What is a 360 Review and How Does It Differ From a Performance Review?

12/04/2025

A 360 review, also known as 360-degree feedback, is a comprehensive performance assessment tool that gathers feedback from an employee's full circle of workplace contacts. Unlike a traditional performance review conducted solely by a manager, it provides a holistic view of an employee's strengths and areas for development by incorporating perspectives from peers, direct reports, and sometimes even clients. This method is designed to paint a more complete picture of employee performance, particularly focusing on soft skills and team dynamics.

What is a 360-Degree Feedback Review?

A 360 review is a multi-rater feedback process. The "360" signifies that input is collected from all directions surrounding an employee. This typically includes their manager, peers they collaborate with, direct reports (if they are in a leadership role), and occasionally, external stakeholders like clients or customers. The primary goal is to assess behaviors and competencies that a single manager might not regularly observe, such as collaboration, communication, and leadership influence. This contrasts with a traditional performance review, which is typically a top-down evaluation focused on an individual's achievement of specific, pre-set goals and objectives.

What is the Difference Between a 360 Review and a Performance Review?

While both are valuable talent management tools, they serve distinct purposes. The key difference lies in the source of feedback and the primary focus of the assessment.

The table below outlines the core distinctions:

Feature	360 Review	Traditional Performance Review
Feedback Providers	Multiple raters: peers, managers, direct reports, self-assessment, sometimes clients.	Primarily the employee's direct manager.
Primary Focus	Behaviors and soft skills (e.g., teamwork, leadership, communication).	Individual performance and results against specific, measurable goals.
Common Purpose	Employee development and self-awareness.	Performance evaluation for decisions on promotion, salary, and compensation.
Frequency	Often conducted annually or bi-annually for development purposes.	Can be more frequent (e.g., quarterly, semi-annually) and is often tied to the compensation cycle.

Based on our assessment experience, organizations often use both methods in tandem: the 360 review informs personal development plans, while the performance review evaluates goal attainment.

What are the Advantages and Disadvantages of 360 Reviews?

Implementing a 360-feedback system comes with significant benefits but also requires careful management to avoid potential pitfalls.

Advantages of 360 Reviews:

Holistic Perspective: It reduces managerial bias by providing a balanced view from multiple sources, uncovering blind spots in an employee's performance.
Enhanced Self-Awareness: Employees gain valuable insights into how their behavior is perceived by others, which is a powerful catalyst for professional growth.
Development of Soft Skills: By highlighting competencies like communication and empathy, it encourages employees to develop the skills crucial for effective teamwork and leadership.
Promotes a Feedback Culture: Regular 360 processes can help normalize constructive feedback, making it a regular part of the organizational culture.

Disadvantages of 360 Reviews:

Risk of Bias: Feedback can sometimes be influenced by personal relationships (the "halo" or "horn" effect) rather than objective performance.
Lack of Anonymity and Safety: If not administered correctly, respondents may fear retaliation, leading to dishonest or overly vague feedback.
Complexity to Administer: Coordinating feedback from multiple people for each employee can be time-consuming and resource-intensive.
Potential for Misinterpretation: Without proper coaching and support, receiving critical feedback from many sources can be overwhelming and demotivating for an employee.

How Do You Conduct an Effective 360 Review?

A successful 360-review process requires meticulous planning and communication. Here is a step-by-step guide:

Define the Purpose and Communicate It Clearly: Before starting, decide if the review is purely for development or will influence compensation. Communicate this transparently to all participants to manage expectations and ensure honest input.
Select the Right Raters: The employee and their manager should collaboratively identify 5-8 raters who interact with the employee regularly and can provide meaningful feedback on the competencies being assessed.
Choose a Reliable Tool: Utilize a specialized 360-feedback platform that ensures anonymity, provides structured questionnaires, and generates easy-to-understand reports.
Provide Rater Training: Brief all participants on how to give constructive, behavior-based feedback. Encourage them to provide specific examples rather than general statements.
Debrief the Results with a Coach or Manager: The raw data should never be simply handed to the employee. A trained manager or external coach should help interpret the results, focus on key themes, and create a actionable development plan.

To write effective 360-review feedback, be specific, objective, and future-focused. Instead of "You are a poor communicator," try "In the last project meeting, interrupting colleagues made it difficult to hear all ideas. Allowing others to finish their points could enhance team collaboration."

In summary, a well-executed 360 review is a powerful tool for employee development. Its core value lies in providing a multi-faceted view of performance that a traditional manager-led review cannot capture. For the greatest impact, ensure the process is confidential, purpose-driven, and supported by coaching to translate feedback into meaningful growth.

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