5 reasons to implement a 360-degree feedback system




Digital transformation has not only disrupted industries world-wide, it has altered business operations, processes and the development of their people and leaders. Accenture Strategy global research shows 98% of business leaders expect their organizations to be a digital business in the next three years and the readiness of their workforce must be the priority to better execute the business plan. This week, we discuss a specific organizational development technique gaining popularity as business models change… the 360-degree feedback.


The 360-degree feedback, also known as a multi-rater, multi-source feedback or multi-source assessment, can be dated back to WWII when the German military gathered information from multiple sources to evaluate performance.


Since this time, the development tool has advanced and many global organizations have found it exceptionally useful to assess and develop all members their organization, not just the C-Suite.


A survey conducted from a sample of 50 senior HR professionals from global enterprises confirm this and have reported the top 5 reasons to implement a 360-degree feedback system:



  1. Personal development

  2. Part of a talent program

  3. Support appraisal

  4. Help embed a cultural value

  5. Support organizational or cultural change



These 5 areas of development are the result of what we mentioned earlier…the evolving business models and priorities of the 21st century are now using 360 degree feedback programs to nurture employee talent and growth toward greater performance.


This approach is more proactive and allows business leaders to review members of the organization more frequently with a broad lens from multiple sources. Then allowing both the employee and organization to know what level they are currently at and what direction they need to go to achieve goals for the company and themselves.



The Importance of Employee Satisfaction


For a development program to be successful, employees must be happy... period. They are the foundation of the company and without them the organization will fail. With this said, components of 360 program that help in assessing this are through a employee satisfaction survey, a productive atmosphere, holding regular reviews and valuing their input and feedback. An enterprise is then essentially using the 360 to engage and gather perceptions, monitor progress and get to know their staff.



Downfalls and Dealing with Negative Feedback


With all the amazing benefits a 360 program can give an organization, there are some drawbacks we would like to mention as well.


Depending on the post feedback actions… whether it's raises, promotions or bonuses, conflicts can arise between employees, due to competitiveness. To stop this from happening, it’s best to map out a plan that address this ahead of time. Creating a strong company culture that embodies trust, integrity and respect will encourage employees to create a supportive workplace environment for each other.


Another issue that can be challenging to deal with is giving negative feedback to employees. In this situation you want to make sure that the person giving the feedback is equipped with the right training to be able to so this in a positive, constructive manner.



Using A 360 For More Than Assessment


While the 360-degree feedback should be used for assessment and to gather the data for analytics, it's ultimate goal is to helps enhance your organization's bottom line and at the same time creates an environment that experiences greater cooperation, collaboration and success.


With digital transformation seeping into every area of business, inside and out, you must look for innovative ways to develop your staff and align them to your business strategy.


Are you the head of HR in a global organization that is struggling to maximize your currently capability assessment program? If so, we’d like to invite you to check out our complimentary eBook titled, ‘Designing and Implementing A Successful Competency Assessment Program’.


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The Innovation Lab

The Innovation Lab is a collaborative business unit that is dedicated to the continued enhancement and increased capability of the Profiling Online software and employee assessment platform.


Listen to our Podcast!

Making Feedback Simple is a podcast designed to do exactly that - make the process of gathering and acting upon employee feedback a simple task! We work through different elements of the feedback life cycle with expert help and special guests.

Sample Reports

Access a sample of our; Online Interactive report, Business Intelligence report and comprehensive PDF assessment report.

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Complimentary eBook

'Designing and Implementing a Successful Competency Assessment Program'

This eBook focuses on the core challenges faced by talent managers when implementing assessment initiatives and aims to answer the questions raised when designing the process.

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