Employee Reviews: From Annual Event to Ongoing Conversation

By Molly Willinger

For decades, employee reviews in public accounting have followed a familiar pattern: gather feedback, complete ratings, schedule the meeting and deliver the verdict. For many firms, this process happens once per year, often right after the busy season when everyone is already stretched thin.

Yet firms across the profession continue to ask the same question: why do performance reviews often feel tense, why are employees frequently caught off guard and why
do these conversations fail to inspire meaningful growth?

The answer is increasingly clear. The effectiveness of a performance review is not determined by the meeting itself; it is determined by the conversations that happen
throughout the year. A single annual discussion cannot capture twelve months of development, course correction and professional growth.

If an employee hears critical feedback for the first time during their annual review, we’ve already missed the growth opportunity. In today’s fast-paced, client-driven environment, the traditional annual review model is no longer aligned with how work actually happens
in CPA firms.

Across the profession, leading firms are beginning to rethink the role performance reviews should play, not as a once-a-year evaluation, but as part of an ongoing dialogue focused on development.

Performance Feedback Should Be Ongoing — Not Annual

Public accounting is built on real-time problem solving. Teams collaborate on complex client issues, navigate shifting deadlines and adapt quickly as engagements evolve. Performance feedback should operate in the same way.

Frequent conversations allow managers to coach employees in the moment. When feedback is delivered close to the work itself, employees can more clearly understand what worked well, what needs adjustment and how to approach similar situations in the future. In this context, feedback becomes a learning tool rather than a retrospective evaluation.

Consider an employee who struggles with documentation during the busy season. In a traditional review cycle, that feedback may not surface until months later during the
annual review, long after dozens of similar returns have already been completed. By that point, the learning opportunity has largely been lost.

Timely feedback allows employees to correct course immediately, improving both individual performance and overall team effectiveness. More importantly, it accelerates professional development at a pace that better matches the demands of the profession.

Reviews Should Be a Two-Way Dialogue

Another common misconception is that performance reviews are something managers “deliver” to employees.

But performance conversations are not verdicts. They are discussions. When reviews are structured as one-directional evaluations, they often create defensiveness. Employees
who feel they are being “rated” rather than “heard” tend to focus on protecting themselves rather than reflecting on their development.

A more effective model invites employees into the conversation:

How do you feel about your performance this year?
Where do you believe you are excelling?
What challenges are impacting your effectiveness?
What support would help you improve?

Many employees are already aware of areas where they fell short. When managers begin by inviting self-reflection, the conversation shifts. Employees become active participants in their growth rather than passive recipients of criticism.

This approach also strengthens accountability. When individuals help identify areas for improvement and define next steps, they are more invested in the outcome.

In many ways, the role of managers in public accounting is evolving from evaluator to coach.

In my experience working with leaders across the profession, the firms that see the strongest development in their people are not necessarily the ones with the most sophisticated review systems. They are the firms where managers consistently make time for honest conversations about expectations, progress and professional growth throughout the year.

Building a Better Model in CPA Firms

Reimagining performance reviews does not require abandoning formal evaluations altogether. Instead, it requires reframing them as one component within a broader performance development system.

Several practices can help firms move in this direction.

Establish Trust as the Foundation
No performance system functions effectively without trust.
Employees must believe their managers are genuinely invested in their development, not simply completing an administrative requirement. When feedback feels transactional or compliance driven, employees naturally become defensive. When it feels developmental and supportive, they engage.
Trust is built through consistency:
- Following up on previous conversations
- Providing balanced feedback that highlights both strengths and
  development opportunities
- Recognizing improvement when it occurs
- Setting expectations early rather than addressing them after they are missed
This foundation is particularly important in public accounting, where expectations evolve rapidly as professionals progress from Associate to Senior to Manager. Employees need to know their leaders are committed to helping them navigate
that progression.
Without trust, reviews create anxiety. With trust, they create growth.
2. Normalize Frequent Check-Ins
Short, structured conversations throughout the year are far more impactful than a single annual meeting. These check-ins do not need to be lengthy. Even 15 to 20
minutes each month can make a meaningful difference.
Effective check-ins often center on three simple questions:
- What is going well right now?
- Where are you getting stuck?
- What support would help you succeed?
When feedback becomes part of everyday leadership, performance discussions feel far less intimidating for both managers and employees.
3. Address Issues in Real Time
When a deliverable misses the mark, address it promptly rather than waiting for the review cycle.
Timely conversations prevent performance narratives from forming around unresolved patterns. Immediate feedback also allows employees to apply the learning to their very next assignment, reinforcing development while the experience is still fresh.
4. Document Coaching Conversations
One of the most common challenges managers face during annual reviews
is relying solely on memory.
Encouraging brief documentation of coaching conversations throughout the year provides helpful context for formal evaluations. It ensures feedback is grounded in specific examples and promotes greater consistency across teams.
From a risk management perspective, documentation also provides important protection for the firm if performance challenges escalate.
5. Invite Self-Assessment
Before formal reviews, ask employees to complete a self-evaluation.
Self-reflection encourages employees to think critically about their contributions, challenges and growth areas. It also provides managers with valuable insight into
how individuals perceive their own performance.
Often, the most meaningful coaching conversations occur when there is a gap between an employee’s perception and a manager’s observations. Those moments can create powerful opportunities for alignment and development.

From Evaluation to Engagement

Performance reviews should leave employees with clarity, direction and a renewed sense of purpose. Too often however, the traditional review process focuses primarily on scoring
past performance rather than shaping future success.

A more effective approach reframes the conversation. Instead of centering solely on evaluation, leaders can use these moments to reinforce expectations, align goals
and help employees see how their contributions connect to the broader success of the firm.

This shift is particularly important in public accounting, where career progression can be rapid and responsibilities evolve quickly. Associates grow into reviewers. Seniors become team leaders. Managers are expected to mentor others while continuing to expand their technical expertise.

Clear, consistent guidance from leaders helps professionals navigate these transitions with confidence.

When managers approach performance conversations with curiosity, transparency and a genuine commitment to development, employees become more open to feedback. They begin to see these discussions not as criticism, but as part of a shared investment in their
long-term success.

Ultimately, the most valuable outcome of a performance review is not the rating recorded on a form. It is the alignment between a manager and an employee regarding
expectations, opportunities and the path forward.