It is a well-known fact that employees share a completely different relationship with their peers as compared to their managers. This is mainly due to the fact that employees spend a lot more time working with their peers and hence share a more informal and closer relationship with them. Unlike managers, peers are able to observe and report the most minute details related to the functioning of an employee. Hence, they are more likely to offer a less biased and more honest perspective of the performance and behaviour of an employee. In fact, involving peers is the best way to get honest 360-degree feedback about an employee’s working and performance. When it comes to performance review by managers, their opinions are based solely on end results provided by the employees. Peer feedback has a major advantage because peers are aware of the minute details of the working habits of their co-workers. Key advantages that peer feedback offers in performance management are discussed in brief as follows: 1. Increases the accuracy of reviews The reviews of managers are often considered off the mark as they are based only on their own viewpoint. However, since peer feedback comes from multiple people, it makes it more comprehensive and accurate. Peer feedback combines the views and opinions from various sources to provide a bigger, more holistic picture of an employee’s performance for a more accurate evaluation. 2. Enhanced performance improvement The reviews of managers are often considered off the mark as they are based only on their own viewpoint. However, since peer feedback comes from multiple people, it makes it more comprehensive and accurate. Peer feedback combines the views and opinions from various sources to provide a bigger, more holistic picture of an employee’s performance for a more accurate evaluation. 3. Adds value to recognition Receiving feedback from their peers proves effective in improving employee performance. This is because peer feedback provides them valuable insights into their strengths and weaknesses in a relatively subtle manner. Most employees show a greater willingness to work harder and ensure a visible improvement in their performance rating simply to maintain the trust of their peers. Read Peer-to-Peer Recognition – Understanding the Nuts and Bolts 4. Ensures greater transparency in reviews Unlike the feedback of managers, peer feedback might not be tied to the compensation of an employee, but actual feedback for the development of the employee. Thus it introduces greater clarity and transparency in the overall employee review process. This, in turn, creates a sense of comfort between the co-workers in the entire process and the employee is more receptive towards peer feedback rather than being defensive.