Is there an employee evaluation program that can increase employee retention? Yes!
There are many types of employee evaluations out there, but how can you use them to increase employee retention? If you read up on employee retention strategies, you'll undoubtedly hear about performance evaluations, hiring strategies, managerial strategies, relationship strategies, business philosophies and more. It has been said that the five areas of interest in employee retention are:

The work environment

Employee relationships

Organizational support

Employee growth potential

Compensation

While these all play a role in retention, a vital point is missing: production.

Employee morale is created by production. A low-producing employee will always have low morale. Properly training employees and demanding high production keep up morale and are two of the most important facets of employee retention.

Now, let's clarify something here. Production doesn't just mean busy. People can appear busy but be producing nothing. Production is producing things that have exchange value outside of the activity itself. For example, a salesperson produces sold products and services, and that results in money for the company. In exchange, he is paid by the company. If he were to dial numbers all day and sell nothing, he would look busy, but would be producing nothing.

To feel valuable as an employee, one must produce valuable products that contribute to the company's overall product. If he doesn't, he won't feel he serves any purpose in the company. When an employee is unmotivated and feels purposeless, things only go downhill from there.

The two most important factors in employee retention are effectively training your employees so they can produce valuable products and then pushing them to do so in a large volume. These points are more important than business philosophies, benefits programs, employee relationships and even more important than pay.

Now, keep in mind that if your employees are unable to produce valuable products due to being poorly trained, pushing for production won't work. How are they supposed to produce for you when they haven't been taught how to do it well? Therefore, the foundation of employee retention is employee training. See here employee retention

The most effective evaluations to increase employee retention are evaluations of your employee training and of your employee's products. Every job must produce valuable products and every job must have effective training to teach how it's done.

When an employee is rapidly taught a job and can then go do it competently, he feels empowered and stable. He has high morale and is proud of his abilities and products. Simply put, he feels in control and he likes it.

When he is improperly taught a job and has problems performing it, he feels weak and insecure. Work becomes an uncomfortable environment; a reminder of his incompetence and confusions.