According to Forbes, the 360-degree feedback process is used by more than 85% of Fortune 500 companies as a key part of their total leadership development process.

What more do you need to solidify the fact that 360-degree reviews are the biggest players in maximizing employee potential?

Humans are multifaceted, so why should feedback and reviews be one-dimensional?

360-degree feedback helps companies see the complete picture rather than evaluating employees from a single perspective. It helps managers identify the hidden potential of their employees, which would have gone unnoticed during plain old feedback reviews. 360-degree feedback is the keyword for employee development, and there is no argument on that!

Evolution of 360 Reviews in a Nutshell

Human Resources is, without a doubt, the biggest 'action-takers' when it comes to developing and managing employees. And in the past few years, the best thing that has happened to the HR world is the entry of 360 degree feedback.

Earlier, employees used to resent surveys and feedback because they often ended up being stressful and intimidating for them. Performance appraisal in itself became a dreaded topic for employees. But things changed since the advent of 360-degree feedback.

Managers could collect reviews of employees from multiple sources and not just from their reporting manager. It gives employees more depth and space to make a positive impact.

The holistic approach that 360 degree feedback provided made it quite popular among employees, and posed significant benefits. The key aspect of such a positive change was the emphasis this method placed on employee development and improvement. It helped employees understand that the purpose of conducting 360 degree feedback was to help employees grow and develop.

Now, who can resist some growth and development, right?

360 Degree Feedback and Employee Engagement

So, how does 360 degree feedback play into the concept of employee engagement? Pretty well, actually.

As soon as employees understand that such a feedback process is conducted for their own well-being and development, they become more inclined to the organization.

Also, 360 degree feedback makes sure that the personal goals of the individual align with the goals of the organization. It makes sure that the goals and aims of the employees go hand in hand with those of the organizations.

When an employee feels their personal goals are being focused on in the company, they become more focused on the tasks and start getting engaged in the work they do.

There are plenty of indirect benefits that 360 degree reviews offer, which lead to increased employee engagement.

For example, through the process of conducting such feedback and reviews, a channel of communication opens between co-employees and managers, which leads to a positive and collaborative work environment. All of these small yet significant changes add up to employees being more engaged and satisfied. 

360 Degree Review and Employee Potential

What does a 360 degree review have to do with employee potential? Only everything! This tool is the best when it comes to assessing an employee from various angles.

It helps managers view employees from the point of view of their supervisors, co-employees, and teammates, helping them understand various areas where the employees contribute and make an impact.

What better way to measure the potential of employees than to conduct 360 degree feedback?

Usually, feedback systems collect insights from the employees from their reporting manager alone. But it might not be enough to paint a clear picture of the employee. But when it comes to 360 degree feedback, insights are collected even from subordinates and co-employees, enabling managers to find any hidden talent in them.

ThriveSparrow's Hidden Strengths in Individual Performance Reports
ThriveSparrow enables managers and employees to access personalized reports, uncovering hidden strengths and providing insights into individual performance.

360 degree feedback can then allow employees to hone such talent through continuous improvement and guidance. 

The Benefits of 360 Reviews

360 degree feedback are huge. Its impact is even more enormous. It would take only a supremely long list to complete the benefits a 360 review offers to an organization, but let us try to keep it simple here. Let us focus on the most significant benefits of HR 360 review:

1. Decreased bias in the workplace

As 360 degree feedback is collected from various stakeholders in the company, one cannot say that the review process is biased. Even if one or two people tried to intentionally give baseless reviews, the overall evaluation would remain unbiased as more people have a say in the process. This reduces workplace bias tremendously.

2. Decision-making effectiveness

Managers can gain insight into employee performance via 360-degree feedback. This helps managers choose the best ways to develop, promote, and hire staff. Managers can identify strengths and weaknesses in employees via many feedback sources.

3. An open culture is created

Feedback from more than one source helps create an open mindset in the company where it is used. All employees feel like their thoughts are important because they are part of the review with their bosses and peers. People can say what they think without worrying about being shut down during the feedback process.

4. Enhanced self-awareness in employees

360-degree feedback helps employees discover their strengths and weaknesses. This strategy helps employees discover their hidden strengths and weaknesses.

The full 360-degree assessment approach helps employees understand their behavior and job performance, improving performance.

5. Workplace relationships improve

Managers' one-sided feedback leaves employees with little to say. This feedback procedure lacks closeness.

When supervisors and employees grade each other in 360 feedback, it improves relations. Employees and managers collaborate to achieve goals as moods improve. 

6. Increases employee productivity

A major benefit of 360-degree feedback is that it improves job performance. It helps employees get along and accept responsibility. It also explains ways to boost performance. This increases employment interest and corporate loyalty.

