Despite growing investment in high-potential (HiPo) programs, many organizations are still relying on subjective methods to identify future leaders, according to new research from Talogy, a global talent management firm. The findings suggest that while companies are committed to developing top talent, their reliance on manager recommendations and performance ratings leaves room for bias and limits predictive accuracy.
The global study, surveying over 1,000 professionals and consulting experts, revealed that 70% of organizations have a customized HiPo definition. Yet 91% of HR professionals and 88% of business leaders still rely on performance ratings or manager judgment to select talent. Only 45% of HR leaders and 30% of business leaders incorporate psychometric assessments, the most structured and scientifically validated method for identifying high-potential employees.
“This is one of the most critical takeaways from our research,” said Dan Hughes, Senior Director of R&D at Talogy. “Organizations are investing significant resources into HiPo programs but often rely on subjective methods prone to bias. Combining traditional approaches with science-backed assessments can more accurately identify talent capable of driving future success.”
Motivation vs. Development Gap
HiPo programs clearly boost engagement. Over 50% of identified HiPo employees report increased commitment to their employer, and 67% say the recognition has influenced their career goals. However, the impact is fragile if development is inconsistent. While mentoring and coaching are common, cross-functional training, job shadowing, and e-learning remain underused: 83% of HR professionals list mentoring as the most frequent development method, compared to only 38% for e-learning.
Hughes added, “To harness the motivational boost of HiPo recognition, organizations must move beyond informal practices. Structured, science-based tools and meaningful development opportunities are essential for fair identification and targeted growth.”
A Future-Ready Talent Pipeline
Talogy emphasizes that HiPo programs are more critical than ever in today’s fast-changing work environment. CEO Russ Becker noted, “Rapid change, evolving skill demands, and increasing role complexity challenge organizations to do more with less. High-potential programs help companies stay ahead and build a workforce ready for the future.”
The 2025 study employed a three-pronged methodology:
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Rapid evidence assessment of independent scientific literature
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Surveys of international HR professionals, leaders, and HiPo employees
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Focus groups with Talogy HiPo experts
By triangulating insights from HR, leadership, and employees, the research provides a balanced view of current HiPo program strengths and gaps, highlighting the need for predictive, scalable, and fair talent assessment combined with impactful development.
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