A human resources department mainly handles recruiting new members into your enterprise or promoting existing employees to higher positions. While they thoroughly screen candidates to make sure they are a good fit for the enterprise, there may be gaps in this process. Incorporating 360-degree feedback into the performance management system helps enterprises understand the new hire and their fit.

360-degree performance feedback is a comprehensive system used to evaluate employees in your enterprise. It is a review system involving various sources’ insights to receive constructive feedback. Traditional appraisal systems review performance once a year and try to ensure that they are in line with your enterprise’s goals. On the other hand, the 360-degree performance feedback covers a broader range and focuses on the ‘how’ more than the ‘what’ in terms of meeting requirements. Often, this system is used in conjunction with others to provide a holistic review of an employee’s capabilities.

This system was initially designed to review prospects for leadership positions but is quickly becoming popular for employees at all levels. This article explores the 360-degree performance appraisal system in depth and how it could benefit your enterprise.

How does the 360-degree feedback work?

360-degree performance appraisals can be tailor-made to fit specific roles within your enterprise. The broad structure of how they are conducted includes the following steps.

• 8 to 12 people, including co-workers, managers, customers, and others who share work environments and relationships with the employee, are gathered.
• They are requested to fill out a feedback form including questions and rating scales.
• The employee fills out the self-assessment form.
• The results are combined to create an anonymous report of the employee’s strengths and weaknesses.
• The information from this process is utilized to create an improvement plan.

Benefits of 360-Degree Feedback

Using anonymous reviews to receive feedback about new or old employees offers more insight into their roles and capabilities. Unlike the traditional model, a broader range of metrics is covered. It is possible to gauge how well an employee relates to their peers and supervisors, how well they operate within a team, and in which conditions they work best. The culture of the enterprise and team mechanics are valued highly. This offers powerful knowledge to enterprise leaders and can help them develop employees. This system can also boost the confidence of existing employees and motivate them to perform better.

Shifting the responsibility from a single department to a broader range of colleagues can help empower them. It also raises the responsibility and awareness of existing employees towards their clients. Feedback from colleagues helps strengthen self-development in individuals while also fostering team growth. If executed properly, 360-degree performance feedback can instill a culture of honesty and trust within your enterprise.

360-Degree Performance Appraisal Practices

Using the 360-degree performance appraisal system in your enterprise can be a challenging task to execute. Fortunately, a few basic practices make it easy to follow the process to achieve optimum results.

For the Employee

Be objective:

It is essential not to take feedback personally. View it as an opportunity for growth and be honest with yourself concerning the feedback you receive.

Honor anonymity:

For this system to work, feedback must remain anonymous. Do not get caught up in who said what. Avoid letting your working relationships get affected by negative feedback. Accept the feedback and use it to learn and grow.

For the enterprise

Communicate the intention:

It is vital to communicate the intention of the 360-degree performance appraisal system to all the stakeholders in your enterprise. The objectives of the system should be clearly explained to all participants.

Select the raters:

Choose the right people to participate in this system. There should be enough people involved to provide relevant and usable data. This selection can vary depending on the employee in question. It is paramount to select raters that can offer insightful opinions and contribute to the process.

Facilitate feedback:

Ensure that feedback is kept confidential. Take the time to meet all of the participants one-on-one so you can discuss feedback in depth and collect valuable data.

Begin the development plan:

Once all the feedback is collected, you can develop an actionable plan to improve your employee engagement and performance. Furthermore, it can be strengthened with training programs that cover areas your employee lacks.

Re-evaluate:

The 360-degree performance appraisal system is cyclical in nature. After the initial process, it is good to conduct it again frequently and regularly. The results can show the growth in your employee and allow you to analyze the changes in areas where the employee has shown improvement. It also allows you to ensure consistent growth and execute new development plans if needed.

Conclusion

The 360-degree performance appraisal is a comprehensive system that can widen the range in which an employee is evaluated. Including co-workers can provide meaningful feedback and boost your enterprise’s morale and team spirit. The 360-degree feedback plays a big role in the performance appraisal system and gives you a holistic perspective on an employee and their relationship within the enterprise.

Also Read: Most Common Mistakes and Errors Made in Performance Appraisals

Also Read: Top Methods for Employee Performance Evaluation and Appraisal