#6 – Is there a lot of anxiety and even confusion leading up to evaluations?

Employee anxiety and confusion prior to being evaluated can be extremely costly both in lost productivity and bottom-line results. When employees become stressed and worried to the point of anxiety and confusion, this is a losing proposition for both the employee and the company.

Employee evaluations, when done correctly, are the best time to make sure your employees know — based on objective criteria — what level of minimal performance is acceptable and what is considered outstanding.  Knowing what is expected and what will be measured (and how it is measured) is a proven strategy for reducing anxiety and confusion.

Will some employees still be stressed?  Maybe. Research shows that those who are the most stressed are generally the ones not performing at the acceptable level. In cases where an employee is not performing at the desired level, it’s during evaluation time that plans can be laid out with specific goals for achieving improvement.

#7 – Your Employees are not performing at the desired level

Research shows that 80% of your people are not performing at or anywhere close to their peak performance level. Why not? Many times the employee doesn’t know what the desired level of performance is. Telling a salesperson that his or her goal for the year is to do better than last year’s number is a formula for disaster. It isn’t specific, and it doesn’t contain motivation.

Employee evaluations, when done correctly, are the best time to make sure your employees know — based on objective criteria — what level of minimal performance is acceptable and what is considered outstanding.  Knowing what is being measured (and how it is measured) is a proven strategy for increasing employee dedication.

In cases where an employee is not performing at an acceptable level, it’s during evaluation time that plans can be laid out with specific goals for achieving improvement.

#8 – Is your company turnover too high?

Employees usually don’t leave companies: they leave managers. Success magazine reports that the No. 1 reason people quit their jobs is because they feel unappreciated.

If you and your employees are not communicating well, one of you (if not both of you) will become very frustrated. When arguments, disagreements or even lack of understanding of job requirements issues arise the employee is almost always the one that leaves.

In the November 2015 issue of Success magazine, they cite a figure that it can cost a company 6-15 times the employee’s salary to replace him or her.

Employee evaluations, when done correctly, are the best time to make sure your employees are on the same page (attempting to accomplish the same goals) as their managers. During the evaluation, you can celebrate the employee’s successes and lay out plans to improve those areas that have not hit goals.

When employees see and hear that their managers are serious about helping them to accomplish their goals, they feel appreciated. The last thing they want to do is leave a situation where they feel that they and their work are being valued by their boss.