Building resilience: identifying, developing and retaining high potentials (HiPos)

In uncertain times, businesses need – more than ever – the ability to select and develop the talent they need to thrive in ambiguity. Identifying these so-called ‘high potentials’ (HiPos) isn’t always as straightforward as it seems, though. Without a solid roadmap, how can you be sure which future leader will have the qualities they need to steer the right course?

Businesses often take the tried-and-tested route: they pick leadership candidates by examining their track record and choosing those with the best performance. The problem with this approach is that digging into people’s past achievements doesn’t give you any insight into what they are capable of doing in the future and means you could easily miss HiPos who possibly haven’t had the same opportunities as their peers to shine.

It’s important to differentiate between high-potential and high-performance employees. High performers may achieve impressive results, but high potentials are not just goal-orientated – they also demonstrate an aptitude for leadership. By focusing on how people apply their intellect and skills, what motivates them and – crucially – how they interact with others, businesses can gauge candidates’ leadership potential, regardless of their performance to date.

“Potential by definition is latent; what we see with regards an individual’s potential if we are constantly moving too quickly – as is tempting in the workplace today – is likely to be the tip of the iceberg. “

“Spotting HiPos requires you to pause, to be in the moment; to invest time in getting to know those in your team really well. To observe what they achieve, how they achieve it, and critically their impact on those around them as they strive to achieve. If we do not take the opportunity to pause long enough to spot the latent potential in our team, we are very likely to miss it.”  Jane Pinches – Behaviour Change and Leadership Specialist.

How do you spot a HiPo?

According to a survey by Harvard Business Review, companies believe that around 3-to-5 per cent of talent falls into the HiPo bracket – a small cohort that’s capable of leveraging a disproportionate impact. According to research from Gartner, HiPos are 91% more valuable and have a higher likelihood to exert 21% more effort compared to non-HiPos, while research from the Journal of Applied Psychology found that so-called ‘star’ employees can boost a team’s performance by as much as 15%.

They’re the people that are delivering consistently strong results, those who are willing to develop their expertise, and who are able to model the behaviours that align with leadership values – trust, collaboration and self-reflection, for example.

Put simply, HiPos aren’t just people who are good at their jobs and professionally ambitious. They’re calm, cooperative workers capable of taking the initiative and working autonomously, but who also perform well in teams and who are happy to take onboard feedback and acquire new skills. Importantly, they are empathetic and emotionally intelligent.

Academic qualifications and psychometric tests aren’t foolproof indicators of acumen; not only do they favour people from more advantaged backgrounds, but they also reward IQ at the expense of commercial instinct. Instead, exploring how people use their intellect to view tasks from another perspective, anticipate roadblocks and solve problems can be more indicative of HiPo behaviours.

Emotional Quotient (EQ)

Interestingly, emotional intelligence (EI) is a strong indicator of leadership potential. One influential academic study examined the role of EI in identifying high potential in managers, by comparing 51 HiPos in organisations and matching them to 51 ‘regular’ managers, based on managerial level, gender and age. All participants undertook a battery of tests including the EQ-i. Several EQ-i scales – independence, assertiveness, optimism, flexibility and social responsibility – marked the HiPos out from the other managers.

People with high EQ scores aren’t just self-aware and intuitive, they are also intentional when it comes to influencing stakeholders and negotiating outcomes. At qpeople, we believe that EQ is especially important in identifying HiPos because businesses need leaders that embrace organisational values. Relying on ‘the smartest guys in the room’ to do the right thing isn’t always the wisest move – employees who advance by throwing colleagues under the bus won’t make the best or most ethical leaders when they reach the top of the ladder.

Developing and retaining HiPos

Invest in development

Developing high potentials is a growth opportunity but it does require a structured approach. The right coaching and feedback enables HiPos to improve through a personalised learning journey that helps to guide development, maximise your organisation’s ROI, and improve retention rates.

Support engagement

Match employees with the right manager – someone who has the temperament and motivation to develop their HiPo and create opportunities for recruits to gain a broader perspective on the business by giving them assignments that require engagement with other parts of the organisation.

Give them the chance to lead

Try giving HiPos bigger teams or projects to manage and see how they approach their new responsibilities. Future leaders need to be empowered to make things happen and valued for their contribution – strategies that will also help them to feel more deeply connected to your company.

Offer mentorship

Mentorship is a good strategy for retaining high-value employees. Mentors not only provide a point of regular contact for advice and guidance, but can offer the benefit of their experience, as well as strengthening work – and friendship – bonds.

Measure progress

One of the best ways to ensure that HiPOs stay is by evaluating what they want and need from a role. Make sure you track, measure and provide feedback on progress to encourage employees to see the worth of their development plan. Create a talent system designed to spot, nurture and retain your HiPos and you’ll be investing in a next-gen leadership strategy that will develop successful leaders to drive the growth and success of your organisation for years to come.