How to Develop High Potential Employees in 10 Steps

High potential employees have become increasingly significant in talent management and organizational development. Despite efforts to identify and nurture such talents, many organizations still struggle to develop their potential employees effectively. 

According to Harvard Business Review, while 66% of companies invest in programs to develop high potential talent, only 24% of senior executives consider these initiatives successful, hence the need for actionable strategies to help organizations cultivate a leadership pipeline.

John C. Maxwell,
Leadership Expert.

“Great leaders are not defined by the absence of weakness, but rather by the presence of clear strengths. They recognize that talent is critical, but talent alone isn’t enough. Leaders must cultivate that talent and provide an environment where it can thrive. When we invest in our people, we develop high-potential employees and ensure that our organization can adapt and grow in an ever-changing landscape.”

Developing people of potential requires strategic identification, continuous development, and long-term engagement. Let’s outline 10 steps to help organizations unlock the full potential of their top talent and ensure a strong leadership succession plan.

1. Identify the Right Employees

Identifying high potential employees is a foundational step in effective talent management and developing your organization’s leadership pipeline. You need a precise identification process that incorporates both performance metrics and leadership potential. Look for employees who consistently deliver results, take initiative, and influence others positively.

Key attributes of high potential talent include emotional intelligence, a growth mindset, and resilience under pressure. Leverage tools like 360-degree feedback and performance reviews to gain a complete picture of each employee’s capabilities. High-potential employees continuously seek new learning opportunities, accept feedback, and adapt quickly to change.

2. Conduct Employee Strengths and Weaknesses Assessment

Once high potential employees are identified, assessing their strengths and weaknesses becomes vital for effective succession planning. Conduct a skills gap analysis to understand where they stand about the core competencies needed for future leadership roles. Evaluate their soft skills like communication, teamwork, and adaptability. 

It’s important to understand how to assess potential for handling stress and making decisions under pressure, incorporating feedback from peers to get a well-rounded view of their potential. This thorough understanding will allow you to create tailored employee growth paths that align with their development needs.

3. Understand Employees Desired Areas of Development

To create effective employee retention strategies, gather insights directly from employees regarding their career aspirations and desired areas of development. Initiate self-assessments around learning and development opportunities to explore their future ambitions. Use surveys to collect feedback to enhance and encourage open conversations about their growth. 

By aligning their career objectives with organizational goals, you foster employee engagement strategies that keep them invested in their development. Creating a culture of self-reflection will help employees assess their capabilities and feel valued, further enhancing retention.

4. Design Personalized Development Plans

Customized development plans are essential for turning high-potential employees into future leaders. Develop individual growth frameworks based on the unique strengths and aspirations of each employee. These plans should integrate:

• Stretch assignments to challenge their current skill set.
• Leadership coaching to develop core managerial competencies.
• Cross-functional team projects to broaden their organizational perspective.

Provide stretch assignments to challenge and encourage collaboration within cross-functional teams to broaden their understanding of the business. Keep these plans dynamic by regularly updating them to align with evolving business needs and individual progress.

5. Foster a Culture of Continuous Learning and Upskilling

The rapid pace of business demands that even top talent must constantly evolve. Ensure that your high-potential employees have access to continuous learning opportunities, such as:

• Advanced training programs in leadership, technology, or industry-specific skills.
• Mentoring programs that offer practical insights from experienced leaders.
• Self-directed learning resources like webinars, podcasts, or e-learning platforms.

Encourage a culture of continuous feedback, where high-potential employees receive constructive criticism in real-time, allowing them to adjust and improve quickly.

6. Implement Fair and Inclusive Assessment Practices

A robust high potential employees development strategy requires fair, open, and inclusive assessment practices. Be sure to:

• Use objective performance metrics to identify high-potential employees, removing biases related to gender, race, or other personal factors.
• Establish a diverse assessment panel to minimize any unconscious bias in the selection process.
• Regularly review and refine your assessment tools to ensure they align with your organizational goals and support diversity and inclusion.

The strategy ensures that you nurture a diverse leadership pipeline, which is critical for fostering innovation and long-term success.

7. Foster a Culture of Leadership Development

Integrating leadership development into your organizational development initiatives is essential for nurturing high-potential employees. Encourage risk-taking and innovation in leadership by embedding leadership training into existing programs. Leadership shadowing, internal leadership programs, and on-the-job leadership challenges can help cultivate these skills.

Provide opportunities for employees to shadow senior leaders, gain insights from their experiences, and establish internal leadership programs that identify potential early on. Reinforcing that leadership is a continuous journey, fosters a strong culture that prepares high-potential employees for future challenges and responsibilities.

