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Lets understand first what is formal performance evaluation and the steps involved in it -
Formal evaluations of employee work behavior helps the employer and employee build on the strengths of the employee and identify those areas the employee needs improvement to be more effective and efficient in his/her job.
Also it serves as a tool for employer for performance pay out, promotion decisions
Steps of formal performance evaluation
1. Goal Setting - The supervisor and employee mutually establish goals which should be realistic, measurable, and obtainable.
2. Develop - The supervisor and employee identify actions that can be taken to enhance development and performance of the employee.
3. Evaluate - The supervisor evaluates results based on previously established goals and performance standards,Which in future also serves as a documentation of promotion, Job rotation, Job enrichment and training.
4. Reviews - Quarterly or half yearly reviews allows the manager and employee to communicate openly about performance.
In my previous company, employees who are hired on a contractual role,formal evaluation is not applicable for them as per company policy. I think performance evaluation serves to identify employees' strength and improvement areas. If it is not so important for supervisor, it is definitely important for employee.
So if your supervisor is not interested to do a formal evaluation for what so ever reason ask for
1. His/her expectation during your tenure
2. Quarterly feedback meeting on your strengths and improvement points
3, Understand how to leverage strengths and what to do on improvement points
It all depends on company environment, pay scale and employees' satisfaction. If al the employees are content with what pay scale they are getting and their position or rank in the company it will not make any difference, otherwise company boss will be compelled to make formal employee evaluation and accordingly upgrade position and pay scale as employee resentment will be out through resignation and refusal to work properly.