Predicting Talent: Interaction between Potential, Competencies, and Bias

Abstract The psychological attributes associated with both psychological potential and managerial competence are regarded as valuable assets for any company. Consequently, it is in the best interest of companies to actively search for the most potential candidates and develop their competencies. Organizations expend substantial resources to assess the potential of prospective employees during the recruitment process. This research aims to evaluate the extent to which employees' potential can predict their competencies. We assessed candidates' potential using self-report scales measuring grit and a growth mindset, while competencies in achieving results and managing change were evaluated through the assessment center method. The data was collected from 155 civil servants employed by the Makassar City Government. The findings reveal that potential does not significantly influence employees' competencies, whether it be Grit for results orientation or Growth mindset for change management competence. After conducting correlation tests between grit and growth mindset to social desirability bias, we found varied results with Grit (r= 0.1718, p = 0.03248) and growth mindset (r=0.0703, p-value = 0.3847), suggesting diverse correlations between the investigated variables. In light of these results, we recommend a reevaluation of the practice of relying on potential as a predictor of competence.