Talent reviews: How to develop high-potential employees

Talent reviews allow business leaders to examine all existing employees and contemplate how they fit into the organization’s talent strategy. While evaluating each individual’s performance and potential takes time, intelligent companies realize the value of the talent review process.

Effective talent reviews take a proactive approach to the future. No business wants to find itself unprepared and uncompetitive down the line. Talent management now ensures an adequate supply of workers with the necessary competencies and a pipeline of future leaders ready to step into important positions when needed.

Why conduct talent reviews?

Each company has its objectives when it comes to performing talent reviews. Clearly defining what you hope to achieve gives the process direction and meaning.

Common reasons organizations undertake a talent review include:

• Succession planning

Company operations may be fine today, but what if a high performer or vital supervisor retires or takes a new role elsewhere? Preparing for such situations well before they happen keeps businesses from suddenly finding themselves in a jam.

Talent reviews help the leadership team determine which staff members could assume such positions. Identifying prospects at an early stage enables sufficient time to gauge interest. Some potential candidates may have other career aspirations and need more interest.

Pinpointing individuals for future roles often boosts employee engagement. Knowing your employer’s long-term interest in your career encourages productivity, satisfaction, and loyalty.

• Nurturing top talent

Companies rely on their superstars. Talent reviews help identify these exceptional employees. Offering them proper recognition and growth opportunities contributes to their retention.

Talent reviews also help identify high-potential employees. While yet to be among the top performers, they show signs of greater capabilities. With proper guidance, training, and support, these workers might excel and even assume leadership roles.

• Targeted development and investment

Companies typically have limited funds for employee development opportunities, so they want to determine the best return on investment.

Talent review results assist in formulating customized development plans. Workers receive training that directly benefits their current role and anticipated future contributions to the company.

• Addressing skills gaps

Remaining competitive requires evolving. Talents valued today may not be the same tomorrow. Employers want to ensure they have staff members aboard who possess the anticipated necessary skills or the aptitude to acquire them.

If a talent review reveals many team members with low performance and low potential, it might be time to increase recruitment efforts to generate a better talent pool.

Likewise, if the review reveals a shortage of quality prospects in a given business area or department, focused talent acquisition to fill talent gaps becomes a priority.

The 9-box talent review

Businesses often turn to the 9-box grid to generate a compelling visual that offers an organized, comprehensive view of their current staff. As the name suggests, the template contains nine specific categories for placing individual employees.

The grid’s horizontal axis measures low to high current performance. The vertical axis judges future potential. The intersection yields nine categories in which to place employees:

Sometimes, evaluators assign descriptions to each box. These labels help people think about action plans moving forward.

For instance, people with low performance but high potential might be called “untapped talent.” Leadership may pair these folks with mentors to see if coaching could bring out more from them.

Similarly, workers placed in the box for high potential and performance could be designated “exceptional talent.” They likely land on the shortlist when considering succession planning, and allocating resources to developing their skill sets seems cost-effective.

Carrying out successful talent reviews

The quality of a talent review’s results hinges on the accuracy of the information provided. Companies should use the most recent data possible and aim for objectivity.

In terms of employee performance, go back to performance reviews. These evaluations likely use metrics that support where you rank someone on the low, medium, or high scale.

(As a side note: Don’t confuse performance reviews with talent reviews. The former gives a snapshot of an individual’s accomplishments and behaviors over a past period. The latter paints an overall portrait of the current workforce to make educated decisions about development needs going forward.)

Judging employee potential usually proves more complicated – and sometimes contentious as leaders rally behind their choices for promotions or succession. Coming up with criteria helps.

For instance, perhaps evaluators will examine each person for problem-solving abilities, willingness to learn new skills, adaptability, and demonstration of leadership traits.

Companies may use a 360-degree review process to reduce subjectivity. This method involves soliciting input from sources other than the direct supervisor. Colleagues, customers, and other stakeholders offer opinions and examples.

In addition to combating personal bias, this process allows viewing the worker in question from various angles.

