New requirements for the psychosocial work environment: Why dialogue matters more than ever
Eirin Eriksen Horvei
October 14, 2026
In working life, I often think that a focus on good communication goes without saying. Both within your own department and, not least, across the company. Whether the goal is seamless project management or for all employees to understand the direction we are heading in to reach our goals, we need to communicate well. In larger organisations, I think this is something many managers and employees care about and are aware of. But what about small businesses?
When I talk to managers in smaller companies, I notice that many of them are looking for a good way to look after and follow up their employees. Preferably it shouldn't take much more time, because that particular resource is already scarce. We agree on the importance of good dialogue, and the employee appraisal as a possible arena is not foreign to them either. But the question that often comes up is: “is there any point in employee appraisals in small businesses? I mean, we talk to each other every day.” Not to mention the most important thing: the social side works well, and the whole gang are good friends.
And I completely agree that these are important factors for being happy at work.
What can often be challenging in a smaller business, perhaps especially in a growing start-up, is clarifying the leadership role itself. Often it is friends or acquaintances who have an idea and start a company together, and that in itself is not negative. But if you forget to clarify the leadership role along the way, especially as you grow and more employees join, it can become challenging. In this context, people often fall back on the “we know each other so well” mindset. This can work fine in many places, but you must be aware of the negative effects it can have, especially if one person moves up and suddenly finds themselves in a leadership position over someone they used to work more “alongside”.
I didn't quite see the point of having an employee appraisal with my manager either, since we already talked a lot and well together every single day. But we went ahead, and the result was surprising.
First of all, I got to map out what was important to me in my work situation here and now. And my eyes were also opened to the fact that day-to-day communication is mostly about operational matters, and rarely covers what actually motivates me and matters most to me in my working day. I also got an arena where I was seen and recognised. These are needs that are incredibly important to look after, whether you work in a smaller or a larger organisation. You can call it whatever you like – a development conversation, an employee appraisal or even a coaching conversation. The most important thing is that each person's needs are seen and that there are good reflections about the work situation here and now.
Nor do you need to implement a huge HR system to find a good solution for this. If you are a small business, it is wiser to think about how a simple, good method that is also paperless can make the working day easier. It also saves time.
I have a good relationship with my manager, and I fully understand the question “why should we have employee appraisals, when there are so few of us and we talk so well together?” A good relationship is not necessarily synonymous with good leadership. But it creates the conditions for it.
In this arena, you also have the opportunity to get feedback on yourself as a manager. There is also no doubt that you have a responsibility to clarify each person's expectations in line with what the company actually needs. And that is perhaps the most important thing of all, something that also ensures we are pulling in the same direction.
And if you run a company that also has ambitions to grow, good routines for following up employees are a smart investment in the future.
