When a company utilizes a 360-degree feedback tool, they are gathering performance reviews and opinions from a variety of sources. Usually, these sources include, but are not limited to, the managing supervisor, immediate peers, first-hand clients or customers, and other teams’ members and/or supervisors with whom the employee interacts with frequently.
Obviously, an HR manager or supervisor might not want to place equal weight on all feedback sources because some might not be as important or critical to business success as others. Therefore, upon receipt of feedback scores from all sources, a final score would be calculated using weighted averages of each individual feedback score.
For example, let’s say an employee received six letter-grade scores from his primary customer (A), immediate manager (B), two peers on his team (C and A), and another team’s manager (B) and peer (D). The order in which these sources are listed are most important to the HR department, so the scores that each reviewer reports are weighted as follows (remember the weights must equal 100%).
- Customer = 30%
- Immediate Manager = 30%
- Peer 1 and Peer 2 = 15% each
- Other Manager and Peer = 5% each
Using the well-known point scale for letter grades (A=4, B=3, C=2, and D=1), the non-weighted performance average for this employee would be 2.83 (C+). However, when applying the weights to each performance review as indicated above, the employee’s weighted performance average would be a little favorable at 3.2 (B-).
NOTE: To calculate a regular average, add all individual scores together and divide the sum by the total number of scores added together. The average above was calculated as follows: (4+3+2+4+3+1) / 6 = 17/6 = 2.83.
NOTE: To calculate a weighted average, multiple each individual score by the percentage for the category, and then add all resulting numbers together. The weighted average above was calculated as follows: (4*0.3)+(3*0.3)+(2*0.15)+(4*0.15)+(3*0.05)+(1*0.05) = 1.2+0.9+0.3+0.6+0.15+0.05 = 3.2