HiPo employees possess a deeper understanding of the business and customer needs compared to their peers. They represent the future leaders who can give your organisation a competitive edge. Our blog stresses the need for structured programs to identify and nurture them, outlines a three-step approach, lists HiPo assessment tools, shares success stories, and highlights HiPo identification solutions, all of which emphasises the importance of cultivating HiPo talent for long-term success and competitiveness.
Introduction
In every organisation, there are individuals who stand out in the workplace as high-potential (HiPo) employees and show potential to become future leaders and game-changers. They possess a unique combination of talent, ambition, and a strong growth mindset, consistently exceeding expectations and demonstrating exceptional leadership and adaptability, making them the rising stars of your workforce.
Recognising the value of nurturing and harnessing this talent, organisations implement high-potential programs to identify, develop, and empower these high-potential individuals to reach their full potential. In this blog, we will delve into the world of HiPo employees, the importance of developing high-potential programs for employees, and how to design one.
According to research from Gartner, HiPo employees are 91% more valuable and have a higher likelihood to exert 21% more effort compared to non-HiPo employees.
Defining High Potential Individuals (HiPos)
HiPos are employees within an organisation who exhibit exceptional qualities and capabilities that set them apart from their peers. While specific criteria may vary by organisation, HiPo individuals typically share the following characteristics:
- Performance excellence: HiPos consistently excel in their current roles, surpassing performance expectations and achieving outstanding results.
- Leadership potential: They demonstrate strong leadership qualities, including the ability to influence others, lead teams effectively, and make strategic decisions.
- Adaptability: HiPos are agile and adaptable, readily embracing change and thriving in dynamic environments.
- Innovation: They bring creative and innovative solutions to challenges, contributing to the organisation’s growth and competitiveness.
- Learning agility: HiPos also have a thirst for knowledge and a rapid ability to learn new skills and concepts, allowing them to quickly adapt to new responsibilities.
To understand the needs of HiPo individuals, organisations can take the following steps:
- Create personalised high-potential development plans that align with their career aspirations and the organisation’s goals.
- Provide access to mentors or coaches who can offer guidance, feedback, and support tailored to their growth.
- Offer challenging projects and stretch assignments to test their skills and capabilities, allowing them to gain new experiences.
- Invest in high-potential training and development programs that enhance their leadership, communication, and strategic thinking skills.
- Recognise and reward their contributions through promotions, bonuses, or other incentives.
5 Key Benefits of HiPo Programs
HiPo programs are important for organisations as they offer a structured approach to identifying, developing, and retaining top talent. Here are the five key benefits of having structured high-potential programs for employees in your organisation:
Identifying future leaders
HiPo programs are instrumental in recognising and nurturing individuals with the potential to become future leaders. This proactive approach ensures a strong leadership pipeline, enabling the organisation to smoothly transition into the future with capable leaders at the helm.
Retaining top talent
Recognising and investing in HiPo employees sends a clear message that the organisation values their contribution and potential. This recognition enhances job satisfaction and commitment among HiPo employees, effectively reducing turnover rates and the associated costs of recruitment, onboarding, and training new employees.
Improving organisational performance
HiPo programs focus on nurturing and developing high-performing individuals. As these individuals progress in their careers, they not only excel in their own roles but also inspire and motivate their colleagues. This overall enhancement in workforce performance translates into improved organisational performance and increased productivity.
Succession planning
Structured HiPo programs also play a critical role in succession planning. By identifying and preparing potential successors for key roles, organisations can reduce disruptions in leadership, ensuring a smooth transition when senior leaders retire or resign unexpectedly. This stability is essential for long-term organisational success and business continuity.
Increasing employee engagement
HiPo training programs demonstrate a commitment to employee development. This commitment can have a ripple effect on overall employee morale and engagement, as employees see opportunities for growth and advancement within the organisation. The result is a more engaged and motivated workforce that contributes positively to the company’s culture and performance.
Research from the Journal of Applied Psychology found that ‘star’ employees can boost a team’s performance by as much as 15%.
How to Design a HiPo Program in Just 3 Steps
An effective HiPo program lays the foundation of a method that identifies and nurtures future leaders, encourages high potential development, and contributes significantly to the long-term growth and success of the organisation. And you only need three steps.
Step 1: Identification and selection
The first step begins with establishing a clear and comprehensive set of criteria. These criteria serve as the guiding light and reflect the organisation’s values and strategic goals. By combining performance metrics, assessment tools for high potential, and alignment with the company’s objectives, you create a robust framework for identifying HiPo employees.
