Definition
A 360 review (also called 360-degree feedback or multi-rater feedback) is a performance evaluation method where an employee receives anonymous feedback from multiple sources around their work environment. This includes their manager, peers, direct reports, and sometimes even external contacts like customers or vendors. The employee also completes a self-assessment, and all perspectives are compiled into a comprehensive report that highlights strengths and areas for development.
Unlike traditional performance reviews that rely solely on a supervisor’s perspective, 360 reviews aim to provide a fuller picture of how someone shows up at work from every angle.
How It Works
The 360 review process typically follows these steps:
Selection of Reviewers: The employee and their manager identify 6-12 people who regularly interact with the employee to provide feedback. This group should represent different working relationships and perspectives.
Survey Distribution: Participants receive a standardized questionnaire with rating scales (often 1-5) and open-ended questions covering competencies like communication, teamwork, leadership, and problem-solving skills.
Anonymous Feedback Collection: Reviewers complete the survey anonymously to encourage candor and honest input. The employee also completes the same assessment about themselves.
Report Generation: A facilitator or HR professional compiles all responses into a report, typically showing aggregated ratings and anonymized written comments.
Feedback Discussion: The employee reviews their report with a manager, coach, or HR representative to understand the feedback and create a development plan.
Action Planning: Based on the insights, the employee works with their manager to identify specific areas for growth and set concrete development goals.
Current State: A Tool Under Scrutiny
While many organizations use 360-degree feedback for employee development, recent data reveals significant concerns about how it is perceived and implemented.
According to a February 2025 survey by LiveCareer of 1,000 U.S. workers, employee sentiment toward 360 reviews is notably negative:
- 79% would opt out of 360-degree feedback if given the choice
- 74% feel the results are unfair, biased, or inaccurate
- 79% suspect colleagues use feedback to settle personal grudges
- 48% believe it amplifies office politics rather than provides honest evaluation
- 48% feel feedback is tainted by personal bias
- 39% experienced strained workplace relationships due to 360 feedback
- 35% reported increased stress and self-doubt following reviews
- 30% noted decreased productivity and motivation after the process
These findings, reported by SHRM in May 2025, highlight a serious disconnect between the intended purpose of 360 reviews (employee development and growth) and how employees actually experience them.
Despite these concerns, adoption remains widespread. The same LiveCareer survey found that 71% of organizations use 360-degree reviews regularly.
The Challenge with Anonymous Feedback
While anonymity is designed to encourage honest responses, it creates its own problems. The LiveCareer survey found that 28% of respondents believe anonymous feedback promotes vague and unhelpful comments. Additionally, 62% said they believe anonymous feedback encourages honesty, but this benefit is undermined when people suspect the feedback is being weaponized.
"Anonymity in feedback can create a safe space for honesty, but it can also be a shield for passive-aggressive comments," noted Jasmine Escalera, career expert at LiveCareer, in the study.
When 360 Reviews Work Best
Despite the challenges, 360-degree feedback can be valuable when implemented thoughtfully. HR experts emphasize several critical factors for success:
Separate from Compensation Decisions
The most important best practice: 360 reviews should be used purely for development, not tied to pay raises, bonuses, or promotion decisions. When compensation is on the line, the process becomes political and loses its developmental value.
Carolyn Troyan, president and CEO of Leadership 360, told SHRM: "I've seen 360 reviews work well and have the most impact when they are meant for development and do not affect compensation. Because 360-degree performance reviews are tied to compensation, you get people picking friends who will give positive feedback. It becomes political and feels like high stakes."
Use as One Piece of Assessment, Not the Only One
Jay Jones, SHRM-CP, lead of talent and employee experience at SHRM, emphasizes that if 360 feedback is used for performance management at all, "it's important that it only be a piece of the assessment and not the deciding factor."
"For any organization doing that, it would be important to have additional training for everyone to understand why this is happening and how the information will be used," Jones said.
Ensure Timely, Actionable Feedback
Annual 360 reviews that surface issues from months ago create frustration and erode trust. Troyan points out: "If you get feedback months later, you feel angry and a lack of trust. 'Why didn't you tell me so I could have fixed that behavior?'"
Organizations seeing the best results from 360 feedback combine it with more frequent, timely feedback throughout the year rather than relying solely on an annual process.
Require Follow-Up and Action Plans
Without clear follow-up processes, 360 reviews become an empty exercise that breeds cynicism. Organizations should:
- Schedule dedicated time to review feedback with a coach or manager
- Create specific, actionable development plans based on the insights
- Check in regularly on progress toward development goals
- Provide resources and support for skill-building
Jones warns: "With any survey, if you are collecting feedback from staff and then that feedback is not reflected anywhere and leadership does not take that and have outcomes based on that feedback, you get survey fatigue."
Train Everyone on Giving and Receiving Feedback
Simply sending out a survey is not enough. Both reviewers and recipients need training on:
- How to give specific, constructive, behavior-focused feedback
- How to receive feedback with openness and curiosity
- How to distinguish between feedback that reflects personal bias versus legitimate developmental opportunities
- How to create meaningful action plans from feedback
Practical Considerations for Shift-Based Teams
For industries like food service, retail, healthcare, and hospitality where Breakroom is commonly used, 360 reviews present unique challenges:
Scheduling Coordination: Getting feedback from people who work different shifts requires thoughtful timing and flexible deadlines.
Digital Access: Not all team members may have regular computer access, so mobile-friendly feedback tools are essential.
Relationship Dynamics: In smaller teams or single locations, maintaining anonymity can be difficult when everyone knows who works together closely.
Focus Areas: For deskless workers, feedback should focus on relevant competencies like customer service, teamwork, reliability, and problem-solving rather than corporate-focused skills like "strategic thinking" or "executive presence."
Alternatives and Complementary Approaches
Given the challenges with 360 reviews, many organizations are exploring or combining them with other approaches:
Regular Check-ins: Brief, frequent conversations between managers and employees provide ongoing feedback without the formality and potential politics of 360 reviews. This can include customer feedback, especially for frontline employees who get comments back every shift.
Peer Recognition Programs: Tools like Breakroom allow team members to give positive, specific recognition in real-time, building a culture of appreciation without the baggage of formal evaluation.
Manager-Led Reviews with 360 Input: Some organizations use traditional manager-led reviews but gather informal input from peers and direct reports to inform the manager's perspective.
Skills-Based Assessments: Focusing on specific, observable skills and competencies rather than general ratings can make feedback more actionable and less personal.
The Bottom Line
360-degree feedback remains a widely used tool, particularly in large organizations and for leadership development. However, recent data shows that most employees view it with skepticism and concern, particularly around bias, politics, and fairness.
For 360 reviews to deliver value rather than damage, organizations must:
- Keep them separate from compensation decisions
- Use them as one input among many, not the sole assessment
- Provide timely feedback rather than annual retrospectives
- Ensure meaningful follow-up and development support
- Train everyone involved in giving and receiving feedback effectively
Without these safeguards, 360 reviews risk becoming exactly what employees fear: a tool for office politics and grudge-settling rather than genuine development.
For businesses focused on team communication and collaboration, like those using Breakroom, investing in real-time feedback tools, employee recognition programs, and regular manager check-ins may prove more effective than formal 360 review processes, especially for frontline and shift-based teams.
