Organizations are slowly transitioning from traditional one-on-one feedback to the multi-rater approach due to its many benefits. In this article, we discuss the advantages of 360 degree feedback and the reasons why organizations should implement it immediately.

According to Forbes magazine, more than 85% of all Fortune 500 companies used the 360 degree feedback process as a cornerstone of their overall leadership development process 10 years ago. But what exactly are the benefits of the 360 degree feedback process?

360 Degree Feedback Increases Self-Awareness

In a poll by Gallup among 65,672 employees, it was found that those who received feedback had a 15.9% better turnover rate than employees who did not receive feedback.

360 degree feedback helps increase an employee's self-awareness and assists in identifying their strengths and highlighting their weaknesses. It helps the employee to know their hidden strengths and weaknesses, of which they might otherwise be unaware. The 360 degree evaluation process gives employees better insight into their behavior and their perspective on how they work.

Measures the 'HOW'

A 360 degree feedback approach focuses more on how things are done rather than what is done. It emphasizes the process rather than the final result. By focusing on the process of how things are done, there is a greater chance of success than by focusing on the result.

In this feedback process, a team leader or manager is not assessed based on the number of goals achieved, but rather on how they were achieved. It looks at how an employee has performed their tasks as a team member, leader, manager, and in general as an employee of the organization.

Improved Work Relationships

In traditional one-on-one feedback, the person receiving feedback from the supervisor generally has nothing to say from their side, as it is one-sided. There is no sense of personal connection in this type of feedback.

However, in 360 feedback, where superiors and subordinates assess each other, it improves the relationship between superior and subordinate. The morale of everyone is boosted, and employees and managers work together to achieve mutual goals. Especially now that we work from home more often and "water-cooler talk" is scarcer, this can help prevent creating a large distance.

Multiple Feedback Sources

360 degree feedback provides the employee with the opportunity to receive multiple inputs for their role, performance styles, and ideas. It gives a balanced view of the employee's behavior and skills. It helps employees to learn about themselves from the perspective of others and bridges the gap between how they see themselves and how others see them. This feedback system is constructive and more acceptable to employees.

Less Bias

In a multi-rater feedback process, feedback is collected not only from the manager, but also from colleagues and sometimes even customers. Additionally, the feedback received in the 360-degree evaluation process is completely impartial, as it is not based on an assessment by one person. It helps reduce biases from managers, who often dominate in the traditional feedback system.

Improvement of Performance

One of the main benefits of a 360 degree feedback process is improved employee performance. It helps improve relationships among employees, self-accountability, and provides clarity on how to enhance overall performance. This, in turn, improves employee engagement and retention in the organization. They feel valued because their professional development, learning process, and opinions are taken into account.