360-degree feedback

What it means

360-degree feedback is an appraisal of an employee, most often a manager, from several directions at once. The boss, peers at the same level, direct reports and sometimes clients give their views, and these are compared with the person's own self-assessment.

The method shows how different groups the person works with perceive them and reveals gaps between how they see themselves and how others see them. It focuses on behaviour and competencies, such as communication, leading people and collaboration, rather than on numbers.

Unlike a classic performance appraisal carried out only by the manager, 360-degree feedback gives a richer and less biased picture. It is used mainly for development, training plans and succession planning rather than for pay decisions.

How it works in practice

The appraisal usually runs through an anonymous questionnaire with rating scales and open questions. To protect anonymity, results are shown only for groups with enough respondents. The person then receives a summary report and goes through it with their manager or an external coach.

The method adds most value as part of wider performance management. Findings feed into a development plan with SMART goals, and after a while the appraisal is repeated to see whether the person's behaviour has really changed.

In a smaller firm, such as an accounting office with a few teams, a simple version with a handful of questions and a short conversation may be enough. More important than a sophisticated tool is that people trust their answers will not be misused and that the findings are actually acted on.

What to watch out for

If results are tied directly to personal performance pay or dismissals, people start rating tactically and the method loses its point. Measurable KPIs are better suited to performance and pay, leaving 360-degree feedback as a development tool.

Questionnaire answers are personal data, so the purpose, retention period and the circle of people with access to results must be defined. Employees should be told in advance how the appraisal will run and what will happen with the results.