Benefits of an Integrated Competency Based HR System

ATTEND WORKITECT’S BUILDING COMPETENCY MODELS CERTIFICATION  WORKSHOP ON NOVEMBER 7-9 AND LEARN HOW TO CREATE TAILORED COMPETENCY MODELS AND AN INTEGRATED COMPETENCY-BASED HR SYSTEM.

There are many bottom-line benefits of a competency-based HR system. Employee motivation leads to increased productivity and higher profits.  But the real values of an integrated human resource system are more complex–and more powerful.  Focusing on competencies will renew your company.  You’ll uncover startling energies and synergies that can give you the responsive, competitive edge you need.  Here’s what you can expect:

Enhanced Management:  With corporate goals clearly defined and a system of employee rewards in place that supports those goals, managers feel empowered.  They communicate more effectively with subordinates and with each other. Work proceeds more efficiently.  Quality measures go up.

Motivated and Committed Employees:  By involving employees in building your new competency-based system, you  ensure their early engagement with it.  And because the new system rewards employees for overcoming real, daily challenges, workers develop a sense of appreciation and commitment.  Less time is lost to wasteful activities.  Employees put creative energy into completing their tasks.

Increased Organization Effectiveness:  As all levels of your organization align with company goals, overall effectiveness increases dramatically.  And the focus on adding and refining key competencies augments this increase continuously.  Individual employees become more effective and, as a whole, your company becomes more dynamic, more competent.

Easier Cultural Change and Organizational Improvement: 
A competency-based, integrated human resource system supports your company’s strategic direction.  Necessary change becomes simpler when both management and employee goals are defined in terms of the company’s success.  With little incentive to cling to older methods or attitudes, both management and employees participate more willingly when change is necessary.

Increased Resilience to Market Pressures:  Your company responds to outside stresses not as threats but as challenges.  At every level, the goal is not individual survival but group adaptation.  By linking employee well-being to corporate health, you tap the creativity and motivation you need to stay competitive.

Cost Savings and Increased Productivity:  An integrated human resource system cuts redundancy and waste.  It gives overlapping and competing departments incentive to cooperate and coordinate their work.  Individual employees see that they benefit by finding more efficient, effective ways to do their work.  Less time and material are wasted.  Productivity goes up.

Read a white paper on Integrating HR & Talent Management Processes.
Learn more about creating an integrated competency system for your organization.
Contact Workitect for information about our services and products.

Editor’s Note: This post was originally published in September, 2012 and has been updated for accuracy and comprehensiveness.

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How to Successfully Implement a Competency Model

Businessmen Listening to a Female Ceo Talking in a Meeting Room --- Image by © Ocean/Corbis

From “Practical Questions in Building Competency Models”, written by                    Dr. Richard Mansfield, senior consultant and instructor for Workitect’s Building Competency Models workshop.

The planning of a competency model requires identifying the most important stakeholders and users and considering how they will want to use the model. Here are some possible users and uses:

People in the job often want to use a competency model to provide a recipe for success. These users are asking, “What could I be doing differently that would make me more effective?” They are likely to value very specifically worded behavioral indicators that describe what to do, with whom, and in what circumstances. A matrix linking the competencies to major job tasks is also helpful to job incumbents.

Supervisors can use the same detailed information to assist in coaching jobholders. Since part of a supervisor’s job is also providing detailed feedback about effective and less effective behaviors, descriptions of less effective behaviors associated with each competency are beneficial. For the same reason, supervisors may find it useful to have a matrix linking the competencies to key performance criteria and measures. Because supervisors are also in charge of hiring for the position, they need a competency model that includes all of the important skills and qualifications required baseline requirements for all jobholders.

Human resources professionals who will be using a competency model have a different set of needs. HR staff may need to build a shared conceptual framework of competencies and a common language for describing the competencies. They can then facilitate matching skill profiles to different jobs through selection, promotion, and career-path planning; and the creation of training and development programs for people across a broad range of jobs. HR staff also need easy ways to compare the requirements of different jobs in the organization. It is useful for HR staff to be able to say which competencies are required for a job and the level at which the competencies need to be demonstrated, to achieve effective performance. Since HR staff often need to communicate and explain a competency model, they prefer competency models that are clear, simple, and written with powerful language.

