All You Need to Know about Competency Models to Achieve Organizational Success
Competency modeling is a structured approach used in Human Resources and by CEOs to lay out the skill and knowledge prerequisites of a job. It is a framework that has a set of competencies needed for achieving successful job performance. Unlike job skills, competencies are broader, including soft skills such as knowledge, behaviors, and abilities, as well as the technical skills required for a particular role. These competencies collectively form a competency model.
Whether it is evaluating hard or soft skills to meet business objectives or ensuring quality and safety standards, using competency models in your organization can considerably improve the learning and development of your workforce. To map out the existing skills of your employees and find out the missing skills, use a skills matrix software!
Contents
Essential Parts of a Competency Model
Competency models vary in structure, but usually consist of the following components:
1. Competency names along with detailed definitions.
2. Descriptions of activities or behaviors associated with each competency.
3. A visual representation of the model, presented as a diagram.
As an example, a competency model may feature a competency named “Teamwork,” which could be defined as:
- Establishing constructive and strong interpersonal relationships.
- Showing courtesy, tact, and respect towards others.
- Collaborating with individuals from diverse backgrounds, regardless of organizational hierarchy, gender, race, or ethnicity.
- Resolving conflicts by attempting to persuade others and reaching agreements.
- Supporting group decisions and sticking to them.
- Facilitating team interactions and maintaining focus on common objectives.
This Teamwork model might entail behaviors such as:
- Adapting to diverse work styles when collaborating with colleagues.
- Using the strengths of team members to accomplish tasks efficiently.
- Proactively addressing conflicts and resolving them with effectiveness.
- Encouraging others to contribute ideas and feedback.
- Demonstrating personal dedication to achieving team objectives.
While these models can be presented simply as bullet points, a visual diagram is more suitable for giving leadership and team members a clearer understanding of the interconnectedness and important attributes of these competencies. Moreover, they may include details regarding career progress and the varying skill requirements, both hard and soft, across different levels of expertise and experience.
Example of a Competency Model in Human Resources
Competency models in Human Resources do not necessarily need to be specific to particular industries; they can have broader applicability. Organizations are constantly evolving, with changes in technologies, processes, and competition restructuring job roles. Factors such as reduced supervision, increased technical proficiency, reliance on information technology, and the fluid nature of work itself require a different set of competencies.
Competency models are used for multiple purposes, not only facilitating the learning and development of current employees but also directing the hiring process by establishing the qualities to seek in candidates. They also assist in defining the pathways of career for individuals from their initial days within the organization.
A Human Resource Competency Model can have the following features:
- Communication to establish strong interpersonal relationships.
- Establishing interpersonal skills.
- Focusing on customers.
- Ensuring cross-cultural agility.
- Encouraging self-management by learning agility, development initiative, and risk-taking.
- Creating the drive for results.
- Establishing adaptability management and emotional resilience.
- Encouraging leadership to adopt strategic thinking.
- Enabling leaders to lead courageously.
- Enabling managers to inspire others and build trust and credibility.
- Enabling all employees to acquire the ability to conduct problem analysis, critical thinking, and decisive decision-making.
Example of Competency-Based Training in Manufacturing
Human resources and training departments utilize competency models to lay out the prerequisite skills for specific roles within the organization. These models not only evaluate performance and progress in job but also inform the broader business strategy across the company. In a manufacturing context, workplace competencies can include:
1. Recognizing the impact of one’s performance on the success of the organization.
2. Demonstrating awareness of market trends, the company’s market position, and defined market segments.
3. Understanding the demand for the company’s products/services in the market.
Employees possessing these competencies enhance their value to the organization. It is evident that workplace competencies go beyond technical skills, including factors such as business ethics, legal/financial matters, environmental concerns, health and safety, and social responsibility.
The Importance of a Competency Model
While it is undeniable that every company already operates with some level of competency management, as incompetent employees would jeopardize its existence, the essence of a competency management system and modeling lies in identifying what distinguishes top performers within the organization and then, disseminating those qualities throughout the business. In simpler words, the importance of a competency model lies in identifying the specific skills each individual must possess to excel.
If all employees perform at this exceptional level, the company can realize its strategic objectives. This would allow it to gain a competitive edge in the process. For instance, while an engineer must possess basic engineering design skills, an outstanding engineer can collaborate with other R&D professionals to troubleshoot design issues before they impact manufacturing.
Today, the business world is fiercely competitive. This means the necessity for competency models is more pressing than ever. The fast pace of change calls for continuous innovation ultimately increasing the demand for evolving skill sets. Also, nowadays, employees tend to stay in their roles for shorter durations. This means they must achieve excellence with less experience. New entrants to the workforce always look for opportunities to make a meaningful contribution. They aspire to attain excellence. Managers also require clarity on the hard and soft skills essential for their own success and that of their teams. Understanding how to innovate and optimize talent management leads to greater individual motivation and the success of the organization.
Wrapping Up
Coupled with the competency model, organizations should use a skills matrix software. This software will map out all the existing skills of the employees and point towards the skills that they lack in order to execute a specific task or project. When the lacking skills are identified, leaders can make arrangements for training programs to equip the workforce with the necessary skills. Through these strategies, your organization is bound to reach the height of success!
