High Potential or High Performing?

Content

How organizations characterize high-potential employees varies significantly, with many relying on subjectivity and gut feeling rather than structured assessments.

How organizations characterize high-potential employees varies significantly, with many relying on subjectivity and gut feeling rather than structured assessments.

Content

In High Potential, High Impact: Insights to Build Better Programs, Talogy reports that 70 percent of businesses use a custom definition of HIPO, and the methods they use to identify them often depends on perception-based approaches that lack objectivity. Nearly nine in 10 HR professionals and business leaders say they use performance ratings to select HIPO talent, and nearly three-quarters of respondents rely on manager recommendations.

In High Potential, High Impact: Insights to Build Better Programs, Talogy reports that 70 percent of businesses use a custom definition of HIPO, and the methods they use to identify them often depends on perception-based approaches that lack objectivity. Nearly nine in 10 HR professionals and business leaders say they use performance ratings to select HIPO talent, and nearly three-quarters of respondents rely on manager recommendations.

Content

"While these approaches can provide valuable perspectives, they also highlight the need for more comprehensive and reliable identification," notes Dan Hughes, senior director of research and development at Talogy, in a press release.

"While these approaches can provide valuable perspectives, they also highlight the need for more comprehensive and reliable identification," notes Dan Hughes, senior director of research and development at Talogy, in a press release.

Content

The report contends that reliance on subjective identification methods increases the risk of bias and limits predictive accuracy. Structured assessments such as 360-degree feedback, personality questionnaires, and simulations can improve precision and fairness because they offer a more objective and comprehensive view of potential. However , High Potential, High Impact reveals that only 45 percent of HR professionals and 30 percent of managers currently use such formal assessments.

The report contends that reliance on subjective identification methods increases the risk of bias and limits predictive accuracy. Structured assessments such as 360-degree feedback, personality questionnaires, and simulations can improve precision and fairness because they offer a more objective and comprehensive view of potential. However, High Potential, High Impact reveals that only 45 percent of HR professionals and 30 percent of managers currently use such formal assessments.

Content

Hughes recommends that employers combine existing methods that depend on co-workers and manager perceptions with "rigorous, science-based assessments to more accurately pinpoint high-potential talent."

Hughes recommends that employers combine existing methods that depend on co-workers and manager perceptions with "rigorous, science-based assessments to more accurately pinpoint high-potential talent."

Content

Part of the problem is that organizations can define the term high potential in different ways, and many companies conflate high performance with high potential. To help clarify the differences, Talogy explains that high performers focus on task execution and demonstrate technical depth, while HIPOs think strategically and long term and have capacity for broader, more complex roles. In other words, high performance reflects what someone does now, but high potential reflects what they could do next.

Part of the problem is that organizations can define the term high potential in different ways, and many companies conflate high performance with high potential. To help clarify the differences, Talogy explains that high performers focus on task execution and demonstrate technical depth, while HIPOs think strategically and long term and have capacity for broader, more complex roles. In other words, high performance reflects what someone does now, but high potential reflects what they could do next.

Content

Without a shared definition, HIPO programs risk inconsistency. To ensure employers equip HIPO candidates for senior-level challenges, Talogy advises HR and business leaders to evaluate whether the individuals exhibit the following 10 key competencies across four key domains.

Without a shared definition, HIPO programs risk inconsistency. To ensure employers equip HIPO candidates for senior-level challenges, Talogy advises HR and business leaders to evaluate whether the individuals exhibit the following 10 key competencies across four key domains.

• Content

  Social skills: communication, teamwork

  Social skills: communication, teamwork

• Content

  Self-management: integrity, accountability

  Self-management: integrity, accountability

• Content

  Cognitive capacity: strategic thinking, critical thinking, problem solving

  Cognitive capacity: strategic thinking, critical thinking, problem solving

• Content

  Leadership: building teams, motivating and engaging, coaching and developing

  Leadership: building teams, motivating and engaging, coaching and developing

Content

"By ... putting engaging and impactful development programs in place alongside fair, predictive, and scalable assessment strategies, organizations can maximize the potential of their top talent and reap long-term benefits," states Hughes.

"By ... putting engaging and impactful development programs in place alongside fair, predictive, and scalable assessment strategies, organizations can maximize the potential of their top talent and reap long-term benefits," states Hughes.