Corporate Leadership Council's 2012 High Potential and Top Talent ...

Corporate Leadership Council’s 2012 High Potential and Top Talent Survey

April 2012

CLC Human Resources, Corporate Leadership Council © 2011 The Corporate Executive Board Company. All Rights Reserved.

KEY FINDINGS

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Most HIPO Programs Show Room for Improvement: Across all survey participants, few rate HIPO program activities and outcomes as effective or highly effective. No HIPO program activity or outcome received an effectiveness rating of 50% or greater. Identification is the HIPO program activity that is most effective, while Program Evaluation and Broad

Program Impact are in need of the most significant improvement. Asia-Pacific and Europe tend to have HIPO programs that perform more effectively than the rest of the world.

It Pays to Have a Formal HIPO Program: Across all elements of HIPO program activities and outcomes, it is more beneficial to have a formal program

than an informal program. 46% of participants have a formal HIPO program. 24.7% of participants are currently building a formal HIPO program.

Senior-level HIPO Program Oversight Boosts Results: HIPO programs are most effective when managed by an HR Functional Head (i.e., Head of Learning &

Development, Head of Talent Management or Head of Organizational Development). Chief HR Officers (CHROs) are most effective when involved in HIPO calibration exercises, retention efforts,

and mobility initiatives. 59.6% of HIPO programs are managed by either the CHRO or an HR Functional Head.

Your HIPO Program May be Less Effective Than You Think: Formal HIPO program owners and others in the organization who are not directly involved in the program fail

to see eye to eye on all elements of program effectiveness. HIPO program owners may be overestimating their ability to effectively identify HIPOs. Opinions differ on the extent to which HIPO programs improve HIPO retention and HIPO mobility in the

organization – perhaps due to inaccurate or incomplete post-HIPO program tracking methods.


MOST ORGANIZATIONS HAVE OR ARE BUILDING A FORMAL HIPO PROGRAM

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HIPO Program Status Number of responses: 2,064 Question: Which of the following most closely resembles the HIPO program status at your organization?

Over 70% of community participants already have an established HIPO program, or are in the process of building one. These percentages hold true across both the manufacturing and service sectors. Slight variances in HIPO program maturity exist across geographies, with European companies exhibiting the greatest percentage of established and in-progress programs at 79.2%.

I do not know the HIPO program status at my organization,

5.3% My organization has an informal HIPO program,

19.2%

My organization does not yet have a HIPO program,

but is in the process of building one, 24.7%

My organization does not have a HIPO program and we do not have plans to

build one, 4.7%

My organization has a formal HIPO

program, 46.0%


HIPO PROGRAM OWNERS TEND TO BE SENIOR

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HIPO Program Owner Number of responses: 1,850 Question: Please select the choice that most closely describes the position of the person responsible for managing the HIPO program.

The Head of Talent Management is the most common HIPO Program owner, followed by the Head of HR. This senior-level oversight indicates significant importance is placed on the success of programs. These percentages hold true across both the manufacturing and service sectors. L&D leaders and professionals have varied levels of involvement across geographies. HRBPs/HR Generalists take a more active role in Asia-Pacific, Africa, and Latin America, indicating strong partnership with the line. The OD function tends to be less involved in HIPO Programs.

Head of Talent Management,

31.8%

Direct report of Head of

Organizational Development, 3.4%

Other, 4.5% Direct report of

Head of Learning and Development,

4.9% HRBP/HR

Generalist, 5.8%

Head of Organizational

Development, 6.2%

Head of Learning and Development, 8.3%

Direct report of Head of Talent Management, 9.4%

Direct report of Head of HR, 12.3%

Head of HR (i.e., CHRO), 13.3%


PROGRAM OWNERS WEAR MULTIPLE HATS

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Responsibilities in Addition to HIPO Program Number of responses: 2,063 Question: What other responsibilities or activities fall under your purview?

Talent Management, Leadership Development, and Succession Management are most common as supplemental responsibilities across participants. These percentages hold true across both the manufacturing and service sectors. These percentages largely hold true across geographies as well. In North America, there is a strong link between HIPO Program responsibilities and Leadership Development responsibilities. Participants in some emerging markets have a larger role in recruiting, potentially indicating a greater focus on sourcing future leaders.

