Should you tell employees they have high potential in your business?

Whether or not to tell high potential employees of their status is a highly contentious issue in Human Resources, with valid arguments for and against. One thing we can all agree on is that they should be identified early and nurtured effectively, as developing leaders of the future is important for building competitive advantage. 

So the questions is “to tell or not to tell?” After all, these individuals will need to receive specialist coaching and mentoring to accelerate their development. Here are some of the arguments for and against.

Don’t Tell

Ever heard of the “haves,” the “almosts” and the “have-nots?” This is a divisive class system that causes resentment and demotivation, created through identifying high potential individuals, and it can play havoc with organisational culture.

As well as receiving resentment from their peers, high potential employees who know they are being considered for future promotions can cause other problems. For instance, it’s not unheard of for these individuals to adopt elite status or make assumptions about promotions with unsupported expectations.

This is why some HR Managers choose not to tell high potential employees that they are earmarked, especially if their future roles and the criteria are at all unclear. Instead they draw the conclusion the high potential employees usually know that they are outperforming their peers, whether they are officially told or not.

Do Tell

The problem with “don’t tell” is that quite often it’s obvious to everyone who the high potential employees are, and a lack of communication can create an imbalance and invite accusations of preferential treatment.

As Steve Newhall writes in HR Magazine, “these are the individuals who leave for month-long general manager programmes, get to play golf with the visiting senior executives from corporate, or are extended invitations to the corporate strategy meeting. More importantly, these are the individuals who are given rapid promotions or the juiciest assignments. Everyone knows, but they don’t know why, and their preferred treatment is often therefore viewed as unfair and inequitable, leading to a culture of rumour-driven whispering.”

Another reason to tell high potential employees of their status is so that they are encouraged to grow into new positions and stay with the company, rather than looking elsewhere. High potential employees are usually ambitious and driven by self-development opportunities, so it’s important to communicate your plans with them and show them a clear path for progression.

What I Think

At Viva, we believe in opening up a clear and transparent dialogue with high potentials. They need to know that you value their contributions to the organisation enough to invest in their future development.

It’s important to approach this in a way that encourages greater responsibilities without awarding elite status or fast-track promotions. Your high potentials should be aware that whilst they are being invested in, there are no guarantees without hard work and dedication.  

With our talent management and high potential development services, Viva Talent can help HR Departments map out transparent succession management processes. We can offer you the tools to create talent frameworks and support employee development. To find out more, please contact us.