8. Create Mentorship and Networking Opportunities

Mentorship is one of the most effective ways to accelerate the development of high-potential employees. Pair them with experienced mentors who can provide personalized advice and guidance. Create opportunities for peer mentoring and cross-departmental networking.

Structured mentorship programs can include external coaches to bring fresh perspectives, while reverse mentoring allows senior leaders to learn from younger employees. Measuring the impact of these programs is essential to ensure they contribute effectively to both individual and organizational growth.

9. Reward and Recognize Achievements

Recognizing achievements and offering rewards is a powerful motivator for high-potential employees. Celebrate their accomplishments with public recognition during meetings or offer monetary rewards for significant milestones. Set up a promotion system that rewards progress with increased responsibility. 

Acknowledge small wins through informal recognition, like thank-you notes, and encourage peer-to-peer recognition to foster a supportive environment. Rewarding progress with career advancement opportunities further motivates employees to excel. Company-wide announcements of employee contributions reinforce their value to the organization.

10. Monitor and Adjust Development Strategies for High-Potential Employees

High-potential employee development is not a one-time event. Regularly monitor their progress, assess their achievements, and adjust development plans as needed. Use tools like:

• Quarterly performance reviews to evaluate growth.
• Mentor feedback to gain insights on areas for improvement.
• New learning challenges to keep employees engaged and progressing toward their potential.

By continuously refining development strategies, you can ensure that your top talent remains aligned with both their career goals and your company’s evolving needs.

Start Nurturing Your High-Potential Employees Today! Investing in your high-potential employees is crucial for fostering a strong leadership pipeline within your organization. Take actionable steps today to identify and develop your top talent, as their growth is directly linked to your company’s success. 

By implementing tailored development plans, you not only enhance their skills but also boost overall team morale and engagement. Remember, nurturing these employees today will yield significant long-term benefits, including increased innovation and improved performance. Don’t wait—start investing in your future leaders now for a thriving organization!

Case Study: How Google Develops & Nurtures High-Potential Employees

Background: Google, known for its innovative and fast-paced work environment, recognized early on that the key to maintaining its competitive edge was to invest in high-potential employees (HiPos.) By identifying employees who demonstrated both high performance and growth potential, Google aimed to create a robust talent pipeline that could assume leadership roles in the future.

In 2013, Google launched a structured leadership development program called “g2g” (Googlers-to-Googlers), where senior employees mentored and coached emerging talent. The goal was to nurture the capabilities of HiPos, increase employee retention, and foster a culture of growth.

The company also integrated various tools, such as performance assessments, peer reviews, and manager evaluations, to objectively identify these HiPos. By blending performance metrics with potential indicators like learning agility, Google sought to ensure that its HiPos were equipped to take on future challenges. Google has continuously invested in leadership development and has established itself as a leader in talent management.

Challenges: One of the main challenges Google faced was maintaining employee engagement in a highly competitive industry. With talent poaching from rivals and the fast pace of technological advancements, keeping HiPos committed to long-term growth requires ongoing development. Another challenge was ensuring that potential leaders were identified based on both performance and future capacity, rather than just current job success.

Solution: To address these challenges, Google implemented personalized development plans for HiPos that included mentorship, leadership training, and stretch assignments. The company also ensured that high-potential employees were given visibility to top management and provided opportunities to work on cross-functional teams. Google's data-driven approach to talent identification ensured that HiPos were not only selected based on past performance but also on their ability to lead and adapt to change.

Results: Since implementing its leadership development strategy, Google has reported higher retention rates among HiPos. Many of these employees have gone on to assume leadership positions within the company, contributing to Google's continued innovation and success. In fact, according to internal reports, Google has seen a 25% increase in internal promotions and a significant decrease in external recruitment for senior roles, highlighting the effectiveness of its HiPo development efforts.

Conclusion

Developing high-potential employees is a strategic investment in your organization’s future success. By identifying high-potential talent, creating tailored development plans, offering stretch assignments, providing mentorship, investing in leadership programs, offering regular feedback, and monitoring progress, you can cultivate a pool of future leaders. The steps will not only ensure the growth of your top talent but also strengthen your organization’s leadership pipeline for years to come.

Edstellar is committed to supporting organizations in developing their high-potential employees through comprehensive corporate training solutions. Their offerings include Leadership Excellence Programs, alongside cutting-edge tools like Skills Matrix. This tool helps your organization to map key skills, identify development gaps, and align employee growth with strategic business objectives.