Talent Management

Leadership Development

Succession Management

Performance Management

Employee Engagement

HR Generalist Responsibilities

Workforce Planning

Recruiting

Overall HR Management

Other

None of the Above

68.5%

67.6%

61.9%

58.8%

54.4%

37.9%

35.5%

33.7%

30.1%

19.0%

11.0%


Previous Current Future

A MIX OF ROLES AND PERSPECTIVES

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HIPO Program Involvement Number of responses: 2,063 Question: What is your primary involvement or role related to your organization’s HIPO program?

Most Community participants are currently involved in HIPO identification, coordinating with HIPOs’ managers and line leaders, and designing and/or delivering HIPO development. Over 50% of participants are currently involved in building a new HIPO Program, or will be in the near future.

I own HIPO program management

I am involved in HIPO identification (surveys or working with the line to identify participants for a

HIPO program)

I design and/or deliver HIPO development

I design and communicate HIPO compensation

I coordinate with HIPOs’ managers and functional leaders in the line

I am a business or functional leader who has HIPOs in my purview

I am involved in building a new HIPO program

I am not very involved in our HIPO Program, but am interested in the topic

35.1%

6.0%

10.5%

6.2%

58.6% 7.6%

5.8%

45.1% 13.8%

3.8%

39.0% 13.4%

3.9%

47.7% 10.1%

2.4%

19.2% 4.6%

5.4%

41.5% 14.1%

2.6%

12.7% 2.1%


HIPO PROGRAM ACTIVITIES AND OUTCOMES DEFINITIONS

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• HIPO Identification: identifying the participants for the HIPO program • HIPO Calibration: ranking and prioritizing HIPO program candidates • HIPO Development: providing training, group projects or other development experiences to the

HIPO program participants • HIPO Mentoring: formal coaching and/or mentoring of HIPOs from senior leaders • HIPO Program Evaluation: assessing the overall effectiveness of the program • Increasing HIPO Engagement: increasing the rational and emotional commitment of the HIPO to

the organization • Increasing HIPO Retention: increasing the likelihood that HIPOs will remain committed to the

organization • Improving Succession Planning: increasing engagement and retention of HIPOs, securing next

generation of senior leader talent bench • Increasing HIPO Mobility in the Organization: HIPO is willing and able to advance in the

organization and take on new roles as needed • Improving HIPO’s Success in Next Role: HIPO is in the 75th percentile of performance or greater in

next role • Broad Program Impact: using the HIPO program to encourage higher performance across the

larger employee population


ROOM FOR IMPROVEMENT ACROSS THE BOARD

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HIPO Program Effectiveness – Top Two Box Score Number of Responses: 1751 Question: How effective is your current HIPO program at each of the following HIPO program activities and outcomes?

Across all survey participants, few rate HIPO program activities and outcomes as effective or highly effective. No HIPO program activity or outcome received an effectiveness rating of 50% or greater. Identification is the HIPO program activity that is most effective, while Program Evaluation and Broad Program Impact are in need of the most significant improvement. Top 2 box score refers to the percentage of respondents who chose Very Effective or Effective on a 7 point scale.

HIPO Identification

HIPO Calibration

HIPO Development

HIPO Mentoring

HIPO Program Evaluation

Increasing HIPO Engagement

Increasing HIPO Retention

Improving Succession Planning

Increasing HIPO Mobility in the Organization

Improving HIPO’s Success in Next Role

Broad Program Impact

41.2%

32.1%

32.6%

20.7%

18.0%

24.8%

27.6%

25.2%

26.3%

22.5%

16.6%


FORMAL PROGRAMS ARE MORE EFFECTIVE

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HIPO Program Effectiveness – Top Two Box Score Number of Responses – Formal Program: 947 Number of Responses – Informal Program: 395 Question: How effective is your current HIPO program at each of the following HIPO program activities and outcomes?

Across all elements of HIPO program activities and outcomes, it is more beneficial to have a formal program than an informal program. HIPO Development, Engagement and Retention get the biggest boost from having a formal program over an informal program. Top 2 box score refers to the percentage of respondents who chose Very Effective or Effective on a 7 point scale.

Formal Program Informal Program

HIPO Identification

HIPO Calibration

HIPO Development

HIPO Mentoring








52.0% 36.0%

41.6% 25.5%

45.4% 22.6%

28.1% 15.2%

26.0% 11.2%

34.8% 16.5%

38.2% 20.3%

32.6% 23.5%

35.4% 21.4%

31.4% 16.9%

23.7% 11.6%


HEADS OF HR FUNCTIONS BOOST PROGRAM IMPACT

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HIPO Program Effectiveness – Top Two Box Score Number of Responses – CHRO: 229 Number of Responses – HR Functional Heads: 807 Number of Responses – Direct Report of HR Function Head: 635 Question: How effective is your current HIPO program at each of the following HIPO program activities and outcomes?