The assessments you can use in this identification step include:
- 360-degree feedback
- 9-Box Grid
- Assessments and development centres
- Behavioural assessments
- Performance assessments
- Personality profiling assessments
This step also involves close collaboration with managers and leadership, as their insights are invaluable. After all, maintaining transparency throughout this process is paramount. This ensures that employees understand the selection criteria and process, thereby upholding fairness and integrity.
Step 2: Development and support
The second stage of the HiPo training program journey revolves around nurturing and supporting the identified individuals. It begins with crafting tailored Individual Development Plans (IDPs) that delve into each HiPo individual’s strengths, areas for improvement, and specific developmental goals.
Offering mentorship and coaching ensures that your HiPos receive the guidance and feedback necessary to help them reach their potential.
Access to high-potential training and development programs, workshops, and stretch assignments broadens their skill sets and enriches their experiences. Regular performance feedback and evaluations are pivotal to tracking their progress and adjusting the plans as needed.
Step 3: Ongoing monitoring and evaluation
The final step shifts the focus to the continuous monitoring and evaluation of the HiPo program. Regular and consistent check-ins with your HiPo employees become the norm. This fosters a sense of ongoing support and guidance. It also establishes feedback loops, allowing your HiPos to contribute their insights into the program’s effectiveness and suggest improvements.
The measurement of the program’s impact on talent retention, succession planning, and overall organisational performance then becomes a priority. Flexibility remains a key element in order to adapt the program to meet changing organisational needs while maintaining open communication with the HiPos about their development journey and opportunities within the organisation.
A survey by Harvard Business Review showed that companies believe around 3-to-5 per cent of talent falls into the HiPo bracket.
Best Tools to Identify HiPo Employees
To harness the potential of your HiPos, you must first identify them. The good news is that you have an array of assessment tools at your disposal for this purpose. Below, you will find a list of tools that you can use to identify the HiPos within your organisation.
| Tool | Description |
| 360-degree feedback | A survey by Mettl showed that more than 30% of organisations have used a structured 360 feedback tool for their HiPo identification process and employee performance assessment. It is a reliable and objective method of tracking employee performance based on multiple feedback sources. |
| 9-Box Grid | The 9-Box Grid is an individual tool that evaluates an employee’s current and potential level of contribution to the company based on their performance and potential. |
| Assessments and Development Centres | Roleplays, simulations, group discussions, presentations, as well as psychometric and aptitude tests are some activities of an assessment and development centre. Used in tandem, they make excellent tools for identifying high-potential employees. |
| Behavioural assessments | Behavioural assessment is a great tool for identifying the HIPOs of your organisation. It provides a way to evaluate your employee’s personality traits, motivations, and preferences using psychometric and aptitude tests. |
| Performance assessments | Performance assessment is a great tool to evaluate your employee’s performance based on predefined criteria. Some factors include key performance indicators (KPIs), goal attainment, and qualitative feedback from managers and peers. |
| Personality profiling assessments | Personality profiling tests are used to assess employees for high potential, the essential traits for a particular role, and whether they can excel within that role. |
Leading Organisations with Successful HiPo Programs
Explore the success stories of leading organisations that have mastered the art of HiPo training programs. In this section, we will take a closer look at the top companies that have excelled in nurturing and leveraging their HiPo talent.
BMW
BMW, a prominent industrial giant based in Germany, stands as a renowned manufacturer of both automobiles and motorcycles. With a formidable footprint in the automotive sector, BMW is dedicated to cultivating top-tier talent through initiatives like the BMW Group Graduate Program, aimed at nurturing the potential of top performers.
BP
BP stands as one of the global giants in the energy sector, offering customers a comprehensive range of services including fuel, energy, and petrochemical retail products. As part of their commitment to nurturing talent, they offer the Euro Graduate Program, designed for potential talent eager to embark on a journey of personal and professional growth.
Phillips
Founded in 1891 with the invention of the incandescent light bulb, Phillips has a rich history of innovation. Since then, they’ve always been forward-looking. With a strong commitment to people-centric values, this ethos shines through in their exceptional Leadership Talent Identification and Business Courses.
Rolls-Royce
Lastly, we can’t overlook Rolls-Royce, a global leader in power systems and services. They demonstrate forward-thinking initiatives through their Professional Excellence program and Leadership Development program.
CEB states that the turnover rate of high-potential employees is 30% and more than 50% of organisations are ineffective at identifying, managing, and retaining top talent.
