It’s an indisputable fact that some employees are more talented than others. A high potential employee is an employee who has the potential, ability, and aspiration to become a leader within your company. These key players oftentimes know their potential and will move on to another company if they’re not acknowledged, motivated and challenged.
As the debate on whether or not to create a specific program for them goes on, we found 10 statistics that might sway you towards developing these high potential employees.
High potentials are 91% more valuable to organizations than non-high potential employees
According to this CEB whitepaper, high potential employees are far more valuable to your company than those who are not. This might seem like a no-brainer but let’s break this down.
55% of high potentials with low engagement are prone to leaving your company
According to CEB’s Guide To Identifying High-Potentials, high potentials who aren’t engaged with your company tend to want to take their talents elsewhere. Looking at it another way, the same guide suggests that nearly 60% of high potentials with high engagement levels are more likely to stay – which is more than double that of high-potential employees with lower levels of engagement. It is crucial to keep your employees engaged, so it makes sense that keeping these key players engaged will make them more likely to stay.
77% of survey respondents think being formally identified as a high potential is important
The Center For Creative Leadership conducted a survey and found that 77% of HiPo respondents “placed a high degree of importance on being formally identified as a high potential in their organization.”
The study showed multiple distinctions between high potential employees who had been formally recognized and those who had not. Only 14% of those who had been formally recognized said they were looking for other employment opportunities, while that number increases to 33% for those who are not recognized.
Less than 15% of companies have strong high potential programs
According to this research from Bersin by Deloitte, there’s a serious lack of companies with strong high potential programs. This means that there is an opportunity for your company to make itself stand out with a strong program for your most talented employees.
Their research also outlines the elements to creating a “world-class” program: Planning, Identifying, Developing, Transitioning and Managing.
34% of companies have trouble finding talent
Aon’s whitepaper on “Building The Right High Potential Pool,” states that 34% of companies worldwide report that they have trouble filling vacancies due to talent shortages. This means that finding replacements for high potentials who leave your company is no easy task and something you probably want to avoid. Recognizing and developing your high potential talent can ensure you won’t need to fill that vacancy down the road.
53% of companies are not satisfied with their HiPo programs
An industry report by the Corporate Research Forum found that 53% of organizations are not happy with their HiPo programs. The same report also has insight on why that is the case – 73% of those companies said that their most common method for identifying high potentials was a nomination by that candidate’s direct manager. The report opines, “If the leading organizations in the world are relying on subjective and politically contaminated ratings for identifying tomorrow’s bright stars, there is surely a great deal of room for improvement.”
97% of survey respondents said they look for HiPo programs when considering a new job
Training Magazine cited a study by Korn Ferry that found that 97% of high potential employees consider whether an organization has a HiPo program when seeking new employment. This further demonstrates that your high potentials want to be formally recognized and developed so they can further their careers within your company.
High potential employees exert 21% more effort than others
According to this CEB whitepaper, high potentials put 21% more effort into their work than those who are not high potential. This proves that high potential employees have a direct impact on the work that gets done, and essentially, on your business.
Strong leaders can achieve over 90% more revenue
The CEB whitepaper also addresses perhaps one of the most important aspects to any company – revenue. A company with strong leaders can achieve more than 90% more revenue.
55% of high potential employees drop out of their company’s high potential program
According to this ClearCompany article, more than half of high potentials drop out of their company’s HiPo program. This means that just because you have a program for them, doesn’t mean you’ll retain these key employees. The article suggests making sure these employees are being recognized, stimulated, challenged and acknowledged from not only their direct managers, but from the higher ups.
There’s no doubt it will take more of an effort to develop your high potential employees but as these statistics show, it will most certainly pay off.