When an organization is staffed with highly engaged employees, it’s a fact that the team becomes more productive. This increases overall revenues and raises employee morale, adding value to the company to ensure more successful future projects and recruitment efforts. One good way to understand if employees are happy and engaged in their work is to conduct a 360 Degree Performance Evaluation.
Understanding What a 360 Degree Performance Evaluation is About
The goal of a performance evaluation on this level is to rate the company’s ability to create a positive and engaged workforce. On a corporate level, a 360 Degree Performance Evaluation can help Human Resources to see the “bigger picture” and how well the company is doing in terms of supporting the productivity of employees. A 360 Degree Performance Evaluation provides much insight into the company, including what’s going well and what needs improvement. It can also be used to enhance compensation planning, identify the need for more training programs, and connect performance with corporate objectives.
Pros and Cons of the 360-Degree Performance Review
Before conducting one, it’s important to understand the pros and cons of this type of effort. Let’s learn more about this type of evaluation and give some best practices for managing one at your organization.
· A 360 Degree Performance Evaluation can improve the overall performance review process by helping management see rather than speculate on individual performance metrics.
· The company can see how well it meets the performance needs of employees and spot trends in areas of weakness so that the company can set up focused training.
Compensation planning can be based on actual performance goals rather than average salary and benefit rates across job types.
· The need for restructuring jobs and tasks may arise as a result of the findings of a 360 Degree Performance Evaluation.
Selecting the right 360 Degree Performance Evaluation system and data management can be confusing if there is no standard in place currently.
· Must get buy-in from all levels of the executive management team in order to successfully launch and promote a 360 Degree Performance Evaluation company-wide.
· Future training and employee performance must be carefully monitored in order to get the most from an evolution on this level.
While there are bound to be some hesitation at first, knowing what to expect with a 360 Degree Performance Evaluation can make this a worthwhile effort. Imagine being more in control of the actual daily performance of employees? Then being able to link performance with individual job tasks to develop better compensation strategies helps to produce a more engaged and skilled workforce. This factor alone makes a 360 Degree Performance Evaluation a vital part of your human capital management.
Guidelines for Managing a 360 Degree Performance Evaluation
There are some specific ways your organization can get the most from a 360 Degree Performance Evaluation. Use these as general guidelines as you roll yours out.
· Consistency – Launch your performance review at the same time every year or quarterly. This helps to increase participation and makes leaders and employees accountable.
· Technology – Choose the right HRM to conduct and track data for the performance evaluation. Make sure it has the features you need to adapt and report on your findings.
· Timing – Roll out the 360 Degree Performance Evaluation at a time that doesn’t correspond with payroll changes or other types of performance reviews. To do so creates fear.
· Integration – Use the data as part of your overall human resource management process. Tie findings in with salaries and individual employee reporting.
If you are struggling to find ways to improve employee engagement and performance management, consider how OrangeHRM’s platform can support your organizational goals this year.