Most performance reviews involve managers and their direct reports. Managers provide feedback on employees’ job performance and employees can ask questions and share feedback as well. But what about 360-degree reviews—ones that involve more people in the process? Are they beneficial? According to Jennise Chaffold, a performance consultant with Insperity, they can be when you approach them the right way.

In this issue of Promotional Consultant Today, we share examine Chaffold’s pros and cons of using 360-degree reviews at your workplace, including some best practices.

The Pros

Employees get the full picture of their performance. Traditional performance reviews only allow employees to hear from their direct supervisor. With a 360-degree review, they get feedback from people at many different levels. If managers aren’t skilled at giving feedback, 360-degree feedback ensures employees receive constructive feedback from other sources, Chaffold adds.

The process creates more communication. Increased communication can lead to better results—both for the employee being reviewed and your entire organization. When you hear feedback from different levels, you can more easily identify issues and work to resolve them.

The approach benefits more people. When you use 360-degree feedback, employees have a chance to review their managers, too. This helps keep leaders accountable, says Chaffold. Another benefit is leaders hearing feedback from other departments on how their direct reports are performing. These insights can help leaders better manage and develop their teams, notes Chaffold.

The Cons

Choosing the right participants can be difficult. The goal with a 360-degree review is to understand how an employee impacts your organization across various levels. For this type of review to work well, you need to involve people who can provide constructive feedback.

360-degree reviews can be complex. In traditional reviews, managers assess their direct report’s overall performance and help them identify their strengths and weaknesses. When you bring in more people for 360-degree reviews, you add more documentation to the process. More people sharing feedback also gives employees more opportunities to react poorly to the process, says Chaffold.

360-degree reviews require substantial follow-up. Considering the amount of work that goes into a 360-degree review, it’s important to include follow-up on any uncovered issues. Chaffold says that follow-up should occur after completed the review, with more check-ins as needed. These follow-ups can help the employee improve, which also benefits your company from a productivity or performance standpoint.

Best Practices For 360-Degree Reviews
If you decide to incorporate 360-degree reviews at your workplace, Chaffold recommends following a few tips for success.

Start at the beginning of the year. This timing allows leaders to set up the system and establish expectations.

Identify success metrics. Chaffold advises making the assessments quantitative rather than qualitative to better manage employee performance expectations.

Teach employees how to accept and give feedback. With employees from all levels involved in the 360-degree review process, remember to provide some training and offer tools that can help make the process successful.

Using 360-degree reviews can lead to more diverse and well-rounded feedback. However, they require a substantial amount of planning and an ongoing time commitment. Whether you decide to incorporate them or not, always aim to create the kind of workplace where everyone knows how to share and receive feedback well.

Compiled by Audrey Sellers

Source: Jennise Chaffold is a performance consultant with Insperity. She has more than 20 years of leadership experience in helping organizations align processes and people with strategy.