Capability vs PotentialImplications for Recruitment

Dr. Richard A. MacKinnon17 May 2013

Overview

• Understanding the difference between capability and potential

• What does potential look like in your organisation?

• How does this inform your recruitment strategy?

• Identifying the risk of subsequent derailment

• Managing applicant expectations through realistic job previews

• The impact of a changing job market on your model of potential

Capability versus Potential

Capability versus Potential

• Capability to do what now, versus potential to do what in the future?

• Potential to move up the ladder of seniority? Potential to lead the business?

• Is potential limited?

• Yes. And that's not a bad thing. We can't expect everyone to rise to the top.

• Exposure to high potential schemes can be a self-fulfilling prophecy through intensive development and exposure to key decision-makers.

• Exploitation of potential isn't inevitable, it must be nurtured by the organisation. 

Who assesses Potential?

• Subjectivity is a frequent challenge: the “tap on the shoulder” approach

• Frequently, line managers have input into this.

• Personality factors associated with leadership potential can appear disruptive at more junior levels.

• Managers aren't always great at objectively spotting potential. 

• The reverse is also true: managers may not want to release talented individuals to other roles.

• Capability now and potential are often conflated, leading to frustration and disappointment on both sides.

What does “Potential” look like in your organisation?

Some challenging questions…

• Do you have a formal definition of “potential”?

• Do you have more than one?

• How recently have you revisited how this fits with your strategy?

• Might you be simply cloning today’s top performers?

• Are you being as objective as possible in measuring potential?

• Have you any evidence that your “high potential” employees actually make a difference?

Considering Potential

• It's important to have a shared understanding.

• There may be multiple models: leadership potential, potential to be a technical expert, potential to pick up supervisory duties. 

• Models of potential must be revisited periodically, to ensure alignment with the business strategy and its operating environment.

• Think how much the recent financial crisis will have impacted what is required of people in a range of sectors in the UK. 

• Don't steal other organisations' models - akin to using their competency frameworks.

• But certain personality aspects, in combination with raw cognitive ability, are generally predictive of leadership success.

A philosophy for understanding Potential

• Talent is an investment, and accurate decision-making is vital

• Identifying potential and then developing it is therefore critical

• Understanding derailment risks and managing these is key for individuals to fulfil their potential and deliver for the organisation

• Person/situation fit is a key factor in exploiting potential

• We must consider appetite for advancement

• Openness and transparency in processes to identify and develop

• Objective assessment leads to defendable decisions and facilitates evaluation and calculation of ROI

Talent Q’s Model of Potential

Emotional Domain Strategic Domain People DomainResilience Analytical Capacity Collaborating with others

Ambition Learning & Improving Networking

Courage Developing Strategies Positive Impact

Seeking & Embracing Change

Demonstrating Integrity

How should all this inform your recruitment strategy?

How should all this inform your recruitment strategy?

• In short, it should.

• Potential is just one part of a joined-up talent management strategy

• It should not be viewed in isolation.

• Recruitment activities should therefore reflect this in both methods and models

• For example, using selection tools that can predict future performance as well as what is required now

• This requires recruiters and L&D practitioners to work in partnership

Linking Recruitment and Development

Robust selection methods

On-boarding and development exploration

Identification of Potential

Development Support

Validation and Feedback into

selection

Managing the Risk of Derailment

Managing the Risk of Derailment

• This can happen in two ways:

•  You select extreme personalities and let them run amok in the organisation

•  Your high potential programmes exacerbate pre-existing negative behaviours

Managing the Risk of Derailment

• In terms of the recruitment stage, it's key to be sensitive to the potential downside of what look like strengths. 

• Consider what sort of profiles you are selecting against and keep an eye out for extreme personalities. 

• They shouldn't be a sole deciding factor, but should be factored in to on-boarding and development activities

• Consider the design of assessment exercises in assessment centres

• Use a data-driven approach to developing role profiles - as opposed to gut feel. 

What are employers looking for?

