High Potential vs. High Performance
“My peer just got promoted into an awesome job I was sure would be mine. I get such great feedback from management, so why am I getting passed over?”
I got this question a lot in my HR days. So many factors come into play: company culture, talent planning, manager skills. But there’s another metric that can determine an employee’s trajectory before she ever learns the business, and that’s potential vs. performance.
Potential is an employee’s ability to move up the company ladder. It’s about what you can do (ability to achieve results), now and in the future, and how you get work done (leadership behaviors and actions). Potential typically does not fluctuate every year as a performance rating might, but it can change over time as company needs, peer performance, and succession planning evolve. Some companies use the term “high potential” to identify a very small subset of employees who possess standout leadership or technical skills that position them as likely candidates for key top-level roles
Performance is all about whether the employee achieves the results or goals assigned to them. Performance can change from year to year depending on the work you’ve been asked to do and how well you met your goals. Just like potential, most companies evaluate performance through the lens of what you accomplished and how you got it done. High performers can excel in a variety of roles with a variety of leaders. Think of high performers as really awesome utility players.
You can get great feedback and very high performance ratings but still not be the first (or second) person promoted to the next level. It could be that the big role you wanted has gone to someone else because they are considered high potential, and the promotion is preparing them for future roles. This doesn’t mean you will never be promoted, especially if you’ve gotten feedback that suggests you’re a high performer. But it can give you some insight into why you didn’t get chosen for a particular role.
High potential is not better than high performer, and vice versa. It really depends on what you’re looking for in your career. What are your professional goals and what do you need from your organization to achieve those goals? (Some employees don’t even want the higher-level job; they just want to be asked before anyone else.) It can be hard to digest that someone else is considered a stronger candidate for higher levels than you; ego gets us every time. Remember: Whether you’re high potential or high performing, you’re likely part of a small group of key employees. Both can be very rewarding.
High potential is not better than high performer, and vice versa.
It really depends on what you’re looking for in your career.
Every company has its own set of critical skills for success at more senior levels. Your key strengths may not be the ones most needed for your organization to achieve current and future goals. And make no mistake, sometimes those critical skills change and evolve. What makes one person high potential and another high performing could really rest in how their skills align with what the company needs.
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Of course, not every company uses these precise terms. Some companies may not even have a team of people working on talent and succession planning. But it’s an important distinction for two reasons:
- For employees: You need to know where you stand as it relates to your professional goals. Ensuring you and your company are aligned can be key to engagement and success. It’s just as important for you to be transparent about your needs as it is for companies to be transparent about their plans. Just remember that business evolves and things can change, and you may not always hear what you want to hear. Respect the transparency and make the call that’s right for you.
- For leaders: Transparency around promotion principles and practices can spare you and your employees unnecessary worry and angst. Let people know where they stand. Understand individual employee goals and be courageous if your plans are different from theirs. Honesty and trust build respect—even when the outcome is not what you wanted.
Stephanie Pierce is founder of KJP Consulting, a leadership development firm, and stephpierce.com, a community of diverse women inspiring each other to do the work they love. She co-hosts the podcast Her Next Chapter.
