Identifying skills & competencies in your organization

Knowing what skills and competencies your organization has is extremely useful. Skills are what an employee needs to be able to get the job done well. Competencies include the knowledge, behaviors, and abilities of an employee that allows them to be successful in their role.

HR and management can use this information for performance management, training, pay decisions, and recruiting. But how do you get an inventory of this information? Your organization needs to develop a skills and competencies model. A skills and competencies model provides a set of expectations for organizational and employee success while using a common language.

Unfortunately, many organizations believe they do not have the resources or time to develop and maintain a skills and competencies model. In this article, we are going to explore how to establish a skills and competencies model. We will then discuss the value of assessing the skills and competencies model to identify gaps and highlight talent opportunities.

The Value in a Skills & Competencies Model

As Salary.com explains, “Maximizing employee knowledge, skills, and abilities to improve job performance and career advancement keeps employees engaged and motivated and, in turn, increases organizational productivity and employee retention.” A skills and competencies model holds a lot of value. Here are a few reasons why your organization needs one:

• Helps leadership find the right fit for a vacant role
• Allows organizations to keep track of existing skills
• Fast tracks onboarding of new hires
• Shines a light on gaps in training and development programs
• Identifies employees that are underperforming
• Diagnoses skills gaps
• Outlines the organization’s ability to achieve current and future goals

Rather than structuring talent management around roles, turn your focus to skills and competencies. Management can use this information to pinpoint development opportunities, measure success in a role, and apply employees more favorably based on their strengths. Now let us discuss how to do this.

Developing a Skills & Competencies Model

40% of HR leaders say they cannot develop skills gap solutions fast enough to meet evolving skill needs, reveals a Gartner survey. It is more important than ever that employers figure this out. According to McKinsey, 77% of frontline employees believe it is important that job descriptions refer to career advancements. This means that employers need a plan.

1. Define the Purpose

   Before you dive in, it is important to understand why you are creating a skills and competencies model. What will your organization use it for? You may be filling a specific vacant role, or evaluating company-wide compensation. Communicate with all departments so the purpose is understood, and relevant individuals know their roles in developing the model.

2. Gather the Information

   There are several ways to gather information for your model. It is best to combine a few methods.

   • Employee self-assessments can identify skills already in use and other potential interests.
   • Skills assessments organized by the company are a terrific way to identify hard skills.
   • Feedback from colleagues and management and general observations are better for identifying soft skills.
   • Tests or games are a creative way to test specific skills, particularly leadership competency, in a less formal setting.
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3. Analyze & Expand

   Once you have gathered your information, you will be able to expand and group data effectively. Individual roles have their own set of requirements. How are specific skills, beyond job descriptions, contributing to the success of your organization? Analyze skill groups for specific roles or projects. It is helpful to be aware of the company’s emerging roles and future requirements.

4. Create the Model

   There are different ways to organize your data in the skills and competencies model. You could separate it into core, job-specific, and leadership competencies. Another way is to have soft, hard, and leadership skills. Break each category into subgroups until you have covered what is relevant to your organization. Define proficiency levels to score each skill or competency with. Be mindful of the purpose you set for the skills and competencies model.

Concerns & Considerations When Developing Your Model

Stay realistic when developing your skills and competencies model. If you include too many subcategories and overcomplicate things, the model may be difficult to apply. If it is too vague, it will not provide recruitment benefits or assist employee development. Have a clear idea of what you will use the skills and competencies model for, so you have all the necessary information.

Remember to communicate about the development of the skills and competencies model. Employees can become nervous about actions around performance management. Transparent communication is key. Stakeholders and leadership teams must understand the benefits of investing in creating this model. Have a plan for how you will update and improve it.

Identifying Gaps & Opportunities

McKinsey found that 87% of executives say they face a skills gap in the workforce. They also add that recent college graduates often lack the required competency level for key skills. With 60% of HR leaders saying that building critical skills and competencies is their number one priority, organizations need an effective way to identify skills gaps.

By using a skills and competencies model, employers and employees alike know what is and is not required of a role. You can clearly communicate expectations and connect certain organizational success with individual performance. It will demonstrate the organization’s ability to meet current and future business objectives. Using this information, you can develop initiatives to leverage strengths and fill the gaps.

Final Comments

All employers are concerned with having top talent, reducing turnover, and improving retention rates. Using a skills and competencies model, managers can assess the capabilities of current positions and tackle skills gaps. When your employees are developing with your organization, and talent is recruited based on organizational needs, you set your company up for success.