Significance of 360-Degree Review in Employee Appraisals
In many organizations, traditional performance appraisals don’t work.
The old-school approach of conducting employee review (only managers providing the performance feedback to team) has shown low success rate and fewer number of high performing employees. Since feedback is solely provided by managers, it can be biased resulting in demotivation of employees.
Appraisals can be made more effective, accurate and meaningful if combined with 360-degree assessment. In a 360 review, multiple stakeholders provide feedback on an employee’s performance and behavior to identify their strengths, weaknesses and areas of improvement. A multirater review is brings transparency to the evaluation process and fairly evaluate the employees.
Employees believe that this type of holistic feedback is more validating than receiving feedback from a manager alone.
Reviewers rate an employee on multiple qualities, including leadership, communication, teamwork, collaboration, skills and expertise. The responses received by reviewers are kept anonymous and confidential. Team members feel more accountable to each other as they get a chance to give input in one’s performance evaluation. This improves team communication and helps in making employee development plans for individuals.
How to Succeed in Implementing a 360-Degree Assessment?
A 360-degree review can go a long way, if it –
- Involves right stakeholders
- Clarifies the purpose of evaluation to all the reviewers
- Maintains anonymity of the stakeholders and confidentiality of the feedback results
- Includes right parameters in the employee review process
- Develops and executes a corrective action plan in a timely manner
It has been discussed in a previous post that 360-degree feedback is effective for development of an employee. The feedback obtained can be used for an individual’s performance improvement, team development and organizational growth.
Benefits of 360-Degree Assessment
- Increase Self-Awareness
In a multirater feedback process, reviewers provide ratings on different attributes, and anonymously highlight strengths and weaknesses of an individual. These insights are useful for an employee to understand how others perceive their behavior and performance.
- Holistic View on Multiple Parameters
A well-rounded review is conducted to get a balanced view on an employee’s behavior, performance, skills and other qualities. The process is unbiased as it involves a variety of people within the organization. Not just supervisor, but feedback is collected from multiple sources which gives more accurate and a clear picture on an employee’s conduct, his skills and competencies
- Identify Training Needs
When employees’ shortcomings are unveiled with a 360-degree assessment, employers can plan better and focus on the required training and development needs of employees.
Improve employees’ performance, boost their career growth and increase company’s effectiveness with having a 360-degree employee review process in your organization
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