A high-potential employee is usually in the top 5% of employees in an organization. These people are thought to be the organization’s most capable, most motivated, and most likely to ascend to positions of responsibility and power. To help these employees prepare for leadership roles in a thoughtful, efficient manner, companies often institute formal high-potential (HIPO) programs.
Companies Are Bad at Identifying High-Potential Employees
A high-potential employee is usually in the top 5% of employees in an organization. To help these employees prepare for leadership roles in a thoughtful, efficient manner, companies often institute formal high-potential (HIPO) programs. And yet, according to new data, more than 40% of individuals in HIPO programs may not belong there. So how were these individuals chosen? Four characteristics: technical and professional expertise, taking initiative and delivering results, consistently honoring commitments, and fitting into the culture of the organization. Underperforming HIPOs were especially lacking in strategic vision and the ability to motivate others. Organizations should look for people who show signs of having these skills to fill those HIPO programs and should place less emphasis on cultural fit.