Companies Are Bad at Identifying High-Potential Employees [Archive.org URL]

A high-potential employee is usually in the top 5% of employees in an organization. These people are thought to be the organization’s most capable, most motivated, and most likely to ascend to positions of responsibility and power. To help these employees prepare for leadership roles in a thoughtful, efficient manner, companies often institute formal high-potential (HIPO) programs. And yet, according to our data, more than 40% of individuals in HIPO programs may not belong there. So how were these individuals chosen?

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