360-Degree Feedback: Definition, Advantages, Disadvantages

A development tool, 360-degree feedback—also known as multi-rater feedback—is a type of performance appraisal where an employee receives reviews from people with whom they have an active working relationship. This constructive feedback process prioritizes the combined and anonymous feedback of raters ranging from managers, supervisors, and a number of team members.

A worker’s colleagues will receive a feedback survey, where they can provide their honest opinion. They may have to use a rating scale or fill out a questionnaire. Through the accrued feedback of a worker, a manager can put together a collective assessment. Ideally, this process will help a worker understand their competencies and opportunities for growth.

The 360-degree feedback system begins with a reviewee who receives input from a number of respondents—which can include managers, senior leaders, direct reports, or coworkers. Anyone who provides feedback must closely work with the reviewee so they can provide a reliable look at the worker’s performance.

The use of 360-degree performance feedback has several benefits, including:

• It can strengthen teamwork. For 360-degree feedback to work, employees cannot work in silos. If your company knows it wants to use this sort of feedback, then it can make a plan to find ways for workers to meaningfully collaborate on a regular basis.
• It gives workers ways to continue developing. A 360-degree feedback assessment gives workers an idea of where they can continue to improve. This can help an employee and their manager put together a career development plan. For example, if a worker’s peers say they would like to see the person have a more active role because of their good ideas, they may aim to find leadership development opportunities available at the company.
• It is anonymous. Unlike other types of evaluations, 360-degree feedback comes in anonymously. Therefore, colleagues can feel encouraged to provide truthful feedback.
• It provides a full picture of an employee’s performance. Since multiple sources of input provide insight on a worker, it creates a more full and well-rounded set of feedback. Instead of focusing on just what a manager sees or only considering their self-assessment, a worker can learn what their true impact is on the company and their team.

This type of performance review also has several drawbacks, such as limited possibilities for follow-up. Since this development process happens anonymously, there is less of a pathway for the reviewee to inquire further about their feedback. The process may also yield more negative feedback since the reviewee won’t know who provided the assessment.

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