Performance reviews aren’t just annual meetings, they are an opportunity for development and coaching. Only a shocking 52% of researched companies conduct annual performance reviews. There are many approaches a company can take when giving feedback, a growing option being 360-degree feedback.

When you hear the term 360-degree feedback, you may become overwhelmed. It sounds like a load of information, and it may sound complicated. If you’re new to 360-degree reviews, getting your employees used to the process may take a bit, but ultimately rewarding. Here are the basics to lead you to 360-degree success:

Understanding the Basics of 360 Feedback

360-degree feedback is exactly what it sounds like – feedback from around the circle. It is a system or process in which one receives feedback from multiple sources. These sources are typically colleagues, direct reports, and managers. Many times a 360 review will also include some form of self-evaluation. The goal of this process is to allow the entire team to help each other develop skills and address any potential weaknesses.

How is 360 Feedback Beneficial?

There is a multitude of benefits when transitioning to a 360-degree feedback system, here are a few.

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1. Open channels of communication:

Adopting the 360-degree feedback system allows employees in the company to comment on each other’s work. This opens an environment rich in communication and allows present problems to be addressed and resolved.

The overall communication process is improved and issues that may have created problems may be solved beforehand. Companies and organizations that communicate effectively are 4.5x more likely to retain the best employees.

Do it with Microfeedback: You can have all your employees use iRevü to give each other quick, five-minute critical reviews or accolades.

2. Better feedback from multiple sources:

Well-rounded feedback is a substantial benefit from this process. Receiving feedback from peers, supervisors and oneself shows to be superior compared to receiving feedback from one individual. Employees are able to receive feedback more frequently, and peer feedback is just as beneficial as feedback received from superiors. In fact, 88% of peer-reviewed employees are happier with their jobs.

Also, a 360 review allows trends and patterns to become clear. For example, let’s say an employee looks for different ways to help other departments, finding ways to collaborate. 360-degree feedback allows team members to recognize others for good work that supervisors may miss. While a supervisor may not have seen this, a colleague most likely has and is able to give praise to this person for their hard work.

Do it with Microfeedback: iRevü allows you to create a word cloud of your reviews so you can see what’s showing up for workers, teams and managers.

3. Team development:

The 360-degree feedback approach helps team members work more effectively together.  Team members that give each other feedback create a sense of accountability when providing their input based on each member’s performance. A well-implemented 360 system can allow for improved team communication and development. Team communication is important, with 33% of employees saying a lack of open, honest communication has the most negative impact on employee morale.

Do it with Microfeedback: iRevü reminds you when to give feedback and shows you how often you give accolades versus criticism. Plus you can answer any iRevü you receive, increasing communication between coworkers!

4. Career development:

More commonly than not, organizations are not responsible for developing the career of their employees. 360 feedback provides an employee with excellent information about what he or she needs to do in order to further their career. 98% of employees will fail to be engaged when they are given little to no feedback, so with a 360 process, an employee is given many opportunities to be shown what they are doing well or what can be fixed.

Do it with Microfeedback: iRevü allows you to align reviews to your corporate values and create individual values for each team member!

Don’t miss these 5 Pieces of Key Advice on Feedback Goals.

What are the Downsides of a 360 Review?

For every positive point made for a 360 review process, there are detractors that can offer a downside. The downsides are important to understand because they provide a map of when to avoid the 360 process. The following are some problems that can occur along with recommended solutions.

1. What an employee decides to do after the process:

In order for the 360-degree review process to be successful, an employee must be able to do a few things along the way. It can become overwhelming receiving large amounts of feedback at a time. An employee must be able to understand the feedback, process and determine the next steps to make the information useful.

Fix it with Microfeedback:  The need and will to follow up should be the next step for employees, although not mandatory. Integrating this process into a complete performance management system allows employees to be accountable to follow up and act on the information provided by others. 70% of employees report feeling more valued when there is a consistent performance management system in place.

Read how to Get Budget for Better Performance Management in 2017.

2. Focusing on what is wrong:

People tend to focus on the negative remarks rather than the positive, and many employees focus on fixing the negatives or weaknesses. While it is important to fix any potential weaknesses, the positives must be focused on as well. Maximizing one’s strengths has been shown to be rewarding, leveraging your team to advance in the right direction.

Fix it with Microfeedback: A reported 25% of employees leave organization due to lack of recognition. Try to emphasize the positives while giving feedback in the 360 review process, while still making sure to address weaknesses. Encouraging employees to pursue and work on their strengths in the process will help deter negative feelings.

3. Sticking to the process:

360-degree reviews are not a one-time event. This process should be implemented on a regular basis. Building a strong feedback culture can help when implementing the 360 reviews. Try to make feedback a daily habit, then when it comes time for the routine 360 feedback it is easier to implement, and employees won’t be overwhelmed. Use the feedback to create an action plan, and you will start to see an employee-driven process.

Fix it with Microfeedback: Hello! iRevü works whenever you need it to, meaning you can implement a feedback process that’s consistent and effective in less than 5 minutes.

While there are negatives to the 360-degree feedback process, like any performance feedback, it creates a positive and powerful problem-solving environment. The 360 process can help increase employee engagement, company morale and productivity levels. Only 32.5% of U.S. employees report being engaged at work, so take a chance on going 360!