Q & A – What do you think of multi-rater (e.g., 360 degree, peer review) appraisals?

Q: What do you think of multi-rater (e.g., 360 degree, peer review) appraisals?

A: As with other methods of appraisal, multi-rater systems have their advantages and disadvantages.  Depending on what the organization wishes to accomplish, they can be effective in providing feedback to individual employees for personal/professional development purposes.  They may not be as effective for determining base and/or variable compensation decisions.  Generally, these appraisals are more accurate and useful when the evaluations come from sources closest to the person being provided the feedback.  To make evaluations effective, those providing feedback need enough opportunity to observe performance and be familiar with the job requirements for a particular individual.