The 360 Degree Appraisal: What Is It and Why Do You Need It?

The 360-degree appraisal is a powerful company development tool that not all employers utilise. This type of feedback isn't just a variation of a piece of paper where you answer questions about the employee's performance. It’s a comprehensive annual or quarterly evaluation that measures performance, plus impact, intention, and steps needed for growth. 

Most of the time, standard employee evaluations and feedback forms can come across as empty surveys. But when a talent's career growth is on the line, you can use a 360-degree appraisal to help them unlock their potential. This type of appraisal benefits everyone involved, from the employees receiving the evaluation to their colleagues, bosses, and subordinates. Companies of all sizes win when they use 360-degree appraisals wisely.

While the phrase itself might seem intimidating, the 360-degree appraisal is not so difficult to understand. As its name suggests, the assessment produces a 360-degree view – from various aspects of their job – of a specific employee. 

The employee in question evaluates themselves but co-workers, managers, subordinates, and anyone else they may work with also give their feedback. Even customers or clients can participate in a 360 performance review depending on the type of work. 

This feedback creates a holistic image of how an employee performs in their position. It also improves the company's transparency and lets management gain a deeper insight into organisational structures, functions, and culture. Another way of looking at it is that 360-degree appraisals provide a complete overview of not just an employee but the company as a whole. 

Most other performance reviews typically feature an employee and their direct manager. This process creates a flat or incomplete image of an employee. However, 360's multiperspective approach forms a more accurate and specific picture. It can help employees and employers analyse their strengths and weaknesses, set new career goals, and improve working environments for maximum productivity. If you want to learn more about providing constructive notes to someone, check out this article.

Here are just some of the benefits of 360-degree feedback. 

Self-awareness Employees often measure their performance based on personal metrics and feedback from their direct manager. Through 360-degree appraisal, which requires the participation of multiple people, the employee can receive more honest and insightful feedback regarding how they perform as a subordinate, manager, or co-worker. The 360-degree appraisal can be flattering or humbling, but the results always ensure that the person being evaluated receives a higher level of self-awareness.  

Room for improvement Unlike a basic feedback form between employee and manager, a 360-degree appraisal reveals the many places where there is room for improvement. A 360-degree appraisal is not just intended to analyse – it’s also meant to recommend. The review offers solutions and can help employees improve in spaces they were not aware needed improving. And by simply offering solutions, the 360-degree appraisal creates the potential for change. 

Stronger teamwork Aside from self-awareness, employees can also learn to take more accountability for their contributions to the company. And through this, the 360-degree appraisal can instil a stronger sense of teamwork in everyone in the company. Business is a team effort, and the 360-degree appraisal is a reminder of that. The anonymous nature of the evaluation also makes it easier for employees to accept constructive criticism and work toward improving their improvement for the team's benefit. 

Fair treatment It’s difficult to remove preconceived notions in any industry, and even company feedback forms are not all safe from internalised bias. The 360-degree appraisal was designed to minimise the impact of discrimination. With multiple people participating, it makes it fairer for employees of every race, age, gender, and belief to receive impartial and trustworthy feedback.  

Organisational needs  With every employee receiving a 360-degree appraisal, a company can, in turn, receive a 360 review of itself. The appraisals can collectively paint a picture of the strengths and weaknesses of a company at an organisational level. Employers can become aware of the areas that need improvement, such as company culture, motivation, and upskilling. Thus, the 360-degree appraisal can help employers analyse the elements that can’t be quantified.

These are the four main components of a 360-degree appraisal and what they contribute to the final report: 

1. Self-appraisal  In the self-appraisal portion, the employee reflects on their competencies and performance during a select period. You can measure this portion in strict metrics, like a 1-10 ranking, and you can also include a written portion for a more personalised review. The self-appraisal answers the question, “How well do I think I’m doing?”

2. Superior appraisal  The superior’s appraisal measures an employee’s performance as a subordinate and how they carry out their assignments. It can also determine whether the superior sees potential for promotion or demotion. The superior appraisal answers the question, “How well am I doing from my boss’ perspective?”

3. Subordinate appraisal  You can measure management with data and outputs, but leadership is more complicated. The subordinate appraisal can measure how well an employee leads and manages their subordinates. The subordinate appraisal answers the question, “How am I doing as a leader or manager?”

4. Peer appraisal  Peer appraisal is one of the sections that differentiates a 360-degree review from a regular feedback form. This portion can help analyse an employee’s teamwork capabilities, communication skills, leadership qualities, and more. The peer appraisal answers the question, “How well am I doing in a team?”

In 2023, there’s no need to conduct 360-degree appraisals manually. There are plenty of software applications available for companies in Singapore that will quickly conduct the company-wide evaluation for you. These third-party software applications completely digitise the appraisal process for more efficiency and accuracy. Many of these software and platforms already have sample questions in place, but companies can change or personalise certain items. 

Here’s how to get started. 

1. Determine criteria.  Before tapping a third party to conduct the appraisal and send out surveys, employers should determine the criteria they want to measure. These criteria tend to differ based on the type of appraisal. Here’s an example: 

• Self-appraisal: Creativity, competency, growth 

• Superior appraisal: Time management, company alignment, motivation 

• Subordinate appraisal: Leadership, organisation, delegation 

• Peer appraisal: Teamwork, communication, interpersonal skills 

2. Decide who will evaluate whom.  Not everyone in the company will evaluate each other. Doing so would be chaotic, so it’s important to determine early which peers, managers, and subordinates will be assessing a particular employee. It will require insight and recommendations from HR and team leads to determine who an employee works closely with.

3. Settle your 360-degree feedback software.  For accurate results and efficiency, employers can tap a 360-degree feedback platform to send out surveys, collate responses, analyse the data, and create conclusions and recommendations. It is particularly useful for large companies focused on individual employee growth but are too big to conduct the 360-degree feedback software manually. 

Some of the most popular 360-degree appraisal platforms in Singapore are Spidergap, Bonusly, and WorkTango. 

4. Conduct a 360-degree appraisal and analyse the results.  Once you've conducted the appraisal and the results are in, managers and the human resources department can discuss the results and determine the company’s strengths and weaknesses. The results can help companies create new goals to improve upon the select areas, such as company culture, productivity, processes, and more.

5. Discuss results with employees.  The next and perhaps most crucial step of the process is discussing the results with employees. Oftentimes, the typical employee-employer feedback form ends with the results. No one takes further steps to improve performance or experience. In contrast, the 360-degree appraisal can assist managers and leaders in discussing ways their teams can improve and fulfil their potential. It is where recommendations and solutions can become actions, and these actions can lead to further growth and development for the company as a whole. 

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