Axletree Consulting

At Axletree we work with leaders and leadership teams. High potentials are often a part of our conversations. All of my clients, interested in retaining their high potentials have a long list of fears and assumptions around how to manage them. We hear things like:

• They should be told that they are high potential
• They should not be told
• If you tell them, it will motivate them
• If you tell them, they’ll become more of a retention risk
• If you tell them, they will get arrogant or complacent
• They should get more developmental opportunities than others
• They should get less development that others as they tend not to need it
• They want more responsibility
• They are great developers of others
• They are too self centered to worry about developing others
• We should profile them so that the solid B players know what to strive for
• We should not profile them as it will de-motivate all the other employees.

I was designated “top talent” when I was with a previous employer. One of the things that dumbfounded me was that no one once asked me how that designation impacted me. How ironic that no one asked my opinion but they wanted to ensure I was retained. Recently I learned that the The Center for Creative Leadership asked the “Hipos” what it meant.  What a concept! Ask them!  During an eight month period from October 2007 through May 2008, information was collected from 199 participants attending CCL’s open-enrollment leadership development programs.

Because we work with leaders and leadership teams and often on talent management programs concerned with retaining their top talent, as well as my own direct experience as “one of them”, I found the CCL findings to be very interesting.  Here’s a summary from CCL just for you (you can read the full report [PDF]):

1. Survey Respondents say formal identification as a high potential is important.
   Most survey respondents (77 percent) place a high degree of importance on being formally identified as a high potential in their organizations. The study showed several clear differences between high potentials who have been formally named and those who are perceived to be high potentials. Most notably, only 14 percent of the formally identified high potentials are seeking other employment. That number more than doubles (33 percent) for employees who are informally identified as high potentials.
2. High potentials expect more development, support, and investment – and they get it.
   High potentials receive more development opportunities – such as special assignments and training as well as mentoring and coaching from senior leaders – than other employees. This is as it should be, according to the respondents: 84 percent of high potentials agree that organizations should invest more in them and other valuable talent. The extra investment is one reason why being formally recognized as a high potential is considered important.
3. High potentials feel good about their status – but it has its downside.
   The survey’s HIPO respondents generally expressed positive feelings about being identified as a high potential by their organization. At the same time, the designation isn’t exclusively a win for those in the leadership pipeline. For some, there is a feeling of increased pressure or anxiety around high expectations or performance; others experience frustration around the organization’s unclear intentions.
4. High potentials are more committed and engaged when they have a clear career path.
   The most frequently mentioned way to increase the commitment and engagement among all high potentials is to help them identify a career path. High potentials want to have a picture of where they are going and to understand next steps in terms of development, experience, and movement. Additionally high potentials receive greater responsibility, they are also looking for greater authority to make decisions that have a significant impact on the organization.
5. High potentials help develop others.
   While high potentials are the recipients of increased opportunities and investment, they are also talent developers in the organization. Many (84 percent) are actively identifying and developing potential in others. They have insight and experience that is needed for developing the next layer of high potentials, as well as the larger talent pool.

Thoughts?

Do the research findings challenge any of your assumptions about the management and retention of your high potential talent? Do you agree or disagree on my recommendations? What is your organization doing with your “hipos”?