The second step is fostering a culture of feedback and coaching that is not only limited to the formal evaluation process, Mohr says. Performing a formal evaluation once or twice a year isn't frequent enough to give employees meaningful feedback. Instead, Mohr suggests instituting a 360 debriefing system, where feedback is given immediately after an action.

For instance, if a sales person is on a phone call with a client and makes a misstep, this would be the time to immediately confront and correct the issue. If not, the employee may not be aware that his or her behavior is incorrect, and bad habits could develop.

"We always say whatever happens at the end of the year in a performance evaluation should never be a surprise to the employee," Mohr says. "You need to make sure feedback is as closely linked to the behaviors as possible. If there are really challenges and issues that you need to address with someone, don't wait until the performance evaluation happens. Those are things you need to address immediately."

Frequent communication is especially important to practice with the newer generation of workers, Mohr adds, because they typically want constant, immediate feedback that outlines clear expectations on how they are performing.

During the evaluation, Mohr finds it extremely helpful to come prepared with statements from others who have worked with the employee. The statements should focus on both the employee's strengths and weaknesses. In some cases, it may even help to reach out to others who have worked with the employee outside of the company, such as a client or vendor.

"I think it adds more credibility, and I also think it gives you a more well-rounded perspective," Mohr says. "Even for a manager who works right outside their employee's office every day, the manager might see everything the employee does and feels they have all the information needed, but it's likely there are things you don't see as the leader and the manager."

Including a self-evaluation component can also be beneficial, Mohr adds. With a self-evaluation, it allows the HR department and managers to see how employees view themselves, how well they believe they're performing and how well they understand their job expectations. This helps the HR department and managers know if they are effectively communicating to the work force and whether improvements need to be made.

Once the evaluation is complete, a plan of action should be taken immediately, Mohr says, which can be done by right determining what the employee's next steps should be, what needs to be accomplish in the next 12 months and what opportunities can be identified in the company.

"That's where you're really going to get engagement and commitment from employees because they've gotten feedback, and now they know what to do with it, how to think about it, and how it fits into their career plans."

By incorporating these tips, the evaluation process can run more smoothly, and an employer can make sure its corporate goals are aligned with employees throughout the company.