Written by Jessica Petor, Research Analyst
Recognizing and retaining high potential talent is essential when planning for long-term organizational growth. High potential employees are 91% more valuable to a business than their non-high potential counterparts. Therefore, identifying high potential talent is critical because simply adding a superstar performer to a team can boost the effectiveness of other team members by 5% to 15%.
Many organizations, however, struggle with understanding exactly how to identify high potential employees within their organization. By leveraging the right tools, businesses can better recognize and develop the six signs of potential talent that differentiate these high-value individuals.
What is a high potential employee?
A high potential employee, often referred to as HiPo, refers to an individual within an organization who demonstrates exceptional capability, ambition, and the potential to take on greater leadership roles in the future. When comparing high potential vs. high performers, a key difference is that high potential employees go beyond simply delivering strong performance – they possess the qualities and mindset needed to thrive and grow in a more complex, challenging environment unlike employees who only excel in their current positions.
So, identifying high potential talent in the workplace is about recognizing individuals who not only perform well, but also demonstrate the ability to grow, adapt, and contribute significantly to the organization long-term. By understanding this and learning how to leverage the right tools to identify high potential employees, organizations can unlock their workforce’s full potential to build a stronger leadership pipeline.
How to identify high potential employees
Learning how to identify high potential talent within their own workforce is one of the biggest challenges for organizations. When you’re talking about high potential talent, it’s important to remember that not all your high performers are going to be high potentials. Instead, employers should be looking for employees who possess the ability to be successful, effective leaders.
It may seem like an obvious starting point to look at your high performers first when identifying high potential employees, however this may not be the best approach. While an employee may be great in their current role, they may not have the potential or even desire to grow and take on a leadership position. So, what should employers be looking for?
6 signs of high potential talent
Mastering how to identify high potential talent is key to staying competitive in today’s fast-paced business landscape. It’s important to first consider what type of potential you’re looking for as success may look different across different roles and organizations. However, there are some skills and competencies that organizations can use to distinguish high potential employees across a broad range of situations. These include:
- Learning agility: Individuals who demonstrate agile learning at work look for opportunities to develop skills and actively seek out challenges for self-enhancement.
- Adaptability: Individuals who are highly adaptable can quickly and efficiently adjust their behavior and attitude to fit the needs of any given situation.
- Ability to deal with pressure: Individuals who handle pressure well are able to maintain a positive outlook during hectic and high-stress situations. They stay productive and focused, even in the face of uncertainty and ambiguity.
- Drive for results: High potential employees are committed to producing exceptional results and performance. This is demonstrated by their determination and ability to push both themselves and others to meet challenging goals.
- Strategic thinking: Individuals who are strategic thinkers focus on the future. They prioritize long-term goals that align with a clear vision, taking into account the big picture and maintaining a forward-thinking approach.
- Interpersonal connection: Individuals who build strong relationships are able to collaborate effectively across teams and functions. They are skilled at earning trust, gaining support, and fostering a positive working environment. These connections enhance visibility, open doors to mentorship, and help navigate complex organizational dynamics through empathy and emotional intelligence.
Shaping today’s high potential employees into tomorrow’s leaders
Identifying high potential employees is a necessary step in developing a sustainable leadership pipeline. By understanding the six signs of potential talent – learning agility, adaptability, pressure management, results-driven focus, strategic thinking, and interpersonal connection – businesses can more effectively spot qualified employees who will grow into leadership roles. With the right strategy in place, uncovering and identifying high potential employees ensures that organizations not only retain top talent, but also cultivate a workforce that can succeed for many years to come.
