Many employers are still using gut instinct rather than evidence when deciding which staff to invest in as future leaders, according to new international research on high-potential talent programmes.
Conducted by talent assessment firm Talogy, the study gathered responses from more than 1,000 HR professionals, business leaders and employees identified as high potential. It found widespread reliance on manager opinion and performance reviews, with relatively few organisations using structured, data-led methods.
Talogy said this approach risked bias and inconsistency, reducing the accuracy of talent decisions at a time when many organisations are seeking to build stronger leadership pipelines.
Subjectivity still drives selection
According to the study, 91 percent of HR professionals and 88 percent of business leaders used performance ratings and manager recommendations as their main ways of identifying high-potential staff. Only 45 percent of HR respondents and 30 percent of leaders used psychometric assessments, which the researchers described as the most reliable way to measure attributes such as reasoning, motivation and behaviour in a consistent, evidence-based manner.
Dan Hughes, senior director of research and development at Talogy, said the results showed a need for more rigour in how high-potential talent was identified. “This is one of the most critical takeaways from our research,” he said. “Organisations are investing significant time and resources into HiPo (High-Potential) programs, but are often using methods such as manager recommendations and performance ratings, which can be prone to subjectivity, to identify talent.
“While these approaches can provide valuable perspectives, they also highlight the need for more comprehensive and reliable identification, combining these existing methods with rigorous, science-based assessments to more accurately pinpoint high-potential talent who can be significant drivers of their organisation’s future success.”
The report found that 70 percent of employers had developed their own definitions of what “high potential” means, yet most measured outcomes only by promotion rates rather than tangible business performance. Despite this limited evaluation, 79 percent of HR professionals and 72 percent of leaders rated their programmes effective.
Motivation and retention linked to recognition
The study found that recognition as a high-potential employee often boosted commitment and motivation. More than half of those identified said the designation made them more engaged with their employer, and 67 percent said it influenced their career goals.
However, Talogy warned that without consistent development opportunities, those gains could quickly disappear. Mentoring and coaching were the most common development activities, used by 83 percent of HR respondents, but only 38 percent offered e-learning and even fewer used job shadowing or cross-departmental training.
Hughes said employers needed to match fair identification with structured development. “To truly harness the boost in motivation that comes from being identified as HiPo, organisations must move beyond informal practices and implement structured, science-backed tools with meaningful development opportunities that ensure fair identification and support targeted development,” he said.
“By closing this gap and putting engaging and impactful development programs in place alongside fair, predictive, and scalable assessment strategies, organisations can maximise the potential of their top talent and reap long-term benefits.”
Building stronger leadership pipelines
Talogy said the findings showed how greater use of structured assessment could improve both fairness and accuracy in selecting future leaders. Such assessments use standardised, evidence-based tools — including psychometrics and situational tests — to measure potential objectively and reduce the influence of bias or personal opinion.
Talogy chief executive Russ Becker said organisations needed to prepare for growing complexity in the workplace. “In today’s work environment, shaped by rapid change, evolving skill demands and increasing role complexity, organisations are being challenged to do more with less and stay lean. That’s why high-potential programs are more important than ever for companies that want to stay ahead and build a workforce ready for the future.”
The study concluded that while most organisations recognised the importance of developing high-potential staff, many lacked the structure to do it effectively. Introducing more rigorous assessment, clear development pathways and consistent evaluation could help employers identify a broader range of future leaders and improve long-term performance.
The research, conducted earlier this year, combined a review of scientific literature with international surveys of HR professionals, business leaders and high-potential employees across multiple industries. It also included focus groups with Talogy consultants specialising in leadership and assessment.
