2025 State of Healthcare Performance Management
Uncover the performance management strategies driving real results across 450+ healthcare organizations. The 2025 State of Performance Management: Healthcare report by PerformYard analyzes emerging trends, proven best practices, and measurable organizational impact in healthcare settings.
Consistent Systems. Focused Questions. Effective Management.
Successful healthcare performance management isn't about intuition. It's about evidence. Below are three core data points that show how top-performing healthcare organizations separate themselves from the rest, revealing exactly what moves the needle on engagement, goal achievement, and manager effectiveness in clinical settings.
Growth Rate
Healthcare organizations implementing PerformYard see 25% average year-over-year headcount growth in their first four years. When healthcare professionals work with clearly defined performance goals, supported by regular performance assessments, they achieve more and contribute to better patient outcomes.
Optimal Number of Review Questions
Healthcare organizations using 15-20 performance review questions achieve 95.44% review completion rates. This structure includes 5-10 open-ended questions that encourage thoughtful clinical assessments and provide HR managers with constructive feedback for identifying skill gaps and supporting career development.
Direct Reports
Healthcare organizations where managers have 5-10 direct reports achieve 85% goal completion rates. Despite healthcare's higher average of 10.85 direct reports per manager (vs. 6.47 all industries), smaller management spans allow for better clinical supervision and patient care oversight.
The Right Review Format Boosts Participation
Are your healthcare employees skipping performance reviews? Short forms often feel pointless in clinical settings. Healthcare organizations with 15-20 questions (including 5-10 open-ended questions) achieve 95.44% completion rates and align better with comprehensive clinical assessment needs.
More Goals = More Achievement
Many healthcare professionals don't reach their potential with unfocused goals. 86.4% of healthcare organizations use 1-5 goals per employee, focusing on critical clinical competencies rather than broad skill development. This targeted approach supports patient safety and regulatory compliance.
Performance Management Pays Off Over Time
See what happens when healthcare organizations commit to improving performance. Review completion rates improve from 89% to 94% within two years, while completion time reduces by 20%. The right systems lead to more goals completed and better patient outcomes.
The PerformYard Impact
Some performance systems rely on traditional appraisals that fail to show real results in healthcare settings. This can lead to low engagement, missed clinical goals, and slow growth. But with PerformYard, healthcare organizations see 25% year-over-year growth, 95.44% review completion rates, and improved patient care outcomes – helping them attract and retain top clinical talent.
Key Performance Insights
Our comprehensive research reveals striking patterns in performance management practices and their impact on organizational outcomes.
15-20 questions
Healthcare review completion rates peak at 95.44% with optimal question count.
5-10 text questions
Highest completion rates when healthcare organizations use this range per review.
1-5 goals
86.4% of healthcare organizations use quality-focused goal setting.
10.6 direct reports
Healthcare average vs. 6.47 all-industry average (+68% higher).
Frequently Asked Questions
Get answer to common questions about our 2025 State of Healthcare Performance Management Report.
How was the data for this healthcare report collected?
The data comes from 450+ healthcare organizations using PerformYard. It includes anonymous info on growth, turnover, and performance practices, showing clear patterns specific to clinical environments and healthcare workflows.
How often is this healthcare report updated?
The State of Performance Management: Healthcare report is updated annually to share the latest trends and insights specific to healthcare organizations. This helps clinical teams stay current with industry innovations.
Can I share this healthcare report with my team?
Yes! You can share the healthcare-focused report with others. If you download the full report, feel free to share it with your clinical and administrative teams to improve performance management in your healthcare organization.
How can I implement these findings in my healthcare organization?
Start by reviewing key takeaways against your current challenges. Focus on optimizing review formats (15-20 questions) or refining clinical goal setting (1-5 goals). Work with your team to test changes and track results for better patient outcomes.
How do I get started with PerformYard performance management software?
Getting started with PerformYard is easy. The best way to learn how it can work for your team is to see it in action. Sign up for a free demo to explore the platform, ask questions, and see how it can help you simplify reviews, set better goals, and boost employee engagement.