In a disruptive world where technologies are revamping every minute and organizations are in a perpetual race to acquire red-hot and in-demand new ones, organizational talent is becoming the most dependable, stable, defining and competitive asset.
However, talent isn’t automatic. Most new talent reaches the organizations in raw form and needs to be cultivated further for optimum performance. This is where competency development and management comes into the picture.
Benefits of competency management:
Though competency management comes with copious benefits, we list the most important ones here:
Hiring the Right Fit:
Bogus institutions and superfluous degrees are flooding the education market and it is hard to identify genuine from the dubious. CV and qualification frauds are rampant. Different studies show that around 80% of CVs have some kind of inaccuracy. Most of these inaccuracies get overlooked as only 20% of organizations are conducting effective background checks.
Even if the competencies are matching, mere qualification or certificate cannot ensure the right fit. Many courses have become redundant and competencies too vary from job to job and organization to organization. It is nearly impossible to arrive at a one-size-fits-all model. Depending on degrees and certificates for competency assessment is akin to shooting an arrow at an indefinite aim. Chances of it landing on the right aim are close to nil. Competency models come to our aid here. They refine and streamline job advertising and selection process.
Aligning the Workforce with the Organization’s Strategy:
Many organizations use a scorecard to formulate job role expectations. Competencies draw all stakeholders on the same line of thought and action.
- For individuals, they define the “expected” level of performance.
- For managers, they provide resources for employee development.
- For organizations, they lay an action plan.
In short, they set a roadmap for everyone. A firm line of thought and action becomes crucial when two or more organizations come together in mergers and acquisitions. Acquired firms might be accustomed to very different systems of performance. Competency management can help assimilate the acquired firms.
Improving Quality and Productivity:
Quality management demands adherence to knowledge, skills, and processes required for specific job roles. Competency management lays these requirements. When expectations from the job are clear, they become easier to perform and to evaluate. Competency management also outlines the performance gaps for future improvements.
Improving Employee Retention:
Competencies set employees’ expectations, define training requirements and establish performance expectations. They improve clarity and understanding and, substantially reduce any kind of unnecessary friction that might arise during day to day operations.
Millennials and GenZ are ranking learning and development as a top attraction and retention criterion. A Gallup survey says 87% of millennials stick to jobs that give them opportunities for on-job development. Employers who are invested in the development of their employees succeed in retaining them.
Competencies also lay a roadmap for the future growth of the employees. Knowing where you are headed improves confidence and drive. Organizations benefit from these foresights too. While skills ensure performance in ongoing tasks, competencies that are a broader set of skills, knowledge, and behaviors, ensure suitability for the future.
Challenges in competency development:
Competency development is a continuous and challenging task. The challenge is compounded by rising tech complexities, growing employee expectations, increasing diversity and social and economic pressures. Talent managers are constantly driven to devise learning plans that cater to the needs of individuals keeping in line their preferences and demographics. The program should be relevant and effective for its receivers who are most likely spread out across geographies. Once the design is secured, their next challenge is to arrive at effective ways to disseminate these programs in such a way that the program reaches employees at all levels. Follow-through of the programs is important to gauge their effectiveness. Organization’s growth or relocation can pose significant challenges.
Windup:
An essential boardroom tool, competency management gives insight into Workforce Credentialing solutions. Organizations, with their competency management insight, bypass costly operational mistakes, which in any case they cannot afford anymore. In a rapidly changing business environment, competency management becomes an absolute must to cultivate an agile and competent workforce.