Identify High Potentials (HiPos): Top 6 Tips to Do It Better

Better Identify High Potentials (HiPos)
We define high-potential employees as the top 5–10% of talent within an organization. To identify them, we assess manager potential through our People Manager Assessment Center and leadership potential via our Leadership Simulation Assessments. Both tools are research-backed and demonstrate a predictive validity of 0.54 for identifying, promoting, and developing top talent.

A critical first step in recognizing high potentials is establishing a common definition. For example, high-potential employees (HiPos) typically:

• Perform
  Consistently exceed job expectations and outperform peers, regardless of circumstances.
• Behave
  Model the organizational culture and core values in everything they do.
• Strive
  Demonstrate both the willingness and capability to quickly learn, adapt, and succeed at the next level of organizational complexity.

The Impact of HiPos: What the Research Says
Research consistently demonstrates that high-potential employees drive productivity, elevate team performance, and boost organizational results.

• McKinsey reports that high performers are up to four times more productive than the average employee.
• The American Psychological Association found that adding a high performer to a team can increase the performance of other members by as much as 15%.
• Rutgers University shows that organizations investing in identifying and developing top talent achieve stronger financial performance.

Challenges of Identifying High Potentials (HiPos)
A common mistake in identifying high potentials is equating future potential with past or current performance. Excelling in one role does not guarantee success in another.

Consider how many top engineers struggle when promoted into people management. Often, it isn’t a matter of ability or effort — they simply weren’t prepared. Their analytical and problem-solving skills served them well in their previous role, but leadership, decision-making, and communication skills are essential to successfully lead a team—and those require development and support.

Pitfalls of Not Identifying High Potentials (HiPos)
Failing to identify, develop, and promote HiPos can lead to higher attrition and critical gaps in succession planning. Our annual employee engagement research shows that nearly one-third of high-potential employees are actively exploring new opportunities. Can your organization afford to lose that level of talent?

Guidelines to Select High Potentials (HiPos)
If past or current performance isn’t a reliable predictor of future success, how can you identify employees worthy of leadership development? Start with making sure that the employee:

• Wants the leadership role and is willing to do what it takes to earn it,.
• Demonstrates strong commitment to the organization, fully embracing its mission and embodying its core values.

The Six Most Common Traits of High-Potential Leaders
While every organization and culture is unique, high-performing clients consistently look for six traits when identifying and developing high-potential employees. These leaders understand the importance of delivering results today while preparing the organization for tomorrow. The most effective leaders recognize that selecting and grooming successors is in the best interests of the company.

Look for candidates who are:

1. Proactive
   HiPos take initiative rather than wait for direction. They understand the broader strategic picture and act decisively to create positive outcomes. Seen as a “go-to” resource, they drive progress in ways that align with organizational goals.
2. Skilled Decision Makers
   High-potential leaders assess options thoughtfully yet act decisively, even with incomplete information. They balance competing interests, manage emotional and political dynamics, and consistently make choices that their teams can support.
3. Trusted and Trustworthy
   These leaders inspire confidence through integrity, fairness, and openness. They listen to opposing views without judgment and build trust and credibility across peers and teams.
4. Excellent Communicators
   HiPos articulate ideas, visions, and plans clearly and persuasively. They inspire others while actively listening to feedback and alternative perspectives, creating alignment and shared understanding.
5. Flexible and Learning Agile
   High-performing leaders adapt smoothly to changing circumstances. They understand how each team member works best, adjust their leadership style accordingly, and unlock individual potential. Learning-agile employees combine learning orientation — a commitment to self-improvement and staying current — with learning aptitude — the ability to quickly absorb and apply new information to real-world challenges.
6. Goal- and Future-Oriented
   HiPos focus on what truly matters and plan strategically for the future. They resist distractions, maintain high standards under pressure, avoid political games, and ensure clear, timely communication. These leaders set the direction, hold teams accountable, and maintain focus on long-term objectives.

The Bottom Line
High-potential employees are the engine that drives both current performance and future organizational success. By identifying individuals who are proactive, decisive, trustworthy, communicative, adaptable, and future-focused, companies can build a leadership pipeline that consistently delivers results, strengthens culture, and positions the organization for long-term growth. Investing in HiPos isn’t just talent management — it’s strategic performance management.

To learn more how to better identify high potentials, download The Top Skills for High Performing Leaders