What is a 360 evaluation?

A 360 performance review measures employee performance, typically using feedback from multiple reviewers—usually six to 12 people. It also includes an employee self-evaluation to provide a comprehensive perspective on an employee’s efficiency, productivity, contributions and work behavior. 

Unlike typical performance reviews, 360-degree feedback can provide a well-rounded perspective on an employee’s strengths and areas for improvement. It includes the perspectives of the people they regularly interact with. You can gather feedback from direct reports, as well as managers and peers, for a comprehensive understanding of performance.

Roles taking part in the evaluation often include:

• Evaluation administrator (usually an HR employee)
• Manager or direct supervisor
• Four or five team members
• Customers or clients
• Direct reports

How 360 evaluations typically work

An evaluation administrator typically creates questions for the review, and survey templates can help streamline the evaluation process. When making a 360 template, you might use placeholders like “employee name” to tailor feedback to each individual. 

Then, participants answer those questions to give detailed feedback about the employee. The evaluation typically uses a performance rating system ranging from one to five, along with an option to leave written comments. You might choose from different rating scales, such as numerical or descriptive, based on organizational needs.

The 360 review process includes both downward feedback from managers to subordinates and upward feedback from subordinates to managers. This provides comprehensive performance insights from all levels of the organization.

Managers use the information from these evaluations to relay relevant comments to employees. The input from team members, clients and managers may help employees improve their performance or create new career goals.

Benefits of 360 employee reviews

While 360-degree feedback is an involved process, it’s also more thorough than other evaluation types. Most employees can benefit from 360 reviews to identify opportunities for growth and enhance their performance.

Motivates employees

360-degree evaluations can help motivate employees. For some people, identifying their strengths from the team’s perspective can increase confidence and encourage them to put more effort into those areas.

Provides well-rounded input

Employees get feedback from coworkers, reporting staff members and other company officials. This can provide a more well-rounded perspective of how the employee performs. 

People who work with that employee in different capacities have unique perspectives on their skills, strengths and areas for improvement. A manager may not be aware of all these interactions, which could result in incomplete or inaccurate evaluations.

Hearing the same input from multiple people also helps reinforce the validity of that information. For example, if a manager, coworker and client all mention that an employee could develop their communication skills, it shows that this is an area for improvement in all interactions.

Improves teamwork and accountability

A 360 evaluation can encourage accountability and a team mindset when employees review ratings from their coworkers. Teams that give constructive criticism tend to collaborate more effectively, as it strengthens communication and supports growth.

Uncovers organizational needs

Feedback from a 360 evaluation can help you improve the company as a whole. For example, you may adjust a policy, procedure or approach to help employees succeed. Alternatively, you may gain insight into training needs if several employees have difficulty with the same skill.

Establishes areas for career development

A 360 review can support an employee’s career development. It provides their manager with feedback to make suggestions about their performance. It could also help the individual recognize their natural talents and encourage them to consider new advancement opportunities.

Supports fair evaluations with less bias

Collecting feedback from a diverse group of people provides different perspectives. This could help reduce the risk of unconscious bias.

Considerations for 360 reviews

You can improve your 360 evaluations by being mindful of the following risks.

Less experienced evaluators

Employees may not be familiar with evaluating colleagues’ performance. A structured review with the same set of questions for each evaluator may provide guidance on expected responses.

Inaccurate ratings

Workers may also be concerned about their personal or professional relationships. Someone might score a colleague higher or lower based on how they feel about them, rather than their actual performance. 

Time-consuming

360-degree reviews require more work than traditional evaluations. The process often takes several weeks and involves multiple people stepping away from their regular duties to complete feedback forms.

Common styles of 360 performance reviews

All 360 evaluations follow a standard format of gathering feedback from multiple sources. However, different formats, such as anonymous feedback or various rating scales, may work better for your organization, depending on the industry and company culture. Some prefer transparency, while others opt for anonymity to promote openness and trust. 

Here are four common 360 review examples to consider.

Manager-assessed feedback

A 360-degree review typically involves managers gathering both positive and negative feedback and using it to identify patterns of behavior. From there, they can create a report and share constructive criticism with the employees.

Digitally assessed scores

Performance management software typically gives each person a score in several assessment areas. The feedback is digital, so it’s easy to organize and share. It can save time by automating parts of the evaluation process, and many programs support ongoing improvements.

External consultant-administered surveys

Some organizations hire external consultants who administer 360 review surveys. The consultant gathers information and shares it with you. From there, you can meet with employees to discuss the results and opportunities for growth.

Direct employee-to-employee feedback

Some progressive organizations use direct employee-to-employee feedback. You facilitate the sharing of feedback but don’t filter reviews. This is particularly helpful in companies with a strong culture of trust and cohesive teams.

The role of human resources in 360 reviews

Human resources is central to a successful 360 review process. The department representative typically guides both managers and employees through each stage to ensure the process is effective, fair and focused on employee performance. 

HR is responsible for designing the review process, establishing clear guidelines and helping employees understand the purpose of 360 reviews. By establishing a structured feedback process, HR ensures reviews are consistent and aligned with the organization’s performance management objectives.

The HR team also plays a key role in selecting the right software to streamline the review process, making it easier to gather, analyze and share feedback. This can help reduce the administrative workload and encourage higher participation rates among employees. 

Additionally, throughout the process, HR often provides training and resources to help managers and employees offer constructive feedback. The HR representative might monitor feedback quality to ensure it’s respectful, actionable and focused on growth, thereby supporting the organization’s overall success.

