The power of 360-degree feedback review

Are you struggling to achieve better performance but don't take the 360-degree feedback process seriously enough? Even if it doesn't seem, these two things are incredibly connected.

 

What does it mean not seriously enough? It means you are losing opportunities to make fundamental differences within your organization.

 

Well, let's get the point straight! Welcome to our blog.

 

360-degree feedback is a great tool that you could use for performance review. Recently, it has been increasingly prevalent within Human Resources and people teams within C levels of companies. Why?

 

 

What is it?

 

If we want to start with why, we must clarify what it is in the first place.

Simply put, it is a powerful behavioral change model and leadership development model.

 

A 360-degree Feedback is a holistic employee review process. It involves a comprehensive understanding of your strengths, areas for improvement, and how you're perceived by those you interact with professionally. It's as if you're stepping into the shoes of different characters in your career journey.

 

So, that's the main difference - unlike traditional appraisal methods where manager scores dominate, this approach invites input from various sources.

 

How could it be done?

 

Well, many companies are doing it manually, which means they are still using the traditional employee performance review process, and only some have even developed their performance management software or have bought some. 

 

The first documented use of 360 feedback is from the German military, which gathered input from multiple sources to evaluate officers' performance during World War II. Marshall Goldsmith first named and mentioned the 360-degree feedback method as an excellent tool for analyzing employee performance later in 1949.

 

Now, let's find out more about its importance today.

 

 

Why is it important to use 360-degree feedback as a performance management?

 

Many companies employ 360-degree feedback to identify employees' weak spots and training needs and recognize their potential leaders.

 

It's important to mention that tech titan companies like Netflix, Google, and Facebook use 360 feedback reviews, as well as Barclays, Nissan Corporation, etc.

 

360-degree is becoming a game-changer in the HR realm, and these companies are actual proof since they value the holistic look and understand that more information leads to better business decisions, which leads to better performance in the end. So, these two things aren't the same, but the 360-degree feedback process definitely could help in performance management. 

 

The benefits of 360-degree feedback could be various: improved communication, improved workplace relationships, increased transparency, personal and professional development, improved team performance, and much more, and they depend on the company's primary goal.

360-degree feedback is more than annual review

 

Many companies are still avoiding it, and there are two reasonable explanations: they don’t do follow-up activities or they don’t have the right solution, so the costs are enormous.

 

Both of the issues are solvable.

 

They don’t do follow-up activities, so companies usually do 360-degree feedback review cycles once or twice a year (the best case), probably manually, and don’t act on data. If one C-level Manager does it, this review cycle is not really at the top of his priority list so the results may be pushed into a corner and never used again. That’s where the problem arises. Companies conduct these review cycles because they want to discover their areas for improvement, and once they get the results, they don’t use it properly.

 

They don’t have the right solution, which means that many companies do it manually, which is okay if you have enough people in your HR team to cover all employees because doing it manually means you will need to store all the data in your head. Besides that, according to recent research one HR manager spends around 210 hours conducting one performance review, and speaking in money - it costs between $135 and $150 per employee.

 

The thing is, 360-degree feedback isn’t just an annual review. It should be used to create a continuous feedback culture in the organization. 360-degree feedback is a positive addition to your performance management system when implemented with care and training to enable people to serve customers better and develop their careers.

 

 

3 steps to run a successful 360-degree feedback review cycle

 

1. Establish criteria for rating

 

Make a plan how you would rate employees/colleagues/yourself. Consider what will be the competences and ratings for them. For example, you could decide on rating some soft skills such as leadership, communication or teamwork and to use the Likert scale for it to rate people from 1 to 5 according to how well they fit with that skill.

 

2. Stay objective

 

It’s really important to get objective opinions and to stick to the facts. Employees should be able to choose persons from whom they want to receive the feedback, but they could easily choose people they are sure will give them the best ratings. That’s where your HR team plays the biggest role in addition to providing objective results.

 

3. Follow up about the progress

 

Make people feel heard and valued. Once you run the review cycle expect that people would like to know the results. After you give them the results, give them added value, as well. If there are critical areas, give people recommendations on how to improve them, and then - do the instant feedback cycles and 1 on 1 evaluation meetings, do not wait until next year.

 

Employee development is the answer to why am I doing this? and only employee development will lead you to better performance.

Conclusion

 

To summarize, 360-degree feedback review is a great method for employee’s performance analysis. Besides that, this method is great for creating a continuous feedback culture, and long-term relationships with your employees, as well as decreasing fluctuation rate. 

 

If you are already conducting this process manually once a year, you are just doing it because you know its importance but probably aren’t a fan of it. If that’s the case - make it easy on yourself. Use the software which will reduce the time spent on creating processes and which will even automate the results and give you useful reports. You will love it! 

 

As an American author, salesman, and motivational speaker, Zig Ziglas once said: “You don’t build a business, you build people. Then people build the business.” 

 

Let's build people together and make your organization a better workplace!