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Performance assessment of employees is a vital part of every organization. It is essential to employ comprehensive evaluation methods to gather a holistic view of the work. A 360-feedback tool stands out as a well-rounded approach to fulfill this objective. 360-degree feedback is a multi-rater feedback tool for gathering structured and objective inputs to help assess an individual and help them build impactful developmental strategies. This method utilizes a typical 360-degree feedback system to collect insights from multiple sources, including superiors, peers, subordinates and clients.
It shifts the evaluation responsibility to more than one person, reducing biases and errors and eliminating other limitations. Hence, there is more room for collective growth, targeted developmental plans and absolute fairness across all rewards, recognition, promotions, pay raises, etc. It aims to solve an organization’s multi-dimensional problems, providing an all-around report of an employee’s journey, including their strengths and challenges.
A 360-degree feedback method helps organizations evaluate employees’ potential and provide well-rounded feedback from diverse perspectives. Understanding varied perceptions about oneself contributes toward growth by boosting motivation to work better, addressing problem areas across multiple fronts, awareness of expectations and consequences of one’s actions, and empowering the ability to make appropriate behavioral changes to enhance interaction and relationships with others.
Adopting a holistic approach for performance review and training needs identification, succession planning, leadership development, and identifying hidden strengths and areas of improvement in employee performance and behavior is crucial for employee and business growth.
The 360-degree feedback provides a multi-perspective approach to identifying strengths and areas of improvement, facilitating personal and professional growth. Some of the purposes of 360-degree feedback are:
360-degree feedback tool focuses on both individual growth and organizational growth. It ensures a transparent feedback process, encouraging employee engagement. Some of the advantages of 360-degree feedback include:
360-degree feedback tools gather input from diverse sources like peers, supervisors, and self-assessment, providing a well-rounded view of an individual's performance and growth areas.
By aggregating feedback from different viewpoints, the tool aims to reduce biases and subjectivity, resulting in a more balanced and accurate assessment of employees' skills and behaviors.
The tool promotes self-awareness by identifying areas for improvement, enabling targeted personal and professional development for individuals.
The tool's feedback data helps identify gaps between self-perception and external perception, enabling tailored development plans for skill enhancement.
Addressing growth areas highlighted by feedback enhances overall performance and productivity, leveraging insights from multiple perspectives.
Feedback tools aid in crafting personalized development plans based on feedback, fostering practical training and growth initiatives.
The tool offers insights into leadership impact on teams, beneficial for leadership development programs.
The tool identifies team dynamics, fostering improved collaboration, communication, and teamwork through data-driven insights.
Data-driven analysis of feedback aids in making informed talent management decisions while shaping organizational strategies.
A 360-degree feedback tool may lead to drawbacks when implemented incorrectly in the organization. Some disadvantages of 360-degree feedback tools include the following:
360-degree feedback involves input from various individuals, which can introduce biases into the feedback. Therefore, it is imperative to use a tool designed to ensure objectivity, eliminating personal prejudices for accurate feedback.
Participants need to have interactions with the individual being evaluated. Hence, evaluators or the HR team should select participants to ensure the feedback reflects the individual's performance.
Collecting feedback from multiple sources generates a large volume of data. Sorting through and making sense of all the feedback can be complex and time-consuming. Using a tool that helps collate information and produces insightful reports is essential to process data correctly.
Most 360-degree feedback processes require training and skill for effective implementation. The HR team should set up proper training to receive meaningful feedback and helpful results.
Some employees might be hesitant to receive feedback from multiple sources. This resistance can undermine the effectiveness of the tool. Therefore, appropriately training employees and keeping the feedback process transparent can help overcome this challenge.
Mercer | Mettl’s 360View provides an easy-to-use platform requiring no prior training, coupled with expert support and insightful reports. It offers recommendations for identifying employees with exceptional potential and high motivation.
Mercer | Mettl’s 360-degree platform offers personalized development plans with a detailed summary and open-ended feedback. It provides actionable insights highlighting strengths, areas of improvement, hidden strengths, and areas of improvement. It measures professional skills and competencies, behavioral traits necessary to perform in a role, perceptions about the employee, subjective areas like leadership qualities, ability to work in a team, communication effectiveness, and employee performance in specific work scenarios and roles. The feedback is provided by peers, supervisors, clients, etc., thereby removing bias from a single feedback source.
360-degree feedback enhances the team’s trust and clarity toward expected behaviors and goals. A well-crafted 360-degree feedback tool boosts team performance. When implemented effectively, 360-degree feedback improves employee engagement and professional development significantly. The reviews are helpful for the employee as they provide a balanced view of their skills and a better picture of the employee’s demonstrated behavior.
Implementing a 360-degree feedback process in organizations is a wise business decision promoting self-awareness and transparency in communication.
360-degree review is a comprehensive and inclusive process of gathering feedback on an employee's performance from multiple sources, including peers, supervisors, and subordinates. Performance reviews tend to be more top-down, involving a formal assessment by a supervisor, focusing on the individual's accomplishments, goals, and areas for improvement.
Yes, 360-degree feedback is beneficial; it provides valuable insights by gathering input from various perspectives, and its effectiveness depends on factors like implementation quality, organizational culture, and participants' willingness to give and receive feedback.
360-degree feedback fosters self-awareness, enhances communication, and promotes well-rounded development, improving performance and interpersonal skills.
360-degree feedback can be conducted annually, semi-annually or quarterly to provide regular and comprehensive insights into an individual's performance and development. The frequency can be adjusted based on organizational needs and the desired pace of improvement.
Originally published February 12 2019, Updated September 8 2023
Vaishali has been working as a content creator at Mercer | Mettl since 2022. Her deep understanding and hands-on experience in curating content for education and B2B companies help her find innovative solutions for key business content requirements. She uses her expertise, creative writing style, and industry knowledge to improve brand communications.
360 degree feedback is a method of collecting anonymous feedback about an employee from multiple sources - manager, peers, subordinates - for appraisals and organizational planning. 360 degree feedback empowers organizations to make better people decisions.