Get awesome marketing content related to Hiring & L&D in your inbox each week

Stay up-to-date with the latest marketing, sales, and service tips and news
Advantages and Disadvantages of 360 Degree Feedback

Talent Assessment | 8 Min Read

Advantages and Disadvantages of 360 Degree Feedback


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.



Importance of 360-degree feedback

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.


Additionally, 360 feedback provides insights on:

  • Leadership development: Recognizing potential areas of growth for senior leadership members.
  • High-potential identification: Identifying employees with enormous potential.
  • Performance appraisals: Providing holistic perspective on employee performance.
  • Training needs identification: Identifying potential gaps and areas of improvement in skills and personality traits.
  • Succession planning: Accurately identifying and nurturing leaders for succession strategies.

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.


Purpose of 360-degree feedback

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:

  • Employee development: 360-degree feedback enables the employee and their leader to use the 360-degree feedback findings in identifying strengths that have made them successful and focus on areas of improvement in which they could close some gaps.
  • Performance appraisals: The involvement of multiple feedback lends more credibility to the appraisal and promotion process. The 360-degree appraisal is designed to align with the company’s performance management system, enabling measuring the selected behaviors for performance management purposes. In this case, the data is input for the final performance rating.
  • Succession planning: The 360-degree feedback tool is useful when preparing high-potential employees for new roles, especially critical leadership roles. The review helps familiarize the administration with a potential leader’s strengths and possible improvement areas that may hinder the company’s progress.


What are the advantages and disadvantages of 360-degree feedback?

Advantages of 360-degree feedback


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:

Infographic 1

Comprehensive evaluation:

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.

Objective insights:

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.

Enhanced self-awareness:

The tool promotes self-awareness by identifying areas for improvement, enabling targeted personal and professional development for individuals.

Skill gap analysis:

The tool's feedback data helps identify gaps between self-perception and external perception, enabling tailored development plans for skill enhancement.

Performance enhancement:

Addressing growth areas highlighted by feedback enhances overall performance and productivity, leveraging insights from multiple perspectives.

Customized development plans:

Feedback tools aid in crafting personalized development plans based on feedback, fostering practical training and growth initiatives.

Managerial insights:

The tool offers insights into leadership impact on teams, beneficial for leadership development programs.

Team collaboration:

The tool identifies team dynamics, fostering improved collaboration, communication, and teamwork through data-driven insights.

Strategic decisions:

Data-driven analysis of feedback aids in making informed talent management decisions while shaping organizational strategies.

Disadvantages of 360-degree feedback


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:

Infographic 2

Bias and subjectivity:

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.

Inconsistent ratings:

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.

A large amount of data:

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.

Skill and training requirements:

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.

Resistance and trust issues:

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.


How Mercer | Mettl can help?

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.



1. What is the difference between 360 reviews and performance reviews?

2. Is the 360-degree feedback system always beneficial?

3. What are the potential benefits of 360-degree feedback?

4. How often should 360 feedback be used?

Originally published February 12 2019, Updated September 8 2023

Written by

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.

About This Topic

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.

Related Products

360View: Easy To Use 360 Degree Feedback Tool

The Most Employee-Friendly 360-Degree Feedback Tool On The Cloud

Know More

Mercer | Mettl's Training Needs Assessment

Identify who, what, and how to train based on holistic and validated training needs assessments

Know More

HiPo Identification for Enhanced Business Outcomes

Measure the potential of your talent and make objective organizational decisions

Know More

Related posts

Would you like to comment?


Please write a comment before submitting


Thanks for submitting the comment. We’ll post the comment once its verified.

Get awesome marketing content related to Hiring & L&D in your inbox each week

Stay up-to-date with the latest marketing, sales, and service tips and news