How do you identify and develop high-potential talent for future leadership roles?

How do you identify and develop high-potential talent for future leadership roles? This is a crucial question for any organization that wants to stay competitive and innovative in a rapidly changing market. Commercial awareness, or the ability to understand and respond to the needs and expectations of customers, stakeholders, and competitors, is a key skill for leaders in any industry. In this article, you will learn some practical tips on how to spot, nurture, and retain high-potential talent for your leadership pipeline.

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1 Define high-potential talent

High-potential talent, or HiPos, are employees who have the potential to grow into leadership roles in the future. These individuals may not be the best performers or the most experienced, but they possess a unique combination of qualities that set them apart. For example, HiPos demonstrate high learning agility, as they can quickly adjust to changing situations and learn from their experiences. Additionally, they are highly motivated and aspirational, possessing a clear vision of their career goals and ambitions, and willing to take risks in order to reach them. Finally, they display high engagement with the organization’s mission and values, and build strong relationships with their peers.

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Shema Rahman

Recruitment Director | Award-winning Business Manager | Employability, Vocational Welfare2Work, Apprenticeships, Management Professional
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Alternatively, employees may also exhibit the skills and qualities required for leadership roles. These are employees who demonstrate exceptional performance, display a strong work ethic, take initiative, and have a positive attitude. This may also include strategic thinking, communication, collaboration, and adaptability skills.

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2 Assess high-potential talent

In order to identify high-potential talent, it is necessary to incorporate a systematic and objective approach that takes into account performance and potential. Performance is the measure of how well an employee meets expectations in their current role, while potential is the measure of how well an employee can perform in more complex and demanding roles in the future. To assess high-potential talent, you can use performance reviews with consistent criteria to evaluate an employee's achievements, strengths, and areas of improvement. Additionally, potential assessments such as psychometric tests, simulations, or interviews can be used to measure an employee's cognitive abilities, personality traits, and behavioral competencies. You can also gain a holistic view of an employee's skills, attitudes, and impact by collecting feedback from multiple sources via 360-degree feedback. Finally, succession planning can be used to identify critical roles and functions in your organization and map out the current and future talent needs and gaps.

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Trenton Hughes

Investing in Small Businesses @ Unfounded Ventures l ex CEO & CXO l Building TRIBE - A Premiere Peer Community for Entrepreneurs
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Often leaders look at talent subjectively, and aren't evaluating data on whether someone has high potential to climb in their org and career. When people are promoted without data to back it, it can set a strange precedent that others will see and notice, especially if someone else has better data supporting their own growth. Really important to set up a system that allows for objective evaluations!

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3 Develop high-potential talent

To develop high-potential talent, you need to provide them with challenging and meaningful learning opportunities that match their interests and goals, as well as support them with coaching and mentoring. Job rotation, stretch assignments, leadership programs, feedback and coaching, and recognition and reward are all ways to do this. Job rotation allows them to work in different roles and exposes them to new perspectives. Stretch assignments challenge them to use new skills or solve problems. Leadership programs offer training, networking, or mentoring on leadership topics. Feedback and coaching provide regular constructive feedback on performance and potential. Lastly, recognition and reward acknowledges contributions and offers incentives that align with their values and aspirations.

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Alex Rosenbaum

Strategic Asset Management & Business Planning Leader // Driving long-term, sustainable value in asset focused industries
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Another important aspect to help with the development of high-potential talent is succession planning. Having a succession plan in place, helps identify potential roles coming up and focuses the minds of future leaders and high potential talent to hone their skills in those areas.

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Shema Rahman

Recruitment Director | Award-winning Business Manager | Employability, Vocational Welfare2Work, Apprenticeships, Management Professional
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Also offering targeted development opportunities for high-potential individuals. This may include coaching, mentoring, stretch assignments, and leadership training programs. A succession plan is ideal for nurturing internal talents who are thought to be much more successful as leaders compared to those brought in externally. Therefore this element of planning would be vital to a talent management programme within the organisation.

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4 Engage high-potential talent

Retaining high-potential talent requires keeping them engaged and satisfied with their work and career. You should communicate with them clearly and frequently, and involve them in decision-making and strategy. To engage high-potential talent, you should have frequent, honest conversations about their career aspirations, expectations, and opportunities. Show them the possible career paths and progression options within your organization, and help them plan their next steps. Encourage them to explore different career options and opportunities, both internally and externally, and support their transitions. Help them identify their strengths and areas of development, provide resources and guidance to achieve their goals, and empower them to take charge of their own career development.

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5 Monitor high-potential talent

To ensure that your high-potential talent program is effective and sustainable, it’s important to monitor and evaluate its outcomes and impact. Regularly review and update the criteria and processes, as well as address any issues or challenges. Metrics and indicators can be used to measure performance and potential, while feedback and surveys can collect opinions from high-potential talent, their managers, and other stakeholders. Periodic reviews and audits should be conducted to identify strengths, weaknesses, opportunities, and threats. Lastly, implement changes to the program based on your findings and best practices, as well as test new ideas and innovations.

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How do you identify and develop high-potential talent for future leadership roles?

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1 Define high-potential talent

2 Assess high-potential talent

3 Develop high-potential talent

4 Engage high-potential talent

5 Monitor high-potential talent

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