360 Reviews: Pros and Cons
Request Demo The 360 review process evokes mixed feelings given that recipients are opening themselves to feedback from peers, managers, direct reports, and external clients. Whereas traditional performance reviews consider the evaluation from one manager, 360 feedback solicits the opinions of additional parties. This feedback format can create real, impactful change within the organization and promote personal and professional growth for the individual. But just like all performance management best practices, the execution of 360 reviews can make or break the experience. Leaders who embrace transparency and feedback create a ripple effect for those under their leadership, so it is critical that the benefits of 360 reviews are communicated clearly throughout the organization. Jeff Nally, SHRM-SCP, chief HR officer, and chief coaching officer at CoachSource, says, “360-degree coaching becomes a positive experience if leaders sign on to the process from the start.” Yet even under ideal circumstances, 360 reviews can bring trepidation from employees at every level. What Is 360-Degree Feedback? 360-degree feedback is a process that gathers insights from various colleague types, such as supervisors, peers, and/or external clients on an employee’s performance and workplace behaviors. The purpose of soliciting 360 feedback is to gain a comprehensive understanding of the individual’s work efforts from multiple perspectives, which significantly reduces potential evaluation bias. The desired end goal is that the employee receives personal and professional feedback that empowers their growth and development. The Pros and Cons of 360 Reviews While 360 reviews can be an effective performance management tool there are potential advantages and disadvantages. Before implementing a 360 feedback process, it’s important to become familiar with both the benefits and challenges that may arise. These are the pros and cons of 360-degree reviews. The Pros of 360 Reviews 1. Comprehensive & Well-Rounded Feedback Including 360-degree feedback in the formal performance review ensures the evaluation is more holistic. Typically, 360 review forms ask different, more open-ended questions than performance reviews, where the ultimate goal is to measure performance objectives, goals, and core values. Responses to 360 forms account for multiple perspectives and increase the breadth of the information gathered. WorkDove’s 360 feedback tool offers the option to include performance objectives and core values to be rated to further elevate the validity of the feedback. This gives managers deeper insight beyond their own experiences with the employee, and it provides employees with a more comprehensive evaluation of their work efforts. 2. Reduces Bias Formal performance reviews are at risk of myopic evaluations that rely solely on the manager’s personal experience with the employee, leaving room for potential bias. For example, the manager may be new with limited interactions with the employee, so they lean on little information. Or, perhaps the manager did not sufficiently document the employee’s work efforts throughout the year, so the performance review is a summary of their feelings toward them. In both scenarios, adding more perspectives to the mix increases objectivity and helps to reduce bias from creeping in. Gathering 360 feedback also reveals different angles of the employee’s workplace impact. How they are perceived by fellow peers, leaders, customers, and direct reports gives managers information about performance and workplace behaviors they may have otherwise been blind to. 3. Identify Employee Development Needs Similar to the paragraph above, the 360 review process expands the understanding of the employee’s strengths, consistent displays of behavior, and coaching opportunities. For example, for an employee who is striving for a leadership role within the organization, it would be beneficial to learn how certain competencies are being perceived by others, such as cross-departmental collaboration, conflict management, and stress management. While their manager can make observations, they also have a full-time role and cannot be everywhere at once. 360 reviews offer a format for personal and professional development that the manager cannot be solely responsible for due to time constraints and additional responsibilities. 4. Makes Better Managers Managers need professional development, too. Gathering 360 feedback about their direct reports equips them with a coaching tool they would not have had without the help of others. 360 reviews give managers an opportunity to review the critiques and suggestions of others, discern what is helpful and what is not, and determine how to best share the helpful aspects with their employees. Sometimes sharing the ‘spirit’ of the feedback instead of the word-for-word script is more beneficial for the employee’s growth. Making those types of decisions is essential for the manager’s leadership growth. The Cons of 360 Reviews 1. Inconsistent Rating Standards One of the greatest critiques of 360 reviews is that they often produce unreliable data. This is typically attributed to rating standards that are too vague or inconsistent. When no parameters have been set for responders giving feedback, the results may point to a range so vast that it is impossible to draw valid conclusions. Additionally, if 360 reviews are not paired with formal performance reviews, it will be difficult to quantifiably measure employee performance and workplace behaviors. 360 review forms, for example, that only include open-ended questions will produce a wide array of responses that may or may not point to notable patterns. However, if the 360 form includes a Likert scale (Strongly Agree to Strongly Disagree) and/or a star-rating scale, the manager now has data points that can be measured and tracked over time. Also pairing 360 results with an annual performance evaluation will further inform the final evaluation scores. 2. Distrust From Employees Despite an organization’s best efforts to embrace a culture of feedback, the concept of 360-degree feedback can be scary. Employees often fear receiving negative feedback but can also be worried that giving constructive criticism will produce negative consequences. Though 360 feedback is typically anonymous, some cultures may opt for transparent 360s. For smaller teams, even though the process is anonymous, employees may be nervous that their peers will realize who gave what feedback based on the process of elimination. Either way, the fear of stirring conflict is real. Perhaps a more concerning issue is when employees distrust
