Blog

What Are Some Best Practices for Measuring and Evaluating Employee Skills and Competencies?

Written by Salary.com Staff

May 4, 2023

What Are Some Best Practices for Measuring and Evaluating Employee Skills and Competencies Hero

Every organization requires its employees to have certain skills and competencies to be successful. Having these skills and competencies within your team is not enough, however, as you also need to measure and evaluate them. To do this, you need to clearly define and establish some best practices for measuring and evaluating employee skills and competencies.

Price-a-Job-CTA

In this article, we will walk through how you can define the skills and competencies you want to measure. We will look at how you can identify the methods of measuring skills and competencies and the benefits of doing so. We will then highlight why you need to provide feedback to employees.

Define the Skills and Competencies You Want to Measure

Before we define the skills and competencies you want to measure, let us look at the definition of them. Skills are specific abilities you need to perform a job successfully. Competencies are the level of a person’s knowledge, behaviors, and abilities that enable them to be successful in a specific position.

Measuring and evaluating employee skills and competencies is essential for organizations. It is a way of ensuring that you have the right people in the right jobs. So, how can you define which skills and competencies to measure?

Start by creating a list of skills and competencies that are integral to your organization’s success. These should align with your organization’s mission, values, and goals. Once you have done this you can investigate the specifics.

These specifics involve researching the different job roles within your organization to identify what skills are needed for employees to be successful in their roles. You will want to include hard and soft skills like problem-solving skills, communication ability, and customer service experience. Also, you will need to identify which competencies are unique and relevant to your organization.

Be thorough in your research and consider asking your employees if they have any suggestions for the skills and competencies they use. If effective, you should have a comprehensive list. When you have a clear understanding of the skills and competencies you want to measure, you can start to think about how you can measure them effectively.

Identify the Methods of Measuring Skills and Competencies

There are several methods that you can use to measure skills and competencies effectively. Your organization needs to decide which method of measurement and evaluation is most relevant to them. Here are some examples of methods that you can use:

  • Surveys
  • A survey will allow your organization to ask specific questions about employees and their roles. Doing this effectively can help you gain insight into an employee’s skillset.

  • Interviews
  • Interviews are an effective way to gain in-depth information about your employees. This is a terrific way to measure your employee’s strengths and weaknesses in relation to their skills and competencies.

    Free-Trial-CTA

  • Self-Evaluations
  • Self-evaluations provide employees with the opportunity to reflect on their performance and job. When this happens, make sure that employees self-evaluate their skills and competencies.

  • Assessments
  • Assessments allow employees to be tested on specific skills and competencies. This can provide data to an organization to measure performance over time.

    These are not the only methods of measuring skills and competencies, but they are some of the key ones. Doing this effectively can help your organization better understand your employees’ current skillsets and competencies and their potential for growth. As well as this, it can provide data for your team’s overall success.

    Ensure You Design an Evaluation Process

    When measuring and evaluating your employee’s skills and competencies, designing an evaluation process is one of the best practices. Doing this enables your organization to consider each employee's job roles and responsibilities. This helps you to identify which skills are specifically needed for each position and the strengths and weaknesses attached to them.

    Here is what you can do to design an evaluation process that is effective:

    1. Set Expectations

    Before you begin measuring and evaluating employee skills, it is important to make sure that everyone is on the same page. This allows everyone in your organization to know what they are supposed to be doing. Make sure to set clear objectives and goals for everyone to strive for.

    1. Break Down Evaluations into Comprehensive Sections

    Creating separate categories for distinct types of evaluations, such as performance reviews or customer service assessments is necessary for this step. Be comprehensive in your list of criteria to ensure all aspects of your organization are uncovered. This gives you a foundation to build from when evaluating an employee’s performance.

    1. Utilize Polls & Surveys

    Polls and surveys help give you insight into how employees feel about their jobs. As well as this, you can also find out about team dynamics, employees’ progress, their ideas, and more. This can help you determine which areas need improvement or additional training to benefit employees.

    1. Monitor Progress & Performance

    Closely monitoring your employees’ progress over time aids your organization to spot any issues early on or provides additional support if needed to ensure success. Tracking your employee’s performance can also help motivate and engage them. Doing this can help your organization be on the right path to success.

    Request-Demo-CTA

    Conclusion

    Having an effective strategy for measuring and evaluating employee skills and competencies is key to helping your organization stay competitive. By adopting some of the best practices for measuring and evaluating employee skills and competencies, you can create a culture of continuous learning and development. Doing this effectively helps your employees and your organization reach their full potential.

    Link to this article
    sidebar
    Download Our Resource
    Embracing Fair Pay in the War for Talent

    Download our white paper to further understand how organizations across the country are using market data, internal analytics, and strategic communication to establish an equitable pay structure.

    Insights You Need to Get It Right

    The latest research, expert advice, and compensation best practices all in one place.
    Creating a Compensation Plan
    Creating a Compensation Plan Blog
    How the compensation and total rewards planning process create a compensation plan.

    Read More

    Top Compensation Trends in 2023
    Top Compensation Trends in 2023 Blog
    Stay ahead of the curve with these top compensation trends for 2023.

    Read More

    DE&I Panel Discussion: Moving the Conversation Forward
    DE&I Panel Discussion: Moving the Conversation Forward Webinar
    In this panel discussion we will cover what the issue is when improving DE&I.

    Read More

    Differences Between HR-Reported and Crowd-Sourced Compensation Data
    Differences Between HR-Reported and Crowd-Sourced Compensation Data White paper
    To make decisions about the value of a job, you need data from a range of sources.

    Read More

    CompAnalyst Market Data: Smart Matches, Fast Prices, and New Insights
    CompAnalyst Market Data: Smart Matches, Fast Prices, and New Insights Product Sheet
    The CompAnalyst Market Data platform is easier to use than ever before.

    Read More

    It's Easy to Get Started

    Transform compensation at your organization and get pay right — see how with a personalized demo.