When it comes to the appraisal of your employees, feedback helps to guide them in the right direction so that they can be more productive in the workplace. During the annual online performance review cycles in organizations, managers have to go through several documents to get an idea of where their employees stand. However, often they discover that it is merely helpful and solves a small part of a bigger issue. Therefore, they often seek solutions to get overall feedback from the employees, which touches on all the important aspects to understand the team better. At times like this, all you need is a 360-degree assessment because relying solely on performance is not enough; you have to figure out potential among your employees.
Relying on a comprehensive assessment can help enhance the outcomes of an online performance appraisal. This blog will take you through the top benefits of 360-degree feedback and why it is the need of the hour!
“Feedback is the compass for greatness; it tells you what to avoid, what to learn, and where to excel.” – Henrik Ceder.
Table of contents
Importance of a complete employee assessment
From providing an extensive evaluation of the staff, including different perspectives, to promoting a culture of transparency within an organization, a 360-degree feedback system is a powerful weapon for managers to understand the position of their team.
While traditional methods of appraisal cannot help you much in identifying potential leaders and making informed decisions, an online assessment can assist in encouraging improvement, highlighting areas of growth, and building trust and engagement among your employees.
Advantages of a 360-degree feedback system
According to a study, leaders who receive feedback from multiple sources tend to make more noticeable improvements in their performance than those who rely on single-source feedback.
This fact shows the effectiveness of an overall assessment and how it can help businesses better manage employee performance. Below are some of the noteworthy benefits of adopting this method:
● Enhances self-awareness
Evaluation of an employee often goes beyond knowing how they have performed, it is about identifying their strengths and weaknesses. Platforms like Mercer | Mettl empowers HRs with the right data-backed tool to gain better insight into their behavior and understand their approach to work, ultimately leading to boosting productivity.
● Reduces workplace bias
Promoting impartiality and being fair to one and all play a crucial role in making a work environment healthy. With a 360-degree assessment, everyone, including managers, peers, and subordinates, can give feedback, which makes the process completely impartial and not based on a single person’s opinion.
● Fosters a growth-oriented culture
Judging an employee solely based on their performance is a thing of the past. Nowadays, the focus should shift to encouraging continuous improvement, allowing individuals to learn from their mistakes. A culture that embraces growth and prioritizes employee development leads to a more high-performing workforce.
● Improves leadership development
Leadership requires more than just technical know-how or decision-making ability. So, using the reliable assessment tools and receiving input from a broad range of people can help you discover if an employee has the required attributes, such as communication skills, empathy, and the ability to inspire others.
● Promotes team building
In a 360-degree feedback process, peers constantly review each other, helping them to know each other’s abilities well enough to work and collaborate as a strong team. In addition, it improves the productivity of the organization since the employees know how to use each other’s strengths and weaknesses effectively to get the desired results.
● Better employee retention
Minimizing turnover rates and improving employee engagement in the workplace has become more essential than ever before. By incorporating a 360-degree appraisal, you can provide employees with a clear picture of their performance and how the company contributes to their betterment. Moreover, when employees realize that they are heard and seen, it enhances job satisfaction, leading to a more stable workforce.
Process of 360-degree assessment
| Step | Description |
| Identifying feedback sources | ● Four key groups provide feedback ● Peers, subordinates, managers, and self-assessment |
| Collection of feedback | ● Completion of surveys by participants ● Focus is on specific competencies and behavior of a particular employee |
| Analyzing data | ● The system evaluates data received from various sources ● Anonymity is prioritized while going through the information |
| Allocation of results | ● Feedback is shared among the staff in a constructive manner ● Emphasis to given to the scope of improvement, employee growth, and potential |
| Developing action plans | ● Based on the online performance appraisal, a further development plan is prepared ● Both the employee and manager create a personalized plan of action |
Final thoughts
The global 360-degree feedback software market is expected to be worth USD 1.23 billion in 2025. There is a growing awareness around this type of tool for online performance review, and the above stat explains it all. So, the next time you are assessing an employee, don’t just rely on past performance; instead, pay heed to potential.
