360-degree feedback gathers input about an employee from multiple perspectives, such as peers, a manager, and sometimes direct reports.
360 feedback is useful when a single manager cannot see the full picture, which is common in cross-functional, hybrid work. It helps employees understand how they show up across teams, especially in leadership and collaboration. For SMBs, it is a smart “upgrade” once basic feedback habits exist, because it adds insight without requiring enterprise-level bureaucracy.
To make 360 feedback helpful, keep questions behavioral and specific, choose reviewers who actually work with the person, and use results for development, not punishment. The best outcome is a focused growth plan with one to two priorities and follow-up coaching.
Commonly confused with: performance review
A performance review is an evaluation of outcomes and growth for a period. 360 feedback is an input method that can support development and sometimes inform reviews. Many SMBs keep 360 feedback separate from compensation to protect honesty.
Workleap field notes from SMB clients
- What Workleap clients are saying: From conversations with our SMB clients, the biggest success factor is safety, including how anonymity is handled and how feedback is framed in small teams.
- Why it matters: If 360 feedback feels risky, people self-censor or disengage, and the process loses value fast.
- In practice: QS needed more structured input to support consistent performance conversations across teams. They used a clear cycle structure and aligned expectations across managers to keep feedback constructive. The result was faster rollout and stronger adoption of the process. See: How QS ran two company-wide review cycles in 5 months with Workleap.
Choose 3 to 8 people who regularly collaborate with the employee, plus the manager and a self-assessment. More reviewers does not mean better signal. Relevance and specificity matter most.
Often yes for peers and direct reports to encourage candor. Pair anonymity with prompts that require examples and constructive language. In very small teams, consider facilitated feedback to avoid “guess who wrote this” dynamics.
Observable behaviors like communication, collaboration, decision-making, and coaching. Ask for “keep doing,” “start doing,” and “stop doing” examples. Avoid vague personality judgments.
Summarize themes, pick one to two priorities, and define what “better” looks like in behavior terms. Create a 30 to 90 day practice plan with check-ins. Without follow-up, 360 feedback becomes interesting but not useful.
Many SMBs avoid direct ties to pay because it can distort responses. Use it primarily for development and coaching. If you do include it in reviews, be transparent about how it is weighted and ensure consistency.
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