Because their effort, learning, and opinions are valued, they feel valuable. No matter how advanced planning a company does to achieve its goals, if the employees are not on board, then what is the point?

So the biggest benefit one can think of when it comes to a 360 degree review is how it helps in increasing employee productivity.

5 Simple Steps to Implementing 360 Reviews

No one can argue about the significant role 360 degree feedback plays in making an organization not just better but overall competent. The implementation of 360 reviews is actually pretty simple: 

  1. Make the purpose of the review clear
  2. Choose the raters
  3. Roll out the feedback survey
  4. Collect the responses
  5. Create a plan of action
5 step 360 review implementation process

Step 1: Make the purpose of the review clear

It is always efficient to include individuals who have known the employees for at least six months in the evaluation, just to keep things fair.

Also, keep the purpose clear: the main objective is the development of employees rather than pointing out their deficiencies. 

Step 2: Choose the raters

When it comes to choosing the raters, you as the admin can choose a subject's raters, or, you can give the subject the option to choose who they want. This preference varies by organization and the type of 360 assessments.

There are 3 types of 360 assessments.

1. Organization control module (OCM)

For organizations using this assessment type, the administration or HR department selects the raters for each subject. This method ensures that a diverse and relevant group of individuals provides feedback, covering various interactions within the organization.

The subject doesn't have the option to choose their raters.


  • Ensures a broad representation from different levels and departments.
  • Maintains consistency across the organization in terms of who is giving feedback.
  • Reduces potential bias by preventing subjects from only choosing raters who may view them favorably.

2. Subject control module

The Subject Control Module allows the subject of the feedback to choose their raters. This can include supervisors, peers, direct reports, and sometimes even clients or external partners.


  • Subjects may feel more comfortable receiving feedback from selected raters.
  • Encourages greater engagement and ownership of the process by the subject.
  • Can lead to more relevant feedback, as subjects are likely to choose raters who are familiar with their work and contributions.

The disadvantage of this type - responses could be biased, as a subject would naturally choose a person they like.

3. Hybrid module

The Hybrid Module combines elements from both the OCM and Subject Control Module. Here, the organization sets certain criteria or includes mandatory raters but also allows the subject to select additional raters.

This assessment type typically follows an 80:20 ratio between organization-selected and subject-selected raters.


  • Balances organizational consistency with individual relevance.
  • Reduces potential bias while still allowing subjects to include raters with whom they frequently interact.
  • Encourages participation and buy-in from the subject while maintaining a level of control over the process.

Each of these modules offers distinct benefits and potential challenges, and the choice between them should align with the organization's specific needs, culture, and objectives for the 360-degree feedback process.

By carefully selecting the most appropriate module, you can maximize the efficiency of your feedback system.

Note: For a full 360-degree view, you should have at least one superior, two to four peers, and four to six direct reports.

If your 360-degree feedback tool divides participants into groups based on the job, keep in mind that one person in one of those groups won't be anonymous.

For example, if there's only one Superior engaging, everyone will know what their feedback was.

Step 3: Roll out the feedback survey

Now, this is the easiest part. You have to conduct the 360 assessment on each employee. Use 360 feedback tools like ThriveSparrow to streamline the collection and organization of feedback data.

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ThriveSparrow's Bell Curve Charts unifies insights into company-wide trends.

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Step 4: Collect the responses and generate the report

Make the 360 feedback report when you're ready. Some 360s let you make reports whenever you want, while others might not let you make them until all users have given feedback.

ThriveSparrow generates 360 reports for you automatically, so you don't need to worry about generating them yourself. You have the option to generate reports once the Approver approves the reports, or once all evaluations are complete.

ThriveSparrow's 360 Report Options

Step 5: Create a plan of action

Give the candidates the reports that were made and help them make a plan for how to improve. Remember that going over this kind of report with the candidate can be stressful, so make sure everything is ready for a smooth session. By working closely with the candidate, you can help them improve their natural leadership skills and fix some areas where they need work in a way that is positive and helpful!

360-Degree Feedback for 360-Degree Wellness

Are you ready to give your employees the much-needed transformation? Give them a purpose, give them a goal, and give them something to work passionately towards.

The first step in doing so is conducting a 360 degree feedback. Surveys that are well-conducted, always open gateways to understanding your employees better, which inevitably leads to better decision-making.

ThriveSparrow is always here to help you, so feel free to click the chatbot in the corner and we'll be happy to help.

Want to see how you can leverage ThriveSparrow for your organization's performance enhancements. Download a free sample of a 360-performance report.