All 10 Employee Evaluation Best Practices Managers Should Follow
All Performance Management

10 Employee Evaluation Best Practices Managers Should Follow

Author: Ravijojla Novakovic Last updated: March 5, 2024 Reading time: 14 minutes

Regular employee evaluations or performance reviews often help employees understand the expectations set for them. They can also improve the communication between employees and managers. 

More importantly, employee evaluation results are often required for promotions, bonuses, and raises. Conducting employee evaluations properly can result in many benefits for the company and employees alike. 

What Is Employee Evaluation? 

Employee evaluation, also known as performance review, estimates an employee’s performance. It usually assesses the employees’ execution of predefined objectives or outcomes of their work. 

In the past, employee evaluation traditionally took place once yearly – around the employee’s service anniversary. However, in recent times, employers have realized that employees want feedback on their work more regularly. In fact, 45% of HR leaders do not think annual performance reviews are an accurate appraisal of employee’s work. 

Annual employee evaluations are simply not enough anymore, so you should give meaningful feedback to your employees on a regular basis

To get editable employee evaluation forms you can use for continuous employee evaluation, click below.

Types of Employee Performance Reviews

You can take multiple approaches to create an employee performance review and see how your employees are handling their jobs, whether they come across some challenges or are exceeding expectations.

Here are some of the most popular types of performance reviews you can conduct in your workplace.

Self-assessment evaluation

Self-assessment evaluation is a valuable performance review method that enables employees to take a step back and reflect on their work. This process allows them to identify opportunities and challenges they face while working. By analyzing their performance, employees can analyze their progress, identify any problems they may be experiencing, and work towards finding solutions themselves.

Self-assessment evaluation is helpful for managers as it allows them to gain insight into how employees feel about their work and whether they are aligned with the company goals.

Team assessment

Team assessment is a method managers employ to evaluate the collective efforts of the team. Similar to the self-assessment in employee performance reviews, team assessment aids both managers and employees in analyzing various aspects of the work performed by the entire team rather than focusing solely on individual team member. Conducting a team assessment can improve communication, workflow, and productivity.

360 degree rating

360-degree rating is among the most popular performance evaluation methods. This is another useful method of employee evaluation that is based on performance feedback given by the colleagues who collaborate the most.

Usually, the 360-degree rating is conducted anonymously. That is, managers and employees give their constructive thoughts and opinions about their colleagues’ job performance. This allows for a complete picture and different opinions about the evaluated employee.

Graphic rating scale

Performance evaluations can also be performed by using a graphic rating scale. The graphic rating scale, also known as the Likert scale, is a tool that allows managers to assess employees’ engagement, performance, and productivity by using predefined questions with a numbered scale for answers.

Managers can ask employees questions like “How likely they are to recommend the company?” providing answer options like very likely, likely, unlikely, etc. The biggest advantage of this type of performance review is its simplicity. Managers can easily incorporate the graphic rating scale into their performance review process, adding statements or questions for various scenarios and acquiring valuable data.

Skill evaluation

Skill evaluation is a common method employed by many companies as part of their performance management processes. This method helps managers detect not only high-performing employees but also employees who may need upgrading in a certain part of their work.

With this type of evaluation, managers and supervisors can evaluate different types of employee skills ranging from hard or technical skills to soft and interpersonal skills. This type of evaluation is great for determining the level to which employees have developed their skills and to determine if someone needs help and career advancement.

Annual performance review

Annual reviews is a yearly check where employers evaluate how well an employee is doing. They talk about accomplishments, strengths, and areas to improve. They set new goals and clear expectations and discuss feedback, skills, past performance, key performance indicators, and career growth. It’s a chance for employees to share thoughts about their work. It’s a way for both to communicate, set expectations, and plan for the future.

What Are the Best Practices for Employee Evaluation?

employee evaluation best practices 10 tips

For employee evaluations to give the best results, they must be conducted appropriately. More specifically, this means you should thoughtfully apply performance evaluation best practices. Also, you should take notes on these procedures and adapt them to your employees and company’s policy.  

1. Make employee evaluation continuous 

Continuous employee feedback should be your absolute priority if you want to reap all the benefits of employee evaluation. Do not wait for an annual or quarterly performance review to talk to your employees about their performance. 

Getting feedback on a regular and less formal basis facilitates effective dialogue between employees and their managers. More specifically, employees will have an opportunity to discuss their concerns or ideas with superiors on a daily basis. 

