The talent review process usually gets a bad rap. Forms get filled, ratings get assigned, and… nothing really changes. Same people, same problems, same wasted potential. But when done right, they actually mean something. They help people grow and – dare we say – actually make work better.
So if you are looking for a similar talent review system that pushes high performers higher and challenges the people who think they have already made it, you are at the right place. We will break down exactly how to use talent reviews to fuel real development and make smarter people decisions – without wasting time on things that don’t make an impact.
In A Rush? Here Is Talent Review In A Nutshell
- What it is: A structured evaluation process that assesses employee performance, potential, and readiness for growth.
- Why it matters: Helps identify top talent, close skill gaps, and ensure strong succession planning.
- Key framework: The 9-box talent review maps employees based on performance and potential to guide leadership development.
- Who conducts it: Senior leaders, HR teams, and department heads collaborate for fair and strategic assessments.
- Final outcome: Aligns talent strategy with business goals to ensure the right people are in the right roles for long-term success.
What Is Talent Review & What Should It Include?
A talent review is a structured process where leaders assess employees’ performance, potential, and readiness for future roles. It helps businesses identify high-potential employees, address skill gaps, and plan for leadership succession.
Here’s what you should include in a talent review:
- Employee performance evaluation: Review past achievements and contributions.
- Potential assessment: Identify employees with leadership or growth potential.
- Skill gap analysis: Pinpoint areas where employees need development.
- Succession planning: Prepare future leaders for key positions.
- Development plans: Create personalized growth strategies for employees.
- Manager insights: Gather feedback from direct supervisors.
- Data-driven decisions: Use performance metrics to guide actions.
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Talent Review vs Performance Review
A talent review focuses on an employee’s future potential, leadership readiness, and long-term growth within the company, while a performance review evaluates past achievements, job effectiveness, and immediate contributions. Both the performance and talent review provide a well-rounded approach to talent management strategies and balance short-term performance with long-term workforce planning.
5 Main Benefits Of A Talent Review
- Employees are 84% more engaged when they receive frequent feedback.
- Employees who receive recognition are 69% more likely to perform at a higher level.
- Companies that actively assess and develop employees see 49% fewer workplace accidents and 60% fewer errors in daily tasks.
- Businesses in the top quartile for employee engagement are 23% more profitable than those with lower engagement levels.
- Organizations with continuous performance processes are 39% better at attracting top talent.
Why Perform A Talent Review & Who Should Perform It?
A successful talent review process ensures businesses don’t lose momentum when key employees leave by proactively identifying top performers and leadership candidates. It helps pinpoint employees who consistently drive results and recognize skill and talent gaps before they impact business performance.
It should be performed by senior leadership, HR professionals, and department heads for a well-rounded assessment of employee growth and succession planning.
10 Most-Used Talent Review Frameworks & Samples Of When To Use Them
Here are the 10 most used talent review frameworks and when they work best:
1. 9-Box Grid
The 9-box grid is a talent assessment tool that categorizes employees based on 2 factors:
- Performance (current effectiveness in their role)
- Potential (ability to grow into leadership or advanced roles)
Employees are placed in 1 of 9 boxes, ranging from low performance/low potential to high performance/high potential. This helps business leaders make data-driven talent decisions.
Use this to:
- Identifying high-potential employees: Pinpoints future leaders for succession planning.
- Leadership development planning: Helps create targeted training programs for growth.
- Strategic workforce planning: Ensures the right talent is in place for long-term business success.
- Performance improvement strategies: Identifies employees needing support or role realignment.
- Succession planning: Provides clarity on who is ready to step into key roles.
2. Competency Framework
A competency framework defines the skills, behaviors, and attributes employees need to succeed in their roles. It outlines specific competencies for different job levels to ensure alignment between employee performance and business goals. This framework helps organizations standardize evaluations for professional development.
Here’s a competency framework sample:
| Competency | Definition & Key Behaviors | Proficiency Levels | Example Roles Where This Applies | Development Actions |
| Leadership | Inspires, motivates, and guides teams toward goals. | Basic, Intermediate, Advanced | Managers, Team Leads, Executives | Leadership training, mentoring |
| Problem-Solving | Identifies issues, analyzes options, and implements solutions. | Beginner, Proficient, Expert | Engineers, Analysts, Project Managers | Case study reviews, critical thinking workshops |
| Communication | Clearly conveys ideas and actively listens to others. | Developing, Competent, Mastery | Customer Service, Sales, Marketing | Public speaking training, active listening courses |
| Technical Skills | Applies industry-specific knowledge and tools effectively. | Novice, Skilled, Expert | IT, Finance, Healthcare | Certifications, hands-on practice |
| Collaboration | Works effectively with teams and stakeholders. | Basic, Strong, Exceptional | HR, Operations, Project Management | Team-building exercises, cross-functional projects |
This works for:
- Defining job expectations to outline required skills and behaviors for each role.
- Employee development planning to create targeted learning and growth programs.
- Performance assessments to provide objective criteria for evaluating employees.
- Hiring and promotions ensure candidates meet competency standards before advancing.
