How Much Stock Should an Organization Place on Potential?

Individuals with strong potential need appropriate nurturing for it to fully develop.

This article was first published June 22, 2022, by HR Daily Advisor, a sibling publication to HealthLeaders.

Movies and TV shows are full of the cliché of the young hotshot [fill in the blank] who comes into the workplace with all the best education and training but little or no real-world experience. In the world of fiction, the plot typically involves the young hotshot driving everyone nuts with their arrogance and know-it-all attitude before finding some humility and learning to bond with and learn from their more experienced colleagues.

In the real world, companies treat employees with a lot of potential and little to no track record in a variety of ways. These employees are often considered to have a lot of “potential,” meaning they could turn out to be a rockstar, but they aren’t there yet. And maybe they never will be.

But organizations and managers often put a great deal of weight on an employee’s potential when making hiring and promotion decisions. Call it being great at picking winners, a good feeling or simply a hunch, organizations regularly make judgment calls about an individual’s likelihood to perform at a higher level than they are currently, through more responsibility, experience, and training.

The Role of 'Potential' and the Importance of Nurturing It

It’s perfectly logical to make such decisions based on potential, particularly in a tight labor market where those who have proven abilities are hot commodities and hard (and expensive) to hire and retain. Individuals with potential, however, may be a diamond in the rough, a way to land a stellar team member with relative ease and frugality.

Unfortunately, individuals with strong potential don’t always turn out as well as hoped. This isn’t necessarily the employee’s fault. Potential must often be nurtured for it to fully develop, and managers who hire or promote someone with strong potential and then neglect them are wasting an opportunity to groom a star performer.

Organizations often identify employees with apparent potential and flag them for recruitment or advancement. But potential without demonstrated results can end up in disappointment, particularly when those with the potential aren’t given the development opportunities and support they need to truly excel.