Every company has employees who stand out because they go above and beyond to complete tasks, exceed expectations, and excel at everything they set their minds to. 

Human resources professionals refer to these people as high-potential employees (HiPos).  

However, you can’t classify all excellent employees as HiPos; only a few are likely to become future leaders in your company. 

Do you know who your high-potential employees are?

In this article, learn: 

• What a high-potential employee is
• How to identify high-potential talent in your organization
• Tips for developing HiPos

What Is a High-Potential Employee?

These achievers have the drive and motivation to rise to senior levels within a company—and succeed once they get there.

Usually, HiPo employees: 

• Outgrow their current role
• Perform at a higher level than co-workers
• Crave more responsibility 

Moreover, these employees show enthusiasm about your company’s culture and values and often incorporate them into their work. 

So, why is recognizing high-potential workers so important?

Putting HiPos in leadership positions means a more effective and efficient business, especially since they act as mentors to other team members. 

Promoting someone with great potential can increase revenue, boost morale, and enhance engagement, which helps you complete business objectives faster. 

But is there a difference between HiPos and high-performance employees? 

Let’s compare them in the next section. 

High Potential vs. High Performance

The main difference between high-potential and high-performance employees is the desire to tackle new roles. 

High performance refers to employees who constantly achieve results in their current positions but don’t possess the leadership skills or the yearning to have additional responsibilities. 

On the other hand, high potential describes employees who want to pursue their career goals and have the necessary skill sets and competencies to become great leaders in a company. 

In simple terms, you can say that all HiPos are top performers, but not all high-performance employees are cut out for leading others or even have the aspiration to develop new skills.

It’s important to distinguish between performance and potential, which in turn helps you identify, develop, and retain top talent. 

Otherwise, you might lose high-potential employees, which would cost your business. 

Now, it’s time to look closely at the traits that can help you recognize HiPos. 

7 Traits of High-Potential Employees

It’s hard for HR professionals to identify the characteristics of high-potential employees, and they might miss out on development opportunities that benefit the business. 

However, although each organization defines HiPos differently, certain traits and soft skills are shared.

Let’s discover them together. 

Drive and ambition

A high-potential employee has a proven track record of going above and beyond to exceed expectations.

HiPos are ambitious, proactive, and highly motivated to achieve business goals, deliver exceptional results, and even perform duties that the manager didn’t ask them to do. 

Moreover, they understand and predict what the company needs. 

Last but not least, they recognize opportunities that benefit the company and take responsibility for completing unassigned tasks.  

Leadership potential

HiPos understand the true value of leadership, which means they will aspire to have leadership roles—and it’s imperative in their career path. 

Aside from being able to lead smaller teams, you can spot high-potential employees even if they’re not in formal senior roles because they exhibit leadership qualities, such as: 

• Strong communication skills
• The ability to influence others
• Demonstrating a natural inclination toward taking the initiative and solving problems

Emotional intelligence

High-potential employees have a high level of emotional intelligence, which makes them aware of their strengths, weaknesses, and what they can bring to the table. 

Emotional intelligence enables them to understand and manage their emotions effectively while empathizing with and relating to others.

HiPos are often extroverts with social influence who know how to interact with various personalities and deal with unforeseen circumstances professionally. 

Adaptability and flexibility 

Another essential trait a HiPo should have is the ability to adapt quickly to shifting circumstances, especially when change is a regular part of business life. 

So, working under pressure and remaining calm during stressful situations are highly-desirable characteristics of high-potential employees.

Moreover, they’re open to new ideas and can guide their team with ease to meet evolving business needs. 

Continuous learning orientation 

As mentioned earlier, HiPos have a thirst for knowledge and a commitment to personal and professional growth. 

They often take on additional responsibilities and accountability for their decisions, constantly seek new learning opportunities, and stay up-to-date with industry trends. 

Furthermore, since they want to see the company succeed, HiPos focus on personal growth AND strive to achieve great results as a team. 

By offering development programs, you can ensure that high-potential employees are more engaged, which increases your retention rates. 

Collaboration and teamwork 

HiPo employees know how to work well with others and contribute to a productive team dynamic, making them well-fitted for leadership positions. 

Since they value collaboration, they’re able to foster positive and meaningful relationships that keep teams motivated and engaged by: 

• Actively participating in group discussions
• Willingly sharing their knowledge and expertise
• Effectively working with co-workers to achieve collective success

Author’s Tip: Strengthen the relationships between your team members with these fun activities! 

Results orientation

HiPos are top performers who want one thing: for your company to succeed. 

Usually, results drive these achievers to deliver high-quality outcomes and reach business objectives in time. 

Aside from taking ownership of their responsibilities and holding themselves accountable for achieving targets, high-potential employees also: 

• Set challenging goals
• Possess a strong work ethic
• Prioritize tasks effectively

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Now that you know the traits that make a HiPo, let’s move on and see the secrets to developing a high-potential program for your employees. 

How to Develop High-Potential Employees

Congrats!

You’ve successfully identified your high-potential employees, and now you’re ready to nurture them by creating an effective leadership development plan that ensures they remain committed to your company. 

You can consider enrolling them in a mentorship program—or you can take a look at the following tips. 

1. Nurture their potential

Promoting a HiPo’s professional development is important, even if they’re already inherently talented.

After all, they still look for ways to develop and further their career plan, so it’s up to you to offer opportunities to enhance their strengths. 

You can do so by implementing targeted development programs, such as leadership development workshops, mentoring programs, or executive coaching. 

While you should design these programs for HiPos to nurture their potential, they should also enhance competencies such as: 

• Leadership skills
• Emotional intelligence
• Strategic thinking

2. Provide feedback and recognition

Despite being near perfect, even high-potential employees have gaps and weaknesses they can work on. 

But the good part is that they’re more willing to accept criticism and learn from their mistakes. 

Besides, regularly providing constructive feedback or holding performance reviews where you highlight their areas of improvement is a good practice that motivates HiPos. 

Another great way to show appreciation is through employee swag!

Workers who receive branded merchandise feel more appreciated and valued by the company, which can positively impact employee retention and job satisfaction. 

Author’s Tip: Take the first step into the world of branded swag with these work anniversary gifts. 

3. Foster a culture of innovation

A good practice is to create a work environment and culture where you encourage employees to:

• Be creative
• Come up with innovative ideas
• Take risks

As a result, your HiPos should freely generate and share new ideas, experiment with different approaches, and challenge the status quo. 

Also, don’t forget to recognize and reward their achievements to reinforce their growth mindset and show how much you appreciate their contributions.

Author’s Tip: Be sure not to overwork your employees by creating effective wellness programs. 

4. Create networking opportunities

As a last tip, you should facilitate internal and external networking opportunities. 

Encourage high-potential employees to participate in networking events and forums or professional associations where they can connect with senior leaders, mentors, and peers across different industries.  

This way, your HiPos gain a different perspective of the professional realm and can get the career advice and support they need to tackle future challenges. 

Now Over to You

Putting high-potential employees in leadership roles will enable your business to grow to new heights. 

But HiPos are also a source of inspiration for new employees, as they can instill positive attitudes and habits in your staff that increase revenue, efficiency, and productivity. 

Don’t miss out on other opportunities to empower your employees!

Explore other useful terms in our HR glossary to discover ways to develop your business further.