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Vietnamese Should companies utilise a dedicated 360-degree feedback solution? What benefits will it bring?
With dozens of options available in the market, making the wrong choice could lead to wasted resources, poor adoption rates, and ineffective feedback processes. The good news is that you do not have to evaluate every solution to determine the optimal fit. You can effectively narrow down your options by concentrating on critical factors.
This guide provides an overview of the five most critical recommendations for selecting a 360-degree feedback tool that is compatible with the requirements of your organisation.
Read more: 360-degree Feedback: Did You Do It Right?
Contents
- Why should companies consider a dedicated 360-degree feedback solution?
- What to look for in a 360-degree feedback solution?
- Comparing cost and ROI factors
- Available 360-degree feedback solutions
Why should companies consider a dedicated 360-degree feedback solution?
Technology can help organisations not just automate different stages of the process. It can significantly enhance the overall experience for both the feedback giver and receiver.
Nearly 90% of Fortune 500 companies, including Netflix, GE, and Facebook, employ some form of 360-degree feedback. In 2023 alone, the global 360-degree feedback software market has reached US $943 million. This suggests that more companies are investing in the software for their performance management processes, and the numbers continue to rise.
So what solutions are we talking about? Imagine how you would typically complete online surveys or quizzes and immediately receive a detailed explanation of your results.
Speaking of automation, a 360-degree solution and its ability to collect and store all feedback in one single source can help HR departments save tons of valuable time manually collecting and formatting. Moreover, HR can set up the platform so that it automatically sends questionnaires or reminders, collects responses, and generates reports at predefined intervals. This further helps reduce the risk of human error.
Read more: Why 360-degree Assessments Are Essential in Leadership Development
Leveraging technology, particularly cloud-based platforms, ensures that the feedback process is efficient and secure, and ensures whatever is classified as confidential stays private. Moreover, these dedicated solutions often feature intuitive dashboards and analytics tools that assist HR professionals in interpreting feedback data and identifying key areas for improvement.
What to look for in a 360-degree feedback solution?
Shifting your 360-degree feedback away from the usual manual process certainly is a decision requiring careful consideration. One key element that should be among the top priorities for businesses is trust.
When employees are fully aware of the purpose of the processes and the steps they will take, they will be more willing to participate and provide more constructive feedback.
Read more: Cloud Operating Platform – What Is It and Does Your Company Need One?
Privacy considerations
Along with a plethora of systems, there is also a maze of price and pricing structures. It may sound redundant to say to consider the one that fits the business’ unique needs and, of course, budget. But this remains true in most situations.
The majority of 360-degree feedback solutions today are already cloud-based and accessible via any browser. Companies do not need to install anything. With the cloud model, organisations have greater flexibility and scalability due to its pay-as-you-go subscription model.
To maintain confidentiality, ensure your chosen platform:
- Implements anonymous data collection methods
- Provides clear communication about privacy policies
- Offers opt-out options for participants
- Establishes transparent escalation protocols
- Creates secure feedback committees for conflict resolution
Data security
A solution with strong security measures contributes to strengthening the confidentiality factor, thus increasing participation rates. Today, data protection is not just a technical requirement—it is a legal necessity.
Your chosen solution should include security features like end-to-end encryption, regular security audits, and strict access controls.
A robust security framework protects this information, preventing unauthorised access and misuse. Security is also essential to maintain compliance, especially in countries with strict data protection laws.
Prioritising security enables organisations to avoid unwanted legal and reputational risks.
Read more: Data Protection: A Security Key for Every Business
Reporting and analytics
Analytics is a powerful tool that allows users to extract insights from endless streams of data. Feedback insights can then help identify gaps, recognise top performers, or create development plans for each individual.
Moreover, a robust reporting and analytics engine can help organisations calibrate feedback across different raters and ensure consistency in the feedback process. This is particularly important for large businesses with multiple locations and diverse cultures.
Comparing feedback data across different teams, departments, or even companies can help identify best practices and areas for improvement. This can lead to increased organisational effectiveness and employee satisfaction.
Read more: A Dilemma in Leadership Development: Performance vs. Potential
User training
The success of your 360 feedback implementation heavily depends on how users understand and effectively use the solution. While some platforms require minimal training, ensuring proper usage is crucial for meaningful results. Look for tools that offer comprehensive training resources, including self-paced learning materials and support documentation.
The best platforms provide role-specific training for different user groups—managers, employees, and administrators. This ensures everyone understands their role in the feedback process and can use the system effectively.
Customisation
The selected 360-degree feedback solution must be adaptable enough to accommodate the company's requirements, including the design of the questionnaire and the formatting of the report.
