Nov 6 / Dr. Ronald Rodriguez, PCC

The Secret Weapon for Developing Your HIPOs

The Secret Weapon for Developing Your HIPOs

High-potential (HIPO) successors are a strong representation of the future of an organization. Identified for their exceptional talent, potential, and commitment, HIPOs are often positioned to take on critical roles that drive company growth and innovation. However, even the most talented individuals face unique challenges as they transition into higher-responsibility roles. Leadership development through 1:1 coaching has emerged as one of the most effective strategies to empower HIPOs with the skills, resilience, and confidence they need to succeed. This article explores how 1:1 coaching specifically supports HIPOs to successfully make the transition to higher levels of responsibility and ownership. 

The Need for Individual Coaching in HIPO Development

HIPOs are employees identified as having the potential to grow into leadership roles faster than their peers. They are instrumental in filling key positions, driving strategic initiatives, and fostering innovation. According to Gartner, HIPOs are 91% more valuable to an organization compared to non-HIPO employees due to their ability to meet business demands and adapt swiftly to market changes (Gartner 2023).

HIPOs face distinct challenges such as high performance pressure, accelerated timelines for skill development, and rapid role transitions. These employees often need tailored support to navigate complex leadership environments effectively.

Personalized coaching addresses these unique challenges by offering customized guidance and support. A one-size-fits-all approach to training may fail to meet the needs of high-potential employees, who require nuanced development plans that 1:1 coaching can provide. Studies reveal that companies with robust HIPO development programs, including coaching, experience 21% higher performance among these employees.

The Impact of Individual Coaching on Leadership Skills Development

To succeed in their current and future roles, HIPOs need a range of skills, from strategic thinking and decision-making to emotional intelligence and resilience. These abilities are not innate; they must be nurtured through consistent learning and real-world application. Individual coaching provides a personalized framework for developing these essential skills.

According to the International Coaching Federation, 86% of companies reported a positive return on investment from coaching, with improved leadership abilities among HIPOs being a primary outcome (ICF, 2023). This success is largely due to the tailored approach of individual coaching with each leader. Coaches partner with HIPOs on their specific skills, enabling them to build upon their strengths and work through their weaknesses.

The same study by the International Coaching Federation also found that individual coaching engagements often supported HIPOs in uncovered strengths and weaknesses they were unaware of. Today’s leadership climate can easily create an environment where self reflection and goal spot checking is not readily practiced. Coaching creates the environment of deep and self reflection, often allowing leaders the space to uncover even more capabilities they didn't realize they had or challenges they were not aware they needed to overcome - resulting in increased impact to the bottom line.

The Role of Individual Coaching in Accelerating Career Readiness and Transition

Transition equals change. Whether it is a shifting view on priorities and leadership or a complete overhaul of one’s responsibilities, change is one of the most difficult aspects of our work. The HIPO population of any workforce often feel change more acutely and more often than others, necessitating more support and resources available to them to support their change endeavors.

HIPOs often move into new, more complex roles at a faster pace than other employees. These transitions require them to adapt quickly, learn rapidly, and maintain high performance. However, without the right support, HIPOs may struggle with the demands of these roles, leading to stress and burnout.

Coaching equips HIPOs with the tools they need to navigate their transitions smoothly. In fact, the Center for Creative Leadership found that HIPOs who received 1:1 coaching were 46% more likely to succeed in new leadership roles than those who did not receive coaching (CCL, 2024). Coaches help HIPOs develop confidence in decision-making, master new responsibilities, and build the strategic mindset required for higher-level roles.

Psychological Benefits of Individual Coaching for HIPOS

As high-performers expected to excel in demanding roles, HIPOs often experience heightened levels of stress and pressure. In fact, a survey by the American Psychological Association found that 44% of HIPOs report experiencing stress or anxiety, which can ultimately impact their productivity and job satisfaction (APA, 2023). Coaches offer a safe, confidential space for HIPOs to discuss their challenges, seek advice, and receive constructive feedback, which helps them manage stress effectively.

According to the Institute of Coaching, 70% of individuals in coaching report reduced stress levels and a greater sense of well-being, which positively affects their performance at work (Institute of Coaching, n.d.). This is often accomplished through the development of resilience, which is essential for handling the pressures associated with leadership roles. This increased resilience not only helps them manage stress but also boosts their confidence to take on new responsibilities.

Growth mindset is also a major advantage that often arises as a result of coaching a HIPO leader. The same study by the Institute of Coaching uncovered that a majority of leaders surveyed felt they were able to establish a growth mindset as a result of coaching and approached situations with curiosity and agility as opposed to “all or nothing” or even dread. This, in turn, helped them feel more confident and in control of their emotions and reactions to stressful situations.

