Identifying High Potential Employees and Great Leaders

Hiring leaders and identifying high potential employees are among the most high-stakes decisions an organization can make. The individuals chosen to lead shape strategy, culture, performance and the future. Their impacts ripple across teams, departments and the entire organization for years to come. 

Yet, despite the critical nature of these decisions, many companies still rely heavily on traditional methods like unstructured interviews, resumes and gut instinct. Research shows that these tools are poor predictors of future success, especially for leadership roles. Interviews, in particular, are highly susceptible to bias and can overlook key indicators of leadership potential such as agility, decision-making and values alignment. 

That’s where leadership assessments come in. These data-driven tools offer a smarter, more objective approach to selecting leaders and identifying high potentials — ones who can drive performance, lead through change and support a healthy culture. By integrating leadership assessments into their talent management strategies, organizations gain a critical tool for effective talent management. 

In short, leadership assessments reduce bias and highlight the capabilities that matter most. They do more than improve hiring and identify high-potential employees. They help companies build a stronger, more sustainable future. In fact, companies with highly effective talent management practices are up to six times more likely to report higher total shareholder returns. By leveraging these assessments, organizations can ensure they are making informed, strategic decisions that will benefit them in the long run. 

From Confirmation to Affinity Bias: The Hidden Biases in Leadership Hiring and High Potential Selection 

Even the most experienced hiring managers and executives are not immune to bias. In fact, some of the most common and subtle forms of bias can significantly distort leadership hiring decisions and high potential identification — especially when those decisions rely on subjective tools like interviews or resumes alone. These biases often go undetected but can have lasting consequences on team performance and overall organizational success. 

Here are a few of the most common types of biases that can cloud judgment during the selection process: 

• Similar-to-me bias: This occurs when decision-makers favor candidates who share similar backgrounds, experiences or characteristics. While it may feel like “cultural fit,” it often results in homogenous leadership teams and limits diversity of thought — hindering innovation and inclusive decision-making. 

• Halo/horn effect: A single trait or impression — positive or negative — overshadows a candidate’s overall qualifications. For example, a candidate with a prestigious degree may receive undue favor despite lacking relevant leadership experience, while someone with an unconventional background might be unfairly overlooked. 

• Affinity bias: This reflects a tendency to prefer candidates who seem likable or relatable — those who "click" on a personal level. While chemistry matters, hiring based on comfort rather than competence can lead to poor performance and missed opportunities for stronger, less familiar candidates. 

• Confirmation bias: Once a first impression is formed, it’s human nature to seek out information that supports that belief and ignore anything that contradicts it. This can lead to reinforcing initial opinions rather than evaluating the full picture objectively. 

At the core of these behaviors is unconscious bias. Unconscious bias is the automatic, often unintentional judgments we make based on factors like cultural and ethnic background, gender, age, socioeconomic status or education. Because these biases operate below the level of awareness, they can be especially dangerous in high-stakes leadership decisions, where a poor hire can carry lasting consequences. Without intentional checks and objective tools, organizations risk choosing the wrong people or overlooking top talent, thereby weakening the company and its leadership pipeline. 

Leadership Hiring and Selection Gone Wrong: The Cost of Bad Choices  

Choosing the wrong leaders and identifying high potential employees with misaligned competencies carry a host of risks and can lead to significant consequences. These include:  

•  Culture misalignment: Leaders who don’t align with an organization’s culture can disrupt team cohesion, create tension and contribute to toxic environments. Misaligned leadership behaviors and competencies can undermine core values and erode the culture companies work hard to build. 

• Turnover and rehiring costs: When leadership appointments fail, the cost is staggering. Research shows that 30% to 70% of leaders fail within the first 18 months of stepping into a new role. Each failed hire can cost the organization hundreds of thousands — sometimes millions — of dollars in recruitment, onboarding and lost productivity. 

• Team disengagement and declining performance: Ineffective leadership quickly impacts morale. Poorly chosen leaders often lack the skills to motivate, coach or inspire teams, resulting in disengagement, higher absenteeism and decreased productivity across departments. 

• Loss of trust in leadership decisions: A pattern of poor leadership choices can erode employee trust in the organization’s judgment and direction. This lack of confidence makes it harder to drive strategic initiatives, implement change or retain top talent. 

• Overlooking hidden high potentials: Perhaps one of the most underestimated risks is missing out on individuals with the right capabilities who don’t fit traditional leadership molds. These overlooked high potentials may bring fresh perspectives, agility and innovation. But without objective tools, they’re often bypassed in favor of more familiar profiles. 

When leadership hiring decisions rely too heavily on instinct or traditional markers of success, organizations risk sacrificing long-term growth, stability and innovation. The cost of getting it wrong isn’t just financial — it’s cultural, strategic and competitive. 

What Are Assessments, and Why Do They Matter? 

High-quality leadership assessments are your key to mitigating bias and the associated risks in hiring and selection decisions. Designed to evaluate various attributes and skills relevant to leadership roles, best-in-class assessments are scientifically validated and supported by research. Typically, they measure cognitive ability, learning agility, decision-making, emotional intelligence, communication skills, values alignment and more. Additionally, good assessments should be scalable, allowing organizations to compare candidates fairly and consistently across geographies and large talent pools. This way, they offer objectivity by removing the guesswork and eliminating decisions based on hunches, feelings and intuition.  

Components of assessments often include:  

• Psychometric testing: These assessments evaluate cognitive abilities, personality traits and psychological attributes, offering a scientific foundation for gauging a candidate's potential and suitability for leadership roles. 

• Behavioral interviews: Conducted by experienced assessors, these interviews delve deeply into a candidate's professional history and behaviors, aiming to reveal patterns, motivations and leadership potential. 

• 360-degree feedback: This approach collects insights from a candidate's colleagues, team members and supervisors, providing a comprehensive perspective on their strengths and areas for development. 

• Simulations: Practical exercises that replicate real-world scenarios leaders might encounter, these simulations assess a candidate's problem-solving skills, decision-making capabilities and leadership style. 

Together, these components integrate into a broader selection process to give a fuller, more accurate, holistic picture of each candidate, ensuring you choose the best-fit candidates for leadership roles and your leadership pipeline.  

Strengthen Your Leadership Pipeline and Hire Smarter with Leadership Assessments  

To sum up, assessments play a pivotal role in improving hiring outcomes and strengthening the leadership pipeline. These objective, data-driven tools help organizations identify leaders with the right capabilities — not just the right resume. By integrating leadership assessments into selection and development processes, organizations gain deeper insight into potential, readiness and fit. 

Beyond better hiring, assessments are also critical for succession planning and future-proofing the business. They ensure organizations are not only filling today’s roles but also identifying high potential employees who can grow into tomorrow’s leadership positions. When leadership decisions are guided by data rather than bias, everyone benefits — from individual leaders to entire teams and stakeholders. 

To stay competitive, organizations must evaluate their current selection processes and ask: Are we truly identifying the best leaders? Implementing a robust assessment strategy helps reduce risk, uncover hidden high potentials free from bias and build a more capable leadership bench — ultimately driving stronger business outcomes now and in the future.