Identifying
High Potential
Building Your Future Talent Pipeline
At Mercer Talent Enterprise, we define high potential leaders as those who have the capacity, mindset and drive to exponentially contribute to the success of their organization.
They are ‘force multipliers’ raising the bar for others and particularly for their direct reports and teams.
(Source: Based on Mercer Talent Enterprise Research, 79,000 completions, August 2024)
Separating Fact from Fiction.
Some Truths About High Potentials
Past performance is not always an indicator of future potential
Research by Mercer Talent Enterprise establishes that only four out of ten high performers are also high potential.
Hence, organization’s should refrain from using performance ratings or manager recommendations as part of any talent identification process.
Conversations around ready now, ready in 1-2 years may not be the best talent strategy
While high potential talent may be driven to advance their own career, they always put the needs of the organization’s before their own.
An overemphasis on their individual readiness and career growth without clarity on how they would achieve organizational growth is inconsistent and incomplete.
Most people focused organization’s should already know who their Hi-Po’s are
Organization’s with robust people and talent processes should already know who their current high potentials are. Your current high potentials will be vocal and visible.
The key objective of any good high potential program is to identify the “Shy-Po’s” – those hidden and under-represented pools of talent who may be less visible.
Past performance is not always an indicator of future potential
Research by Mercer Talent Enterprise establishes that only four out of ten high performers are also high potential.
Hence, organization’s should refrain from using performance ratings or manager recommendations as part of any talent identification process.
Conversations around ready now, ready in 1-2 years may not be the best talent strategy
While high potential talent may be driven to advance their own career, they always put the needs of the organization’s before their own.
An overemphasis on their individual readiness and career growth without clarity on how they would achieve organizational growth is inconsistent and incomplete.
Most people focused organization’s should already know who their Hi-Po’s are
Organization’s with robust people and talent processes should already know who their current high potentials are. Your current high potentials will be vocal and visible.
The key objective of any good high potential program is to identify the “Shy-Po’s” – those hidden and under-represented pools of talent who may be less visible.
Define Your Purpose.
Clearly Articulate your Objectives and Outcomes from Talent Identification Processes
Potential
Po.ten.tial
- Capable of being but not yet in existence
- Latent
- Having possibility, capability
- An inherent ability or capacity for growth, development, or coming into being
–
Merriam Webster Dictionary
The very definition of potential helps us appreciate that assessing human behavior is complex, especially when we are seeking to identify future talent.
It requires a multi-faceted approach to identifying potential. It is absolutely critical to ensure that the assessment criteria and program objectives are clearly articulated before starting any talent assessment project.
- Potential to be effective in a specific role?
- Potential to be effective in a particular function?
- Potential to be effective at a particular level?
- Potential to take up future leadership roles?
- Potential to move up the organizational hierarchy in an accelerated timeframe?
- Potential to manage complexity and lead transformations?
Defining High Potential.
At Mercer Talent Enterprise, we define high potential leaders as those who have the innate talent as well as the future capacity to exponentially impact the success of their organization. They are ‘role models’ and ‘force multipliers’ raising the bar for others, and particularly for their direct reports.
A high potential employee is someone with the ability, engagement, and aspiration to rise to and succeed in more senior and critical positions
High potential is defined concretely as your capacity to step into a role that is two levels or more above the one you currently hold.
High potentials consistently and significantly outperform their peer groups in a variety of settings and circumstances. While achieving these superior levels of performance, they exhibit behaviors that reflect their company’s culture and values in an exemplary manner.
Moreover, they show a strong capacity to grow and succeed throughout their careers within an organization – more quickly and effectively than their peer groups do.
- High Potential Talent:
- Think beyond themselves, positively impact others
- Deeply care about the organization, demonstrate enterprise leadership
- Willing to make career concessions in the short term, for the best interest of the team or organization
Introducing our Framework on High Potential Identification
Based on research by Mercer Talent Enterprise, assessment of future potential is complex and multi-faceted, and requires a multi-modal approach to ensure that the process is objective, robust and future-proofed.
We define high potential leaders as those who have the innate talent as well as the future capacity to exponentially impact the success of their organization.
Our Research on Critical Strengths and Behaviors Demonstrated by High Potential Leaders.
Based on our research and analysis of data from 12,165 managers and leaders from 2020 to 2024, representing a global workforce of over half a million employees, Mercer Talent Enterprise has identified critical individual behaviors and attributes that predict high potential leaders and high performing teams.
(Source: Mercer Talent Enterprise data, May 2024)
58%
higher growth mindset
50%
greater resilience in dealing with setbacks and challenge
63%
higher efficacy and a personal agency to get things done
58%
higher growth mindset
50%
greater resilience in dealing with setbacks and challenges
63%
higher efficacy and a personal agency to get things done
High Potential
Leaders Step Up.
- Demonstrates four times higher levels of accountability than others
- Have 37% higher efficacy and a personal sense of agency to get things done
- Demonstrates more agility than the rest (54% compared to 39%)
- Differ from others by 23% in having a growth mindset, which is one of the highest predictors of high potentials
- Have 25% more empathy, another critical predictor for future leaders
- Showcases a higher sense of collaboration than others (75% versus 60%)
High Potential Leaders Focus on Others.
High Potential Leaders Are Resilient.
- Have 22% greater resilience in dealing with setbacks and challenges compared to the rest
- Showcases 18% more optimism than others
- Demonstrates 26% higher comfort with ambiguity
- Have significantly higher purpose at 91%
- Are driven by a sense of right and wrong, i.e. congruence (79% versus 64%), one of the most critical predictors of high potential talent
- Believe that their personal values should align with their organization (90% versus 79%)
High Potential Leaders Are Purpose Driven.
High Potential Leaders Are Committed.
- Showcases a high level of energy at 87%
- Are willing to go above and beyond their day to day job, i.e. contribution, at 87%
- Demonstrates a higher level of perspective (71% versus 57%)
Walkthrough of Assessment Tools for High Potential Identification.
Tools may vary based on the level of seniority, project purpose as well as the client requirements.
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High potential talent assessment is a complex and multi-faceted process, which should include assessment of both innate and demonstrated potential.Mercer Talent Enterprise’s proprietary approach to talent assessment is based on a best-in-class mixed methods, multi-modal approach established through extensive research and data insights |  POTENTIALSCORE | |||
SHAPELeadership Level(6 – 8 Hours) | Raven’s APM III | The Thriving Index® (TI)
Leadership Derailer Index® (LDI) | Work Perspective Index® (WPI)Alignment Perspective Index® | 1-1 Executive Assessment360 / Multi-Rater, Case Study, Role Play, In-Depth Behavioral Interview etc. |
GUIDEExperienced Manager Level(6 – 8 Hours) | AGILE L2 | The Thriving Index® (TI)
Leadership Derailer Index® (LDI) | Work Perspective Index® (WPI)Alignment Perspective Index® | 2-4 Executive Assessment360 / Multi-Rater, Case Study, Role Play, In-Depth Behavioral Interview etc. |
APPLYIndividual Contributor Level(4 – 6 Hours) | AGILE L1 | The Thriving Index® (TI) | Work Perspective Index® (WPI)Alignment Perspective Index® | 2-4 Executive Assessment360 / Multi-Rater, Case Study, Role Play, In-Depth Behavioral Interview etc. |
HIGH POTENTIAL OUTCOMES.
