The idea of assessing an individual’s ‘potential’  – not just their current “capability to do a job” – has been around for quite a while, and it would appear that it’s time to revisit this model as it’s becoming a necessity for most innovative businesses.

It is quite an exercise to predict what precise abilities a business will need in the future. On top of this, the growing integration of technology in the workplace means that many more tasks will soon be absorbed by machines or otherwise automated. So what does that mean for assessment and wider-HR?

The situation this leaves HR professionals with is an uncertain requirement of a shifting generational workforce. How then can anyone possibly implement an effective Strategic Workforce Plan? By focusing on an individual’s potential.

We can upskill and retrain professionals to equip them with the majority of new technical abilities in line with changing company requirements. But what we need to know in this VUCA environment is if an individual is both right for the company culture and possesses the core “potential” attributes, such as creativity, problem solving, emotional intelligence and – perhaps most crucially – the ability and willingness to learn. 

I’m sure there are many HR professionals reading this who have already bought into the benefits of such an approach, but getting the wider business to support this is the big challenge. Indeed, at a recent Catalyst event hosted by Alexander Mann Solutions many of the discussions revolved around getting company-wide support for innovative hiring solutions.

While there’s not a one-size-fits-all solution and the definition of ‘potential’ will vary across different industries, there are several arguments that really do support the business case for assessing for this attribute over technical abilities.

Retain top talent

Internal mobility is increasingly becoming a priority in the people management field. The idea of individuals moving laterally, rather than vertically, in an organisation is now more appealing for employees and employers alike.

Given that individuals are more open to changing careers now more than ever before, companies are looking at retaining top talent by moving them across the business, rather than just upwards. In these situations, being able to assess based on potential is incredibly important as many internal candidates don’t have the “90% skills and experience match” that hiring managers expect from external CVs. Which makes assessing and interviewing a whole lot more difficult – but perhaps that’s something for another time!

Thrive in the gig economy

The gig economy is well and truly upon us. The number of individuals choosing this more flexible employment option and indeed the demand for such professionals from businesses is growing exponentially.

The benefit to employers is access to the temporary skills needed without the costly investment of full time staff. However, contractors, associates and freelancers are very rarely being assessed for anything other than the specific skills and capabilities they are brought in for.

Why not assess their potential to make a broader impact? And ensure they have the ability to navigate the business, positively impact client relationships, be engaged, and do not pose a risk for potential disruption.

Beat the skills gaps

For any industry that faces significant skills gaps, this approach can expand the pool of talent available to them. If we look at the technology arena as an example, demand currently vastly outstrips the number of professionals with the required technical skills.

According to the UK Commission for Employment & Skills, 43% of vacancies for professionals working in STEM are hard to fill due to skills shortages. A recent survey by the Institution of Engineering and Technology (IET) found that over half reported that they could not find the employees they were looking for and 59% said that the shortage would be “a threat to their business in the UK”. And if predictions are correct, this gap will only increase as time goes on.

Freelancers are very rarely assessed for anything other than the specific capabilities they are brought in for.

A study, commissioned by the Royal Academy of Engineering, found that British industry will need 100,000 new graduates in STEM subjects every year until 2020 – just to maintain current employment numbers. By taking the approach of assessing for their ability to make connections and assimilate new content, and their disposition to be self-driven and motivated to learn new technologies, businesses in this field will not only be able to fill much needed positions, but also train individuals in line with their specific company needs and strategies – an investment that is very likely to pay off.

Become ‘future-proof’

Given that businesses are increasingly struggling to identify just where the company will be on a long term scale, having a workforce that is built of individuals able to learn, adapt to change and thrive in almost any environment is crucial.  

A lot is being written about entrepreneurial or “disruptive talent” that all large businesses will need in order to survive and compete against new, smaller, agile start-ups. And when we consider that 65% of today’s schoolchildren will eventually be employed in roles that don’t yet exist, it’s clear that if an organisation wants to future-proof its operations it needs to broaden its scope of talent expectations.

As a case in point, if we look at some of today’s inspirational global entrepreneurs, their backgrounds don’t always provide an insight into the high-profile leaders they were set to become. Jeff Bezos, CEO and Founder of Amazon began his career behind the counter at McDonalds and Reed Hastings, Netflix CEO and Founder started out selling vacuum cleaners door-to-door. Clearly, then, if a company were to assess these individuals earlier on in their career solely based on their skills and experience, they would have missed out on some incredible talent.

It’s important to finish with a note that getting corporate buy-in of this approach isn’t going to be an overnight achievement. It will take time and a lot of commitment from HR teams. But if the profession is to lead businesses into the future world of work, teams need to start building a serious case for first defining and then assessing for potential in order to get stakeholders behind this idea.