New survey by ETS plc finds there is no 'best practice' for 360-degree feedback

LONDON, ENGLAND, November 03, 2010

100,000 managers use 360-degree feedback
First ever survey finds there is no single best practice

More than 100,000 employees receive 360-degree feedback, according to the first survey of major employers. Survey responses from private-sector companies employing 2.3 million people are released by ETS as the 360-degree feedback review.
While management development has been the traditional focus of 360-degree feedback, today nearly four in ten (38%) companies now target non-management employees, specialists and talented individuals who may not be in management positions.
360-degree feedback emerged in the 1980s as an unbiased way to assess performance rather than relying on the line manager alone. Individuals are rated by their more senior and junior colleagues, their peers and sometimes customers.
360-degree feedback is used intensively today. Nearly half of companies (45%) run two or more 360s, with over 1,000 employees completing a 360-degree feedback programme, on average.
"Businesses see that 360-degree feedback supports real improvements in individuals' performance, which is why tens of thousands use the technique," says Dominic Wake, Director of ETS plc. "Tailoring the use of 360-degree feedback to each company is crucial to its success. What works in one company may fail in another," he concludes.
Some respondents believe that 360 is most successful when development is linked to appraisal, and also remuneration, while other respondents believe that this link reduces its effectiveness. It is clear that 360-degree feedback needs to be employed in a way and for a purpose that reflects the organisational culture and context.
360-degree feedback is mainly used for personal development. Colleagues are able to offer insights from working with the individual in a range of different situations. However, one fifth of companies use the technique for appraisal or as part of their talent management efforts.
NEWS RELEASE
For companies that employ agile project teams, 360-degree feedback allows for performance reviews at the end of assignments. One in ten companies is opting for this ad hoc usage rather than wait for the year-end appraisal.
The challenge with 360-degree feedback is to ensure that individuals use the new insight into their behaviour as a positive force for change. When asked for the best way to support individuals in this way, the most common response was to employ a coach. Internal or external coaches help the individual to interpret their feedback, plan their development and support them to overcome barriers and celebrate their success.

Editors' notes:
360-degree Feedback Review can be downloaded here: http://www.etsplc.com/360-degree-feedback-review.aspx
360-degree Feedback Review is based on a survey of 100 human resources directors and managers from major UK and international companies employing over 4,000 people, on average. Respondents completed the survey between 25 August and 22 September.
ETS plc (www.etsplc.com) is the only major provider of bespoke HR technology and consultancy. ETS plc provides blue-chip companies with employee surveys, performance management and talent management services. ETS clients include Allianz, PepsiCo, Tesco and Virgin Atlantic Airways and client case studies are available.For further information, contact:
Dominic Wake, Director, on +44 (0)1932 219 949; +44 (0)7817 880 261; dominic.wake@etsplc.com

ETS plc provides HR consultancy and technology to clients needing bespoke solutions for performance management, staff surveys and 360 degree feedback.

Our approach is to deliver clients their 'ideal world'. For many organisations this means automating and improving HR systems or processes that are working well.

For others, it's a matter of creating an entirely new programme.

Whatever we do, the outcome is the same: delighted customers.

Over one million employees globally use an ETS solution.