Written by Kristin Delgado, Managing Research Consultant
Regional Editor: Carly Watson, VP of European Marketing
We could all use a competitive advantage when it comes to succession planning and organisational development – and understanding the difference between a high potential employee and high performers within your workforce is a critical part of that process. Knowing what qualities to look for in future leaders can help your organisation invest in the right people.
Identifying high potential vs high performers
A high potential individual usually advances at a faster pace than their peers and are considered part of the company’s future leadership pipeline. They’re frequently placed in high-visibility roles, assigned to strategic projects, and offered additional development opportunities to accelerate their growth. But how can you be sure you are identifying true ‘high potential’ talent and not just those who excel in their current role?
A common mistake is to equate consistent high performance with leadership potential, assuming that a high performing employee is automatically a future leader. While strong job performance is often a good sign that the employee has high potential, the two are not the same. Despite the strong link between high job performance and a high potential, the best performers are not always the best leaders. Many high performers thrive as experts or individual contributors, but may lack the drive, mindset, or capabilities required for effective leadership.
Misreading high performance as high potential talent can be costly. What’s more, misidentifying potential vs performance can lead to loss of true high potentials who feel overlooked and underutilised. Understanding this important distinction allows organisations to recognise talent that will scale with their business.
4 predictors of a high potential employee
So, what sets a high potential apart? The best way to succeed in identifying high potential employees is to design a success profile that describes the skills and professional qualities needed to be a successful leader within the organisation. We know that cognitive ability is one of the best predictors of job performance, but when it comes to predicting potential, different traits emerge.
Research and executive assessment data have identified several consistent indicators of a high potential individual within an organisation, including:
- Assertiveness
- Independence
- Optimism
- Flexibility
- Social responsibility
At Talogy, our leadership research with Executive Assessments has established a complementary set of competencies that help organisations more accurately predict high potential talent, independent of job performance:
- Learning agility
A high potential learns from experience and adjusts quickly to tackle new challenges. This ability to grow and adapt is essential for leaders taking on more complex, evolving roles. - Creative thinking
A high potential thinks outside the box and challenges existing norms. This thinking style enables individuals to navigate ambiguity and drive innovation. - Competitive drive
A high potential stays motivated, focused, and persistent in the face of challenges. A strong internal drive signals readiness to take on bigger goals and lead others toward success. - Managerial courage
A high potential addresses tough issues head-on, even when the situation is uncomfortable and uncertain. This willingness to act under pressure is key to making difficult decisions and earning trust as a leader.
It is important to identify the qualities that constitute high potential talent apart from high performance. Including these competencies in high potential identification processes can help organisations accurately place individuals who will successfully grow into leadership roles and effectively differentiate between high performers vs high potential.
Key takeaways on performance vs potential for talent development
High performers may excel in their current roles, but that does not mean that they possess effective leadership skills. When it comes to distinguishing whether an employee is a high potential vs a high performer, it’s clear that the two are not interchangeable. Organisations that develop success profiles aligned with leadership competencies, evaluate talent through data-driven assessments, and cultivate a culture of learning are better equipped to invest in the right people to lead.
Understanding the difference between performance and potential will allow them to make the most informed talent decisions. Performance is visible. Potential is predictive. By looking beyond the current performance of an employee and recognising the unique traits that indicate true high potential talent, organisations can put their succession planning efforts on the best path forward for years to come.
About the author: Kristin Delgado, M.S., is an accomplished R&D Manager at Talogy, where she leads the Innovation and Data Science Lab. For over 15 years, Kristin has been pivotal in driving innovation in assessment solution design and enhancing measurement accuracy and predictive validity through cutting-edge assessment methodologies and advanced psychometric techniques. Her extensive experience has positioned her as a key influencer in the field, consistently pushing the boundaries of talent management solutions through the integration of technology and data science.
About the editor: Carly brings extensive global B2B and B2C experience, combining strategic vision with leadership to elevate Talogy’s brand and drive growth. Her expertise includes cross-functional collaboration, marketing automation, and data-driven decision-making. A strong advocate for clear communication and collaboration, Carly leads impactful, client-focused campaigns. Her commitment to excellence and ability to inspire make her a vital member of Talogy’s executive European leadership team.
