Evaluating employee performance solely through reports and annual reviews is like judging an iceberg by its tip.
On the surface, everything seems clear: a manager gives a rating, draws conclusions — and that’s the end of the story. But the real impact people have on their teams runs much deeper than what’s immediately visible.
That’s why more and more companies are turning to the 360-degree feedback approach, where input comes not just from managers, but also from peers and direct reports. It offers a more well-rounded and objective view: who’s excelling, where there’s room for growth, and what’s really happening within the team dynamic.
At Sereda.ai, we’ve put together the essentials of this approach — how it works, why it truly benefits the business, and how to implement it without drowning in bureaucracy.
What Is Performance Evaluation Really About?
As we mentioned earlier, performance evaluation isn’t just about ticking a box once a year. A meaningful evaluation process is an ongoing, thoughtful conversation between the company and the employee. It’s a way to understand:
- Who’s creating the most value and showing leadership potential;
- What strengths exist within the team — and where reinforcements are needed;
- Whether people are aligned with the company’s direction;
- Who’s struggling with their responsibilities — and may not be in the right role.
For companies, it’s a powerful tool for managing team dynamics and driving business outcomes. It’s about feedback, transparency, and growth — not just going through the motions.
Why Is Employee Evaluation Essential?
The answer is simple — without it, you’re leading your team blind.
When your company has a clear and transparent process for evaluating employee competencies, the benefits quickly become tangible:
- You can clearly see who’s driving results.
A structured evaluation helps distinguish high performers from those whose impact is minimal. It gives you a solid foundation for key decisions: where to invest in skill development, who’s ready for a promotion — and who may not be the right fit. - It uncovers future leaders.
The next great manager might already be on your team — you just haven’t spotted them yet. A well-run evaluation process, paired with multi-perspective feedback, helps identify high-potential individuals and support their growth. - It strengthens team cohesion.
When employees clearly understand expectations and receive constructive feedback, it builds trust, accountability, and a proactive mindset.
Types of Performance Evaluations
There’s no one-size-fits-all approach — the right method depends on your goals, culture, and company structure. Here are some common formats:
- 90° — Manager-Only Evaluation
The classic approach: a manager evaluates their direct report based on set criteria. It’s simple to implement, but can be highly subjective. It tends to work best in companies with a strict top-down hierarchy.
- 180° — Manager + Self-Assessment
Alongside the manager’s input, the employee also reflects on their own performance. This comparison often leads to more meaningful conversations and improved self-awareness.
- 240° — Manager + Self + Peers
Here, peer feedback is added to the mix. This is especially valuable for understanding how an employee collaborates and communicates within the team.
- 360° — The Full Picture
This is the most comprehensive and balanced method. Feedback comes from all directions: managers, peers, direct reports, and employees themselves.
Companies serious about employee development often choose this model for its depth and objectivity.
What Is the 360-Degree Feedback Method?
As mentioned earlier, among all the performance evaluation approaches, 360-degree feedback is widely seen as the most comprehensive and effective. And for good reason — it offers a multi-dimensional view of an employee by gathering insights from people with different perspectives and day-to-day interactions.
Why is this approach valuable for businesses?
- It reveals how an employee is truly perceived by the team.
A manager may see one version of an employee — but the team might experience something completely different. 360° feedback brings those differing perspectives to light. - It supports the development of soft skills.
Communication, collaboration, and leadership aren’t always reflected in KPIs, but they’re critical for building strong, high-performing teams. This method helps identify and nurture those qualities. - It builds a culture of openness and continuous improvement.
When done right — without fear of criticism — 360° feedback fosters trust, transparency, and a shared commitment to growth across the team.
But here’s the key:
360° feedback isn’t just about collecting opinions. For it to be effective, you need a clear structure, well-crafted questions, and, most importantly, the ability to interpret results and translate them into actionable development steps.
Otherwise, it becomes just another time-consuming exercise — with little to no real impact.
How to Launch a 360-Degree Feedback Process
To get real value from 360-degree feedback, it’s important to go through a few key stages: proper preparation, a smooth rollout, and thoughtful analysis of the results. To make your life easier, we’ve created a clear step-by-step guide:
Step 1: Planning
Planning is the foundation of a successful 360 evaluation. If you set things up right from the start, everything else will flow much more smoothly. Here are the questions you’ll need to answer:
1.1 Who will participate?
Start by deciding who will be evaluated, and then define who will give feedback — peers, managers, direct reports. Clear logic upfront will save time and improve the accuracy of the results.
1.2 Why are we doing this?
Without a clear purpose, the process can easily become a checkbox exercise.
For example, at Sereda.ai, we use 360 feedback to:
- develop leadership skills;
- improve team dynamics;
- identify training and development needs.
