If you are an HRM or a manager who leads a team, you already know how competency is important among your workers. However, identifying which workers have all key competencies can be a challenge.
An effective way to address this is by using a competency values framework. In order to be effective, the competency values framework in use should list all necessary skills for a given job role.
Further, HRMs can take stock of the top Competency Frameworks in use to deduce one that is best suited to their company. According to a survey by SHRM, 60% of companies have seen an improvement in employee performance by using a Competency Values Framework.
Defining Competency Framework
Each job role, to be done well, requires a certain set of skills. Plus, employees also need a specific educational background and training to perform adequately in a role.
A competency framework is a tool that lays out which key skills are a necessity for each job role. It may also list the proficiency levels necessary for the respective skills as per the role. Workers may often have the competencies necessary for the job. With time, they may also develop additional skills and competencies that make them eligible for promotions.
Further, a competency values framework combines the core competencies necessary for a job role with the values that the company upholds. This helps better align the goals of the employees with those of the company.
Components of an Effective Competency Framework
To be effective, the competency values framework being used at a company should have the following two components:
- Hard skills like educational and technical knowledge.
- Soft skills such as interpersonal and leadership skills.
To elaborate, these can be listed as follows:
- Core competencies that align with the business that include strategic awareness.
- Job-specific competencies such as training and technical expertise to fulfill the role.
- Leadership competencies like decision-making, and guiding and motivating others.
- Meta competencies, which are meant for the top achievers, like critical thinking and self-awareness.
Pros and Cons of a Competency Framework
Some pros of using a competency values framework are:
- Lays out clear expectations for employees.
- Ensures transparency in employee assessments.
- Lays out a uniform, standardised appraisal process.
- Improves the recruitment and selection process.
- Differentiates top performers from those who fall behind.
- Increases employee engagement.
However, a competency values framework can also have the below drawbacks:
- They can focus too much on past achievements instead of growing their skills.
- They can often be difficult to understand and use.
- The uniformity of the competency values framework can reduce individuality among employees.
- An inadequate competency framework can fail to deliver on performance improvements.
What Do the Top Competency Framework Account For
Owing to the modern society going through a digital change, some of the key markers and skills are:
- AI and Machine Learning
- Analytical and data-driven approaches
- Sustainability
- Digital literacy
- Cyber security awareness
- Hybrid work arrangements
- Critical thinking
- Emotional intelligence (EI)
Keeping these in mind, a top Competency Framework has to account for:
- Digital Literacy: knowing how to use technology
- EI (Emotional Intelligence): being empathetic and resilient
- Strategic thinking: problem-solving skills and the ability to use data and analytics.
- Collaborative work: achieving targets when working with a team
Usefulness of a Competency Values Framework
The right Competency Values Framework has the below uses:
For the Organisation
Organisations can make use of a Competency Values Framework in the following manner:
- A bias-free system for appraisals and evaluations.
- An effective tool that sets a standard for each job role.
- Identifying existing talent within the company.
- Reducing recruitment costs by retaining talent.
- Creating a talent pipeline via succession planning.
When a vacancy comes up, studies show that on average it may take up to £6,125 to fill the spot. If it is at the managerial level, this cost can be as high as £19,000. Thus, employee retention should be a key goal for the management team.
Using a Competency Values Framework, the organisation can make strides in identifying the best-performing employees and training them for more important roles.
For the HRMs and Managers
According to Gallup, when a large organisation with thousands of employees takes up employee reviews, it can cost a minimum of 2.4 million USD in work hours. HRMs and managers can streamline and cut back on the time they spend on employee assessments with a Competency Values Framework.
Further, the managers can set up the benchmark requirements for each job. This will help understand the key requirements for each job role.
They can also use the results of the Competency Values Framework to identify which employees have more potential and map out career plans for them.
To add, a competency framework can lead to a 50% increase in employee retention rates, a key goal for HRMs.
For the Employees
Among employees, a top competency framework establishes the following:
- Clarity regarding the job role, what they need to do and achieve.
- A clear guide on which skills are a priority.
- An understanding of how performance evaluations are being done.
This clarity helps employees work on improving their existing skills and gaining new competencies. In turn, this gives employee engagement a boost and helps with retention. Further, by upskilling, existing employees can achieve better positions in the organisation.
Assessing and Deploying a Competency Values Framework for Your Company
When you evaluate the Competency Values Framework, it should be able to meet the following criteria:
- Align with the company’s goals.
- Account for all competencies necessary.
- Have suitable parameters to evaluate proficiency.
- Provide the option for continuous assessment and feedback.
Only a top Competency Framework that checks the above is suitable for a given organisation. Further, to deploy said framework, the steps are as follows:
- Define the scope of the framework.
- Check in with the stakeholders and identify which parameters should be represented alongside a job role.
- Integrate this into the appraisal process.
- Train all members of the organisation to use this framework.
- Evaluate and update the framework at regular intervals to keep it relevant.
Wrapping Up
Identifying the top performers, and retaining, motivating, and promoting them is a key goal for all organisations. And the best way to achieve this is via a Competency Values Framework.
By laying out a standard set of criteria, managers can streamline the appraisal process and establish transparency. Evaluate the top Competency Framework available and deploy one that is right for your business.