Because HR staff want others throughout the organization to use the model, they need to ensure buy-in to the model by key stakeholders. All key stakeholders should be consulted or included in generating data to build the model and in reviewing draft versions of the model, to ensure that it is complete and accurate.

HR staff must also ensure that the competency model can withstand potential legal challenges, which are more likely if the model will be used to guide selection and hiring of staff. Using a rigorous, systematic process of data collection and analysis is the best protection against possible legal challenges.

HR staff may be interested in acquiring not just a competency model but the technology and training to build other competency models in the future. If so, the project plan should include training of HR staff and their participation in all phases of the project.

When competency models are needed for critical jobs, especially leadership positions, the organization’s top executive is an important stakeholder. Top executives often want to use competency models to drive organizational change. Top executives want competency models to be aligned with the organization’s strategy and most important values. It may be important to include competencies describing needed leadership skills, such as “Change Management” or “Business Partnering,” as well as desired values, such as “Integrity” and “Customer Orientation.”

It may also be important to include competencies that reinforce changes in the organization’s structure, work processes, and culture. For example, for organizations that are moving away from hierarchical structures with supervisors to flatter structures in which much work is done by self-directed work teams, competencies in areas such as coaching and team facilitation become important.

When an organization’s top executives take an interest in a competency model, they are likely to want it written with powerful, high-impact language that can inspire and motivate. Top executives are also to want the competency models to provide a clear, consistent message for all employees. One way to do this is to have a common set of core competencies that are the same for all employees.

Included in Workitect’s Building Competency Models Workshop and applied in our consulting practice to help organizations develop job competency models and HR and talent management applications, including performance management, succession planning, assessment and selection, and training and development.
 
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Getting Specific with Behavioral Descriptors

Book - OpenIf you’ve ever used or researched competency models, you probably know that their value is essentially measured with regard to their behavioral descriptors. In other words, the more accurate the descriptors to the roles, functions, objectives and culture, the more value the model has for the organization.

Although these indicators can certainly be – and often times are – adapted from a generic competency dictionary, it’s important to remember that when a job role requires specific abilities, then behavioral descriptors must also be highly customized for the model to have any bearing to the recruiting, retention, management and success processes.

Identifying a superior performer within a specific role

Behavioral descriptors indicate patterns considered to be contributory to superior performance in a given job role. As such, a competency’s definition represents an ability or trait, while the behavioral descriptor indicates the way in which that ability or trait is demonstrated.

For example, let’s say your organization is looking to fill a sales role. In that environment, the competency named “interpersonal awareness” is therefore of great relevance. This is defined as having the ability to notice, interpret, and address customer concerns and feelings. Behavioral indicators for this type of competency that make the most hypothetical sense would include:

  • Thorough understanding of the interests and concerns of the customer
  • Ability to anticipate how the customer will react to a given situation
  • Pro-activity to address customer concerns before they are even voiced (at which point, you have most often reached a critical moment in the customer’s “non-buying” decision)

In light of this example, you can now see why it’s important to equip your HR or managerial professionals with these precise descriptors in order to successfully recruit, evaluate or even train the right candidate for this sales role using competency models, as a generic competency – in our example, “interpersonal awareness” – may not speak as clearly of superior performance to a recruiter or manager as would our bullet points defining this competency.

Turning generic into specific

Whenever a competency is used, particularly when sourcing from a generic document, it is generally defined. But the work of developing competencies doesn’t stop there. These behavioral descriptors must be customized with respect to the role, the organization and the industry.

It is of course very important for an organization that is new to competency modeling to begin the process of developing competency models and indicators with the use of a competency dictionary license. Yet, it’s as important – if not more – to then know how to tailor this information to your needs in order to generate considerable value from such an approach.

As a starting point to companies who are new to competency modeling, Workitect offers a dictionary containing a full list of competency and descriptor options, but we also provide support and training to help you further customize this information accordingly. Throughout the year, we hold a variety of workshops around the country to bring you the tools and educational material required to make truly valuable use of your dictionary. Companies in cost-control mode or those requiring a high level of customization may also be interested in our on-site consulting and training sessions. Our consultants travel to your office, at your convenience, to teach your teams all that they need to know to build, implement, and assess their competency models and talent management processes.

Click here if you’re interested to learn more about our workshops, or here to read more about our competency dictionary.

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