The role of 360-degree feedback tools in employee development

Organizations must consistently invest in the development and growth of their employees to remain competitive, agile, innovative, and successful. Keeping up with changing business environments, employee development is no longer confined to technical skills. It now covers emotional intelligence, leadership abilities, interpersonal skills and much more, making the exercise holistic. One powerful tool that contributes significantly to holistic employee development is the 360-degree feedback tool.

The 360-degree feedback tool provides comprehensive feedback by gathering input from various sources, including supervisors, peers, subordinates, and sometimes clients. This multidimensional perspective allows employees to understand how they are perceived by different stakeholders in multiple areas, giving them a complete view of their performance and behavior.

360-degree feedback plays a pivotal role in employee development for a variety of reasons:

Holistic perspective:

Unlike traditional top-down appraisals, where only a supervisor evaluates an employee’s performance, the 360-degree feedback tool considers the viewpoints of multiple stakeholders. This ensures that the employee receives more objective and balanced feedback, which can provide deeper insights into their strengths and areas of improvement.

Self-awareness:

One of the primary benefits of 360-degree feedback is that it promotes self-awareness. Employees can reflect on how their behaviors, attitudes, and performance are perceived across different levels of the organization. Often, individuals may not be aware of certain behaviors that could hinder their growth, and this tool allows for constructive self-assessment.

Actionable insights:

Feedback from multiple sources helps identify patterns in behavior and performance that might not be apparent from a single source. This can uncover skills gaps or highlight behavioral tendencies that need adjustment, allowing employees to take specific steps to address these areas.

Accountability and ownership:

The process enables individuals to take ownership of their development. When employees see their feedback from different perspectives, they are more likely to take the initiative to improve and drive their personal and professional growth.

Leadership development:

For leadership development, 360-degree feedback is invaluable. It helps potential leaders to understand how their peers receive their leadership style, direct reports, and other stakeholders. It pinpoints areas where leaders can enhance their skills, whether in decision-making, communication, empathy, or team management.

Continuous development:

Rather than a once-a-year event, the feedback provided through a 360-degree tool promotes an ongoing dialogue about performance and development. Employees who regularly receive feedback are more likely to learn and improve continuously.

A typical 360-degree feedback process involves gathering feedback from various sources connected to the employee’s role. These sources include managers, direct reports, peers, and occasionally customers or external stakeholders. Here’s a breakdown of how the process works:

Survey design and customization:

The first step is to design the feedback questionnaire. The questions focus on specific competencies relevant to the employee’s role, such as communication, leadership, teamwork, problem-solving, and interpersonal skills. Many organizations customize the questionnaire to reflect their unique culture and goals, ensuring the feedback aligns with the employee’s and the organization’s development objectives.

Anonymity and confidentiality:

For the process to be effective, feedback must be anonymous, particularly for peers and subordinates. This ensures that respondents provide candid feedback without the fear of repercussions. Confidentiality promotes trust, which is necessary for gathering meaningful data.

Data collection:

Once the survey is designed, it’s distributed to the identified raters. The process of data collection usually takes place over a set period. Respondents provide feedback on the employee’s performance concerning the specific competencies outlined in the questionnaire.

Self-assessment:

Alongside feedback from others, the employee completes a self-assessment, rating their performance across the same competencies. This allows them to compare their perceptions with those of others and identify gaps between self-perception and external perception.

Feedback report:

After the data is collected, it is compiled into a feedback report. This report typically includes quantitative scores and qualitative feedback from various sources, allowing the employee to see a high-level overview of their performance and specific examples of behaviors that were praised or identified as needing improvement.

Feedback review and coaching:

The feedback report is often reviewed with a coach or HR professional to help the employee interpret the results and identify key areas for development. The goal is to create an action plan that targets specific skills or behaviors that need attention. Some organizations may pair 360-degree feedback with professional development programs or coaching sessions to help employees act on the input.

Follow-up and plan:

After the initial feedback review, employees should be encouraged to set clear, measurable goals for improvement. A follow-up process is crucial to ensure employees take the necessary steps to work on their development areas. Many organizations conduct follow-up 360-degree feedback sessions annually or semi-annually to track progress and maintain momentum in employee growth.

Tata Play Fiber

Tata Play Fiber Private Ltd. is a subsidiary of Tata Play Limited, a direct broadcast satellite service provider co-owned by The Tata Group, The Walt Disney Company India and Temasek Holdings. Tata Play Fiber is dedicated to empowering customers with the first pan-India fiber-to-the-home (FTTH) broadband infrastructure.

Business challenges

Tata Play Fiber aimed to improve its employee assessment and feedback strategy, seeking subject matter experts to design an actionable organization-wide development plan. The company focused on enhancing L&D processes and identifying leadership and workforce improvement areas through scientific assessment tools.

The ultimate goal was to close skills gaps, improve competency levels, and make effective training interventions, particularly in behavioral aspects.

Solution

After evaluating various vendors, Tata Play Fiber partnered with Mercer | Mettl, selecting 360View and leadership assessments to upgrade its L&D strategy.

