Do performance reviews actually work?

For many years, leaders have theorized about the best ways to manage a team. One theory purported that employees are inherently lazy, do not want to work hard, and therefore need to be tightly managed. Another theory was that people actually want to work and can do a great job if they are not tightly managed. We are now, I believe, in a new era that has been partly accelerated by the pandemic.

Employees and team members today have a different view of the role work should play in their lives, and that raises the question of whether traditional performance reviews actually work in terms of improving team member performance.

It starts with leadership

Before we jump into performance reviews, it is important to understand the role of leadership in managing and developing team members.

There are three things every dentist or office manager can do to be an exceptional leader.

1. Personally display the characteristics and behavior you want to see in your team. The old adage "lead by example" has not changed. In this case, that refers to the dentist or office manager. Most dentists have had very little, if any, leadership training. The same is true for dental office managers. Every dentist and office manager should make a list of four to six characteristics they want to see in the team. This list may include punctuality, cheerful outlook, high energy, enjoyment of work, excitement about new technologies, support of other team members, etc. Once the choices have been made it is very important to live this day in and day out.

2. Have a positive attitude that will rub off on your team. People need and want motivation, which means leaders must almost always try to appear positive to energize their team. If a dentist is cynical, this attitude might rub off on the team. Since it is much easier for people to be negative, this sort of culture is not one that you want in your practice. When you receive a negative comment, respond with a positive one. Don't let anyone throw you off your game. The more optimistic you appear over time, the more this will rub off on your team. This fosters a stronger sense of positivity in a team that creates better customer service for patients, achieves excellent reviews, and garners patient referrals.

3. Remember that transparency has never been more important. Team members can quickly assess whether you are being forthright. One aspect to transparency is to keep the team up-to-date with everything going on in the practice. You can do this through morning huddles and monthly business meetings. Don't hide information. People will appreciate feeling like they are included. The second aspect of transparency is letting people know where they stand. Too many dentists and office managers take a passive-aggressive approach and wait until something has deteriorated before addressing it. You never want people to wonder what you're thinking or feeling about their performance. Naturally, it's better to be helpful rather than critical or unpleasant.

Performance reviews

Most employees used to wait for their annual performance review to find out what they have done wrong, what they need to improve, and how much they are going to be paid in the future. Performance reviews may make people defensive; many just want to know how much of a raise they are going to receive (if any) and pay very little attention to the rest of the review.

Having a checklist for an employee's performance may be the worst approach of them all. Waiting a year to tell someone how they did, what they need to improve and why they are not getting the raise they want is rarely a good idea. Performance should be addressed throughout the year with an attitude to improve. That is the role of an office manager and/or dentist. If a person needs to improve, then you are there to help them. It should be a positive experience all year long, not just a one-time review. To turn your performance reviews into a positive experience, address three simple questions:

1. What has gone well over the last 12 months?

2. What could have been handled better?

3. How can we improve our practice?

These questions prompt a conversation. Let the staff member know that when you get together, there are three questions they can think about in advance. People feel great about knowing what's going well. You'll be amazed how many people will comment on what could've gone better for both them and the practice in terms of performance. Additionally, asking how to improve the practice is an excellent way to gain an understanding of how to strategically move the practice forward.

This may sound simple, but simplicity works. Industrious individuals have many responsibilities and the last thing they want is to sit down once a year and have someone go through a checklist about their performance.

Summary

Treat your team members as equals. They are not underlings who need to be caught as they are doing things wrong. They are colleagues who work hard to do things right, and any role you can play as a leader to help improve their performance should be welcomed by the team member if delivered in a positive manner. Staff members want to be part of a positive, energized culture, to be treated with respect, and to enjoy coming to work. Many people today will simply resign from jobs if they are not enjoying it or having fun—and this is becoming increasingly more common.

Building a positive environment makes dental practice more enjoyable and fun. Your days will be easier, less stressful, and more satisfying.

Editor's note: This article appeared in the November/December 2025 print edition of Dental Economics magazine. Dentists in North America are eligible for a complimentary print subscription. Sign up here.