30 May 2025

Performance Reviews That Build Trust, Not Tension: A Guide for People Leaders

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Performance Reviews That Build Trust, Not Tension: A Guide for People Leaders

If you’re a manager or leader looking to run better performance reviews with a clear structure, feedback that stimulates conversation, and a plan to set your team up for success — this guide is for you. We’ll walk you through a simple framework for delivering employee check-ins, effective techniques for giving feedback, and a free downloadable performance review template to pull it all together. You’ll also find practical tips for improving your team’s relationship with feedback, and conversation tools that encourage engagement — not anxiety.

Why Performance Reviews Still Matter (When Done Right)

Despite their bad reputation, performance reviews are still critical — especially when they’re grounded in psychological safety and regular communication. Done well, they:

  • Build clarity and alignment
  • Foster learning and motivation
  • Surface support needs early
  • Strengthen team culture and relationships

But most don’t hit the mark. A Gallup study found only 2 in 10 employees strongly agree their performance reviews motivate them to improve. That’s a huge missed opportunity.

According to Safe Work Australia’s Code of Practice, employers have a legal responsibility to manage psychosocial risks, including unclear expectations, poor support, and lack of recognition — all of which can be mitigated with better communication and check-ins.

How to Give Feedback That Builds Performance and Trust

Giving feedback isn’t easy — especially when you’re short on time or the topic is tough. But avoiding it entirely causes more damage. Safe, structured feedback helps your team grow and feel seen.

Use the SBI Model for Constructive Feedback

The SBI model (Situation–Behaviour–Impact) is simple but powerful:

  • Situation – Describe when and where it happened
  • Behaviour – Describe what the employee did
  • Impact – Explain how it affected others or the team

Example: “In last week’s client meeting (Situation), you clearly outlined the project scope (Behaviour), which really boosted client confidence (Impact).”

Constructive Feedback Examples Managers Can Use Now

Here are a few phrase starters to use in performance conversations:

  • I noticed during our last project…
  • What I appreciate about your approach is…
  • One area where I think you could grow is…
  • Let’s talk about how we can better support you with…

Avoid vague phrases like “you need to improve your attitude” — they erode trust. Focus on observable actions and impact.

Feedback Techniques for Managers Who Struggle with Difficult Conversations

Even experienced leaders find feedback hard. Here are a few evidence-backed techniques:

  • Ask permission first: “Can I offer you some feedback on that?”
  • Use curiosity: “Can you tell me what was going on for you in that situation?”
  • Don’t delay: Timely feedback = more relevance and better retention
  • Balance: Use a 3:1 ratio of positive to constructive comments if you can

Learn more from Seek’s guide to performance review prep: https://www.seek.com.au/career-advice/article/how-to-prepare-for-a-performance-review

Employee Feedback Phrases That Encourage Engagement

If you’re looking to reinforce great behaviours or spark development conversations, try these phrases:

  • You’ve really grown in your ability to…
  • You’re consistently showing initiative when…
  • Let’s explore how you can apply that strength to…
  • What support do you need to take the next step in…

Reframing Language: From Corporate Jargon to Growth-Centred Conversations

Language matters. Many employees associate terms like “performance review” or “weakness” with judgment or pressure. Shifting your language can soften tension and open up more meaningful conversations. Try these replacements in your team discussions:

  • Instead of: Performance review | Try: Progress check-in / Growth chat
  • Instead of: Weaknesses | Try: Growth opportunities
  • Instead of: Areas of concern | Try: Focus areas for improvement
  • Instead of: Goals & KPIs | Try: Personalised success roadmap
  • Instead of: Manager feedback | Try: Two-way conversation
  • Instead of: Development plan | Try: Learning & growth path
  • Instead of: Underperforming | Try: Needs more support or clarity
  • Instead of: Evaluation | Try: Shared reflection

Language that promotes growth over judgement builds a culture of psychological safety.

"A Gallup study found only 2 in 10 employees strongly agree their performance reviews motivate them to improve. That’s a huge missed opportunity."

