Make sure your performance review works

Written by Dialog | Jan 21, 2026 8:07:50 PM

The annual performance review: many employees and managers see it as a compulsory number. A conversation that costs time and delivers little. At most a feeling of relief when it is over.

But it can be different. Even better: it can become a conversation that people look forward to. A moment of appreciation, inspiration and growth. How? By focusing on the purpose of the conversation: helping employees to function better.

Why performance appraisals are important

Performance appraisals are intended to support employees in their development. When do people function best? When they feel appreciated and are given opportunities to grow. That is exactly what the conversation should be about. Not about checkmarks and forms, but about ambitions, successes and cooperation.

The pitfall of formalities

In many organizations, the conversation has degenerated into a formality. Going down a list, asking a few standard questions and moving on to the next thing. The result? Employees don't feel heard and see it as a waste of time. Making the conversation personal and inspiring changes that. It can even become a moment that energizes employees.

How to create valuable conversations

A good conversation starts with good questions. Questions that invite reflection and dialogue. Have employees think about these in advance so they come prepared.
Examples of questions:

  • What are you most proud of?
  • What have you learned the most from?
  • What do you want to contribute in the coming period?
  • What do you want to learn?
  • How can I support you?

The same goes for leaders: prepare. Think about compliments, opportunities for growth and development. That way, the conversation becomes an exchange, not a one-way street.

From conversation to dialogue

The performance appraisal should not be a judgmental conversation. Research shows that traditional performance appraisals are stressful and hardly contribute to motivation. It feels strange: all year you work together on an equal footing except during that one conversation. Thinking of the conversation as a dialogue changes everything. It's not about judgment, but about collaboration and development.

Practical tips for an inspiring conversation

  • Plan enough time: a ten-minute conversation does not accomplish much.
  • Create an open atmosphere: listen actively, ask open questions and give space for the employee's story.
  • Give compliments: say what is going well, not just what could be improved.
  • Make agreements concrete: summarize and record what you have agreed.

Why once a year is not enough

If the conversation is valuable, why limit it to once a year? Regular conversations create more engagement and fewer surprises. Consider short check-ins or monthly development calls. This keeps the dialogue alive and relevant.

The impact of a good conversation

An inspiring performance review does more than align goals. It increases trust, strengthens the relationship between employee and manager and stimulates ownership. Employees feel seen and motivated to contribute to the success of the organization.

Getting started

Want to make the performance review a party? Start small: ask better questions, give compliments and make agreements concrete. Download our e-book for more tips and turn every conversation into an opportunity for growth.