A trend is emerging which might indicate that when HIPO programs are managed by an HR Functional Head (i.e., Head of Learning & Development, Head of Talent Management or Head of Organizational Development), the program is slightly more effective than when owned by the CHRO or a Direct Report of the Functional Head. This data captures both formal and informal HIPO programs. HIPO program elements where the CHRO should be involved include calibration exercises, retention efforts, and mobility initiatives. Top 2 box score refers to the percentage of respondents who chose Very Effective or Effective on a 7 point scale.

HR Functional Heads CHRO Direct Report of HR Function Head

HIPO Identification

HIPO Calibration

HIPO Development

HIPO Mentoring








48.7% 39.4% 41.8%

35.4% 48.7%

29.2% 34.8%

29.3% 33.0%

21.6% 16.0% 21.4%

18.9% 17.8%

17.1% 26.9%

25.7% 21.4%

29.3% 29.3%

25.0% 26.9%

26.1% 22.3%

25.7% 26.5% 26.3%

23.1% 21.6% 21.8%

17.7% 16.7%

15.4%


SOME DIFFERENCES OF OPINION ON EFFECTIVENESS

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HIPO Program Effectiveness – Top Two Box Score Number of Responses – Owner: 442 Number of Responses – Not Involved: 129 Question: How effective is your current HIPO program at each of the following HIPO program activities and outcomes?

Formal HIPO program owners and others in the organization who are not directly involved in the program fail to see eye to eye on all elements of program effectiveness. HIPO program owners may be overestimating their ability to effectively identify HIPOs. HIPO program owners and others in the organization have different opinions on HIPO retention and HIPO mobility in the organization – perhaps due to inaccurate or incomplete post-HIPO program tracking methods. Top 2 box score refers to the percentage of respondents who chose Very Effective or Effective on a 7 point scale. Owner Not Involved

HIPO Identification

HIPO Calibration

HIPO Development

HIPO Mentoring








55.4% 43.8%

44.5% 39.2%

48.4% 46.3%

27.7% 32.5%

28.7% 24.2%

38.3% 33.6%

41.0% 31.4%

32.3% 34.5%

33.4% 44.6%

32.5% 29.4%

25.6% 27.4%


HIPO PROGRAM EFFECTIVENESS: ASIA-PACIFIC

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The Asia-Pacific region has the top effectiveness scores on average across all HIPO program activities and outcomes. Top 2 box score refers to the percentage of respondents who chose Very Effective or Effective on a 7 point scale.

HIPO Identification

HIPO Calibration

HIPO Development

HIPO Mentoring








46.8%

40.2%

36.7%

20.9%

21.2%

30.1%

33.0%

29.7%

34.5%

29.4%

23.8%


HIPO PROGRAM EFFECTIVENESS: EUROPE

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Europe has the second highest effectiveness scores on average across all HIPO program activities and outcomes. Top 2 box score refers to the percentage of respondents who chose Very Effective or Effective on a 7 point scale.

HIPO Identification

HIPO Calibration

HIPO Development

HIPO Mentoring








44.1%

37.0%

43.7%

24.1%

22.0%

28.3%

32.8%

26.6%

27.7%

26.0%

18.8%


HIPO PROGRAM EFFECTIVENESS: LATIN AMERICA

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Latin America has the third highest effectiveness scores on average across all HIPO program activities and outcomes. Top 2 box score refers to the percentage of respondents who chose Very Effective or Effective on a 7 point scale.

HIPO Identification

HIPO Calibration

HIPO Development

HIPO Mentoring








47.4%

36.1%

22.7%

14.4%

16.5%

27.1%

21.9%

24.7%

33.0%

16.8%

14.0%


HIPO PROGRAM EFFECTIVENESS: NORTH AMERICA

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North America has the fourth highest effectiveness scores on average across all HIPO program activities and outcomes. Top 2 box score refers to the percentage of respondents who chose Very Effective or Effective on a 7 point scale.

