion of the range in productivity and profit metrics than did other sources.
Improved performance evaluation for big teams or remote workers: When employees operate autonomously without regularly interacting with their manager, other people’s observations can help close the gaps in knowledge.
Increased internal talent pipeline: The company has access to a bigger pool of future leaders as staff members grow in competence and overcome obstacles.

Positive 360-degree feedback led to lower employee turnover and increased engagement, according to research by Church (2000). Managers who got this feedback also saw improvements in service quality within their teams. Accordingly, Atwater, Brett, and Ryan (2004) found that favorable ratings from subordinates result in higher levels of engagement and satisfaction as well as lower team turnover.

The drawbacks of 360-degree feedback

It’s important to have reasonable expectations for 360 degree feedback. It is not a stand-alone tool; rather, it is merely one aspect of a performance management system. A 360-degree feedback program’s success is not guaranteed, particularly if it is poorly planned or carried out. A scheme like this might potentially cause market and shareholder value to decline.

For this reason, it’s critical to be aware of any potential difficulties that may arise, including the following:

Time and expense: One employee may be rated by four to eight raters, and in order for them to provide constructive criticism, they must have the necessary training. When you consider how much time training and rating take, this is highly expensive.
The suitability: Smaller businesses could lack the resources and impartiality necessary to offer high-quality 360-degree feedback.
Difficulty: It can be challenging to provide feedback, which can lead to misclassified ratings, insufficient or unhelpful input, and disagreement and ambiguity among team members. This is particularly true if raters have never received any prior training.
Inconsistency with strategy: A common focus of 360-degree feedback is on abilities or capabilities that could not be in accordance with the organizational strategy. If it is merely an afterthought, without taking into account the organization’s goals and principles, it could lead to an emphasis on behaviors that don’t support company priorities.
Absence of follow-up: The 360-degree feedback process may be a one-time event with no consequences for subpar performance if senior leaders do not appreciate and support it. Furthermore, poor follow-up reduces the likelihood of behavioral change.

Best practices for putting in place a 360-degree feedback system

To achieve a successful result, a 360-degree feedback system must be carefully planned and implemented. These 10 best practices are organized into six basic considerations, four technological concepts, and ten particular suggestions.

Involve every relevant party: Obtaining the backing of the appropriate parties guarantees involvement in the 360-degree process, support from higher-ups, and action plans.
Describe your ideal version of success: Decide how the 360 program will be evaluated for success, then let everyone who needs to know. A completed improvement plan for every employee based on 360-degree feedback, the percentage of surveys completed in less than 14 days, and, ultimately, behavioral change or improvement could be considered success criteria.
Create a sense of urgency and reward: A 360-degree survey is frequently put off until the last minute since it might not be considered something that needs to be done right now. A clear submission deadline that is communicated is a great strategy to address this. When completing the survey is required, this works effectively. As an alternative, offering incentives to respondents who finish the survey may also work wonders. An inexpensive present that encourages participation could serve as this incentive.
Arrange for follow-ups: A 360-degree assessment shouldn’t happen on its own. Official follow-up activities on the 360-degree feedback and encouraging individual employees to take action both aid in bringing about and sustaining the necessary behavioral change for the program to be successful. Shaun Wilde, the director of HR and CEO of Think Learning, a learning platform, makes the following observations: although the 360-degree feedback alone can be helpful, it requires careful consideration when formulating post-feedback activities, such as how to enhance X; in what place can you grow Y?
Think about development versus assessment: In the event that personal growth is the aim of the 360-degree feedback, ratees ought to have the authority to choose their raters. In this situation, cultivating a feedback-friendly culture within the company will be essential. If the purpose is to assess performance, ratees should be selected depending on how closely they collaborate with the rater. In this case, the performance management system ought to incorporate the 360.
Integrate competencies and goals: Improving business performance is the 360-degree program’s main objective. As a result, it is important to concentrate the evaluation on the skills relevant to the candidate’s position. An individual who possesses a high level of proficiency in a vital skill will perform better in the role. Better organizational outcomes follow from that. Successful 360 feedback requires understanding the competencies required to flourish in one’s position and concentrating on evaluating these. You may use the competency framework your company has if it exists for this purpose.
Relevant content of the 360-degree surveys: The competencies and questions that are assessed in the 360-degree survey should align with the organization’s specific values and competencies. Although good approximations can be found with standardized tools, a custom survey provides the best fit.
Reputable data: The survey’s results have the potential to be applied by numerous people. These include supervisors, coaches, HR, and others who receive and deliver feedback. Data must be credible in both real and perceived senses, which means that it should be accepted as true and correct. The following are best practices: (i) having enough raters; (ii) having raters with enough subject-matter familiarity; (iii) having raters chosen by the subject (with manager approval); (iv) a professional instrument measuring behaviors; (v) an instrument not misleading the rater by using reversed or random phrasing; (vi) a clear and standardized rating scale; and (vii) having training for raters.
Accountability: The person providing the feedback has to take responsibility for it. Make sure to follow up with a coach or the manager. One strategy to overcome a person’s reluctance to change is to link rewards to the desired behavioral change and to share with others your own goals and feedback. The direct manager has the potential to be very important in this accountability procedure.
Participation in the census: Everyone must take part in 360-degree feedback for it to be effective. One of the 360’s drawbacks is its labor-intensive nature. Every person in the organization needs feedback from numerous people, so everyone ends up providing feedback to multiple people. Because of this, management needs to be clear about what is expected of them, take responsibility for ensuring that the feedback is completed successfully, and work to foster an environment that is consistent and equitable for all parties involved.

