Published April 2, 2024

Estimated read time: 5 minutes

How do High Potential Employees Contribute to Company Growth?

High-potential employees, also known as HiPos, are individuals within an organization who are identified as having the potential to succeed in more senior roles and make significant contributions to the organization's long-term success. They are typically high performers who consistently exceed expectations, display leadership qualities, and demonstrate a desire to learn, grow, and take on new challenges. High-potential employees may also possess specialized skills, knowledge, and expertise that are valuable to the organization. Organizations often invest in developing and retaining high-potential employees to groom them for future leadership positions and ensure their continued success within the company.

How to identify High Potential Employees?

Identifying high-potential employees is crucial for the success of any organization since these are the employees who have the potential to grow and make significant contributions to the company's success in the long term. Here are some strategies that can help you identify high-potential employees:

1. Performance: Look at employees who consistently perform at a high level, exceed their targets, and consistently deliver high-quality work.

2. Leadership potential: Observe employees who display natural leadership abilities, take initiative, and motivate their colleagues.

3. Learning agility: Identify employees who have a thirst for learning and are eager to take on new challenges. They should have the ability to adapt to changes and be able to learn quickly.

4. Innovation and creativity: Look for employees who are not afraid to take risks, generate new ideas, and find creative solutions to problems.

5. Collaboration: Identify employees who work well with others, have excellent communication skills, and are willing to support their colleagues.

6. Career aspirations: Consider employees who have expressed a desire to progress within the company and have demonstrated the ambition and commitment to achieve their career goals.

7. Feedback: Seek feedback from supervisors, colleagues, and other stakeholders about employee performance, behavior, and potential.

It's important to note that high-potential employees are not necessarily those with the most experience or the highest levels of education. It's about finding those individuals who have the right mindset, abilities, and aspirations to succeed and grow within your organization.

Why should employers invest in HiPos?

According to a study by Bersin by Deloitte, high potential employees are 91% more valuable to organizations than non-high potential employees and another study by the Harvard Business Review found that high potential employees generate 25% more revenue for their organizations than non-high potential employees.

Hence, employers should invest in and retain high-potential employees for many reasons and some of them are:

1. Future leaders: High-potential employees have the potential to become future leaders of the organization. By investing in their development, employers can groom them to take on leadership roles, ensuring the long-term success of the organization.

2. Increased productivity: High-potential employees are often highly motivated and engaged, which translates into increased productivity and better performance. 

The Global Leadership Forecast 2018 found that high potential employees are 3.5 times more likely to be engaged in their work than non-high potential employees.

3. Knowledge retention: High-potential employees tend to have specialized knowledge and expertise that are valuable to the organization. By retaining them, the organization can retain this knowledge and expertise.

4. Reduced turnover costs: Turnover costs can be significant for organizations. Retaining high-potential employees reduces these costs, as it eliminates the need to recruit, hire, and train new employees.

5. Competitive advantage: High-potential employees can provide a competitive advantage for the organization. They are often innovative, creative, and have the ability to think outside the box, which can help the organization stay ahead of the competition.

6. Positive culture: Retaining high-potential employees can help create a positive culture within the organization. These employees are often highly engaged and motivated, which can inspire their colleagues and improve overall morale.

Overall, investing in and retaining high-potential employees is essential for the long-term success of any organization. By doing so, employers can ensure that they have the right people in the right positions, which can help drive growth, innovation, and success.

Why coaching for High Potentials?

Research by the Center for Creative Leadership has shown that high potential employees are 50% more likely to be promoted than their peers. Moreover, another report by PwC found that high potential employees are more likely to seek and receive feedback, which helps them improve their performance and progress in their careers. Hence, it is important to give high potential employees the opportunity to progress themselves and reach their true potential.

Some of the many reasons why coaching is important for high-potential employees include:

1. Development: Coaching can help high-potential employees develop the skills, knowledge, and abilities needed to succeed in their current roles and future leadership positions. It can also help them identify areas for improvement and create a plan to address them.

2. Retention: Providing coaching to high-potential employees can help retain them, as it demonstrates the organization's commitment to their development and growth.

3. Engagement: Coaching can increase employee engagement and motivation by providing them with the support they need to succeed in their roles and advance their careers.

4. Performance: Coaching can improve performance by providing high-potential employees with feedback, guidance, and support to help them achieve their goals and objectives.

5. Innovation: Coaching can help high-potential employees develop their creativity and innovation skills, which can lead to new ideas and solutions that benefit the organization.

6. Succession planning: Coaching can help identify and prepare high-potential employees for future leadership roles, ensuring a smooth transition and continuity of leadership within the organization.


In summary, high potential employees are essential for a company’s growth and future. Therefore, identifying them early on and retaining them in the company is beneficial for the future success of the employer. As for the growth and development of HiPos, coaching can be great as it helps employees develop their skills, increase engagement, improve performance, and prepare for future leadership roles. It can also help organizations retain top talent and stay competitive in the marketplace.