This article analyses performance dialogs (PDs) in the university context in Finland. These are held annually between employers and employees. The study was carried out to assess the efficacy of this technique. Research methods included an electronic questionnaire over two different years delivered to the whole staff of the Department of Teacher Education. Both qualitative and quantitative methods were used for analysing the data. This research demonstrated that the dialogs were most beneficial to the youngest and less experienced employers as well as administrators. Participants indicated the importance of a trustful atmosphere and the interviewer having the appropriate knowledge of their field. The most common themes discussed in a PD were related to current and immediate work as well the importance of a healthy work climate. The most effective PDs are those which the employee finds meaningful and which have empowering effects.