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How much does a 360 degree appraisal cost?

Implementing a 360 degree appraisal can vary greatly in cost. In most cases you pay ‘per report’ or ‘per person’. Prices can range from £150 to £0 per report. So why does the cost vary so greatly and what do you get for your money?

There are several 360 degree feedback tools on the market which you can use free of charge. However, they’re often restrictive in terms of questionnaire base and analytics offered.  So, before embarking on a 360 degree appraisal, it’s important to consider what you’d like to achieve from it. Once you fully understand your objectives you’ll be in a better position to choose the right 360 degree system for your organisation.

The 360 questionnaire itself and the rating scale you chose should be carefully considered. 360 degree systems vary in terms of the flexibility you have in changing these elements of the process.  A good 360 system will give you complete freedom to edit the questions and ratings as appropriate as well as allow you to add narrative and text boxes.

Most 360 degree systems will provide endless streams of analytics. It’s important to be able to have control over this element of the system. Again, good 360 degree systems will allow you to ‘pick and choose’ the analytical data shown and the way it’s presented.  A 360 degree appraisal can have a negative effect if your employees are faced with endless charts and graphs which are not relevant to the overall objective of the appraisal.

Some 360 appraisal companies offer a ‘bureau’ service. You will inevitably pay more per report but they will take over all the administrative aspects of implementing the 360 degree appraisals. If you are carrying out a large number of 360’s at one time, the administration involved can be extremely time consuming so it’s worth weighing up the overall time saved by paying for a bureau service.

Finally, training is vital to ensuring that your 360 degree appraisals are effective. This is an additional cost which is often overlooked. Appraisers need to understand how to interpret the results and how to use their 360 report to enhance the performance appraisal process. Plus, for a 360 degree appraisal process to really succeed, it's essential that employees buy into the concept. Even the best 360 degree appraisal system will fail if employees don't believe in it or understand the rationale for it.

What we do

Whether you’re looking to use a free system as a ‘one off’ 360 degree tool or would like to introduce 360 degree feedback as a regular part of your annual performance management process, we can provide free impartial advice. We will point you in the right direction and advise you on the best 360 software and its cost.

We also provide our own bureau service. For a small consultancy fee we can help you to clarify your objectives and needs for using 360 degree feedback. We’ll then design a tailored 360 questionnaire which will ensure that your organisation gains the very most from the process. We can carry out suitable briefing/training sessions before the start of the 360 appraisals and lastly we can manage all the administrative aspects for you. Please contact us to find out more.

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