Top 3 HiPo Programs in 2023
High-potential employees, driven by achievement and a desire for recognition, thrive in a culture of high performance. As such, understanding their motivations, including their supportiveness, risk-taking attitude, and adaptability, is key. Implementing a robust high-potential development program can help them achieve their full potential and drive tangible business results.
Accendo’s Hi-Potential Framework Model
Accendo’s Hi-Potential Framework Model provides an indicator that can help you gauge the extent to which talent can be stretched in terms of capabilities, agility, and drive. Talents who score high are more likely to demonstrate high potential and can be stretched further to handle greater challenges.
| Capability | Innovative mindset Entrepreneurial spirit Decisive, bold, and fast actions Digital champion |
| Agility | Catalytic learning agility Cognitive ability |
| Driver | Purpose Resilience Passion for excellence |
Combine behavioural insights and cognitive data
Our framework model uses behavioural, motivational, and cognitive assessments to measure a potential HiPo candidate’s working style, key motivators, agility, problem-solving abilities, and decision-making skills. All these insights are then accumulated and presented in an extensive and detailed manner for organisations to accurately and systematically select their successors.
Monitor, manage, and retain your HiPos
Our dashboard and reporting allow for real-time tracking and monitoring of assessment progress. The dashboard provides you with an overall view of the scores of your HiPo candidate pool, allowing you to “slice and dice” the data points to simulate multiple scenarios.
Simultaneously, you can use the 9-box grid as an evaluation method to assess your pool of talents based on the selection of parameters to be measured.
Mercer | Mettl
Mercer | Mettl’s High Potential Identification Process assists organisations in recognising and nurturing high-potential employees. Subject matter experts select the appropriate assessment tools tailored to an organisation’s needs, enabling the identification of high-potential individuals and facilitating talent mobility and developmental strategies. Throughout the entire process, Mercer | Mettl offers continuous expert support to ensure a successful partnership.
SHL
SHL’s High Potential Identification Process is a comprehensive approach aimed at identifying and retaining top internal talent. Drawing on extensive research, SHL defines HiPos as individuals who excel in performance, and possess aspiration, ability, and engagement. The process entails a Motivation Questionnaire assessment, followed by data analysis and visualisation through SHL’s High Potential Identification dashboard. The final steps involve the development, engagement, and retention of identified HiPo employees.
Success Story on HiPo Identification
Your HiPo Journey Starts Now with Accendo’s HiPo Identification Solution
Ready to secure your organisation’s future leadership?
Attracting and retaining high-potential employees is not just a great business strategy; it is necessary for today’s fiercely competitive business landscape.
With Accendo’s Hi-Potential Framework Model, you will have the power to identify and nurture these rising stars, allowing you to harness their potential, cultivate their talents, and create an environment that empowers them to thrive.
Don’t leave the future of your business to chance—empower your organisation today with Accendo’s Hi-Potential Framework Model and watch your success story unfold. Take the first step towards HiPo identification success today. Accendo offers a FREE TRIAL for HiPo identification to test your journey ahead.
Frequently Asked Questions (FAQs)
What is an example of a high-potential (HiPo) program?
An example of a HiPo program is a structured high potential leadership program designed to identify and nurture employees who have the potential to become future leaders. These programs often include mentorship opportunities, specialised training, exposure to senior leadership, and stretch assignments to help them develop the skills and experiences necessary for leadership roles.
What is HiPo assessment?
A HiPo assessment refers to the process of evaluating and identifying HiPo employees within an organisation. It involves a combination of quantitative and qualitative methods, such as performance reviews, leadership competency assessments, managerial feedback, and other relevant criteria.
What are the tools to identify HiPos?
Organisations commonly utilise tools such as performance reviews, leadership competency assessments, 360-degree feedback, assessment centres, succession planning, psychometric tests, and managerial recommendations. These tools provide a holistic view of an employee’s abilities, potential, and suitability for leadership roles.
What is the key element in developing high potential employees?
The key element in developing high potential employees is personalised and targeted development plans. These plans should encompass mentorship, relevant training, stretch assignments, regular feedback, and career pathing. Tailoring these efforts to individual strengths and growth areas enable organisations to maximise the potential of their HiPo talent, fostering their leadership capabilities and readiness for future roles in the company.
How does an organization develop HIPOs?
Organisations develop high potential employees by first identifying them through assessments and then creating customised development plans. These plans typically include mentorship, specialised training, stretch assignments, regular feedback, networking opportunities, and inclusion in succession planning. This strategic approach ensures that HiPo employees receive the support and experiences needed to prepare them for leadership roles within the organisation.
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