Organizations around the world are deploying various tools and techniques to monitor and drive workplace performance. 360 degree feedback software is one of the most impactful elements of performance management as it enables leadership to gain relevant insights regarding the potential performance of their employees. In this post, we delve into high-level trends and advancements in 360 degree feedback software. For a comprehensive analysis of this, as well as other cutting-edge talent technologies, reach out to us today!
Expansion of 360 Degree Feedback Tools
360 degree feedback is an assessment system or process in which employees receive confidential, anonymous evaluations from the people who work around them. This typically includes manager, peers, and direct reports.
According to a recent study, the 360 degree feedback software market size was valued at $905 million in 2022 and is projected to grow from roughly $1 billion in 2023 to $2.14 billion in 2030. We have observed providers across the talent technology space focusing on the development and expansion of 360 degree feedback tools in the past several years.
Some examples are traditional talent assessment companies. These vendors have offered 360 degree assessments for many years, but the increase in client demand for these tools in the post-pandemic phase has prompted some, such as SHL, to invest in stronger software features, such as mobile-optimized user experience and advanced reporting capabilities. We are seeing these developments in other solution categories as well, including Performance Measurement tools and Employee Listening tools, such as engagement survey platforms like Culture Amp and Glint.
360 Degree Feedback in Employee Performance Measurement
The greatest example of this trend in the TTL ecosystem, and in the market at large, is within Performance Measurement tools. Historically, these tools have provided a digital paper trail for the traditional “one on one”, as well as tracking annual goals and attainment of them over time. Some vendors offer tools to help employees become more productive, enabling employees to take ownership of their performance and development. Examples of Performance Measurement tools with native 360 feedback capabilities include Lattice, Leapsome, 15Five, and Trakstar.
As many of these solutions tend to be multi-functional or “an all-in-one” talent platform solutions, 360-degree feedback tools are frequently built into performance reviews, professional development, and employee engagement modules. They are able to integrate feedback assessment data into multiple modules to provide a deeper level of insight and real-time understanding of individual contributors’ opportunities in different areas. These platforms also enable companies to receive and deliver anonymous and non-anonymous feedback across all levels and departments in the organization and external customers.
Speciality 360 Assessments
Although 360 degree feedback is becoming more incorporated into technology solutions for performance, assessment, and engagement, these platform solutions are not always the best option for organizations that have developed proprietary 360 feedback programs specifically for talent development and coaching. This is interesting because most platform solutions cannot fully accommodate these specialized needs without requiring the purchase of ancillary software modules. From the perspective of several industrial and organizational psychologists we have consulted on the matter, it may not even be effective to connect a 360 degree feedback assessment with an automated digital performance management solution – in many cases human intervention is necessary to interpret feedback results within context to provide accurate guidance and recommendations to the feedback recipient.
For these cases, there are specialty providers that focus solely on 360 degree feedback assessment program delivery and management. These providers don’t typically compete with performance management tools or engagement tools, and do not have additional talent modules that those types of platforms have. Rather, they are focused on optimal delivery and management of 360 projects, possibly with a talent development focus and can accommodate learning and development programs. Examples of specialty providers such as TruScore and 3D Group work with a wide range of hiring organizations and consulting firms because they can ensure a level of confidentiality and expert support. These providers also provide platform software that is highly configurable to the client’s unique program requirements.
Selecting the Right 360 Provider
Selecting the right provider to support a 360 degree feedback assessment presents both an opportunity and a challenge. Tools that can support these assessments are offered by a range of categorically different providers – talent assessment, employee surveys, and performance measurement solutions. This creates the opportunity to explore a variety of options, however it also creates a challenge when narrowing down your requirements and comparing providers side by side. Organizations may want to begin their selection process by casting a wide net across several solution categories to determine which type of solution is right for them, before diving deeper into a comparative evaluation within context to provide accurate guidance and recommendations to the feedback recipient.
Want to learn more about 360 degree feedback tools? Talent Tech Labs can help! Reach out to us today.