- Leadership and succession planning to identify gaps and prepare employees for higher roles.
3. Succession Planning Model
A succession planning model develops employees who can step into key leadership roles when needed. It maintains business continuity by preparing high-potential employees for future leadership positions through training, mentorship, and career progression planning.
Best scenarios to use it:
- Prepare for leadership transitions: A smooth role handover when executives or key employees leave.
- Minimize business disruption: Reduce risks associated with sudden departures in critical roles.
- Develop future leaders: Identify and train high-potential employees for executive positions.
- Long-term workforce planning: Align talent strategy with business growth and future needs.
- Retain top talent: Show employees development opportunities to improve engagement and retention.
4. 360-Degree Feedback
360-degree feedback is a performance evaluation method where employees receive input from multiple sources, including managers, peers, direct reports, and sometimes clients. This multi-perspective approach provides a balanced assessment of an employee’s strengths, weaknesses, and areas for improvement.
You can use this for:
- Leadership development: Help leaders understand their impact from different perspectives.
- Improving self-awareness: Provide employees with insights into strengths and areas for improvement.
- Enhancing teamwork and collaboration: Encourage open communication and constructive feedback.
- Performance evaluation: Supplement traditional reviews with well-rounded input.
- Identifying skill gaps: Highlight training and development needs for employees at all levels.
5. Talent Calibration Meetings
Talent calibration meetings are discussions where leadership teams review and align employee performance and potential assessments. These meetings promote fair, consistent, and objective evaluations across teams and departments to reduce bias and standardize ratings.
Work best during:
- Performance evaluations to align ratings across managers and prevent bias or inconsistencies.
- Succession planning to identify and agree on future leaders.
- Identifying high-potential employees to confirm which employees are ready for leadership roles.
- Workforce planning to provide data-driven insights for promotions, talent development, and role realignments.
- Addressing underperformance to ensure managers agree on action plans for low performers.
???? Interesting Insight
65% of job skills will change because of innovation and automation.
(Source)
6. OKR-Based Talent Review
An OKR-based talent review evaluates employees using Objectives and Key Results (OKRs)—a goal-setting framework that aligns individual performance with company objectives.
Here’s an OKR-based talent review sample:
| Objective | Start | Week 1 | Week 2 | Week 3 | Evaluation | |
| Key Result 1 | 25%, add comments | … | … | … | Average % + comments | |
| Key Result 2 | 10%, add comments | … | … | … | Average % + comments | |
| Key Result 3 | 35%, add comments | … | … | … | Average % + comments | |
| Key Result 4 | 15%, add comments | … | … | … | Average % + comments |
This works best for:
- Aligning employee goals with business strategy: Ensures individual contributions directly impact company success.
- Tracking performance with measurable outcomes: Uses quantifiable key results to assess effectiveness.
- Encouraging continuous improvement: Helps employees set and achieve stretch goals for growth.
- Enhancing accountability: Ensures transparency in goal achievement across teams.
- Identifying high performers: Recognizes employees who consistently meet or exceed key results.
7. HIPO (High-Potential) Identification Model
The HIPO (High-Potential) Identification Model recognizes employees with strong leadership potential, career aspirations, and the ability to take on bigger roles in the future. It evaluates individuals based on:
- Performance
- Leadership traits
- Learning agility
- Adaptability
HIPO employees receive accelerated development programs, mentorship, and leadership training to prepare them for future leadership positions.
Implement this to:
- Ensure a steady flow of qualified leaders for key roles.
- Identify employees ready for leadership transitions.
- Focuses resources on employees with the greatest growth potential.
- Engage high-potential employees with personalized career development plans.
- Prepare a skilled workforce to handle future challenges and business growth.
8. Behavioral Assessment Framework
A behavioral assessment framework evaluates employees based on their actions, decision-making, and interpersonal skills in real-world work scenarios. Instead of focusing solely on technical skills or past performance, this framework measures key behaviors like problem-solving, adaptability, leadership, teamwork, and emotional intelligence.
Use this framework to:
- Identify employees who exhibit strong decision-making and people management skills for leadership development.
- Assess candidates based on behaviors critical to the role for hiring and promotions.
- Evaluate collaboration, communication, and conflict resolution skills for team effectiveness analysis.
- Determine if employees have the behavioral traits needed for executive roles.
- Ensure employees align with company values and work effectively in the organization for culture fit assessment.
9. Skills Gap Analysis
A skills gap analysis identifies the difference between the skills employees currently have and the skills needed to meet business goals. It pinpoints workforce deficiencies, prioritizes training efforts, and guides hiring decisions to ensure employees are equipped for both current and future demands.