2. Set goals  

In order to be effective, employee evaluation should estimate your employees’ performance according to previously set goals. The goals ensure that the supervisor and employees are clear about the requirements of employees’ tasks. Moreover, the goal-driven evaluation communicates the desired outputs from the employee’s job and defines how they will be measured. 

Measuring your employees’ performance according to set standards will minimize the impact of the supervisor’s subjective assessment. Additionally, it will allow employees to self-assess their performance at any time. 

3. Make it less formal 

As mentioned before, younger generations are looking for continuous employee feedback. What they’re also looking for is less formality. To be exact, 80% of Gen Y say they prefer on-the-spot recognition over formal reviews. 

This means that you can give feedback to your employees at any time. Consequently, this will create a culture of open communication. If applied properly, informal employee evaluations can build more trust towards higher-ups and breed more innovation. 

4. Focus on the positive 

Surely, employees do not always accomplish their goals or work perfectly. However, the managers giving employee evaluations should focus on the positive aspects of employees’ performance. This will make employee engagement higher, as teams led by managers who focus on their weaknesses are 26% less likely to be engaged

5. Be specific in your criticism 

Even though you should focus on the positive feedback, your criticism can be constructive and re-directing if delivered properly. When you are giving someone negative feedback, be specific in explaining expectations and results. This will allow an employee evaluation to have a better outcome. 

As giving feedback is stressful for 44% of managers, remind them that employees prefer corrective feedback over praise and recognition! 

6. Allow peer-to-peer feedback 

Peer-to-peer feedback has multiple benefits. Not only does it teach your employees how to give feedback, but it also facilitates building a great company culture. 

76% of employees are motivated by positive feedback from their peers. This kind of feedback leads to increased employee engagement and creates a productive working environment. 

You can easily implement FeedBck, our feedback platform, to help you grow talent in your company. 

After all, employees have said it themselves. Due to their upbringing, millennials have an ingrained expectation for ongoing communication and want more feedback in the workplace. Furthermore, 63% of Gen Z said they want to hear timely, constructive performance feedback throughout the year.  

7. Keep your promises 

It is vital that your employees trust you. According to research, employees whose leaders treat them respectfully are 63% more satisfied with their jobs and 110% more likely to stay with their organization. 

Therefore, be true to your promises and deliver the provisions that were agreed upon, accomplishing certain performance goals. 

8. Use the evaluation form for consistency 

Employee evaluation should be consistent above all. This means that you should have a set of criteria to rely on when you are estimating your employees’ performance. 

As we mentioned before, having a clear set of measures will allow you to avoid any impartialness. To make it easier to track everything that’s been discussed, use employee evaluation forms and write down all that you need. 

Pro tip: develop your own score explanations to help you be more consistent. For example, if you will be using a 1 to 5 scale in employee evaluations, write down what these scores stand for precisely.

 Download the editable employee evaluation forms you can adjust for your own use. 

9. Recognize and reward 

Obviously, it is extremely important to recognize and reward your employees for accomplishing the goals you set together in your last employee evaluation. Recognition is the number one motivator for employees, as they are propelled by seeing and hearing the value of what they do. 

Employee recognition increases employee engagement, boosts productivity, and lowers employee turnover rates. Find out how to improve your business results by implementing a Recognition and Rewards platform in your company. 

10. Use performance review software

Performance review software is a useful tool for organizations to evaluate and assess their employees in a fair and efficient manner. It simplifies the process of managing employee performance by providing a convenient platform for managers and employees to conduct evaluations, set goals, and share feedback.

Why Is Employee Evaluation Important? 

Reviewing your employees’ performance in a consistent manner has many advantages.  

Employee evaluation is a vital part of employee experience. It has been proven that companies with higher employee experience scores achieve better business results. Moreover, a positive employee experience has numerous other benefits for your employees and business alike.

Let’s address the specific implications of properly applied employee evaluation methods. 

1. Regular employee evaluation improves productivity 

Employee evaluations and performance reviews benefit both the employer and employees. On one hand, employers consistently measure employees’ performance according to the previously set criteria. On the other hand, employees get feedback on how well they are performing. 

An astounding 65% of employees want more feedback to better understand their performance. Moreover, 69% of employees say they would work harder if their efforts were better recognized. Therefore, employee evaluation can positively affect your employees’ productivity. 

One of the staples of employee productivity is employee recognition: look at our Employee Recognition Playbook to learn more about implementing an employee recognition program. 

