Here's how you can evaluate performance while considering the impact of stress on employees.

Taking stress into consideration means paying attention to detail regarding the treatment of employees and also how they treat themselves. Because by taking stress into consideration sometimes can highlight how some employees' high performance were caused by being overworked and short deadlines although this is not the case. Before evaluating performance, a questionnaire should be given to workers to measure how they respond to questions such as: how does their personal lives affect their productivity, whether they feel like they are given tasks that cause them stress, whether they are comfortable in their workplace and enjoy their job. This then builds more insight and background to the performance evaluation and its results.

When evaluating performance, consider the subtle yet significant impact of stress on employees' behavior, cognition, and emotions. Recognize the telltale signs of stress, such as withdrawal, decreased motivation, and cognitive fogginess, and address them promptly. By acknowledging the embodied experience of stress (Somatic Markers, 2004), you can mitigate its debilitating effects, foster a supportive work environment, and promote resilience, ultimately enhancing overall well-being and performance.

When you, as a leader, are considering the performance of an individual open dialogue is key. Setting clear expectations and allowing discussion about those expectations can help the person being evaluated relax and feel more in control. When someone feels like something is being pushed or forced on them they feel a loss of control You might even help them brainstorm on how they can meet those expectations empowering them to come up with ideas that would align with those expectations. This would allow them more power, control, and autonomy which all helped with reducing stress. The point it do talk about it openly and not make it a one-sided conversation.

Reframe performance metrics to prioritize 'human-centered productivity,' integrating stress-aware goals and expectations that acknowledge the dynamic interplay between well-being and performance. By adopting a holistic approach, you can foster a culture that values employee mental health, creativity, and resilience, leading to sustained productivity, job satisfaction, and overall success, as supported by the principles of Self-Determination Theory and the Human Performance Curve.

Implement support strategies that foster a sense of psychological safety, autonomy, and social support, leveraging the principles of Self-Determination Theory. By providing resources for stress management, flexible work arrangements, and fair workload distribution, you can buffer against stress's debilitating effects, promote motivation and engagement, and unlock employees' full potential, ultimately enhancing performance and well-being.

Embrace a growth mindset and embrace continuous improvement in managing stress and evaluating performance, leveraging the principles of Appreciative Inquiry. Regularly assess and update your strategies to foster a culture of psychological flexibility, resilience, and growth, recognizing that employee well-being and performance are interdependent. By doing so, you create a dynamic and supportive work environment that adapts to the evolving needs of your workforce, promoting collective success and well-being.

In my experience working in the banking industry, creating action plans to help employees manage stress and improve performance simultaneously is essential. 1.Mentoring Programs: Setting up mentoring programs provides employees with guidance and support from more experienced colleagues. This fosters a supportive environment where employees can seek advice and learn from others’ experiences. 2.Professional Development Opportunities: Offering professional development opportunities, such as training sessions, workshops, and courses, helps employees enhance their skills and knowledge. This not only boosts their confidence but also improves their performance.

One thing we often miss when evaluating performance is how stress can put a damper on creativity. When we're stressed, our ability to think outside the box takes a hit. So, when considering the impact of stress on employees, let’s also look at how fostering creativity can help. Regular brainstorming sessions and chances for creative expression can alleviate stress and boost innovation (Not necessarily artistic-creative, but having-unique-ideas-creative). By making space for new ideas, we create a dynamic and resilient workplace where employees can do their best and have a good experience, even in tough times.