While competency management is sometimes seen as a “complementary” resource to existing human resources functions such as acquisition, training, and succession planning, it is, in fact, much more important than that. Employees and their skills are among the most important assets in any organization, and investing to improve that asset is essential for the growth and longevity of the company.
If you’ve already implemented a competency management method in your organization, congratulations! If you haven’t be sure to read my last post, Integrating a Competency Management Method in 5 Steps, where I’ve provided a high level overview of an actionable plan. Considering the complexity of such an undertaking, it would also be beneficial to know why integrating a competency management method results in success and the benefits you’ll receive from it in order to justify the investment of time and effort.
Developing a competency management method and integrating it into an organization’s fiber can have far-reaching benefits. The most significant of these is the organization’s long-term success. In a continuous cycle of success, the organization operates smoothly and successfully reaches its goals, which provides support to each department, team, and individual to effectively complete their responsibilities. In turn, the latter then facilitates the success of the organization and the achievement of its goals, and on, and on, resulting in long-term success.
Second, identifying employees’ skills gaps provides a platform for the organization to target the specific needs it has determined to be strategic to its success. That is, senior management, department managers, and team leaders – along with human resources and training stakeholders – can use this information to map organizational growth areas, identifying critical roles before they become critically vacant. Ultimately, this process ensures that the organization’s employees have the skills needed to achieve the broader objectives.
Managers can use competency management systems to improve their recruiting efforts. As the skills needed for high performance are identified, managers can implement selection tests to assess specific competencies for job roles. This saves money and time by ensuring that the right candidates are selected for each job vacancy.
Project staffing can also be supported by use of a comprehensive skills inventory. Skills and competencies can be matched to project requirements to find the candidates with the best fit. This reduces the overall risk for staffing the project, and in some cases, can identify and leverage under-utilized talent.
Third, identifying skills gaps and measuring against them regularly ultimately benefits training teams, as needs for training in both the short and long term are revealed. Training programs are under constant pressure to demonstrate a positive return on investment (ROI), so it is crucial to evaluate and understand the impact of training on the company’s bottom line. A competency management method makes it easy to see exactly where training dollars are having the strongest impact.
Finally, competency management systems can improve career planning for applicants and employees. Job applicants are attracted to organizations that provide additional benefits not readily apparent in other organizations. Applicants who are smart and career-motivated will find companies with career development programs to be more appealing than organizations lacking in such programs.
While competency management requires both time and financial investments, the payoff in performance and goal attainment is worth it. Employees will improve their skill sets and acquire the understanding that the company values them, thanks to the organization’s investment in them. The organization benefits by having employees who are more versatile, effective, and efficient, while meeting its financial goals.
Implementing a competency management method can help move your organization from ordinary to extraordinary. For more insight, read our Optimize Your Workforce white paper. Or, for a complimentary consultation, contact us here at Avilar.