PLEASE VISIT OUR SPONSORS

Dashboard

Published May 2008

Taking the Talent Pulse: What Drives High Potentials?

Nidhi Verma, Shelli Greenslade and Mary Ann Armatys

"Take my 20 best people, and virtually overnight, Microsoft becomes a mediocre company." This quote from company Chairman Bill Gates epitomizes the importance of maintaining high-performing talent in today's knowledge-based organizations. After all, should they ever feel unchallenged or disenfranchised, these star performers have plenty of other options waiting for them.

In an effort to learn more about the drivers of top talent and how well organizations are executing them, in 2007, global HR consultancy Hewitt Associates released conclusions from its Talent Pulse study. The study surveyed and interviewed nearly 750 high potentials and their managers in seven Fortune 500 companies and examined key drivers that inspire or impede high potentials from delivering exceptional performance.

Understanding the Talent Pulse

Before companies can even hope to inspire high performance, they first must gain an understanding of the drivers that motivate top talent. This will enable them to identify gaps or improvement opportunities to build a strong talent value proposition. In the survey, high potentials and managers ranked what drives top performance. While they differed slightly in their responses, overall, they agreed on how well their organizations executed these critical motivators.

Motivator No. 1: Job Fulfillment/Challenge

High potentials are most driven to work on projects they consider challenging, intellectually stimulating or strategically impactful. They enjoy being forced to think critically and creatively and allowed to challenge the status quo. In the words of one A-player, "I enjoy being presented with challenges that stretch me." Underutilization frustrates them.

When asked how well their companies execute on job fulfillment and challenge, 70 percent of employees and 72 percent of managers said they were doing well or extremely well. Likewise, more than half of high potentials reported feeling stretched by their work in a positive and challenging manner. Certainly, strong execution of this factor, identified as a top motivator, bodes well for retention of top talent.

Motivator No. 2: Total Compensation

In contrast with previous studies, Hewitt found achievement-driven high potentials place great value on how much money they make. "Money makes me tick," said one top performer. Talented employees expect their pay to accurately reflect their level of contribution, personal effort and to differentiate them from average performers. For them, total compensation also serves as tangible proof they have accomplished, if not exceeded, their goals.

Unfortunately, just 42 percent of high potentials reported feeling sufficiently rewarded for their contributions, and only 43 percent considered their compensation to be commensurate with their performance. "Compensation is not tied to the value a person adds to the business," said one top performer.