High Potentials (HIPO's) are among the most positive employees. According to Sirota’s research, HIPO’s often view their company’s policies, procedures and actions as fair. They rate job autonomy, pay, career and rewards more favorably than other employees; and report feeling more involved with and respected by the company and its leaders.
• Fairness – High Potentials are 14% more favorable than all other employees when considering areas like favoritism (they see less of it) and due process (they see more of it). They are also 8% more favorable when considering how they are treated by the company and their managers.
•Meritocracy – HIPO’s are 12% more favorable than all other employees when considering the linkage between their performance and their economic rewards. They are also 7% more favorable about the non-financial recognition they receive from management.
•Career – HIPO’s are 8% more favorable than all other employees when considering their opportunity to develop in their career and advance their position.
•Autonomy – HIPO’s are 8% more favorable than all other employees when considering the freedom they have to do their job and other job elements.
•Involvement – HIPO’s are 6% more favorable than all other employees when considering whether their management is seeking and then taking action on their ideas (as well as involving them in matters that affect them).
Yet, high performers are more critical today when considering their company’s ability to attract and retain top talent employees and other key elements of their company’s performance and culture.
•Corporate Social Responsibility – High Potentials are 10% less favorable than all other employees when considering how well the company is taking into account the interests of the communities in which it does business. They are also 6% less favorable about how well their leadership (and the company) lives the values in general.
•Attraction/
•Communication – HIPO’s are 8% less favorable than all other employees when considering how well the company is communicating changes in policies, practices and procedures.
•Effectiveness of Company – HIPO’s are 5% less favorable than all other employees when considering whether the company is being effectively managed and well run.
“Programs for High Potentials often seek to involve them in the strategic decision-making, challenge their abilities, develop/advance them quickly, and recognize/reward them generously,”
During a recession, the actions taken by companies can start a process that unintentionally devalues employees (by seeing them as costs to be controlled, rather than assets to be valued). For example, many companies will centralize decision-making, control information, reduce entrepreneurial risk-taking, and reduce (or eliminate) discretionary rewards – and this makes it more likely that high performers will defect. But while the average (or even above average) performer rarely considers leaving their job during a difficult economic period, High Potentials do. Smart companies know this and are willing to go out and hire them right from under an often flabbergasted management.
Yet paradoxically, if the attention given to HIPO’s is too visible, it can further contribute to everyone else feeling devalued in these difficult times. So the issue is how to address the specific concerns of this select group while having minimum impact on the rest of the workforce.
According to Sirota’s research, companies should take the following steps to retain HIPO’s during difficult economic times:
1. Don’t stop focusing on their career development needs. Even in a tough economy, high-potential employees have other opportunities. Consider developing a retention strategy for High Potentials that includes a strong career development focus. Give them special projects and make sure they are taking advantage of training and development opportunities.
2. Re-emphasize corporate values and ethics. “These employees want to believe that the company stands for something special, distinctive”
3. Be transparent. High Potentials are the future leaders of the company, so share as much information as possible with them, for example by inviting them to select briefings with top management. This kind of behavior shows trust. The alternative is leaving them feeling uninvolved and susceptible to outside offers.
4. Continue to reinforce their need for camaraderie. “HIPO’s enjoy being recognized, and want to work with other HIPO’s,” Klein said. “A major concern of these employees is whether or not the company is able to both attract and retain top talent, so working with like-minded employees sharpens that perception.”
5.Do more than just cut costs. High performers are keenly aware of organizational inefficiencies and poor strategy execution; a bad economy only exacerbates these feelings. Cutting costs is a tactic; HIPO’s want to be assured that the leadership is focusing on the longer-term.
6.Involve them in the solutions. “HIPO’s want to make a difference,”
7. Show them they are valued. “With economic rewards often curtailed, it becomes even more important for these employees to feel valued,” Klein said. “Failure to treat them as such will create a resentment that can contribute to their leaving.”
8. Address compensation concerns. While these HIPO’s do understand what difficult times mean, they also want to ensure that it is still in their interests to stay. Companies need to think creatively about what these employees consider rewarding (e.g., deferred rewards, accelerated advancement opportunities)
