Knowing the difference between these two groups can help you create a stronger foundation for the future of your business. It takes more than past performance to identify who has the most potential to rise through your company ranks and eventually join your C-suite.
Key takeaways
- Not all top performers are future leaders—and that’s okay.
- High-potential employees drive innovation and team success.
- Balancing high performers and high-potential employees strengthens your team.
Organizations all require a blend of high-potential employees who can be their future leaders and high-performing employees who exceed expectations in their roles. Company leaders generally assume that high performers embody key characteristics of high-potential employees, but that assumption often leads to costly mistakes or poor hiring outcomes for critical leadership roles at the lower, middle, and upper levels.
It takes more than a positive attitude, individual performance, or strong work ethic to show high leadership potential and rise through the company ranks to eventually join the C-suite. It requires organizational leaders that can both spot—and get the most out of—top-performing and high-potential talent to take their organization into the future.
How to identify high-performer employees
How to identify high-potential employees
How to build a team of high-potential employees and high-performer employees
Frequently asked questions
How to identify high-performer employees
All high performers have the key traits needed to succeed in their current roles. They all have the ability to exceed key performance indicators with minimal supervision. But not every high performer can translate their high-quality work into more complex, critical, or influential leadership skills, whereas their high-potential colleagues can.
High performers often drive business results, bringing a strong sense of self-awareness that can improve company culture and help other employees succeed. But high performers may lack the career goals or soft skills necessary to take on a leadership role. High-potential employees, however, thrive on such a challenge. They enjoy building strong relationships and the problem solving that comes with it. Here are three examples of high performers who should be valued for their productivity but may not necessarily have the most potential to be your company’s next-generation leaders.
Inside sales representatives
People in this role, early in their career cycle, consistently meets sales quotas and take initiative to learn new skills, making them top performers. Yet they often struggle with company culture and team performance, don’t prioritize positive relationships, and can easily get rattled under pressure. While they contribute to business results, they may not have the leadership skills or emotional intelligence needed for a leadership role.
Compliance managers
These midcareer professionals have a deep understanding of compliance. They successfully lead a small team and take on extra projects that drive continuous improvements. Yet they prefer working independently, struggle with effective communication, and can be argumentative, which impacts overall team performance. While their expertise and strong work ethic make them an asset, their leadership potential for overseeing a larger team is limited.
Controllers
Individuals in these roles manage globally distributed teams and key performance indicators with minimal supervision, and they deliver high-quality work that exceeds expectations. Despite their consistent effort and strong relationships within the organization, they often avoid presenting to executives, struggle with constructive criticism, and have little interest in further professional development. As trusted direct reports, they are invaluable resources. But they may not be the right fit for a chief financial officer (CFO) succession plan.
How to identify high-potential employees
Now that you’ve seen some of the key red flags signaling employees who are strictly high performers, it’s time to learn how to identify high-potential ones. Gartner, a research and consulting firm, defines a high-potential employee as someone with the ability, engagement, and aspiration to rise to and succeed in more senior, critical positions. These traits apply whether you’re searching for a CFO, another C-level executive, a midlevel manager, or a team supervisor.
According to Bryq, a human resources talent intelligence platform, there are five key traits to look for in identifying high potential employees—some of which don’t show up on lists of traditional leadership skills or performance reviews.
Ambition and motivation
High-potential employees aren’t just looking to do their jobs well. They’re eager to grow, take on bigger challenges, and push themselves beyond their current roles. They don’t wait for opportunities—they go after them.
Ability to learn and adapt
High-potential employees can pick things up fast and adjust quickly when they change. Whether it’s a new skill, a shift in strategy, or an unexpected challenge, they figure it out and keep moving forward.
Emotional intelligence.
High-potential employees know how to read the room, manage their emotions, and are skilled at handling tough conversations with confidence. Their ability to develop talent and influence others makes them natural leaders.
Strategic thinking
High-potential employees don’t just focus on their day-to-day tasks—they see the bigger picture and consider it when they think about their long-term goals. They understand where the company is headed and help drive it in the right direction.
Resilience
When things don’t go as planned, high-potential employees don’t get stuck—they learn, adjust, and keep going. They remain calm under pressure and bring a problem-solving mindset to every challenge.
James Intagliata, Ph.D., a partner and senior advisor with ghSMART, says high potential stems from three psychological quotients, which his team highlighted in the Harvard Business Review. First is the cognitive quotient—how they can use their intelligence to see the big picture, anticipate what-if scenarios, and make the best decisions for a given scenario. Second is the drive quotient—or how they apply their energy—to not only maximize their own performance but also develop and leverage the capabilities of other team members. Last is the emotional quotient, or how they engage with others to make an impact and provide constructive feedback with courage and empathy—another trait of high-potential employees.
How to build a team of high-potential employees and high-performer employees
It’s common for organizations to have a limited budget to internally develop top talent. The best use of development resources is to invest in employees with the greatest potential. This is especially important for private equity and venture capital firms looking to maximize their investments in a short timeframe.
For example, imagine a private equity firm acquires a founder-led company. The investors need to assess the talent of the inherited staff to determine who has both the skills and the institutional knowledge to execute their investment thesis. Some employees will be the high performers who will keep operations running smoothly, maintaining revenues and regulatory compliance. However, long-term success also requires high-potential employees who can embrace new challenges, modernize processes, and implement strategies—even in unpredictable environments.
Invest in the right talent for long-term success
Failing to identify high-potential employees can lead to costly hiring mistakes and wasted development opportunities. By balancing top performers with future leaders, organizations create a strong foundation for sustainable growth. Focus Search Partners helps build balanced teams that grow businesses—contact us today.
Frequently asked questions
Q: What are high-performing employees, and why are they important?
A: High performers excel in their current roles by consistently meeting key performance indicators with minimal supervision. They bring a deep understanding of their responsibilities, contribute to a strong work environment, and help establish employee performance. While they often remain calm and deliver results, they may not have the leadership skills or long-term career goals required for higher-level roles.
Q: What are high-potential employees, and why are they important?
A: High-potential employees go beyond excelling in their roles—they demonstrate effective communication, adaptability, and strategic thinking. They can translate complex challenges into innovative solutions while guiding others. By offering different perspectives and investing in the development of their teams, they contribute to their team’s success—and put themselves in a position to be a future leader in the organization.
Q: Why is building a team of high-potential employees and high-performance employees important?
A: A strong team needs both high performers—who ensure stability and operational success—and high-potential employees—who bring a deep understanding of leadership and long-term growth. Balancing both types of employees creates a well-rounded work environment that encourages different perspectives and establishes a level of consistent effort towards organizational success.