CREATIVECOUNT is an accounting services firm which operates in all 50 states and has over 10,000 employees. They are proposing the below HR policy. Where does the policy violate law and/or practical management?

A continuous improvement evaluation and layoff policy will be written as: Each year you will be evaluated by your supervisor. You will be evaluated on the basis of your skills, knowledge, performance and personal contribution to the diversity of the CREATIVECOUNT workforce. Layoffs will be prioritized on the basis of your most current evaluations