How do you develop and retain your high-potential employees?

1 Performance management

Performance management is the process of setting goals, providing feedback, and evaluating results for your employees. It helps to ensure that their performance is in line with organizational objectives and to motivate them to reach their full potential. To implement an effective performance management system, you should define SMART (specific, measurable, achievable, relevant, and time-bound) goals for each employee and team. Additionally, expectations and standards should be communicated regularly and clearly. Feedback should be ongoing and constructive, based on data and evidence, with recognition and rewards for achievements that support values and vision. Finally, periodic and formal performance reviews should be conducted, involving self-assessment, peer feedback, and development plans.

2 Employee retention

Employee retention is the ability to keep your high-performing and high-potential employees from leaving your organization, which can reduce turnover costs, preserve institutional knowledge, and enhance your employer brand. To improve your employee retention rate, you should offer competitive and fair compensation and benefits based on market research and internal equity. Additionally, provide opportunities for learning and growth, such as training, coaching, mentoring, and career paths. Furthermore, create a positive and inclusive work culture where employees feel valued, respected, and supported. Moreover, encourage work-life balance and flexibility by allowing remote work, flexible hours, and personal time off. Finally, solicit and act on employee feedback by conducting surveys, focus groups, exit interviews, and implementing changes.

3 High-potential employees

High-potential employees are those who have the capacity, ambition, and enthusiasm to perform at a higher level of responsibility and impact in the future. They may not necessarily be your current top performers, who may excel at their current role but may not have the potential or willingness to ascend. To identify your high-potential employees, you should use objective and consistent criteria, such as performance data, assessments, and ratings to evaluate their potential. Additionally, you should be on the lookout for signs of potential, like learning agility, adaptability, leadership skills, and strategic thinking. It is also wise to involve multiple perspectives from managers, peers, customers and stakeholders to validate your judgments. Furthermore, you should monitor and update your talent pool by tracking their progress, accomplishments, and struggles and adapting your assessments accordingly.

4 Development strategies

Once you have identified your high-potential employees, you need to develop them to prepare them for future roles and challenges. To do so, you could assign stretch assignments that expose them to new situations, skills, and responsibilities. Additionally, providing coaching and mentoring from senior leaders, experts, or external coaches can guide and challenge them. Formal education and training such as courses, workshops, certifications, or degrees can also enhance their knowledge and competencies. Lastly, facilitating networking and exposure to influential people, groups, or events can expand their visibility and connections.

5 Retention strategies

Developing your high-potential employees is not enough to retain them. You also need to engage them and make them feel valued and committed to your organization. To do this, you could provide recognition and rewards, such as incentives, bonuses, or promotions. Additionally, offer career guidance and support by discussing their career aspirations and helping them navigate their career paths. Invite them to participate in decision making and problem solving by soliciting their input and involving them in strategic projects or initiatives. Finally, create a sense of belonging and purpose by sharing your vision, mission, and values, and showing them how their work matters and aligns with your organizational goals.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?