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Several years ago, we would hear everywhere that the performance ratings are dead. Companies then revamped their performance management systems and many went back to ratings they eliminated. Is the same happening with potential ratings? Is the 9-box Performance Potential Grid dead? What are the benefits of doing that? Findings show that across a wide range of tasks, industries and organizations, a small proportion of the workforce tends to drive a large proportion of organizational results. In other words, the top 1% accounts for 10% of organizational output; the top 5% accounts for 25% of organizational output; and the top 20% accounts for 80% of organizational output and organizational outperformance. Synthesis of ‘star’ research, findings, and amongst other outperformance evidence indicates that simply adding a star performer to a team can boost the effectiveness of the team members by 5-15%. Therefore, it is necessary to understand how to identify and assess HIPO in order to help develop them and help your organization achieve performance maximization in this dynamic globalized economy.


Suggested Citation
Luo, A. & Saleh, N. (2019). What's happening with potential ratings? Retrieved [insert date] from Cornell University, ILR School site

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Copyright held by the authors.