Program for high-potential employees be fair and equitable

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Reference no: EM132299477

Chapter – THINKING ETHICALLY SHOULD COMPANIES TELL EMPLOYEES THEY HAVE “HIGH POTENTIAL”?

Employee development programs aimed at meeting future leadership needs typically start by identifying high-potential employees and offering them an opportunity to participate in the program. In so doing, a company is setting apart certain employees for special treatment. What are the consequences of this practice?

For the employees identified as having high potential, the immediate impact of being called high-potential is that they feel valued. They may increase their commitment to the company and want to stick around to contribute more. Their enthusiasm to build on their strengths may translate into fast development of skills in leadership, time management, and decision making. Furthermore, these employees are likely already contributing at a high level, and holding back the information might cause them to think they have a better future elsewhere. Despite these advantages, some managers worry about telling employees they have such high potential, on the grounds that these employees might take the label as permission to coast, feeling secure in their favored status.

Other negatives involve the employees who are left out. When they see that the organization does not consider them to have high potential, they may feel devalued. They may give up on their own development or start looking for a job at a company that will value them more.

Organizations that want to continue leadership development programs can take some steps to minimize the downside of the “high-potential” label. With regard to the high-potential employees, they should emphasize that the designation is more than a signal of high status; it is a challenge to take on greater responsibility and contribute more. The label shouldn’t come with any implied promises about promotions or special status. For the other employees, the company should provide other avenues for development, with the message that employees can increase their potential as they gain skills and experience. For all employees, it is beneficial to have clear, objective standards for how the company measures their potential.

Questions

1. Can a leadership development program for high-potential employees be fair and equitable? If so, how? If not, why not?

2. If the company has identified high-potential employees, should managers tell these employees that they have high potential? Why or why not?

Reference no: EM132299477

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