Organizations invest over $166 billion annually in high‐potential employees (HiPos), yet many programs fail to identify the right candidates, with failure rates up to 40%. This study addresses the misrecognition of HiPos, focusing on reluctance to lead (RTL) as a key factor. RTL can lead to competent individuals being overlooked. Moderate RTL can enhance leadership by promoting power‐sharing and follower self‐leadership, which is characterized by humility and a servant mentality. This registered report investigates whether HR professionals' HiPo selection biases against RTL harm leader effectiveness through three studies. We will develop and validate an RTL scale (Study 1), investigate the impact of RTL on HiPo selection (Study 2), and examine the relationship between RTL and leadership effectiveness (Study 3). By understanding RTL's role in misrecognition and its association with effective leadership, this research aims to diversify the HiPo pool, support reluctant leaders' development, and promote diversity and inclusion in leadership selection.