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A key employee is not just an employee who happens to be in a key position. Listed below is a description of an "employee with critical talent" and a few criteria for identifying high-potential employees.

Critical Talent — The employee is in a "key" role or position within the organization and also possesses knowledge/skills that are crucial and unique. In one circumstance, the unique skills and knowledge are critical to the success of the organization and are not found in other positions in that role. In another circumstance, the role is altogether unique and key to the organization, and has significant influence on performance outcomes.

High-Potential Qualities

Key employees are not always a high-potential employee, and vice versa. When employees are found to be both, they should be treated as a valuable company asset.

1. Appropriate Tenure — Has the employee been in the position long enough to maximize the developmental opportunities and for the organization to use the talent?
2. Sourcing — Is the employee a product of internal talent growth?
3. Adequate Networking — Is the employee heavily networked in the organization (i.e., serves as a critical conduit for information and knowledge)?
4. Appropriate Business Content Exposure — Does the employee possess a high degree of institutional knowledge or functional expertise?
5. Acceptable Developmental Level — Has the employee met developmental expectations set out in the development plan?
6. Consistent Acceptable Performance Level — Has the employee consistently had a high performance metrics rating, indicating developmental readiness for promotion to higher levels?
7. Broad Company Exposure — What is the employee's breadth of knowledge and organizational perspective of (i.e., how much cross-functional knowledge does employee possess)?
8. Leadership Responsibilities — Does the employee have leadership and team-based work experience?
9. Significant Exposure to Pressure — Has the employee had significant performance demands to prepare to deal with pressure and demanding situations?
10. For Thought — If all of your employees were leaving today, which one or two would you try the hardest to convince to stay?

High-Potential Employee

The Corporate Leadership Council (CLC) defines high-potential employee as "someone with the ability, engagement and aspiration to rise to and succeed in more senior, more critical positions." The three attributes rank in the stated order: ability, engagement and aspiration. Without a healthy combination of all three, none alone can be a guarantor of success. Employees cannot be expected to rise to the challenge of a more critical job without this winning combination.

High Performers

Research by CLC's 2005 High-Potential Management Survey reveals that "71%of high performers have limited potential for success at the next level due to shortcomings in ability, aspiration or engagement." Employees lacking in ability are more severely limited than those lacking in engagement or aspiration. High performers do not always equate to high-potential employees.

In today's economy, organizations need to define pools of highly talented people to use in choosing candidates for specific key positions. The focus is on preparing multiple individuals for future leadership roles rather than a single person for a certain position. This process goes hand in hand with a succession planning program. For detailed solutions, see the Succession Planning, Career Development and Leader Development sections.

Adapted from CLC's A Quantitative Analysis of the Identification and Development of High Potential Employees , 2005