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Home » Replace traditional performance management in healthcare
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Replace traditional performance management in healthcare

adminBy adminAugust 7, 2025No Comments5 Mins Read
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Feedback and trust are the foundation of a high-performance medical team. However, according to Dr. C. Allen Gorman, an industrial organizational psychologist at the Birmingham Colat School of Business, traditional performance management systems often fail because they rely on rare, hurry-on evaluations and strict definition evaluation criteria.

Traditional performance management systems do not have employee input and buy-in. These systems can feel punitive rather than developmental, leading to employee departure and feedback resistance, Dr. Gorman said. To modify performance management systems, he said healthcare organizations should prioritize transparent and honest communication and adopt a more dynamic, continuous two-way feedback model that emphasizes frequent check-in, coaching and goal setting.

Avoid the “one size fit” approach

“Don't use a one-size-fits-all approach,” he added. “Customize your development plan to individual strengths, weaknesses and career goals. Don't ignore happiness and work-life balance. Healthcare burnout is ramping. Doctors should be able to manage workloads and provide as much flexibility as possible.”

When employees feel valued and empowered, they show greater involvement, stronger relationships and improved performance, Dr. Gorman said.

“We appreciate and appreciate the contributions of our staff,” he said. “Simple gestures such as oral recognition and handwritten notes can increase morale and retention. Link performance criteria to patient care. Performance reviews should be tailored to the quality of patient interaction, teamwork and operational efficiency, rather than any benchmark.”

He added: “The healthcare support workforce, including nurses, medical assistants and managers, appears to be shrinking due to burnout and job complaints. Personal practices must work harder to attract and maintain talent. Performance management is an important tool for workforce involvement and retention.”

Emphasises the role of leaders

Recognizing workplace leadership is generally overlooked. According to Dr. Gorman, it is important to emphasize the role of leaders at all levels to keep employees engaged and motivated. This allows you to transform performance management into a growth-centric tool. “Make feedback constructive and timely and address concerns when it arises rather than waiting for a formal review period. This helps build trust and make early adjustments for staff.” He said it replaces frequent or end-of-year assessments with a system of continuous feedback and development, promoting regular coaching conversations and adaptable goals.

“We prioritize frequent check-ins. Instead of an annual review, we schedule monthly or quarterly coaching sessions to discuss strengths, areas of improvement and career development,” Dr. Gorman said.

“

“We make feedback constructive and timely and address concerns when it arises, rather than waiting for a formal review period. This helps build trust and help staff make early adjustments.”

Common pitfalls

Physicians are encouraged not to turn performance management into merely a compliance exercise. If feedback is given solely because it is “required”, employees may not take it seriously. “These shortcomings were cut between performance assessments and actual performance improvements, and ultimately they were unable to improve employee engagement, motivation or productivity,” Dr. Gorman said. “Patients now expect personalised and efficient care. The liberated workforce leads to lower patient satisfaction and lower health outcomes.

Crystal Fullilove, Staffing Industry Analyst (SIA), a global research and advisory firm on staffing and workforce solutions with its headquarters in Mountain View, California, said the demand for healthcare professionals is very high compared to worker supply. “Unemployment rates for healthcare workers, including doctors, nurses and other alliance health professionals, are below 2%, which is less than half of the unemployment rate for the entire US workforce,” Fullilove said.

Timothy Land Huis, vice president of research at SIA, said the shortage of the physician workforce requires a multifaceted approach with both short-term and long-term strategies. This starts with council efforts, practice managers and healthcare staffing companies. “Implementing payment reforms that provide annual payments to physicians in light of increased medical costs will help reduce practice closures and ensure ongoing access to care,” Landhuis said. “The use of technologies, including Telehealth and AI, will reduce management pressures, free doctors to work at the top of their licenses, and reduce burnout.”

Even before the Covid-19 pandemic, the US healthcare labor market faced challenges with the demand for professionals in healthcare professions that exceed supply. Global investment firm Mercer released a report this August entitled The Us Healthcare Industry: Labor Market forecast, which projects a nationwide shortage of healthcare workers by 2028 of 100,000 nationwide shortages of healthcare workers. The report highlights the accelerated resignation, burnout, burnout, aging population of health workers, and the extent to which they charge for the extent to which they supply the labour market.

A strong workforce strategy is needed

The analysis highlighted the importance of having a strong workforce strategy to compete with other healthcare institutions and employers in other industries. To combat workforce shortages, the report suggests employers will develop comprehensive strategic plans and innovative tactics to attract and retain talent. This approach should also include appropriate compensation and benefits packages. Clinicians recommend finding creative ways to source talent, redesign work, and optimize work schedules.

The report notes that it is important for the healthcare system and government to work together to address specific labor gaps across locations and occupations, including subspecialties in healthcare work. Nursing assistants have the biggest predictive shortage for other analyzed healthcare professions, indicating the need to improve talent appeal and retention strategies for this segment.

The report says, in a positive note, the subsidies for home health and personal care are projected to exceed demand nationwide by 2028 by around 48,000 workers. However, healthcare employers will compete with many other industries for these low-wage workers.

This article was originally featured in the News on Kidney and Urology



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