Modern 360 feedback tools enable organisations to develop customised questionnaires that are based on their competency framework, thereby enabling them to assess the most critical factors.
The customisation options are not limited to questionnaires. Seek platforms that enable you to adjust nomination processes, welcoming texts, and email communications. This level of adaptability guarantees that the tool is in ideal harmony with the communication style and culture of your organisation.
Keep in mind that, although customisation is crucial, it should not be prioritised over the user experience. The most effective tools strike a balance between simplicity of use and flexibility, ensuring that the feedback process is not complicated or users are not overwhelmed by the customisation options.
Comparing cost and ROI factors
Now comes the tough question: what will be the cost of such solutions? There are several factors you should consider in order to determine the cost of a 360-degree feedback solution.
Pricing models and total cost of ownership
Along with a plethora of systems, there is also a maze of price and pricing structures. It may sound redundant to say to consider the one that fits the business’ unique needs, and of course, budget. But this remains true in most situations.
The majority of 360-degree feedback solutions today are already cloud-based and accessible via any browser. Companies do not need to install anything. With the cloud model, organisations have greater flexibility and scalability due to its pay-as-you-go subscription model.
When evaluating the total cost of ownership, keep in mind that off-the-shelf solutions typically cost less than customised ones. Some providers do offer demo versions for businesses or individuals to try out before committing. The trial will allow companies to get a sense of how the process will lay out, evaluate if it aligns with the company’s needs and goals, and identify potential gaps between the new and existing systems.
How about return on investment? An equally crucial element that has not received adequate attention is the post-feedback follow-up. Enhancing the feedback process alone is possible, but the company's subsequent actions will largely determine its impact on the employees.
However, there are several key ROI indicators that businesses can consider:
- Reduced turnover rates and associated replacement costs
- Improved managerial effectiveness
- Enhanced employee engagement and productivity
- Stronger leadership pipeline development
- Better alignment of skills with organisational needs
Hidden costs and long-term value
While the initial price tag of a 360-degree feedback tool might seem straightforward, there might be several hidden costs:
- Time investment
- Administrative overhead for setup and maintenance
- Training time for users and facilitators
- Time spent on analysing feedback
- Resource allocation
- Dedicated personnel for system management
- Integration with existing HR systems
- Additional training materials and support
- Organisational impact
- Potential temporary productivity dips during implementation
- Cultural adjustment period
- Resolution of conflicts arising from feedback
Read more: One Critical Task HR Managers Often Overlook: Costs of Bad Hires
Available 360-degree feedback solutions
The landscape of 360-degree feedback systems has evolved significantly, offering companies powerful tools to drive employee development and performance improvement. Let's explore leading providers and see how their solutions can aid the feedback process in your organisation.
Great People Inside
Great People Inside (GPI) is the result of a collective of hundreds of years of research and global expertise. Its solutions aim to empower businesses to embrace and enhance the entire employee life cycle.
The 360° survey from GPI examines management practices to see how managers engage with their people and adjust to shifting market situations.
Key features
- Highly customisable
- Automatic suggestions for future improvement and development
- Flexible pricing, only pay for what you need
- No certification or specialist is required to implement, score, or interpret results
SurveyMonkey
SurveyMonkey is an online all-in-one platform for surveys, forms, and market research. They are widely known for their series of templated surveys, forms, and analytics, accessible via a sophisticated yet user-friendly interface.
Key features
- Customisable templates
- Comprehensive survey builder with a variety of question formats
- Out-of-the-box themes, custo, fonts, branding, and more
- Responses can be collected via different channels: email, website, SMS, social media, QR codes, offline, and more
- Real-time reporting
- Data visualisation and custom dashboards
Viva Glint
Viva Glint (formerly Glint) was originally acquired by LinkedIn in 2018. The product “moved home” and is now part of the Microsoft Viva ecosystem, offering a holistic strategy for enhancing employee performance and engagement for businesses.
Key features
- Highly secure and fully compliance
- AI (Copilot) to summarise survey responses
- Use Glint and Viva Insights to view data
- Give managers the resources they need to act
What we introduced in today’s article is just scratching the surface. The market for 360-degree feedback solutions is incredibly robust and booming. If you are interested in a deeper dive into different providers, TRG is more than happy to explore them in later articles.
All in all, choosing a talent management tool, like choosing any other product, requires careful consideration. As we mentioned in earlier parts, following up post-feedback is also equally critical. So, a solution that can provide your HR and leader teams with suggestions for development might save you some valuable hours brainstorming strategies for each individual.
Still unsure how a 360-degree feedback solution can aid the process for you? Perhaps you're wondering how to prepare your stakeholders for this special project? Check out our latest whitepaper and learn more!
