Are you overlooking the future leaders within your company? Identifying high-potential (HiPo) employees is crucial for long-term success, but it can be tricky. Our article explores the challenges in HiPo identification, such as unconscious bias, over-reliance on past performance, inconsistent criteria, and limited development opportunities. We will show you how TalentPulse can help you make more accurate, fair, and data-driven decisions. Whether you’re in HR or a management role, these insights will guide you in identifying your top talent.
The Current State of HiPo Identification
Identifying HiPo employees is key to driving future growth and leadership in any company. These employees, though often a small group, can have a big impact on a company’s success.
In fact, McKinsey reports that while only about 20% of employees are usually seen as HiPo, this group can contribute to up to 80% of a company’s success. The challenge, however, is figuring out who these HiPo employees are.
For years, companies have relied on performance appraisals, manager nominations, and past achievements to identify HiPo employees. While these methods are common and easy to use, they often miss the mark. They tend to focus on what employees have already done, rather than what they could do in the future. Furthermore, these approaches are subjective and biased, making them less reliable.
As the workforce changes—becoming more diverse, spread out, and working remotely—these methods are even less effective. The traditional ways of identifying HiPo employees just don’t work well in today’s fast-changing work environment. To truly identify your HiPo employees, you need more accurate, predictive, and fair methods.
The Challenges in Identifying HiPo Employees
In some cases, managers unknowingly overlook an employee’s true capabilities due to unconscious bias. It can result in employees being placed in roles where they can’t fully excel, resulting in decreased productivity. When they lead teams or make critical decisions, the consequences can be detrimental.
We call this invisible leakage – when an employee’s skills are misaligned with their role, leading to sub-optimal decisions, poor performance, and increased stress. Over time, this can seriously affect both the employee’s well-being and the company’s success.
The old saying goes, “Past performance doesn’t guarantee future results.” It may be tempting to rely on past accomplishments as a gauge of future success, but different roles require different skills. An excellent salesperson may not make a great sales manager, just as a stellar coder may not lead a development team well.
Additionally, different managers might have different ideas about what makes someone “high potential.” One manager might prioritise technical skills, while another might value leadership qualities more. Without unified approach, the process can feel like trying to hit a moving target.
Once you’ve identified your HiPo employees, the journey doesn’t stop there. Without development opportunities, your HiPo employees may not reach their full potential. This can lead to disengagement, frustration, and eventually, turnover. It’s like planting a seed but never watering it – you’re not going to get the tree you hoped for.
How TalentPulse Can Help with Your HiPo Identification Process
Now, let’s talk about how to overcome them. The good news is that with the right strategies and tools, you can make HiPo identification more accurate and effective.
Use Data Driven Tools to Minimise Bias
To reduce unconscious bias, it’s essential to leverage data-driven tools that help remove subjectivity from the equation. Our 9-box plot chart on TalentPulse helps visualise where employees stand in terms of performance versus potential. This makes it easier to identify who has the potential to shine. Employees in box 4, for instance, exhibit high potential and are primed for leadership development.
Focus on Learning Agility and Growth Potential
Rather than solely focusing on past achievements, shift your attention to traits like our 4 Quadrant Scores on TalentPulse. These scores evaluate Leadership, Agility, Cultural Fit, and Skills, providing a comprehensive view of an employee’s potential.
Furthermore, our High-Potential Talent Assessment Suite lets you evaluate an employee’s “stretchability,” or their ability to grow into more demanding roles. By using our HiPo Talent Analytics, you can see an overview of the Stretchability Score distribution, helping you make more informed decisions about who to develop.
Conclusion
Identifying HiPo employees is no easy task, but it can shape your organisation’s future. You can promote fair and effective HiPo identification by overcoming unconscious bias, using past performance criteria, and limiting development opportunities. The key isn’t just finding who’s doing well today. It’s finding who’s going to lead, grow, and inspire tomorrow. Want to take your HiPo identification to the next level? Book a demo with us today to see how TalentPulse can help identify and develop the future leaders of your organisation.
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