⟩ Tell me what will happen to potential and performing employees when the performance is only the criteria employees are evaluated on?
When performance is the only criteria employees are evaluated on, high performers will be the only ones moving up and your high potentials will be moving out.
You should definitely value and reward performance. If your end goal is to build a more robust talent pipeline, though, performance can not be the only point of entry. Advocates working with leadership to profile what constitutes excellence in key roles and communicating that to managers to help them identify high potentials.