A 360 degree feedback systems that gathers information from multiple sources to evaluate performance is a necessity for businesses. As the name suggests, it involves receiving feedback about an employee from more than one source to minimise the risk of any bias in feedback and to focus on overall growth.
Digital transformation has led many businesses to implement 360 degree performance management systems at their workplaces. Successful implementation of a 360 degree feedback system results in increased team efficiency, enhanced workplace culture, and many more visible benefits that eventually lead to employee performance.
Businesses worldwide have a lot to gain from a 360 degree feedback system irrespective of their size. It can benefit small businesses comprising of a few employees as well as global businesses. On average 360 degree feedback for an employee can be collected from multiple sources who work with them. This might include their manager/supervisor, administrator, colleagues, subordinates, stakeholders and customers in some cases.
If you are still considering implementing a 360 degree feedback system for your business, you need to read the following benefits that highlight the importance of doing so.
8 key reasons to implement a 360 degree feedback system
1. Value of feedback
Feedback is an important tool to help measure the effectiveness and efficiency of a business process. Before setting a new process in motion, it is only rational to get feedback about the previous experience from everyone and increase the scope of improvement for the new task at hand. With a 360 degree feedback system, you can increase the value of the feedback collection process and gather important insights efficiently. The system also makes it easy to understand the collected feedback in order to make relevant business and training decisions.
2. Promotes open work culture
Open workplace culture is key to retaining and encouraging productive employees, teams, and a more cohesive work environment. Employees who can share their opinions freely and feel that their voices matter to the organisation are empowered to perform more efficiently and work in harmony with others. A 360 degree feedback system helps achieve this along with improving the listening skills of every employee to consider and work on constructive feedback positively. Organisations also benefit from an open work culture as it improves the relationship between employees and management. Feedback can be received and accessed via multiple sources and staff members.
3. Increased levels of self-awareness
Employees might tend to neglect or disagree with results of a feedback exercise when performance reviews and feedbacks are only one-way, which is mostly the case with a typical feedback system. But a 360 degree feedback system helps employees receive unbiased opinions about their strengths, weaknesses, and room for improvement from various sources. This helps employees gain self-awareness about their behavioural attributes. Employees can positively work to overcome their weaknesses and further their strengths.
4. Clarifies expectations
When feedbacks are measured against a set of targets, organisations can better define their standards of employee performance and behaviour. Unlike traditional feedback systems, a 360 degree feedback system helps your organisation achieve just the same. It helps assess employees professional behaviours compared to a set of expectations which can be easily communicated well in advance. This communication can also be a part of the feedback itself or carried out as informal feedback. A 360 degree feedback system helps in decision making related to defining expectations.
5. Encourages career development
Constructive feedback obtained from a 360 degree feedback system can guide employees to increase their skill set and growth. Better knowledge of the weaknesses and strengths of employees can also help managers and administrators assign tasks that an employee is best suited for. Optimum use of their skill set to achieve business targets can help encourage career development in employees. There is always a scope for growth and when employees grow, the organisation grows too.
6. Builds confidence and boosts morale
Constructive feedback allows employees can achieve much more. Implementing a 360 degree feedback system not only improves performance, but honest feedback about employee skills can also help build confidence and boost their morale. Employees often feel motivated to perform their tasks better when given constructive feedback from time to time. Employees who feel motivated and confident in their workplace generally work in an organisation for longer. Hence, a 360 degree feedback system is an ongoing process to motivate employees and helps in employee retention.
7. Improves performance
As already discussed, a 360 degree feedback system helps employees gain self-awareness about their strengths and weaknesses. They get a clear understanding of what they are doing right, where they need to improve, and what skills can be developed to increase their performance and growth. This leads to improvements in performance and when every individual team member strives for improvement, it leads to high levels of performance in the organisation as a whole.
8. Allows for continuous learning and monitoring
An ongoing 360 degree feedback process can be a foundation for implementing continuous learning and monitoring. Managers can arrange for suitable training programs for employee skill improvement according to the information collected. Monitoring of any issues obtained from the feedback can be implemented and resolutions can be achieved.
A 360 degree feedback system is what your business needs to improve performance, meet targets, and thrive as an organisation.
Contact Sentrient for a demo of our 360 degree performance management system today.