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      How to use the Insights Report: Potential to Progress

      Supplementary guidance

      1. What is potential & why is it important?

      Potential can be defined as an individual’s ability to progress to a more complex or senior role in the future, delivering more for the organisation by handling increasingly challenging responsibilities. Individuals with high potential are therefore very valuable, as they are likely to deliver exponentially more for the businesses in which they work. Indeed, figures show that across a range of organisations and industries, the top 1% of performers often account for 10% of productivity, producing 400% more output than would be expected of them (O’Boyle & Aguinis, 2012). High-performing employees are also likely to positively influence those around them, inspiring them to act similarly and thus improving performance across the wider team (Li et al., 2015). Unsurprisingly, therefore, research has elucidated that investment in the development of high-potential individuals can lead to good returns for organisations. For example, leadership development may be improved by effective training (Collins & Holton, 2004), which is in turn a key factor in corporate success (Salas et al., 2012). Additionally, the ability to identify employee potential is viewed to be critical for meeting future business requirements (People Measures, n.d.). However, despite such findings, research has delineated that a vast number of HR professionals believe they do not have effective processes in place to identify individuals with high potential (Karakowsky & Kotlyar, 2012). So, how many organisations measure this?

       

      2. How do we measure potential?

      High-potential individuals tend to exhibit three core qualities, which have been identified through several reviews and studies (e.g., Chamorro-Premuzic et al., 2017; People Measures, n.d.).

      Ability

      The first of these qualities may be broadly defined as ‘ability’, which assesses an individual’s capability to perform in their role. As it is not possible to know exactly which capabilities will be needed in future roles, when measuring potential, the focus instead should be on an individual's ability to efficiently acquire new skills. Thus, this quality may be measured through assessments of both general mental ability and personality, whereby the individual should possess traits such as adaptability and creativity which motivate them to perform at an exceptional level.


      Social and emotional skills

      The second of these core qualities may be broadly defined as ‘social and emotional skills’. Across all levels of an organisation, individuals need to possess strong communication skills and work well within a team. However, within more complex and senior roles, these skills are of even greater importance. Individuals in such roles are expected to network effectively; lead and motivate others; navigate tricky political situations; and manage relationships with a wide range of stakeholders. They must also be good listeners and possess the ability to correctly interpret body language, effectively reading between the lines to manage situations correctly. Through the use of personality assessments, organisations can identify individuals with strong social skills, indicating who has the potential to successfully fulfil such roles later in life.


      Drive

      The final of these three core qualities may be broadly defined as ‘drive’. Drive can be defined as an individual’s motivation to succeed, including their level of ambition and desire for future success. This factor indicates whether an individual will continue to work hard and strive for improvement despite already possessing many achievements. Thus, whilst ability and social skills may be classed as the capabilities of high-potential individuals, Drive is the factor which ensures they will put their talents to use. Drive can be measured through personality assessments, enabling organisations to identify which individuals are likely to utilise their full range of ability and social skills at work.

       

      3. Our model of potential

      Our model combines three key areas to measure an individual’s potential to progress:

      • Learning agility
      • Drive
      • Relationships

      Learning agility

      Learning agility captures how well an individual can respond in changing or high-pressure situations. High-potential individuals are likely to demonstrate self-confidence, logical thinking, and a calm demeanour in the face of ambiguity or stress, and should report a preference for innovation in their work.


      Drive

      Drive captures the extent to which an individual aspires to be a high achiever. High-potential individuals should report a preference for taking a purposeful and deliberate approach to their work, whilst utilising new ideas or methods. They should also be able to listen to criticism objectively and approach the future with confidence, focusing on the positives.


      Relationships

      Relationships capture how well an individual can interact with those around them. High-potential individuals are likely to demonstrate a preference for working with others and report that they enjoy working cooperatively. They are also likely to demonstrate a preference for listening to others, whilst maintaining the ability to be persuasive where necessary. By using this model to accurately measure potential to progress, organisations can successfully identify which
      individuals are likely to be their top performers in the future. This makes it possible to strategically invest in the development of these individuals, ultimately adding value to the organisation.

      To see an example of an insights report, click here!

       

      References

      Last Updated: January 2024