Objective To reform performance management plan of nurse specialists by establishing a talent fund which is only indicated for nurse specialists, to incentivize the development of nurse specialists,and to improve the quality of specialized nursing care. Methods A talent fund for nurse specialists was established.A performance appraisal plan which used a seniority coefficient as a benchmark to assess 144 nurse specialists from the following aspects of specialty-oriented competencies, involvement in specialized training, trailblazing work in the specialty, specialty-oriented competencies elevation, and the pluses in the job. Then the nurses qualified for a bonus were granted a monetary reward from the fund. Results After the implementation of the talent-fund-backed performance appraisal plan, the quality of nursing care provided by oncology specialists, critical care specialists, and IV infusion therapy specialists saw a significant jump from 2019 （P＜0.01 for all）. Conclusion The implementation of talent-fund-backed performance appraisal plan could incentivize nurse specialists and improve the quality of specialized nursing care.