Long-Term Retention and Engagement Benefits of Individual Coaching

Since they are considered to be high performers, they often have numerous career opportunities which makes retention a common challenge. Gallup’s research indicates that 1 in 5 high-potential employees is actively disengaged in their role, and lack of development opportunities is a key driver of this disengagement (Gallup, 2022). Often, organizations are unaware of when their HIPO population is disengaged due to their continued and consistent high performance.

Individual coaching has a significant impact on HIPO engagement and retention. By offering personalized development, organizations show HIPOs that their growth is valued, increasing their commitment to the company. The Human Capital Institute reports that organizations prioritizing coaching see a 24% higher retention rate among HIPOs, a clear indication of the impact coaching has on retaining top talent (HCI, 2024).

Gallup’s research has also uncovered that dozens of technology, manufacturing, and construction firms introduced individual coaching for their HIPOs and observed a 35% reduction in turnover within the group. HIPOs reported feeling more supported and engaged, which contributed to their decision to stay with the company.

The Impact of Investing in Individual Leadership Coaching for HIPOs

While individual coaching can be resource-intensive, the long-term benefits significantly outweigh the costs. MetrixGlobal reports that companies receive an average ROI of 7x their initial investment in coaching, with HIPOs demonstrating marked improvements in performance, engagement, and leadership readiness. Such improvements can be drilled down further by demonstrated increased ability to achieve goals, more engaged and impactful stakeholder relationships, and even enhanced leadership presence as a result of their individual coaching experience.

The positive impact of coaching extends beyond individual HIPOs. When HIPOs succeed, they drive improvements in team productivity, employee morale, and overall organizational performance. According to Harvard Business Review, companies that invest in leadership development, including coaching, see 18% higher revenue and 20% higher profitability than those that do not (HBR, n.d.). This cascade of insight and skillset can also be demonstrated by increased client satisfaction rates and even ARR with HIPO’s in sales or account management roles.

Building a Successful Individual Coaching Program for HIPOs

When implementing an Individual Coaching program for your HIPO population, one size does not fit all. At Fluence we’ve found that there are a multitude of best practices to ensure each leader receives the most impactful engagement possible. Ultimately clients should partner with their provider to ensure the following components. 

Also, organizations should consider the following steps. 

  • Selecting the Right Coaches: Match HIPOs with experienced coaches who understand the demands of leadership and can provide relevant insights.

  • Maintaining Confidentiality: HIPOs need a safe space to discuss their challenges. Ensuring confidentiality helps them trust the process and benefit fully from coaching.

  • Creating a Supportive Culture: Encourage a culture that values growth and development, making coaching an integral part of the organization’s leadership strategy.

Conclusion

Investing in individual leadership coaching for HIPOs is more than a developmental tool—it’s a strategic investment in the organization’s future. By enhancing leadership skills, preparing HIPOs for challenging transitions, reducing stress, and increasing retention, coaching offers a comprehensive framework for HIPO success. With coaching, organizations can create leaders who are not only capable of meeting today’s demands but also equipped to drive long-term growth and resilience.
In a world where top talent is scarce and the stakes are high, individual coaching empowers HIPOs to become confident, capable leaders, making it a critical component of any organization’s leadership development strategy. We encourage you to partner with Fluence for your HIPO development to take advantage of our budget-friendly, agile, and highly accessible coaching solutions and work with the world’s most elite and experienced coaches.

Resources
  1. Gartner. ( 2023). 6 Ways to Transform Performance Management to Deliver What Employees Actually Need. Retrieved from https://www.gartner.com/en/articles/6-ways-to-transform-performance-management-to-deliver-what-employees-actually-need

  2. International Coaching Federation (ICF). (2023). 2023 ICF Global Coaching Report. Retrieved from https://coachingfederation.org

  3. Human Capital Institute (HCI). (2024). Conflict and Expectations: Making the Invisible Visible [Audio podcast]. Retrieved from https://www.hci.org/podcast/conflict-and-expectations-making-invisible-visible

  4. Center for Creative Leadership. (2020). Building the Case for Executive Coaching [PDF]. Retrieved from https://cclinnovation.org/wp-content/uploads/2020/02/building-the-case-for-executive-coaching.pdf

  5. American Psychological Association. (2023). Work in America: 2023 Workplace Health and Well-being [Report]. Retrieved from https://www.apa.org/pubs/reports/work-in-america/2023-workplace-health-well-being

  6. Institute of Coaching. (n.d.). Coaching Benefits. Retrieved from https://instituteofcoaching.org/coaching-overview/coaching-benefits

  7. Gallup. (2022, July 13). U.S. Employee Engagement Slump Continues in 2022. Retrieved from https://www.gallup.com/workplace/391922/employee-engagement-slump-continues.aspx

  8. Harvard Business Review. (n.d.). The Business Case for Investing in High-Potentials. Retrieved from https://hbr.org