2. Employee evaluation increases job satisfaction 

If the results of employee evaluation are positive, they will reassure employees that they are doing a good job. Additionally, if results are negative but re–directive, they can steer your employees’ efforts in the right direction. 

Therefore, it is not surprising that accurate and consistent feedback plays a crucial role in employee satisfaction, engagement, and ultimately, job fulfillment.

3. Better relationship with higher-ups 

57% of employees say that they do not get clear directions, and 69% of managers are not comfortable communicating with the employees in general. Employee evaluation can create a common space for communicating grievances among employees and managers. 

 Furthermore, providing frequent feedback creates a sense of trust among employees and their higher-ups, with 50% of employees believing that being thanked by managers improved their relationships. 

4. Increased employee engagement 

Improving employee engagement is a goal for many companies. Regular interaction between managers and employees about employee performance can facilitate an increase in employee engagement. 

Since employee disengagement costs $500 billion annually in the US alone, employee evaluation can also help you conserve your company’s financial prosperity. 

In fact, Gallup research showed that when managers gave their employees positive feedback, 67% of employees were fully engaged in their work

5. Improved company culture 

A culture of open communication and growth can start with employee evaluations. Creating a common space for reviewing employees’ goals and performance gives a way to open and honest communication, which 33% of employees say they lack in a workplace. 

6. Increased employee retention 

Many companies today struggle with retaining their employees. Importantly, companies that implement regular employee feedback have 14.9% lower turnover rates compared to companies whose employees do not receive feedback. 

7. Employee growth 

Getting regular employee evaluation results will help your employees be aware of their strengths and work on their weaknesses. Consequently, this can help them advance in their career and get promoted.  

Since 76% of employees are motivated by opportunities for growth, make sure to give your employees a chance to improve their performance. 

Employee Evaluation Questions 

We previously discussed the importance of consistency in your employee evaluation. Therefore, here is a list of questions you can repeatedly use in your employee evaluation forms to help you and your employees jointly set goals and measures for achieving them. 

  • What do you wish to accomplish within the company in the next 6 months/next year? 
  • What resources do you need from the company to reach your goals? 
  • What do you think will be your biggest challenge in meeting your business goals this year?
  • How often would you like to receive feedback on your work?
  • Who would you like to achieve feedback from? 
  • How can I help you accomplish your goals? 
  • What are your long-term career goals? How can our company help you achieve your long-term goals? 
  • Which new skill would you like to gain in the next year? 
  • What are the trainings you need to gain desired new skills? 
  • How well do you think you performed according to the goals you set for yourself the last time? 
  • What made you proud of your work in the previous year? 
  • What areas can you improve in? 

Employee Evaluation Form Templates  

Most HR professionals use employee evaluation forms to note down all their employees’ progress, comments, and recommendations. Employee evaluation forms can be used for consistent tracking of your employee’s performance on a weekly, monthly, or yearly basis.

Remember, continuous employee feedback is an important factor in employee experience as a whole!

Have a look at our examples of employee evaluation forms. You can download these employee evaluation form templates in an editable format and edit them according to your own criteria and evaluation parameters.

Employee Evaluation Form 1 

Use this simple evaluation form to note your employees’ goal achievement and set new goals for the upcoming period.

Employee Evaluation Form 2  

You can create an employee evaluation form like this one to rate your employees’ performance in certain aspects of their job. 

Employee Evaluation Form 3  

By using this employee evaluation form, you will be able to estimate your employees’ execution in certain performance areas. 

Employee Evaluation Form 4 

This employee evaluation form will allow you to concentrate on your employees’ goals and their perception of the obstacles on their way of achieving them.

Employee Evaluation Form 5 

Take this employee evaluation form to rate your employees’ performance according to a predefined scale.

Improve Your Employee Evaluation Practices With Nurture

Employee evaluation can help your employees work better only if they’re done the right way. Technological solutions can ensure the proper implementation of various employee feedback strategies. 

Nurture is a continuous employee feedback solution that has helped companies across the world plan and implement new employee feedback initiatives or improve their existing programs. 


Performance reviews and ongoing feedback are crucial parts of a healthy workplace culture.

Managers who diligently keep up with their employees’ work and progress can promptly detect problems that employees are dealing with, but they can also reward those who do their jobs well.

There are many ways in which managers can evaluate the abilities of employees and their contribution to the company, but the approach they use is as important as the methods if managers want to have an effective performance review process.

Unlock the potential of your team with Nurture.

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