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How a Bad Employee Evaluations System is Worse Than a Waste of Time
Anything that wastes your time in business wastes your money. However, a bad or ineffective 360 employee review system
can do much more harm than that.
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Here are some of the side effects caused by a damaged system:
Poisoned Morale:
You first see a drop in morale leading up to employee evaluations, as people from all levels of the company will dread them. But, it can last for weeks after that.
Employees that feel they’ve been reviewed unfairly will complain out loud and digitally to other coworkers, who might relate or feel the same. This creates a toxic “Us vs. Them” atmosphere.
Employees Feeling Underpaid:
The only thing worse than an employee feeling undervalued is an employee feeling underpaid. These reviews are often tied to yearly raises, so if an employee doesn’t feel they’re getting fairly assessed by the system, they lose faith in the company.
High Turnover:
The two things we listed above will contribute to people leaving, or actively looking to leave, you. A bad work culture and the idea that they can do better elsewhere are the most popular reasons people quit.
Creates Bad Guys
We touched on the “Us vs. Them” culture earlier. A bad employee evaluation system can polarize your employees and turn HR and management into “The Bad Guys.” Whereas employees that are treated and reviewed fairly don’t feel that way.
If you have any questions about what 360 employee evaluations can do for your company, please don’t hesitate to contact us
any time.
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