Making sure you are asking the appropriate team members for comments is crucial when gathering 360-degree feedback. Asking those who work directly with an employee is a good idea because they can offer frank and first-hand feedback. The feedback won’t be accurate or meaningful if it comes from a peer or colleague who doesn’t genuinely know the person or collaborate with them.

360-degree feedback survey

To get excellent feedback, you need to ask the proper questions. The following guidelines can be used to create a 360-degree feedback survey:

Choose the functional competencies that contribute most to outstanding performance: Essential qualities are required for every task in order to execute flawlessly. Pay attention to the competencies that have the biggest impact on the strategy and objectives of the company. Note: Employees may become overwhelmed if you select more than four competences.

List three to four behaviors for each competency: Describe each competency’s parameters, or actions. The raters will provide comments on these questions.

Finish with a candid critique: Include open-ended questions regarding the competencies the ratee can build at the end of the survey.

Example questions for 360-degree feedback

The following 360-degree feedback sample questions are provided by Qualtrics:

Self-knowledge
Possesses emotional self-control, even under pressure.
Shows that they are conscious of the impact their choices and behaviors have on other people.
Views errors and failures as teaching moments.
Actively looks for outside input on how they are performing.

What advice would you give them to help them become more self-aware?

Strive for success
Sets difficult objectives for oneself.
Helps others in achieving their goals.
Sets priorities for work according to the demands of the company and its clients.
Accomplishes goals in spite of difficulties and setbacks.

What recommendations do you have to assist them become more results-driven?

Possibilities for and abilities in leadership
Inspires others to seek development and education.
Inspires people to establish and accomplish goals.
Has inventive problem-solving skills.
Appropriately resolves conflict.

What recommendations do you have to assist them become more capable leaders?

Effective feedback-giving is a talent that can be acquired; it is not innate. If it’s not a well-established aspect of the culture, it’s also awkward.

A method for gathering and dispersing the feedback is necessary for its success. Guidance, success criteria, and samples of constructive criticism must also be provided. People may feel more at ease providing feedback with the use of this approach.

Software for 360-degree feedback

Without the use of technology, the 360-degree evaluation process can be unpredictable and challenging to administer. A variety of tools are available with 360-degree feedback features. The two that we are discussing here are not always suggested. Rather, we are offering them as a taste of what is out there.

360-degree reviews are part of the Trakstar software, which you may integrate with an existing performance system. It enables the email-based gathering of input from many internal and external sources. Users are able to make personalized quizzes, monitor their progress, and set personal goals.

The well-known provider of survey software, Qualtrics, has a 360 development feature. The user-friendly interface of Qualtrics facilitates the addition of questions that are tailored to particular groups and the generation of 360-degree report generation, as exemplified below. Additionally, it can connect specific behaviors to outside educational materials.

To sum up

A well-planned and committed leadership team may greatly improve the benefits of a 360-degree feedback system. By accurately portraying their performance and highlighting problems that require more attention, it can assist firms in developing employee development programs that are effective.

With careful planning, clear explanations, and careful execution, you can also steer clear of common pitfalls that can compromise the effectiveness of a 360-degree feedback program.

Have a quick question? We answered nearly 2000 FAQs.

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