Our analysis of graduate role profile templates illustrates that graduate recruiters consistently emphasise some personality traits over others

Most important Moderately Important Least Important

Conscientious Methodical Supportive

Communicative Decisive Consultative

Influencing Achievement-oriented Relaxed

Socially Confident Flexible ResilientAnalytical Conceptual Creative

Derailment could be facilitated by:

• Ignoring clear behavioural issues while “performance” is excellent

• Encouraging development and focus on a sub-set of traits, rather than a more rounded development plan

• Rewarding attainment of KPIs and ignoring “softer” development needs

• Waiting until too late before engaging in development or addressing unhelpful behaviours

Can you have too much of a good thing?

• Employers typically adopt a threshold approach to selecting employees.

• This is represented by looking for “just enough” or “more than” on a range of personality traits.

• Unless used mindfully, this approach neglects the risks associated with “too much” of some aspects of personality.

• These form the basis for either career limiters or derailers.

“Career Limiters” and “Derailers”

• Certain clusters of behavioural preferences can be actively encouraged by organisations, but can simultaneously represent “double-edged swords”.

• Our model posits two ends of each scale:

• “Career limiters” represent clusters of behaviour which can serve to delay or even prevent career advancement

• “Derailers” are behavioural which can bring a promising career to an early end

Derailment risks

Hyper-sensitivity Isolation Eccentricity Iconoclasm

Exhibitionism Over-confidence

Over-dependence

Micro-Management

Hyper-sensitivity

Lacking sensitivity and subtlety of perception

Shrewd perception and

judgment

Emotional fragility, anxiety, paranoia

Eccentricity

Conservative thinking, sticks to convention,

“lazy” thinking

Unconventional, creative,

develops novel ideas

Poor listeners, focused on novelty over substance

Iconoclasm

Too passive and complacent, swayed by majority, focused

on others’ opinions

Tough-minded, able to break with convention, make difficult decisions

Excessive rule-breaking, intolerant and insensitive to

others

Over-confidence

Modest, avoiding leadership roles, avoiding competition

and negotiation

Confidence, self-belief, drive and competitiveness,

positive self-concept

Arrogance, lack of self-awareness or own limitations, need to win and eclipse others

Micro-management

Unreliable and careless in detail, rules and processes. Rely on spontaneity rather

than planning

Highly methodical and structured,

paying attention to data and evidence.

Conscientious.

Inflexible adherence to rules,

details and processes.

Analysis paralysis.

Managing Expectations

Managing Expectations

• We can sometimes make problems for ourselves by over-selling the roles that applicants will actually fill.

• Role descriptions can and do impact who applies for a role.

• We can be over-optimistic about the responsibilities they can reasonably be expected to take on

• We can present a sunny-side up picture of the organisation and the role

• Consider presenting a more balanced picture and emphasise the hard work but also the rewards.

• Presenting a more realistic preview of an employee’s journey through the ranks allows them to picture how their potential can be realised

Considering the Changing Job Market

The Changing Job Market

• Recruitment activity should adapt to reflect changes in the socio-economic environment.

• The next few years will see significant changes to what the graduate market looks like.

• Increased emphasis on apprenticeships and in-house professional training.

• The recession has a “bumping down” effect on who applies for what roles

• All this will serve to blur the boundaries of how we have previously viewed talent

A challenge but also an opportunity

• These changes represent an opportunity to revisit legacy approaches to categorising talent and potential.

• Recruiting organisations can approach the challenge with creativity and solutions that are fit for purpose.

• Again, a future focus is required, with models constantly under scrutiny for utility and return on investment.

• An emphasis on objectivity and data represents a firm foundation for all of this.

Key take-aways

• Potential needs to be viewed in the context of the organisation

• Ask yourself: “Potential to do what?”

• Adopt a future focus and revisit your models of what “good” is

• Using objective measures in recruitment facilitates identification of potential

• Literal take-away: Talent Q whitepapers outlining potential and derailment available on USB sticks

Thank you.

richardmackinnon@talentq.co.uk