How to conduct 360 reviews

The following steps help you implement 360-degree reviews with your employees.

1. Establish criteria for rating each employee

Develop useful, relevant questions that provide valuable insight. You can use your 360-degree review to assess an employee’s soft skills rather than their technical skills. Here are some examples of areas to assess.

• Leadership: Decision-making, taking responsibility and approachability
• Communication: Listening, nonverbal and oral communication, ability to receive and give feedback constructively
• Teamwork: Participation, readiness to help and reliability
• Organization: Time management, project management and attention to detail
• Creativity: Problem-solving, critical thinking and originality
• Interpersonal skills: Confidence, empathy, positivity, stress management and enthusiasm
• Company alignment: Understanding and compliance with core values, mission, vision and strategic plans and processes

Identify areas you want to assess, and create related questions. Then, develop a rating system that fits. A scale of one to five often works well, or you can assign descriptors to each level, such as nonexistent, minimal, neutral, good, very good and excellent. You can also ask open-ended questions and request comments instead of a numerical rating. 

When asking team members, customers and supervisors about the employee, the intention is to help the individual develop skills and advance in their role. Focus on the relationships and regular interactions between the employee and the person providing feedback when developing questions.

Common questions include:

• What interpersonal skills does the employee regularly use when working with you, team members and clients? This question can help the employee understand how well they collaborate with others.
• Are there any interpersonal skills the employee could develop to benefit colleagues and clients? Employees can use the answer to enhance their qualities and identify areas for growth.
• Do you believe the employee shows motivation and drive to complete their tasks? This informs the employee of their work ethic and ability to complete valuable projects.

2. Choose who will assess each employee

The size and structure of your company typically determine who completes each team member’s assessment. The employee’s seniority may also influence who provides feedback. For example, a high-level employee may receive feedback from higher-ranking and lower-ranking colleagues.

Participants generally include the employee’s immediate coworkers and department supervisor. You can also ask customers and additional company personnel to participate if they have relevant interactions with the person. Alternatively, you can ask each employee to request feedback from people they’ve worked with.

3. Send surveys

Include detailed instructions about the evaluation and why it’s important. This can help improve the quality of the feedback. 

Send the 360 review to employees at least a week in advance by email. This gives participants sufficient time to complete it and provide helpful feedback. Emphasize the deadline for submitting it. Setting an automated reminder email a day or two before the deadline may help increase your response rates.

4. Send the survey to the employee

Have the employee complete a self-evaluation ahead of your meeting. Provide similar instructions for this assessment to help the individual thoroughly reflect on their performance and increase its effectiveness.

5. Schedule the 360 evaluation review

Send the employee an invitation so they can prepare for their in-person evaluation meeting. Allow enough time for you to process the ratings and statements from the reviewers before this meeting. You should schedule at least an hour for the review.

6. Review ratings with the employee

Review the employee’s strengths and opportunities for growth based on the survey results. Praise them for their strengths, and emphasize their weaknesses as areas for improvement. It’s also a good idea to set goals to guide their progress. You might create a detailed plan or have the employee initiate change.

7. Follow up on progress

Establish a date and time for a follow-up meeting about their progress. If you set specific goals with the employee, you can check in on their progress. Following up also helps ensure the employee has the support they need.

Creating a development plan after the 360 review

Once a 360 review is complete, you can turn the feedback into action with an individual development plan. It’s a way to identify goals and create a step-by-step plan to achieve them. This plan can be essential for employee growth, as it helps employees identify ways to change and build on their strengths.

A well-crafted development plan often includes specific, measurable and achievable objectives that align with the employee’s career development goals and the organization’s performance management strategy. You should use constructive feedback from the 360 review to set clear priorities and actionable steps.

Managers and HR often work closely with employees to develop these plans, providing the necessary support and resources for success. This might include access to training programs, professional development workshops, mentoring opportunities and regular check-ins to monitor progress.

A successful development plan also includes a timeline for achieving goals and a system for evaluating progress. By regularly reviewing and updating the plan, employees can stay motivated and accountable, while managers can provide ongoing employee feedback and encouragement. 

Creating a performance improvement plan

If the 360 review shows the employee isn’t meeting performance expectations, you can create a performance improvement plan. A PIP is a corrective plan to address employee performance issues.

Creating a performance improvement plan is similar to writing a development plan. You typically identify areas where the employee’s performance needs improvement and create specific goals related to them. From there, you can develop an action plan and steps for tracking progress.

360 performance review best practices

Here are some tips to help you perform 360 reviews effectively.

Use 360 reviews with other forms of employee evaluation

Consider using 360 employee reviews with other performance evaluations for continuous, candid feedback. Examples include quarterly and yearly performance reviews, which discuss how well an employee performs their job duties and meets goals. Self-assessments can also help employees review their strengths and growth opportunities for soft and hard skills.

Support employees post-review

Provide employees with support after a 360 review. This may include resources to develop skills, coaching and employee mentoring, learning and development, further reviews, acknowledgment and encouragement of progress. 

Prepare the employee for the review

Candid evaluations of an employee are most effective. An employee can be more prepared if they have:

• Received regular feedback from their manager
• Reacted to feedback constructively
• Been employed long enough to receive meaningful feedback from coworkers
• Understood the benefits of a 360 review

Define success

Before a 360 evaluation, define what success looks like. Set clear goals and expectations for employee performance. For quantifiable goals, develop metrics for measuring performance and make progress transparent. For example, data dashboards can provide real-time visual progress of the information you want to track, keeping employees informed and motivated.