Performance Review Structure: The Simple Framework That Works

A clear structure supports more focused, less stressful conversations. Use this model to guide your next review:

1. Across the Year: Collect and Build Confidence

  • Strengthen your team’s comfort with feedback by sharing it regularly throughout the year — both formally and informally. Consistent, timely feedback builds trust and takes the pressure off review season.
  • Set up an email folder for each team member and save examples of their achievements, challenges, growth opportunities, and feedback points as they occur. This makes preparation faster and more accurate when reviews come around.
  • Pay attention to how each person prefers to receive feedback. Do they value face-to-face chats? Would they rather receive feedback in writing so they can reflect? Tailor your approach to suit their style.

2. 6–8 Weeks Out: Discuss Upcoming Review Dates

  • Let your team know performance reviews are coming up well in advance — ideally 6 to 8 weeks beforehand. Giving people time to prepare is just as important as planning the session itself.
  • Avoid sending out calendar invites without a prior conversation. This can feel abrupt or impersonal, and may trigger stress or defensiveness.
  • Take time to speak with each person one-on-one and explain what to expect in their review. This helps set a positive tone and encourages open dialogue.
  • Talk about the process casually in both team and individual settings so that reviews feel normal and expected — not like a surprise or punishment.
  • After you’ve had the conversation, ask each employee when they feel most focused during the day and try to schedule the review at that time. It’s a simple step that can make the conversation more productive for both of you.

3. Before the Review: Prepare

  • Organise examples of performance you’ve collected over the past few months and pull out key items you want to discuss, such as relevant projects, feedback, and observations.
  • Reflect on the employee’s strengths, challenges, and development areas both through your own observations and feedback shared by others.
  • Review goals or objectives for the role, including those outlined in the employee’s job description and any relevant KPIs.
  • Send the employee a calendar invitation with a clear outline of the session, including the topics you’ll be covering, what they can or need to prepare, and any documents or assessment tools that will be used.

4. During the Review: Connect

  • Start by asking the employee if there are any additional items they’d like to cover beyond what was shared in the calendar invite. This helps ensure the conversation feels collaborative and that there’s time to revisit or extend topics if needed.
  • Begin with strengths and wins, and take a moment to acknowledge the contribution the employee has made to their team, department, and role.
  • Use structured feedback models like SBI (Situation–Behaviour–Impact) to help reduce defensiveness and maintain psychological safety. (Refer to SBI details above)
  • Avoid using terms like “weaknesses.” Instead, refer to these as “growth” or “development areas” to keep the tone constructive.
  • When discussing areas that require improvement, focus on behaviours rather than personality traits or attitudes. For example, instead of saying “You’re always late,” try: “Punctuality has been a somewhat inconsistent, and being on time is something we really value as a team.”
  • Allow time for employee input and reflection.
  • Finish the session by clarifying goals and identifying any support they may need moving forward.

5. After the Review: Follow Through

  • Document agreed actions and timelines
  • Share resources or training opportunities
  • Schedule a follow-up check-in to track progress

For more, see Business Victoria’s overview of reviewing staff performance in Australian workplaces: https://business.vic.gov.au/business-information/staff-and-hr/staff-management/review-staff-performance

Free Performance Review Template (Download)

We’ve created a simple, downloadable Performance Review Template based on the tips provided in this article. If you’d like a copy, email us at info@thewellnessworkshop.com.au with your full name, organisation name and email address. Alternatively sign up to our Newsletter here and be the first to receive helpful tips and free resources for managing employee wellbeing and performance at your workplace.

A Note from The Wellness Workshop
Ready to Build Stronger Conversations in Your Team? At The Wellness Workshop, we help managers and teams develop communication and feedback skills that boost engagement, confidence, and wellbeing — especially during EOFY.

  • Feedback frameworks and role-play practice
  • Managing emotions and defensiveness
  • Structuring check-ins for clarity and motivation
  • Tailored advice for your industry and team

Offered virtually Australia-wide or in-person in Melbourne. Book a 30-minute discovery call to explore your team training options.

References & Resources

  1. Business Victoria: Reviewing Staff Performance: https://business.vic.gov.au/business-information/staff-and-hr/staff-management/review-staff-performance
  2. Seek: How to Prepare for a Performance Review: https://www.seek.com.au/career-advice/article/how-to-prepare-for-a-performance-review
  3. Safe Work Australia: Managing Psychosocial Hazards – Code of Practice: https://www.safeworkaustralia.gov.au/doc/model-code-practice-managing-psychosocial-hazards-work

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