Here’s a sample skill gap analysis you can use:
| Employee Name | Current Role | Required Skills | Current Skills | Skill Gaps | Recommended Training |
| Alice Johnson | Marketing Manager | SEO, Data Analytics, Content Strategy | SEO, Social Media, Basic Analytics | Data Analytics, Content Strategy | Google Analytics Certification, Advanced Content Strategy Course |
| Bob Smith | Software Engineer | Python, Cloud Computing, DevOps | Python, Basic Cloud Computing | DevOps, Advanced Cloud Computing | AWS Certification, DevOps Bootcamp |
| Charlie Lee | HR Specialist | Employee Engagement, Compliance, Recruitment | Recruitment, Compliance | Employee Engagement | Leadership Training, Employee Engagement Workshop |
| Dana White | Data Analyst | Machine Learning, SQL, Data Visualization | SQL, Data Visualization | Machine Learning | Machine Learning Specialization (Coursera), Python for Data Science |
Use this for:
- Workforce planning to Identify skill shortages that could impact business growth and innovation.
- Training and development to design targeted learning programs to close competency gaps.
- Hiring strategy to determine whether to recruit externally or upskill existing employees.
- Technology adoption to assess whether employees have the skills needed to leverage new tools or digital transformation.
- Succession planning to develop the necessary skills for higher-level roles.
10. Leadership Pipeline Model
The Leadership Pipeline Model is a structured framework for developing employees into future leaders. It focuses on preparing employees to move from individual contributors to managers, senior leaders, and executive roles by equipping them with the necessary skills and mindset at each stage.
You can use this to:
- Create a clear path for employees to advance into leadership roles.
- Make sure leadership roles are filled by well-prepared internal candidates.
- Develop leaders in advance to support expansion.
- Bridge leadership skill gaps and provide structured training and coaching for emerging leaders.
- Strengthen managerial capabilities at every level of the organization.
???? Did You Know?
82% of companies use pre-employment tests to assess candidates.
(Source)
How To Conduct A Talent Review Process Using The 9 Box Grid Framework + Template
- Set measurable benchmarks for performance, like sales targets and project completion rates, and for potential, like leadership readiness and adaptability.
- Gather KPI reports, manager feedback, peer reviews, and past evaluations to get a complete assessment of each employee.
- Hold calibration meetings with leadership teams to review and discuss employee performance together for fair placement on the grid.
- Assign each employee to a specific quadrant based on data. Distinguish between high performers, steady contributors, and those needing improvement.
- Focus on those in the top-right quadrant (high performance, high potential) for leadership development.
- Assign mentorships, stretch assignments, or skill-building programs based on where employees fall in the grid.
- Create coaching plans, realign roles, or implement performance improvement steps for those in the bottom-left quadrant or low performers.
- Reassess grid placements quarterly or biannually to track growth and make adjustments as needed.
By applying this process, you can effectively identify high-potential employees, support growth, and address performance challenges. You can also use our free 9-box grid template to visualize your team’s strengths and development needs for better workforce planning.
5 Talent Review Best Practices To Identify High-Potential Employees
- Assign employees stretch projects outside their expertise and track how quickly they adapt and excel.
- Compare past job performance to see who consistently improves and takes on greater responsibilities.
- Identify team members who are repeatedly requested by other departments for guidance, troubleshooting, or strategic input beyond their core role.
- Review past situations where employees handled unexpected challenges and note those who acted decisively with strong outcomes.
- Give potential leaders temporary authority over a project or team and measure their ability to align, motivate, and drive results.
5 Most Used Tools In A Talent Review
- Performance Management Software: Tracks employee performance, goals, and feedback in real-time, like BambooHR and Lattice.
- Talent Analytics Platforms: Uses AI-driven insights to predict attrition, assess potential, and identify skill gaps. This includes Visier and SAP SuccessFactors.
- Skills Assessment Tools: Measures employee competencies using tests, simulations, or AI-driven evaluations. Popular tools are LinkedIn Skills Assessment and Plum.
- Employee Engagement Surveys: Gathers insights on job satisfaction and organizational commitment to enhance retention, like Gallup or Glint.
- HRIS (Human Resource Information System): Centralizes employee data for tracking performance, promotions, and growth trends. Widely used systems are ADP and UKG.
???? Notable Trend
More than 50% of companies now rely on AI to review past hiring data and improve hiring success.
(Source)
Conclusion
Now that you understand how a talent review system drives high-impact development, it’s time to gather your leadership team and define a structured approach that fits your business. Once your structure is in place, focus on meaningful data—performance reviews, peer feedback, and key metrics—for objective and fair assessments.
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FAQs
What are the 4 key components of a talent review?
The 4 key components of a talent review are performance evaluation, potential assessment, succession planning, and development planning. These elements help businesses identify top talent, prepare future leaders, and align employee growth with company goals.
What are the criteria for talent review?
A talent review evaluates employees based on performance, potential, leadership ability, and skill gaps. Common criteria include past achievements, adaptability, problem-solving skills, learning agility, and readiness for higher roles. Businesses often use the 9-box grid to assess these factors and identify top talent for development or succession planning.
What is the potential assessment in talent review?
A potential assessment evaluates an employee’s ability to grow into higher roles by analyzing leadership qualities, adaptability, and learning agility. It helps organizations identify high-potential employees who can take on greater responsibilities in the future.
Which items can be assigned in a talent review meeting?
Actionable items include individual development plans, succession plans, training recommendations, and mentorship assignments. Leaders may also assign follow-ups to track progress, adjust talent strategies, and ensure employees receive the necessary support for growth.
