How do 360 Evaluations Affect Revenue Growth?

When you are tasked with improving the skills of employees across the company, you have to employ the most effective strategies. After all, your work has a huge bearing on employee productivity, and as such, revenue growth.

It also determines whether the company gets to retain and keep attracting top talent. To do the job effectively, you will have to continually measure employees' productivity,  identify their training needs, and develop strategic solutions to grow their skills. One of the best ways to do this is utilizing 360 evaluations.

65% of employees want more feedback than they are receiving, and 360 evaluations will give your employees a chance to know the areas they can develop. 

What Are 360 Evaluations?

These are tools used by managers, peer workers both from similar or different teams, senior leaders, and team leaders to review and assess employees' skills. They are used as an individual development tool for employees throughout the organization.

You can use these evaluations to identify areas of personal development that ultimately help employees improve productivity. You can also use multiple raters, including peers, supervisors,  direct reports, and external stakeholders, such as vendors and clients. The employees then receive comprehensive feedback about the actions they should take to improve their work. 

360 evaluations should be tailored to meet the particular needs of your organization. They come in 2 different forms, such as:

• An in-depth questionnaire that includes a numerical scale rating of the staff members
• An interview style 360 assessment

These 360 evaluations ask for contributors' ratings based on the assessed person's role-related skills.

Are There Multiple Types of 360 Evaluations? 

Depending on your needs, there are three types of 360 evaluations you can take that can lead to your desired results. We built these evaluations to measure the behaviors and characters of your team.

1. Leadership Competencies

Assess particular skills, knowledge, and abilities that reflect successful leadership in an organization. However, it is essential to note that every leadership position demands unique skill sets, knowledge, and capability. 

We can break down these competencies into three further categories:

• Competencies that enable leaders to lead themselves — you can use these competencies to measure their learning agility, industry expertise, courage, personal management skills, and organizational citizenship behavior.
• Competencies that enable leaders to lead others — these competencies allow you to test your employees' emotional intelligence, trustworthiness, interpersonal skills, coaching skills, people management skills, and the ability to involve others in various undertakings.
• Competencies that enable leaders to lead organizations — these competencies enable you to assess the skills of various employees with regards to conflict management, decision-making, change management, social intelligence, and your ability to share a delightful vision.

Competent leaders must have the following skills:

• Self-discipline — the ability to withhold personal interest and act in the interest of one's team. Exemplary leaders should evaluate the consequences of their actions before making rash decisions.
• Excellent communication and interpersonal skills — an outstanding leader should share concise and essential information to their teams in verbal and written forms. Employees can effortlessly complete tasks on time if their leader provides sufficient relevant information.
• A credible reputation — All team members should find it easy to trust their leader. The leaders should, therefore, be able to prove their trustworthiness. This leads to a more connected team and they will have plenty of peace to accomplish their mission. 
• Integrity — You should verify the character and integrity of any person you intend to make a leader to be assured that they can deliver on what they take on. 

2. Management Competencies

This aspect assesses the zest of individuals in management positions and outlines the required skills for an employee to perform well in assigned roles. Most organizations have a platform through which they identify the skills their employees lack and those that can be enhanced through proper training.

Making employees feel a sense of organizational support, thus improving employee retention and keeping valuable skills within an organization. Managers must have:

• Ability to organize and delegate duties — this helps to grow employees by continually expanding their responsibilities and accountability. Good managers need to know their teams and are able to pick out individual job talents.
• Interviewing skills — competent managers should be able to spot the right candidate for positions.
• Communication skills — a manager should effectively communicate to employees both in writing and verbally.
• Mentorship and motivation skills — they should know the things that inspire their employees and develop a strategy that will effectively motivate them. For inexperienced employees, good managers take time to share their knowledge, experience, and lessons learned.
• Conflict-resolution skills — conflicts occur in every working environment. If they are unresolved, they can negatively affect work relationships. Managers need to know the source and build a win-win solution to create a conducive working environment.
• Problem-solving skills — managers should point out problems, know the sources, come up with the best strategies to solve them, and follow through until a solution is found.

3. Individual Contributor Competencies

Assesses the staff member's productivity and ability to listen attentively, build good work relationships, and bond with others. An individual staff member should account for his performance and contribution to the team results. In addition, it is necessary for them to:

• Communicate in a concise and unbiased manner both orally and in writing
• Actively subscribe to attaining team results
• Plan and organize their work in line with the priorities of the respective team
• Consider potential changes and be able to adapt to them
• Produce results on the assigned tasks and on time

360 Evaluations and Revenue Growth

We’ve discussed what 360 evaluations are and how they impact team members individually. Below are some of the ways that 360 evaluations help to grow a company’s revenue.

Leadership competencies

It is vital to have competent leaders that can drive a company to financial success. Their role is to guide, direct, and assign responsibilities to employees. 

Using 360 evaluations can help you identify areas of your leaders’ skill sets that can be developed further, ultimately setting you up for financial success.

Management competencies

Skilled managers know their team and their respective talents and strengths. They know where and when to use these talents to ensure impressive performance to achieve increased sales.

As sales improve, so does the company's revenue. 360 evaluations can improve the performance of managers so they can have a direct impact on your bottom line.

Individual competencies

We directly associate the success you have as a company with the quality of employees you have. Using 360 assessments can help you identify areas where your team members can improve, ultimately increasing revenue growth.

Having identified developmental areas, you can offer internal training to improve skills and set your team members up for success.

Conclusion

Knowledge of 360 evaluations will help you create a winning team for your company or organization. However, consider the timing for the best interest of your organization. For the best 360 resources, from software to coaching and feedback, contact TruScore, the ultimate leader in 360 services.