![]() In our view, HiPo interventions should focus on predicting who is likely to become a key driver of organizational performance. Indeed, there is no shortage of leaders who turn A-players into a B-team. In fact, most organizational leaders - and it would be hard to argue that these people have not attained individual success, since they got to the top - don’t have a positive impact on their teams and organizations, with estimates suggesting that at least 1 in 2 leaders cannot engage employees and fail to turn their teams or organizations into high performing machines. In other words, what are the key indicators that signal star potential?Īs academic reviews noted, the first and most important decision that needs to be made in this regard is to decide “potential for what?” Unfortunately, most HiPo interventions focus on individual career success - “potential to move up two roles in five years” is a common definition - but the ability to advance one’s own career does not guarantee that one will make a crucial contribution to the organization. ![]() This begs the question of what highly talented people are like. If we are going to invest in the right employees, the key question concerns who they actually are. No wonder, then, that study after study shows stronger financial performance in companies that make proportionally greater investments in identifying and developing top talent. Simply adding a star performer to a team boosts the effectiveness of other team members by 5-15%. By word and deed, they model and teach winning behaviors that shape high-performing cultures. It is also noteworthy that talented employees are “force multipliers”, raising the performance bar for their colleagues, and particularly for their direct reports. However, for medium complexity jobs, such as trainers or first line sales managers, that difference grows to 85-100%, and for highly complex jobs, such as senior leadership roles, the contribution of top performers is more than double that of the average performer. ![]() For less complex jobs, like manufacturing, top employees outperform average employees by a median margin of about 50%. the top 20% accounts for 80% of organizational outputĬareful research over many jobs and across many organizations in multiple industries highlights a clear pattern: the payoff from employing top talent - defined as the vital few who account for the biggest chunk of organizational output - increases as a function of job complexity.the top 5% accounts for 25%, of organizational output.the top 1% accounts for 10% of organizational output.In line with Pareto’s principle, these studies show that across a wide range of tasks, industries, and organizations, a small proportion of the workforce tends to drive a large proportion of organizational results, such that: Scientific studies have long suggested that investing in the right people will maximize organizations’ returns. An employee’s potential sets the upper limits of his or her development range - the more potential they have, the quicker and cheaper it is to develop them. ![]() After all, as Henry Ford is credited as saying, “the only thing worse than training your employees and having them leave is not training them and having them stay.” In the real world, however, limited budgets force organizations to be much more selective, which explains the growing interest in high potential (HiPo) identification. How inclusive or exclusive should organizations be when developing their employees’ talents? In a world of unlimited resources, organizations would surely invest in everyone. Investing in these individuals will produce the highest ROI for your company. Most organizations could probably upgrade their talent identification processes if they keep things simple and focus on these three generic markers of potential. If we are going to invest in the right employees, how do we find them? What are the key indicators that signal star potential? Research points to three general markers of high potential: 1.) ability (Is the individual able to do the job in question?) 2.) social skills (Can this person establish and maintain cooperative working relationships) and 3.) drive (is this person motivated to work hard, achieve, and do whatever it takes to get the job done?). In a world of unlimited resources, organizations would surely invest in everyone.In the real world, however, limited budgets force organizations to be much more selective, which explains the growing interest in high potential (HiPo) identification. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |