Identifying and Assessing High-Potential Talent: Current

organizational Practices

Based on the survey, a White Paper produced by the school outlines steps that HR and talent
management professionals can take to establish an effective high-potential talent
identification program. Examples are also provided of firms that have done so successfully,
such as IBM where high-potential employees can participate in the company’s Corporate
Service Corps — a three-month program where employees are sent to an IBM location to
provide pro bono counsel. GE’s high-potential program involves employee-rotation, and is
designed to help employees understand the business from different functional and
geographical perspectives. The program takes place over two years.

But should high-potential employees be informed that they are considered as such?

Traditionally, executives have erred on the side of caution and kept high-potential lists under
wraps, in the hopes of avoiding inflated egos and increased expectations of promotions and
salary increases, as well as the fear of employee-poaching by competitors. This may be
changing as 58 per cent of respondents to the Leadership Survey said they do tell employees
they have been identified as having high potential. The benefits of such transparency include
delivering a powerful signal that the organization values their contributions, and believes in
them enough to invest in their future.

BUSINESS APPLICATION

Identifying and attracting high-potential employees can give organizations an edge on their
competition, and set them up for future success. To do so, a formal and systematic approach
(as outlined below) should be used, which will not only improve high-potential selection but
also increase the perception of fairness and impartiality within the organization, and reduce
employee turnover.

1. Plan for the future: Understand what the organization will need in the near future, and
identify anticipated leadership roles and positions.
2. Define high-potential criteria: Review relevant research, defining terminology such as
‘potential’, ‘performance’, ‘readiness’, and ‘fit’ (to ensure a consistent understanding at all
 organizational levels). Also specify high-potential criteria and attributes for the organization
as a whole, and for specific roles and positions in particular.
3. Make the high-potential criteria measureable: Utilize different assessment procedures
when identifying high-potential employees, such as the ‘decision-makers consensus
approach’, in which decision-makers in an organization meet to discuss an employee’s
suitability for promotion. Even more sophisticated is the ‘criteria-based approach’ in which
criteria has already been established that articulates what the organization is looking for in a
high-potential employee.
4. Identify high-potential candidates: Once the high-potential criteria is defined and made
measureable, candidates can be identified and nominated/selected using structured talent
reviews, and be screened and assessed based on the criteria and their performance.

Talent management is now looked upon as a critical HR activity; the discipline is evolving
every day. Let’s analyze some trends in the same.

 Talent War: Finding and retaining the best talent is the most difficult aspect of HR
management. HR survey consultancies are one in their view that organizations globally are
facing a dearth of talented employees and it’s often more difficult to retain them. Further
research has also shown that there is clear link between talent issues and overall productivity.
 Technology and Talent Management: Technology is increasingly getting introduced into
people development. Online employee portals have become common place in organizations
to offer easy access to employees to various benefits and schemes. In addition employees can
also manage their careers through these portals and it also helps organizations understand
their employees better.
 Promoting Talent Internally: An individual is hired, when there is a fit between his abilities
or skills and the requirements of the organization. The next step is enabling learning and
development of the same so that he/she stays with the organization. This is employee
retention. An enabled or empowered means an empowered organization.

It is also of interest to organizations to know their skills inventories and then develop the
right individual for succession planning internally.

 Population Worries Globally: World populations are either young or aging. For example,
stats have it that by 2050 60% of Europe’s working population will be over 60! On the other
hand a country like India can boast of a young population in the coming and present times.
 Population demographics are thus a disturbing factor for people managers. Still more
researches have predicted that demographic changes in United States will lead to shortage of
10 million workers in the near future!
 Talent Management to rescue HR: HR has been compelled to focus on qualitative aspects
equally and even more than quantitative aspects like the head count etc. Through talent
management more effort is now being laid on designing and maintaining employee
scorecards and employee surveys for ensuring that talent is nurtured and grown perpetually.
 Increase in Employer of Choice Initiatives: An organization’s perceived value as an
employer as helps improve its brand value in the eyes of its consumer. Most importantly it
helps it attract the right talent.