• Leadership assessments: These assessments, designed by subject matter experts, helped evaluate M4 and M5 professionals’ leadership skills, aspirations, and potential for career advancement. The assessments were based on cognitive skills testing and personality profiling using the Mercer | Mettl Personality Profiler.
• 360-degree feedback: Tata Play Fiber used Mercer | Mettl’s 360View tool to gather objective feedback from colleagues and leaders. The tool provided open-ended suggestions, detailed competency ratings, and insights into behavioral aspects such as decision-making and relationship-building.

The impact

Tata Play Fiber transitioned from subjective evaluations to holistic assessments and 360-degree feedback for the first time. The company aimed to enhance its leadership assessment processes, involving 91 professionals, 24 of whom received 360-degree feedback, setting a foundation for future scalability.

Mercer | Mettl’s assessment tools facilitated this transformation by:

• Providing 360-degree feedback to create a more objective, precise, and unbiased L&D process.
• Encouraging professionals to view assessments as essential career progression tools rather than mandates.
• Driving a shift in attitudes, with increased acceptance of feedback and learning initiatives.

Furthermore,

• E-learning adoption rose significantly, from 33% to 73%, due to employees’ growing interest in continuous learning.
• The company launched an online employee development program, enabling professionals to identify and address developmental gaps, resulting in highly actionable insights for future training and upskilling strategies.
• The shift to holistic assessments fostered proactivity in formulating individual development plans and ongoing learning initiatives.

Arohan Financial Services Limited 

Arohan Financial Services Limited is a leading non-bank microfinance institution (NBFC-MFI) operating in India’s economically under-penetrated, low-income states. It provides income-generating loans and other financial inclusion-related products to customers with limited or no access to financial services.

Business challenges

Arohan Financial Services Ltd. aims to foster a creative and inclusive work culture by ensuring employee satisfaction and development. To support this, the company sought to implement a holistic feedback system, promoting a culture of continuous improvement. A 360-degree feedback tool was identified as essential to provide unbiased insights and actionable reports, ensuring employees could easily give feedback and interpret results.

Solution

Mercer | Mettl’s 360View, a fully customizable feedback tool, was selected to meet Arohan’s needs. Key features included:

• Multiple feedback providers: The tool facilitated feedback from supervisors, team members, and stakeholders.
• Custom blueprints: The feedback system assessed key competencies like ownership, communication, leadership, and problem-solving.
• High-quality reports: Detailed reports provided insights into strengths, blind spots, and developmental opportunities.
• Individual Development Plans (IDPs): The feedback was used to create actionable IDPs with tailored development tips and suggested learning activities.
• Support and ease of use: Mercer | Mettl’s team ensured seamless implementation and user-friendly support.

The impact

The collaboration led to significant positive outcomes:

• The 360-degree feedback process was widely accepted and appreciated, even though it was the first time it was implemented.
• Senior management gained awareness of their leadership styles and areas for improvement, which informed further development initiatives.
• The process revealed vital organizational strengths and blind spots, helping guide business and L&D decisions.
• Career development conversations and leadership behaviors were embedded, aligning with business strategies.
• The feedback provided actionable insights for creating targeted development programs and enhancing Arohan’s employee development efforts.

CBL Group

CBL Group is a major FMCG conglomerate in Sri Lanka, specializing in the manufacturing and distribution of a variety of products, including biscuits, chocolates, cakes, cereal, and more. The company’s portfolio comprises over ten different FMCG brands that are available in over 60 countries.

Business challenges

CBL Group emphasized employee well-being and growth and aimed to upgrade its development mechanisms to enhance feedback credibility for robust Individual Development Plans (IDPs) for middle and senior management. The company sought a holistic feedback tool to address critical areas for improvement and foster growth.

Solution

Mercer | Mettl’s 360View feedback platform was chosen after trials and customizations. Mercer | Mettl’s psychometric experts worked with the CBL Group to align survey statements with their competency framework. The platform provided:

• Open-ended feedback with competency ratings: Employees received input from multiple sources on essential competencies and actionable suggestions for improvement.
• Behavioral profiling: Detailed insights into individual behaviors highlighted hidden strengths and areas for improvement.
• Training needs identification: The feedback highlighted group training and individual development needs.
• Personal development plans: Customized reports were generated for each employee, enabling them to track their development journey and improve their skills.

The impact

The implementation of Mercer | Mettl’s 360View resulted in significant positive outcomes for CBL Group:

• Employee assessments increased fourfold due to automation, ease of use, and speed.
• Custom survey statements were aligned with CBL’s core values and competency framework.
• The scientifically validated system replaced human feedback-based planning, providing more objective insights.
• Competency gaps were identified for individuals, allowing the company to chart personalized development paths.
• The 360View platform helped CBL Group build a future-ready workforce through detailed IDPs and data-driven developmental strategies.

360-degree feedback tools have become an indispensable asset in modern employee development strategies. When implemented correctly, 360-degree feedback helps employees understand their role in the broader organizational context, motivates them to improve their skills, and aligns their personal development goals with the organization’s objectives. By leveraging this tool, organizations can foster a more engaged, self-aware, and high-performing workforce.