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The best way to identify high-potential employees is to look beyond current performance. Use consistent criteria, multiple perspectives and real opportunities to observe how employees learn, adapt, lead and handle greater complexity. Combining performance assessments, 360-degree feedback, succession exercises, developmental assignments and leadership observations creates a more complete view of future potential.
For People leaders, recognizing potential is more than a talent management skill. It helps the organization build a stronger leadership pipeline, target development investments and prepare employees for future business needs.
What makes an employee high potential?
High-potential employees, often called HiPos, are more than top performers. They combine strong results with the motivation, adaptability and capacity to take on broader or more complex responsibilities in the future.
Performance and potential are related, but they are not interchangeable. A high performer may be exceptional in a current role without wanting or being ready for increased scope. Likewise, an employee with significant potential may still need experience, feedback and support before taking the next step.
Because potential depends on the organization’s strategy and future needs, People teams should define what it means in their specific context. Clear criteria also help reduce the influence of visibility, familiarity and individual manager preferences.
How can you identify high-potential employees?
Use several sources of evidence and evaluate patterns over time. The following five strategies can strengthen a fair, practical talent identification process:
1. Use comprehensive performance assessments
Regular performance reviews are a useful starting point, but they should not be the only input. Include relevant business outcomes, peer feedback, self-assessments and managerial observations.
Look for consistent performance alongside evidence of learning agility, sound judgment and growth across different tasks and situations. Calibrate assessments across managers so standards are applied consistently.
2. Gather 360-degree feedback
360-degree feedback can provide a broader view of an employee’s impact on colleagues, direct reports and cross-functional partners. It can also reveal strengths or development needs that are less visible to a direct manager.
Use feedback as one input rather than a popularity measure. Focus on recurring, behavior-based themes connected to the capabilities your organization will need in future roles.
3. Include employees in succession exercises
Invite potential HiPos to participate in succession discussions, scenario planning or simulations. Observing how they approach a future role or solve hypothetical organizational challenges can offer insight into their judgment, curiosity and readiness for greater responsibility.
Succession planning should not guarantee a promotion. Treat it as an ongoing process for identifying possible pathways, development priorities and organizational risks.
4. Offer developmental assignments
Provide stretch assignments that introduce new problems, stakeholders or levels of complexity. Examples can include leading a cross-functional initiative, presenting a recommendation to senior leaders or managing a project outside an employee’s usual area.
Before the assignment, define what success looks like and what support is available. Afterward, assess not only the outcome but also how the employee sought feedback, adjusted their approach and applied what they learned.
5. Evaluate leadership potential
Leadership potential is not limited to charisma, confidence or a desire to manage people. Look for employees who build trust, make thoughtful decisions, influence across teams, support others and take accountability for results.
Also consider different leadership paths. Some high-potential employees may be best suited to people leadership, while others may create greater value through expert, technical or strategic roles.
How should you nurture high-potential talent?
Once identified, high-potential employees need tailored development plans connected to specific capabilities and future opportunities. Plans can include live expert-led classes through Electives Membership, mentorship opportunities, coaching, stretch assignments and rotations across relevant parts of the organization.
Make development a two-way conversation. Ask employees about their goals rather than assuming they want a promotion or management role. Set clear expectations, review progress regularly and avoid creating an exclusive program that overlooks employees who may develop at a different pace.
Why identifying and developing HiPos matters
A thoughtful approach to high-potential talent helps People leaders build a stronger pipeline of capable leaders and prepare for changing business needs. The strongest programs combine clear criteria, multiple perspectives, equitable access to development and regular reassessment.
Potential is not a permanent label. Continue listening to employees, measuring growth and creating opportunities for people across the workforce to demonstrate what they can do.
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