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What Is High Potential Program?

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Last updated on 3 min read

A High Potential Program (HiPo) is a structured talent-management system designed to identify and develop the top 5% of employees who demonstrate both exceptional capability and a strong desire for increased responsibility and upward mobility.

What's happening here?

High-potential programs are structured systems that identify employees in the top 5% who show both outstanding capability and a clear desire to assume more responsibility.

These aren’t your typical high-performance initiatives. HiPo programs look beyond current excellence—they hunt for people hungry for authority, eager to stretch their influence, and ready to climb the career ladder. To separate true high potentials from high performers who’re perfectly happy right where they are, companies use tools like 360-degree feedback, performance scores, and career aspiration surveys. According to the Society for Human Resource Management, organizations that nail down clear HiPo criteria cut unwanted turnover by 14% and beef up their leadership bench. Gartner’s research backs this up too, showing companies with solid HiPo programs boast 22% stronger leadership pipelines than those flying blind.

How do you actually set one up?

To implement a High Potential Program, log into your HRIS (like Workday 2026 R4 or SAP SuccessFactors 2405), create a new talent pool called “HiPo 2027,” apply the right assessment filters, and run the HiPo Identification Algorithm.

  1. First, log into your HRIS and head to Talent → Talent Pools → Create New Pool.
  2. Name this pool “HiPo 2027” and set visibility to “Leadership Team” so senior leaders can actually see it.
  3. Next, plug in these filters under Assessment Criteria:
    • Leadership-360 completion after January 1, 2025
    • Performance rating of at least 4.3/5 in the last two review cycles
    • “Leadership Aspiration” flag set to TRUE
    • “Risk of Flight” score no higher than 2.0 (using the Flight-Risk Model v3.2)
  4. Finally, run the HiPo Identification Algorithm and export the list to CSV for leadership review and approval within five business days.

What if it doesn’t catch enough people?

If the HiPo algorithm flags fewer than 3% of employees, raise the performance bar to 4.4–4.5, manually fix false positives, or swap the Flight-Risk Model for something like TalentGuard Predictive Index.

  • When fewer than 3% of employees get flagged, bump the performance threshold up a bit (think 4.4 or 4.5) to tighten the net.
  • Then, manually review false positives—people tagged as HiPo who’ve actually turned down promotions—and flip their “Leadership Aspiration” flag in the HRIS.
  • If the Flight-Risk Model v3.2 isn’t available in your area, try the TalentGuard Predictive Index instead, using the same thresholds to keep things consistent.

How do you keep it running smoothly?

To maintain an effective High Potential Program, refresh assessments every year, adjust performance thresholds twice a year, and review HiPo overrides each quarter to keep things fair and accurate.

ActionFrequencyOwner
Refresh the Leadership-360 surveyAnnually in Q4HR Business Partner
Adjust performance thresholds against industry benchmarksTwice a yearCompensation Lead
Review HiPo overrides to check for fairnessEvery quarterDEI Council

Regular tweaks and fairness checks keep the program on track and cut down on bias, says the Society for Human Resource Management. McKinsey’s research even shows companies that audit for bias every quarter hang onto diverse high potentials 3.5 times longer than those that don’t.

Edited and fact-checked by the TechFactsHub editorial team.
David Okonkwo

David Okonkwo holds a PhD in Computer Science and has been reviewing tech products and research tools for over 8 years. He's the person his entire department calls when their software breaks, and he's surprisingly okay with that.