Typically, talent reviews involve both HR professionals and company leaders. Human resources primarily handles execution, while business leaders conduct talent review meetings and leverage results.

Some organizations hire a third party to perform the talent review. These outsiders specialize in obtaining relevant data and offer the benefit of neutrality when determining potential.

However, they lack familiarity with your operations and must be provided with specifics about what you hope to achieve.

The next steps

The most critical part of the talent review is deciding how to handle the results. Consider how to progress going forward for the different combinations of performance and potential presented in the boxes.

Mentorship, formal training, stretch assignments . . . what actions will move workers in a given box forward to align with company needs? Spell out action plans.

Determine how to right the ship for workers struggling with performance and potential. Coaching sessions with consistent, detailed feedback could help. In some cases, termination might ultimately seem a better solution than using company resources that could be redirected to more promising workers.

Lastly, consider each person’s career interests. Just because an employee is identified as management material does not mean the person is interested in pursuing such a role. Matching an individual’s development opportunities to long-term aspirations boosts engagement and success.

Talent reviews: Real-life examples

How might talent reviews benefit your company? Gain insight from these three organizations:

Convert Bank Statement

“At Convert Bank Statement, we view talent reviews as far more than routine evaluations. They’re an investment in our future,” says founder Luca Dal Zotto. “Regular talent reviews allow us to pinpoint not only who is excelling in their current role but who has untapped potential for leadership or new challenges.”

“This proactive approach has repeatedly saved us from reactionary hiring by highlighting internal candidates ready to step up. It’s also a valuable retention strategy; when people feel seen and valued, they’re more invested in the company’s growth.”

Dal Zotto favors the 9-box talent matrix because it goes beyond just measuring “good” or “bad” performance. He notes that such a grid enables nuanced insights into each team member’s journey.

“For example, a recent review placed one of our rising stars in the ‘high potential but currently underperforming’ box. Rather than being a red flag, it highlighted an opportunity for specific, targeted development, ultimately allowing her to thrive once we addressed her training gaps.”

He believes the most significant advantage of the 9-box system is its transparency and structured feedback approach. “We don’t just review; we openly discuss where each person sits on the matrix, which leads to clear development paths.”

“For teams, it fosters a culture of accountability, and for leaders, it simplifies the tough task of prioritizing coaching resources. The 9-box matrix has not only optimized our internal promotions but also helped us foster a culture of continuous growth and strategic alignment.”

Marygrove

“Running talent reviews is something that I feel every organization should do as it is an easy way to gain a comprehensive understanding of their workforce. It is also a great strategy that can be used to identify any skill gaps that may need attention,” says Mike Falahee, president of this awning and outdoor living company.

He notes that “the main reason Marygrove does talent reviews is to develop a pipeline of talent who can fill critical roles when the need arises and to recognize and reward truly exceptional employees.”

All 4 Kids

“Part of our growth strategy includes a commitment to talent reviews, which have become an invaluable tool in aligning our team’s development with the company’s goals,” says Steve Shen, founder of this internationally recognized brand in baby and kids’ products.

“First and foremost, talent reviews can prove to be fundamental in putting together a strong and hard-working team. Talent reviews give us the opportunity to scan not only the performance but also the predicted performance of each individual team member.”

“This, in turn, allows for a focused assessment of potential star performers in the organization while also catering to the needs of individuals who need assistance by aligning them with the right roles within the organization.”

Like many other leaders, Shen favors the 9-box matrix and values its visualization role. “We use it to identify high-potential individuals and invest in their development while at the same time providing assistance to those who are low performers.”

“This, in my opinion, has directly affected the loyalty and morale of our team and the performance expectations, which I believe have spurred our growth as well as our impact in the market.”

A final note

Realize that talent reviews are not a one-and-done endeavor. Leaders should follow up on action plans to see if they yield desired outcomes. Likewise, plan to periodically repeat the talent review process to keep information current and complete. Staff composition and organizational needs change over time.

More resources:
How to nurture high-potential employees
Best methods for attracting and retaining talented employees
AI job descriptions: How to write them faster and avoid bias