The Benefits of 360 Performance Assessment

Among performance appraisal systems, the 360-point rating seems to be a winner in the eyes of managers. Because the 360° evaluation process includes evaluations by supervisors and up to eight other people made up of colleagues, customers or clients, it offers a diverse view of the individual employee. As a rule, the 360° process also includes a self-assessment.

Why 360° Performance Reviews are Welcome in the Executive Suite

Most companies have a mission statement, a vision and a target agreement. The 360° assessment gives managers insight into the attitudes and skills a company considers desirable to achieve these goals. The 360° performance evaluation process offers numerous benefits, but the company must be committed to the process - if management does not have a good implementation and follow-up plan, the system will fail and may even produce undesirable results.

Implement and Maintain a 360° Assessment Plan

• The most important aspect of successfully implementing and maintaining a 360° assessment program is board and executive buy-in.
• Design the program criteria to measure the core competencies that an employee needs to be successful in the company and that will help the company achieve its goals as set forth in the mission and vision and corporate goals.
• Assessments should be conducted confidentially so that raters can be confident that they can provide constructive feedback. Many companies use an outside company to conduct an electronic survey. Additionally, many companies have opted for a cloud-based service that manages the entire performance evaluation process. You collect internal company data on attendance, productivity and other metrics, which are entered into the appropriate fields of the completed 360° assessment. These companies also integrate with payroll and human resources management systems.
• Educate all employees about the process so that it is understood by everyone in the company. Evaluators should be trained to provide the employee with feedback that will help them develop. For example, "It would be better if the safety committee met monthly instead of quarterly" is much better than a statement like "My manager is a poor communicator." The first statement is clear and targets an area that needs work.
• Additionally, ensure that the purpose of the appraisal process is employee progress and development, not performance management.

The Benefits of 360° Feedback

According to the Conference Board CEO Challenge, an annual survey of 500 executives from around the world, a problem cited by many executives is identifying and nurturing high-potential employees. One tool that managers use to find new talent is the 360-degree feedback process. For more than 15 years, the Association for Talent Development (ATD), formerly known as the American Society for Talent Development (ASTD), has been pursuing the use of 360-degree feedback. According to ATD, most companies that use 360-degree feedback as part of their employee review process are happy with it. They describe the following features as what they like most about the process.

1. Improved feedback from more sources
2. The role the process plays in team development
3. Improving both personal and organizational performance
4. The role the process plays in employee professional development
5. The way in which the risk of discrimination is reduced
6. Improved customer relationships
7. It is a deep well for organizational training

Since the 360° assessment is an important tool for identifying employees suitable for senior management positions, it should not be the only assessment tool. Salary issues and salary-related assessments should address employee goals or competencies using metrics that are clearly understood by employees.

Companies want to quickly identify and promote future managers. A 360-degree performance evaluation process is an excellent tool for this. Find out more about IceHrm today and contact us if you would like to find out more about our 360-degree feedback module.

Elevate your performance appraisal strategy with 360-degree feedback. IceHrm provides the tools for insightful assessments, driving employee progress and leadership identification.