Competency-Based Human Resource Management: Developing the Business Case

Stakeholder participation is important not only to create "buy-in" but also to ensure competencies truly reflect the behaviours that contribute to and sustain organizational success.
It takes effort and commitment to implement a fully-elaborated and integrated Competency-based human resource management (HRM) system. It is important, therefore, to take the time to evaluate the needs of the organization, and to create a strategy and plan that will meet these needs - in other words, getting it right the first time.

Developing the Business Case:
Our years of experience in implementing Competency-based human resource management programs have shown that, as with any other significant change initiative, there must be a compelling need and will to change. It is not sufficient for the organization’s human resource or training professionals to see the need; leaders of the organization must also see the benefits and be willing to champion the initiative. Likewise, employees must understand how the program will benefit them both in their current jobs, as well as in advancing their careers. For this reason, many organizations have chosen first to implement components of a Competency-based HRM system that address the expressed needs of employees, preferably in a non-threatening way - for example, a Competency-based self-directed learning program.

This post is based on content from 'Competency-based Human Resource Management: Planning for Success' by Suzanne Simpson, Ph.D. And Lorraine McKay, M.A.

What is Competency-Based Human Resource Management?

A competency is “any skill, knowledge, or other attribute that is observable and identifies successful performance.” Effectively, competencies translate the strategic vision and goals for the organization into measurable and observable behaviours or actions that employees must display.

A common framework of competencies provides the means for integrating all aspects of the HR system so that employees are selected, evaluated, developed, promoted and rewarded based on competencies that support organizational success. By communicating these competencies, organizations empower employees to take charge of their careers, direct their own personal development and continually self-evaluate and improve. At the same time, the framework allows the organization to pro-actively plan for its human resource needs both in the immediate and long term, and to establish programs that support employees in acquiring the competencies needed for organizational success.

This post is based on content from 'Competency-based Human Resource Management: Planning for Success' by Suzanne Simpson, Ph.D. And Lorraine McKay, M.A.

Competency-Based Management: Lessons Learned

There have been a number of lessons learned in designing and implementing Competency-based talent management systems over the past ten to fifteen years. First, the implementation of a Competency-based management system cannot be driven solely by the Human Resources Department. Senior and line management must have a compelling reason for implementing Competency-based management and see the value that it will be bring in supporting the organization's strategic goals. Further, they must be prepared to visibly support, fund and champion the initiative within the organization. The organization must commit the necessary resources to make it happen - it cannot be a secondary duty to be performed off the side of an already overworked HR professional's desk. There must be a well-articulated and staged plan for development and implementation, and employees have to be involved in the process and understand the benefits of CBM for them. This means designing and implementing a good communications plan. Finally, designing, implementing and gaining a full return on investment for Competency-based management takes time. However, quick gains can be made in many areas if managers and HR staff examine the organization's pain points and use Competency-based tools and processes to address these as quickly as possible. Having a well-designed talent management system will expedite this process.

The use of Competency-based management systems affords companies the opportunity to concentrate on their operations without sacrificing the need to have a well managed workforce. Recent research is showing that organizations can reap major financial gains through Competency-based management. Implementing a Competency-based system can make a major difference in the efficiency and profitability of the company, the productivity of the workforce and the amount of manager and HR staff time spent on HR issues, thereby providing a competitive advantage in the market place.

This post is based on content from 'Competency-Based Management That Works!' by Suzanne Simpson

The Competency-Based Management Advantage

Managers can compare and rank order the employee pool available within the organization against competency requirements for specific positions – for example, to support filling immediate vacancies or when planning for successors. Managers can view the whole resource pool that is available and not just those employees who are known to the manager. As a result, the organization benefits from the best employees being selected and promoted, and employees in turn are given more equitable opportunities for career development and growth within the organization.

From a career planning perspective, Competency-based talent management systems allow employees to compare the competencies they possess with those required in the various jobs in the organizations. Employees can then decide on career options they would like to pursue and develop plans to address gaps and progress in their careers.

Planning for longer-term strategic workforce requirements becomes a less complicated with the analysis and reporting capabilities that are built into the new talent management systems. These systems allow senior managers to easily compare the current workforce capacity and capabilities with the talent requirements to achieve the organization’s strategic goals. Based on this analysis, management can then put in place strategies and programs to address gaps and position the organization to achieve its goals.

This post is based on content from 'Competency-Based Management That Works!' by Suzanne Simpson