As concerns about a government shutdown and a potential recession ripple through the workforce, one thing remains unchanged: employees continue to crave meaningful guidance and acknowledgment. Yet the traditional performance review—long dreaded by managers and employees alike—feels outdated in this new environment.
LaToshia Norwood understands this moment well. The Houston-based entrepreneur went from unemployment to being named to the Inc. 5000 list for leading one of the nation’s fastest-growing companies. Now, as the founder of Consulting and Coaching for Women CEOs, she’s helping women leaders scale sustainably—and rethink how they give feedback.
“Managers need to shift from grading to guiding,” Norwood says. “Performance reviews often feel like scorecards—or worse, a walk to the gallows. They should be strategic, two-way conversations that recognize achievements, identify meaningful growth opportunities, and set clear, shared goals for the future.”
One simple way to shift the tone? Encourage employees to bring a “brag folder” to their review—highlights, wins, and impact from the year. “It reframes the review as a partnership,” Norwood explains. “Less judgment. More alignment and momentum.”
Ask Better Questions, Get Better Insight
Norwood believes that great reviews start with great questions—ones that spark reflection and real dialogue. Instead of the vague “How do you think you performed?”, she recommends prompts like:
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“What accomplishment are you most proud of this year—and why?”
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“What challenge stretched you the most, and how did you approach it?”
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“If you had full decision-making authority tomorrow, what’s one change you’d make?”
Charlene Currie, President of MOR Consulting Group, agrees: “Ask questions that invite people to tell their story. Something like, ‘Where do you want to grow next, and how can I support you?’ shifts the conversation from evaluation to coaching.”
Align Ambition With Opportunity
With millennials now making up the largest share of the workforce, understanding career goals is directly tied to retention. Norwood suggests asking:
“Where do you see yourself growing in the next 12–18 months, and how might our company help support that growth?”
This helps leaders spot alignment—or misalignment—early and plan proactively instead of being surprised by turnover.
Currie emphasizes emotional honesty as well. “Ask how they feel, not just how they’re performing,” she says. “Questions like, ‘What do you love about your work?’ or ‘What’s been draining you?’ reveal engagement levels quickly.”
Let Feedback Flow Both Ways
Feedback shouldn’t only go downward. Leaders who model vulnerability build trust.
“At the start of the review, acknowledge that some feedback might be hard for you to hear—and commit to listening,” says Carol Dasaro, SVP of People & Operations at Hot Paper Lantern.
Norwood adds: “A leader might say, ‘I’ve been working on delegating more. How has that shown up for you?’ That type of reflection strengthens culture.”
Don’t Dance Around Compensation
Money conversations don’t need to be tense.
“Compensation should be transparent—not taboo,” Norwood says. Explain how pay decisions are made and what metrics influence raises or bonuses.
Currie adds: “Thank employees for bringing compensation up—because it’s brave. Even if the answer is ‘not yet,’ respect and follow-through matter.”
How Employees Can Show Up Strong
For employees, the annual review is a chance to shape the narrative. Norwood suggests coming prepared with:
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Key accomplishments
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Lessons learned
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Specific goals for the year ahead
“Walk in as a co-creator, not a passive participant,” she says. “You should leave feeling not just evaluated—but elevated.”
Currie agrees: “Be self-aware. Advocate for yourself. Don’t let the review just happen to you.”
No matter the economic climate, people want to feel seen, valued, and supported. Leaders who transform performance reviews into thoughtful, transparent conversations won’t just retain talent—they’ll help their teams thrive.