Formal Identification of High-Potential Talent
Should high-potential talent be formally identified and notified of their status in the company? Undoubtedly, this is a question that many business leaders ask.
A study conducted by the Center for Creative Leadership (ccl.org), revealed that there are more advantages and benefits to formally identify and notify high-potential talent, than disadvantages.
The Center for Creative Leadership define high-potential talent as an employee who is assessed as having the ability, organizational commitment, and motivation to rise to, and succeed in, more senior positions in the organization.
Formal Identification has Impact
The degree of transparency and formality of notifying employees of their status as a high potential, impacts how employees see themselves. Furthermore, it impacts how they see the organization.
Formal VS Informal Identification of High-Potential Talent
In addition, the study also revealed that employees who are formally identified as high-potential talent are more likely to consider themselves high potentials than those who were informally identified.
Moreover, official recognition cultivates the leader’s identity as a high-potential employee. Without that acknowledgement, these leaders may doubt their skill level or importance to the organization.
This means that positive feedback, a good track record, or informal acknowledgment of one’s value is not the same as the “official” status as a high-potential employee, as recognized by the leadership of the company.
Formal identification as a high-potential employee is important for retention
Importantly, 77% of the participants in the survey placed high value on being formally identified as a high-potential employee in their organization. There are some clear differences between high-potentials who have been formally named VS those who are perceived to be high-potentials:
- A mere 14% of formally identified high potentials said they were seeking other employment.
- However, among those who were informally identified as high-potential employees, 33% reported they were looking for other opportunities.
Read this article for 3 Tips to Retain High-Potential Talent.
The Downside of Being a High-Potential Employee
Generally, participants in the survey expressed positive sentiments about being identified as a high-potential employee by their organization. Nevertheless, the designation isn’t entirely a win for those in the pipeline. Obviously, business leaders must look out for high-potential employees experiencing increased pressure or anxiety around high expectations or performance. Also, others experience frustration around the organization’s unclear intentions.
Therefore, business leaders must ensure that the process of formal identification of high-potential employees is managed carefully and respectfully.
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Read these articles on Talent Management and other popular topics:
3 Tips to Retain High-Potential Talent
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Future HR: People energy in business
Employee engagement increases profitability