Your goal will define your focus — what exactly do you want to learn from the results?
1.3 What are we evaluating?
Set clear competencies and criteria in advance. These might include:
- leadership;
- communication;
- strategic thinking;
- alignment with company values, and more.
Clear criteria = structured feedback and fewer misunderstandings.
Step 2: Launching the Process
Once the planning phase is complete, it’s time to take action:
2.1 Choose the right tool
In the past, 360 reviews were often done in spreadsheets or Google Forms — which meant manual tracking, chaotic data, and processes that broke down before the feedback stage.
Today, there are specialized tools designed for performance reviews. These platforms automate data collection, analysis, and reporting — saving HR teams time and helping employees clearly understand the process.
Look for a platform that:
- adapts easily to your competency model;
- includes analytics and actionable reports;
- allows different question sets for different roles (e.g., managers, peers, direct reports).
At Sereda.ai, for instance, we offer built-in templates and a competency builder designed by L&D experts, which makes launching the process fast and straightforward.
2.2 Prepare your respondents
Even the best-designed survey won’t work if people don’t understand what to do. Share clear instructions: how to respond, what constructive feedback looks like, and what to avoid.
2.3 Build the questionnaire
A strong questionnaire includes:
- clear, unambiguous questions;
- a rating scale (e.g., 1–5);
- open-ended questions for added context;
- role-specific questions for different types of respondents.
2.4 Set a deadline
To keep the process on track, set a clear deadline that takes into account your team’s workload. Pro tip: don’t hesitate to send reminders. Even a couple of short nudges can significantly increase response rates — people usually just forget, not ignore.
Step 3: Analysis
Once your survey is complete, it’s time to interpret the feedback and take action. Here’s how:
3.1 Look for patterns
Modern platforms do more than just collect answers — they highlight team strengths and areas that need support. Compare data across different areas and look for recurring themes.
3.2 Consider all perspectives
Differences in feedback between managers and peers aren’t a problem — they’re valuable insights. Discrepancies are opportunities for deeper dialogue. In these cases:
- ask follow-up questions individually;
- gather more feedback if needed;
- remember that human relationships can influence responses — some level of subjectivity is inevitable.
3.3 Move from insights to action
Collecting and analyzing feedback is just the beginning. What really matters is how you use it. Based on your findings, create a clear action plan:
- who needs more support (and in what areas);
- which skills to develop across the team;
- who could mentor others — and who may be holding the team back.
Done right, 360 feedback becomes much more than just a performance review — it turns into a real tool for business growth.
Tips from the Sereda.ai Team: How to Get Accurate, Business-Ready 360° Feedback
Based on our experience — and the common mistakes we’ve seen companies make — here are a few practical tips to help you evaluate employee skills effectively:
- Speak in plain, human language
Participants often don’t fully understand what they’re being asked to evaluate because the questions and answers are vague or confusing. To avoid that, use clear, conversational language — as if you’re speaking one-on-one. If your survey isn’t well-written, you’ll get distorted responses that benefit no one.
If you’re unsure about the quality of your questions, we recommend involving methodologists with a background in psychology or sociology — or just choose a professionally designed template on our platform. - Clarify that feedback should be evidence-based
Let people know that vague comments like “That’s just how I feel” don’t qualify as helpful feedback. Constructive responses should be based on real examples, observed behaviors, and specific actions. - Automate the process
Manually creating and analyzing surveys takes time and often leads to mistakes. Use tools that automate data collection, analysis, and visualization. This saves time, improves quality, boosts response rates, and makes the results easier to interpret. - Take action — don’t stop at the numbers
The goal isn’t just to collect ratings in a spreadsheet. Talk to your team members: what are they doing well, where do they have potential, and how can they grow? Discussing the results builds trust and engagement, and helps employees clearly understand their development path.
These simple practices make the evaluation process more accurate, transparent, and useful — for both people and the business.
Final Thoughts
After reading this, you now have a complete overview of employee evaluation: what it is, how 360° feedback works, why it matters, and how to launch it without unnecessary complexity. This isn’t just a trend — it’s a powerful tool to uncover what’s really happening in your team, support people in time, and make better decisions.
You don’t have to launch it company-wide right away. Start with a pilot: one team, one goal, a short survey, and a few days’ deadline. Review the results, discuss the insights, and take your first steps. Even a small-scale start can create real impact — if you act on the results and don’t just check the box.
Thinking about trying 360° feedback but not sure how to do it right?
At Sereda.ai, we’ll help you build a custom setup that matches your goals and makes the process genuinely effective for improving team performance.
By the way, you can try the platform for free — the first two weeks are on us, so you can run a pilot and see how it works with zero risk.
And if you book a live demo, you’ll get 🎁 20% off for the first year.