How to foster 360-degree feedback in Australian companies

With the current talent outlook in Australia, the logical step for employers to take is to look at their current teams, improve employee engagement, and provide development opportunities for the workers so people and organisations can adapt to the changing job market.

Regularly providing feedback in performance evaluations is a powerful way to engage and develop talent within an organisation. A Gallup study shows that employees are four times more likely to engage with the company if they receive regular feedback. 

The same study also said that employees want to get feedback to be more actionable and frequent. But more than these parameters, employees also want 360-degree feedback, not just from their manager but also from themselves and the others they work with. A separate SHRM study also shows that at least 89% of employees want feedback from their peers.

What is a 360-degree feedback framework?

360-degree feedback is a type of performance evaluation that incorporates the feedback of everyone working with an employee. 

Regular feedback only seeks the comments of an employee’s manager. 360-degree feedback, meanwhile, seeks the comments of the manager, colleagues, and even the subordinates if the employee for evaluation plays a leadership role. Self-evaluation is also crucial in 360-degree feedback systems, along with customer and stakeholder feedback whenever possible.

Typically, 360-degree feedback, which covers all aspects of performance, comes anonymously and confidentially. The manager collects and crunches the data and insights from all the feedback channels before giving it to the employee. 

READ MORE | Continuous learning and employee performance

Why peer appraisal matters in 360-degree feedback

While many organisations already use a 360-feedback framework in performance evaluations, many leaders are still reluctant to do so as they fail to see the value of peer appraisal. Some even think peer appraisal can cause division in certain teams, especially when the feedback does not match the expectations. 

However, business author Maury Peiperl said 360 feedback mechanisms with peer appraisal could be very effective. Meanwhile, Peiperl agrees that peer appraisal can have negative effects, as colleagues are forced to choose between being supportive workmates or hard-nosed judges of a co-worker’s performance. 

Peiperl, who studied multiple companies implementing peer appraisal, said the way to make 360-degree feedback work is by clarifying its purpose and scope. The organisations that are most successful in implementing 360-degree feedback are the ones that recognise and address its vulnerabilities.

“These organisations recognise that 360-degree feedback systems, and peer appraisal programs in particular, are always works-in-progress—subject to vulnerabilities, requiring sensitivity to hidden conflicts as much as to tangible results, but nevertheless responsive to thoughtful design and purposeful change,” he wrote in Harvard Business Review.

“They are led by executives who are direct about the expected benefits as well as the challenges and who actively demonstrate support for the process. By laying themselves open to praise and criticism from all directions and inviting others to do the same, they guide their organisations to new capacities for continuous improvement,” the author added.

Why self-evaluation matters in 360-degree feedback

One crucial part of the 360-degree feedback framework is self-evaluation. It serves as a critical tool for fostering enhanced self-awareness, prompting individuals to reflect on their performance. Through this introspective process, employees gain a deeper understanding of their strengths and acknowledge areas for improvement. 

More than just a reflective exercise, self-evaluation empowers individuals to take ownership of their professional development. This sense of responsibility propels employees to set realistic goals, identify skill gaps, and proactively seek growth opportunities. 

Self-evaluation also allows managers to look at their employees’ work from their perspective. It helps pin-point possible pain points in executing specific tasks. A manager might view certain tasks as easy, but the employee thinks it’s difficult because of a lack of available information. 

Moreover, self-evaluation allows employees to look at their work in the context of the organisational goals. It encourages them to assess their contributions within the broader context of the company's objectives. As employees become attuned to their performance, they are better equipped to constructively receive and incorporate external feedback. 

This, in turn, creates a more collaborative environment where feedback becomes a valuable tool for continuous improvement rather than a source of resistance. 

Benefits of giving 360-degree feedback

Preventing biases

360-degree feedback is a great way to safeguard employees from potentially biased managers. It creates an environment of checks and balances where insights from managers and superiors are not the sole sources of truth. With a 360-degree feedback mechanism, the organisation minimises the risk of power-tripping, which can hinder employee development and even trigger high attrition rates.

Comprehensive insight

Traditional evaluations often miss the full picture. 360-degree feedback ensures a well-rounded perspective by incorporating insights from peers, subordinates, supervisors, and self-evaluations. This comprehensive approach offers a nuanced understanding of an individual's performance, going beyond the traditional supervisor-centric viewpoint.

Fostering open communication

360-degree feedback creates a culture of transparency and open communication within organisations. Involving multiple stakeholders encourages employees to engage in constructive conversations about their performance. This open dialogue promotes self-awareness and strengthens interpersonal relationships, as individuals gain valuable insights into how their actions impact their colleagues.

Targeted skill development

The diverse feedback obtained from various perspectives allows for precise identification of strengths and areas for improvement. This targeted approach empowers individuals to tailor their professional growth plans, facilitating more effective training and development initiatives. As a result, employees can focus on honing specific skills, leading to increased satisfaction and enhanced performance.

Enhanced employee engagement

Including multiple viewpoints in performance evaluations fosters a sense of inclusion and involvement. Employees appreciate the opportunity to contribute to the assessment process, knowing their opinions are valued. This increased engagement not only boosts morale but also strengthens the overall commitment of individuals to their professional growth and the organisation's success.

Strategic decision-making

Leveraging 360-degree feedback enables organisations to make more informed and strategic decisions regarding talent management. With a holistic understanding of individual capabilities and areas for improvement, employers can implement targeted interventions, align individuals with suitable roles, and maximise the overall effectiveness of their workforce.

There is no one-size-fits-all approach to implementing 360-degree feedback mechanisms. Before incorporating this framework into your whole performance evaluation system, it is best to consult your stakeholders, such as HR leaders, managers, and even representatives from the workforce. Always consider the size, nature, and culture of your business. 

Changing to 360-degree feedback systems doesn’t even require abrupt implementation. Start small and implement changes gradually to lessen disruptions. In the end, the 360-feedback system should adapt to the needs and goals of the organisation, not the other way around.