HIPO Identification

HIPO Calibration

HIPO Development

HIPO Mentoring








39.8%

27.5%

29.5%

22.5%

16.0%

22.7%

27.0%

24.1%

23.7%

20.4%

13.3%


RELATED RESOURCES

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Best practices and performance support resources designed to identify, develop and evaluate High Potential employees, as well as evaluate your HIPO program. Available through a membership in CLC Human Resources.

Assess the effectiveness of your development programs against the key drivers of learning application and performance. The Training Effectiveness Dashboard is a comprehensive survey, benchmarking, and analytics service that examines learning application and performance impact, available through a membership in CLC Learning and Development.

Training Effectiveness Dashboard

High Potential Employee Topic Center


PROFILE OF PARTICIPATING ORGANIZATIONS

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HIPO Community Member Industry Number of responses: 2,064 Question: In which industry are you currently employed?

Survey Demographic Data

Aerospace, 1.7%

Travel/Transportation, 2.4%

Utilities, 2.8% Professional Services, 3.2%

Pharmaceuticals, 3.4%

Government/Non-Profit, 5.2%

Insurance, 5.4%

Retail, 5.6%

Oil & Gas / Mining, 6.3%

Consumer Goods, 7.0%

Manufacturing, 10.0%

Technology, 10.8%

Financial, 12.9%

Other, 14.8%

Leisure, 0.3%

Restaurant, 0.4%

Real Estate, 0.4%

Education, 0.8%

Media, 1.3%

Construction, 1.4%


PROFILE OF PARTICIPATING ORGANIZATIONS

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HIPO Community Member Location Number of responses: 2,064 Question: In which country do you currently reside?


Other, 27.0%

Germany, 2.0%

Singapore, 2.7%

China, 3.6%

South Africa, 3.6%

United Kingdom, 6.0%

United States, 33.2%

Australia, 9.0%

India, 6.4% Canada, 6.3%


PROFILE OF PARTICIPANTS

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HIPO Community Member Level Number of responses: 2,064 Question: Please select the choice that most closely describes your level in the organization.


General Manager (Head of a Business Unit), 2.4%

Entry-level non-management, 4.1%

Other, 4.6%

Division Head / Vice President, 6.0%

First-level management, 7.5%

Mid-level non-management, 15.7%

Functional Head (e.g., CFO, CIO), 2.3%

Senior Vice President, 1.7% President / CEO,

0.2%

Executive Vice President, 0.3%

Mid-level Management, 28.7%

Department / Unit Manager / Director, 26.4%


HIPO PROGRAM EFFECTIVENESS: REST OF THE WORLD

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HIPO Program Effectiveness – Top Two Box Score Question: How effective is your current HIPO program at each of the following HIPO program activities and outcomes?

HIPO Program Effectiveness Top 2 box score refers to the percentage of respondents who chose Very Effective or Effective on a 7 point scale.

Africa (n=81)

Eastern Europe (n=18)

ANZ (n=174)

Middle East (n=50)

Identification 40.7% 27.8% 29.9% 38.0%

Calibration 33.8% 27.8% 25.4% 22.0%

Development 27.5% 22.2% 25.1% 30.0%

Mentoring 22.5% 11.1% 12.8% 14.3%

Program Evaluation 15.0% 16.7% 14.7% 16.0%

Engagement 21.5% 33.3% 20.5% 6.0%

Retention 18.5% 27.8% 19.4% 20.4%

Succession Planning 25.0% 16.7% 23.7% 10.0%

Mobility 21.3% 33.3% 19.2% 14.0%

Next Role Success 22.5% 22.2% 15.8% 18.0%

Program Impact 15.2% 22.2% 14.6% 10.0%

CORPORATE EXECUTIVE BOARD

WWW.EXECUTIVEBOARD.COM

NOTE TO MEMBERS This project was researched and written to fulfill the research request of several members of The Corporate Executive Board Company and as a result may not satisfy the information needs of all member companies. The Corporate Executive Board Company encourages members who have additional questions about this topic to contact the Member Support Center at [email protected] for further discussion. The views expressed herein by third-party sources do not necessarily reflect the policies of the organizations they represent. PROFESSIONAL SERVICES NOTE CLC Human Resources has worked to ensure the accuracy of the information it provides to its members. This project relies upon data obtained from many sources, however, and CLC Human Resources cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, CLC Human Resources is not engaged in rendering legal, accounting, or other professional services. Its projects should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither The Corporate Executive Board Company nor its programs are responsible for any claims or losses that may arise from any errors or omissions in their reports, whether caused by The Corporate Executive Board Company or its sources.

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