Employees can go into a slump when they are evaluated using subjective criteria. Many companies use the 1 to 5 scale, some even go so far to add decimals 1.1, 2.4, 3.6 etc.…this then becomes a 1 to 50 scale. What this does is set the stage for a discussion over the number (rating) rather than performance. This always ends up a lose-lose for the manager and the subordinate. There’s actually a third “lose” here the company! Lost productive time as the employee and the manager both go back to their respective office spaces and put work aside while they discuss with anyone that will listen how unreasonable the company/employee.
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. It’s during these discussions with employees that weaknesses can be identified and firm plans can be put in place for improvement.
Employers who address employee performance using measurable criteria and a 1,3,5 scale get the results they want. A 3 for acceptable performance, a 1 for unacceptable, and a 5 for outstanding. Three measurements known to all with no gray areas. A company doing evaluations based on measurable criteria turns the employee evaluation time into a win-win.