What is 360-degree feedback? A definition.

In 360-degree feedback, different professional partners evaluate an employee. In this article, you will learn how the procedure works and what advantages and disadvantages it offers.

"Nothing said is enough praise" – this is the motto of many managers. Numerous studies show that feedback in many companies is still limited to the annual performance review. At the same time, 40 percent of German employees would like to receive more frequent feedback on their performance. The trend – especially among Gen Y – is rising. Another result of the surveys: In many companies, feedback is given exclusively top-down. A quarter of managers complain about the lack of feedback from their employees. The lack of professional feedback is particularly evident in the strong contrast to private life. We evaluate restaurants, online purchases, and doctors in real-time, and experience feedback as the new currency of the digital age. It's no wonder that employees and managers no longer accept that they only find out where they stand once a year on the job.

New forms of organization require new forms of feedback

However, the desire for continuous 360-degree feedback does not only meet the needs of younger employees in particular, but also the increasingly agile forms of organization in companies. When hierarchies dwindle and employees are self-reliant on different projects, supervisors find it increasingly difficult to provide substantive feedback. With the speed of change in companies, the importance of immediate feedback is growing. In an agile organization, failure is allowed – but you have to quickly recognize whether an idea is really good and draw the right conclusions from mistakes. To do this, it is essential to get timely feedback from various stakeholders. At the same time, continuous feedback is an effective means of lateral leadership in agile organizations.

360-Degree Feedback: Definition

360-degree feedback or 360-degree assessment means that an employee is assessed by as many professional contacts as possible. The feedback can relate to both professional competencies and soft skills. This method of performance evaluation is primarily used by specialists and managers. The assessment can take place in advance of an appraisal interview.

Theoretically, feedback comes from the employee's entire professional environment. I.e. by:

• the supervisor
• Colleagues from our own area
• Colleagues from other areas
• External collaborators
• Customers
• Suppliers etc.

Of course, 360-degree feedback should not be complete without a self-assessment of the employee.

A 360-degree analysis is almost indispensable for employees who occupy an interface in the company, such as project managers. But it also makes sense for other employees to be assessed by several feedback providers with different perspectives. Colleagues can often assess an employee's work better than a supervisor – after all, they work directly together and often on the same thing. The feedback for the all-round assessment of third parties can be obtained either by the supervisor, by the employee himself or, of course, by both.

What is the purpose of the result of 360-degree feedback?

The result of a 360-degree feedback mainly serves the Personnel Development. The skills and performance of a manager and specialist are assessed and compared from different perspectives. The comparison of self-image and external image results in an assessment of the feedback recipient that is as realistic as possible. The HR department can derive practical opportunities for improvement from the analysis of strengths and weaknesses and identify development prospects for the employee.

In addition to a potential new career perspective, further training measures in particular can be derived from this. 360-degree feedback therefore plays a role for the Goal Setting a role. Depending on the situation, the feedback from colleagues and superiors can be incorporated into an individual development plan for each employee. Some companies use the results of 360-degree feedback for the payment of a variable salary component, such as a bonus.

Both the company and each individual employee can benefit from such detailed feedback. However, only if it is properly obtained and evaluated.

How is 360-degree feedback conducted?

The whole thing can be done quickly with software support. After all, a professional tool enables analysis even across company boundaries. The link for the feedback can be easily sent to third parties, e.g. by e-mail.

Of course, it can also be done in the classic way with a written and detailed questionnaire. The HR department then evaluates the questionnaire.

The aspects that can be assessed are, for example, in the following areas:

• Expertise
• Leadership style and leadership skills
• Communication skills
• Cooperation
• Strategic thinking and much more

Feedback apps – for quick feedback in between

One possible solution for an open feedback culture is apps that allow every employee to obtain or give feedback from colleagues and superiors at any time, for example after meetings or projects. At the major US bank JP Morgan Chase, the 243,000 employees use such an app to mirror their performance to each other. Experience to date shows that the introduction of the solution means much more than the implementation of another software in the company. If the evaluation of annual performance is no longer just handled in a conversation with the manager, but takes place continuously by colleagues and superiors, this means a profound cultural change. However, a tool alone will not bring about this cultural change. Rather, we have learned in many customer projects that the organization and the employees must also be empowered to live an open feedback culture.

Benefits of 360-degree feedback

• Recognising and developing the employee's potential: The 360-degree assessments create a comprehensive picture of the employee and thus also the strengths and weaknesses of the employee. This shows the potential in which areas an employee should develop further. In addition, it shows which skills and talents lie dormant in the employee and thus also where an employee can go in the long term.
• More objectivity in feedback: Employees often work closely with colleagues from other departments on a project-related basis, but rather little with their own manager, for example. By assessing several colleagues, the analysis becomes much more objective and independent.
• Higher acceptance of the assessment: For most people, it's much easier to accept feedback from multiple people than from just one.
• High qualitative benefit for the employee: An assessment by several people can also be advantageous for an employee to better recognize what is important in the company.

Disadvantages of 360-degree feedback

A 360-degree assessment is especially disadvantageous when the feedback is insufficiently planned or it is not clear to employees why the assessment is being conducted.

• The goal of 360-degree feedback must be clear: If the meaning, purpose and goal of a 360-degree assessment is not fully clear to those involved, it can lead to either sympathy or antipathy assessments. Therefore, the instrument should be accepted by all parties involved. Likewise, if the focus of the evaluation is on the employee's weaknesses – this is counterproductive. A 360-degree assessment should show an employee's strengths and weaknesses in equal measure, after all, it's about discovering potential. The 360-degree feedback should not be misused for direct comparison in personnel decisions, but should serve their actual goal of employee development.
• The time required is higher than in a classic appraisal interview: In direct comparison to a classic appraisal interview – in which the employee is only assessed by the direct supervisor – a 360-degree evaluation is of course more time-consuming. This is because the evaluation criteria must be agreed in advance and all assessments must be evaluated afterwards. Suitable software significantly reduces the time required.
• Measurability must be given: The poor measurability of 360-degree feedback is often cited as a disadvantage. However, this is only the case if the competencies are not described in detail in the questionnaire for the assessment. If these are described precisely, measurability is no longer a disadvantage.

Template: 360-degree feedback questionnaire

Standardized questionnaires facilitate the evaluation. Therefore, they are the typical way to get feedback from the various stakeholders. The results of the 360-degree feedback are only useful if the quality of the questionnaire used is right.

Especially when a manager is assessed, the following applies: His or her competencies or personality traits must contribute to the company's success. Therefore, the questionnaire should specifically ask about those characteristics that have an influence on the success of the manager's area of responsibility (project, department, function).

The following questions are suitable for a 360-degree feedback questionnaire for executives:

• Goals and perspectives: To what extent is the manager's willingness to perform and learn?
• Communication and fairness: Is our dealings with each other based on fair rules?
• Role model: Do the manager's personal goals, values and beliefs appear authentic? How well does this person perceive their role model function?
• Entrepreneurial thinking: Are the manager's thoughts and actions aligned with opportunities, risks and their economic consequences?
• Problem-solving skills: Is the manager's actions fundamentally proactive and future-oriented?
• Personnel management: Are employees aware of what is expected of them and what the consequences are if they do not meet the requirements?
• Self-discipline: Does the person have strong stamina until results are available?

Depending on the focus of the respective employee's tasks, various questions can be included in the design of the feedback form.

A study by Haufe shows the status quo of feedback culture in companies. Most companies still have a lot of potential on the way to a healthy feedback culture. Learn more in the free study brochure.