Ever wondered how the 360 degree Feedback system can be beneficial and indispensable to the employees as well? Well, everybody raves about how the 360 Degree Feedback system helps organizations and has been employed in a lot of Fortune 1000 companies. But why do they continue to implement this system and more companies look forward to implementing them? Let us take a look at it.

360 Degree Feedback system is an employee appraisal framework to understand employee performance and perception of both internal and external stakeholders through various anonymous and confidential appraisal systems.

It acts like a mirror showing the employees where their strengths and weaknesses lie. 360 degree feedback system not only helps the employees to be self-aware but also helps to understand how much their perceived weaknesses affect different stakeholders.

Mistakes can be mistaken

“Mistakes should be examined, learned from, and discarded; not dwelled upon and stored.” 

– Tim Fargo

A simple mistake can make or break an organization. Therefore, it is important that we review mistakes made at the grassroot level and adopt change from the individual level as it would laterally improve the quality of the team, thus, improving organizational culture and performance as a whole.

Oftentimes, during such a feedback system, it may be brought to employee’s notice how their perceived strengths are actually doing more harm than good to other stakeholders. It is also important to note that perception of an individual’s weakness is subjective. The average should be calculated.

Why adopt a 360 Degree Feedback System?

The 360 degree feedback system allows a chance to listen to the feedback of all stakeholders involved. Compared to traditional performance appraisal where bosses(direct/indirect) take the ultimate call on the performance of an employee, the 360 Degree feedback system allows getting feedback not just from the boss but from peers, clients, vendors, and many other stakeholders.

This would avoid any bias of a particular boss on an employee or likewise and gives an opportunity to evaluate an employee’s performance and contribution not just to the team but to the entire organization as a whole.

Employees are the face of the organization. Thus, their behavior and impact on external stakeholders are important factors. If any discrepancy is noted, that particular employee can work on the same. So, the mechanism provides a chance for not just personal improvement but also to rectify mistakes if any made individually or as an organization.

Key Benefits of 360 Degree Feedback System:

The following are the major key benefits of a 360 Degree feedback system for employees:

1. All Voices will be heard and prioritized and transparency is encouraged

Different opinions and perspectives of all stakeholders involved are brought to notice not just to the employee in question but also to the entire organization. This encourages transparency and constant communication among all stakeholders.

2. Employee contribution to all stakeholders can be understood

It provides a platform to evaluate and discuss how an employee is making significant contributions to their stakeholders. This gives the organization and individual employees how their contribution makes an impact and why they should do what they do. 

The framework gives the employees a chance to improve their performance and also maintain their star performance status accordingly.

3. Correction Plan and a chance to show improvement on the areas of improvement required:

This appraisal method helps the employees to work on their “weakness”, correct their “mistakes” and make sure other stakeholders are not affected by their actions in the future. It is important for them to constantly work on their areas of improvement. This also encourages Kaizen – constant and continuous improvement.

4. Encourages Self-Improvement and fosters Teamwork

360 degree feedback system helps to improve and consistently grow not just as an individual but also as a team. Since everyone involved in the process gets an opportunity to voice their opinions, it improves accountability, encourages them to help each other improve and get better at their craft/work.

5. Strategically improve remuneration as a reward for good performing employees based on 360 Feedback received:

360 degree feedback system also helps to foster a healthy conversation about individual contribution and raise remuneration accordingly. Whenever an employee receives positive feedback from all stakeholders involved, it provides statistical proof of employee contribution and thus remuneration can be decided accordingly.

6. Avoid discrimination based on hierarchy, caste, creed, race, gender and avoid communication gaps:

360 degree feedback system increase lateral communication, detect misalignment in strategy implementation and improve accordingly. Junior-level employees can also suggest improvement required in the management-level staff. Thus decreasing the gap in communication due to hierarchy. 

It helps to avoid any miscommunication and foster healthy team spirit to improve on an individual level which can lead to growth as a team. Ego clashes and office drama can be avoided as everyone’s input is taken into consideration

7. Tailored training programs based on every employee’s individual needs

Training programs can be tailored based on the feedback received by each employee. This would improve employees’ vigor to attend more training and help organizations save resources by avoiding training sessions that do not add value to employees and also creating a matrix working model.

8. Improves employee retention

A 360 degree feedback system helps employees feel like they are an important asset to the organization as their contribution is noted and appreciated by all stakeholders involved. It can act as a good measure of recognition, help employees realize, where their areas of improvement lie, and also provide a way to grow and explore as an individual. Thus, it improves employee retention and makes the workforce grow together with the organization.

9. Feedback is to be taken in good spirit and with a pinch of salt to avoid the feeling of being targeted.

Employees must understand that not all feedback can be positive and rosy. Some critical and negative feedback provided in a constructive way must be taken in good spirit. The management should help the employees to grow from negative feedback and learn from their mistakes.

10. Helps all employees understand personal, organizational requirements and serve customers better –

360 Degree Feedback system helps to improve the interpersonal relationship with internal as well as external stakeholders. It encourages employees to want to serve and make their customers happy to get positive feedback. This will motivate employees to work in building a good relationship not just with their customers, but also with co-workers and managerial leaders.

11. 360 Degree Feedback is more beneficial to employees than anyone else involved in the process.

Understanding the requirements of the organization and customers helps employees to align themselves based on requirements. This will decrease effort and help employees feel confident and empowered.

This feedback system helps employees improve their interpersonal relationships and form meaningful bonds. It helps them become self-aware and confident about their individual contribution. It is always good to listen to third-party feedback as this will help employees understand where they stand in the organization.

Based on the feedback received, they can set goals accordingly and achieve them. It also gives them a second chance to work on a mistake or weakness as mentioned by stakeholders.

Improving and working based on feedback gives employees a better sense of direction and a path to work on their relationship if they had a sour experience with any such stakeholders involved. It helps you to keep your emotions aside and focus on improvement as a whole.