How Employers Manage Employees Using Competencies

Every organization has its own way of evaluating their employees. From annual reviews to performance appraisals, there is a method behind the madness. Many employers use competencies as a tool to effectively manage their employees.

Competency management involves employers having a defined set of competencies for each position. They then use these competencies for hiring, promotion, and evaluation purposes. What exactly are competencies though?

What Are Competencies and Why Are They Important?

Competencies are the skills, knowledge, and behaviors that are necessary for individuals to be effective in a job. You can measure competencies by level of capability as some individuals are stronger than others in certain areas. Competency management is key for employers as they can identify the crucial competencies for each role and manage employees based on them.

Competencies will provide clear expectations to employers and employees of what success will look like in different positions. Evaluating candidates using competencies can help employers find the best fit for a role. As well as this, they can clarify to candidates what is expected of them and how they can achieve career growth.

The Benefits of Competency Management for Employers

Competency management helps employers get the most out of their employees’ performance. Having the ability to track and evaluate employees’ skills, competencies, and performance can help employers improve their hiring and promotion decisions. Let’s take a look at some other benefits of competency management:

• An Increase in Productivity

When you match people to jobs, it plays to their strengths which can motivate and engage them. Competency management and a skills framework can help you identify which candidates have the best skillset for any open position. If effective, it can lead to greater employee satisfaction and productivity across your organization.

• An Improvement in Training

Competency management allows you to define the level of competencies that you require from employees. If employees aren’t reaching the levels of competencies you need, you can better allocate training resources to address this. Employees can benefit from tailored training plans as it allows them to reduce gaps in their knowledge and boost their career aspirations.

• Succession Planning

Planning for the future is difficult without competency management. This is due to it providing an insight into workers’ competencies which can signal who has a high potential. As a result, employers can strive to fill positions internally while mapping out career paths for employees.

• Flexibility

Competency management can help employees adapt to changing business needs. Skills and competencies that were once on the periphery can quickly be moved into focus. This allows employees with adjacent skillsets to be able to shift to match the business objectives and priorities. The result of this means that organizations and their employees can adapt.

Steps for Implementing a Competency Management System

You can follow these steps when implementing a competency management system:

1. Identify Key Competencies

   Determining which competencies are crucial for success in your organization is the first step many employers take. When doing this, you need to focus on the competencies that align with the company’s values, objectives, and business goals. Common competencies include communication, problem-solving, collaboration, and adaptability.

2. Define Competency Levels

   It is not enough to only identify key competencies as you also need to establish the level of proficiency for each of them. Many organizations choose to have different rankings such as basic, intermediate, advanced, and expert. This helps with competency management as it gives employers a basis to benchmark employees’ skills.

3. Assess Employees

   When delving into the world of competency management, you need to evaluate where each employee currently is. You can use assessments such as performance reviews and behavioral evaluations to gain a full view of the skills and abilities an employee has. When you review results, you can determine the level of your employees’ competencies.

4. Create Development

Tailor Your Competency Management System

Creating individual development plans as part of your competency management system is crucial for success. Identify the skills and behaviors that matter most to individuals and take it from there. Doing this will give your employees the best chance to improve their skills and competencies while also helping your business succeed.

Remember to monitor the progress of any plans that are made. It is always okay to switch it up occasionally and try different approaches if they aren’t working. Whatever the case, having a competency management system in place will help you get the most out of your talent today.