Issue #10: How to Use Competencies Effectively Within the Employee Cycle

February 01, 2010
Competency-based projects typically start with assessing and developing incumbent employees. It is an effort that fits comfortably within the learning and development function. Questions that typically lead to a competency research and development effort include:

"Are we using our learning dollars most effectively?"
"How do we know that learning and development is delivering on its promises?"
"Are we learning the right things?"
"Are we developing the right people?"

The result is that many organizations are locked into competency-based applications as enhancements to the learning and development function rather than using them in an organizational strategy.

Improving the skills of incumbent employees is just one competency-based HR application and for some organizations, may not be the most important one. The figure below shows how employees cycle through a position.

Note the division between "discover" and "develop". The employer is often a passive information seeker at the first three positions. Job seekers bring a set of skills with them to the organization. It is the duty of the personnel acquisition process to uncover those skills but not to modify them. Once a person is hired, the employer shifts into an active development mode, taking on the responsibility for providing appropriate performance enhancement resources. Now an individual's skills are considered a variable that can be improved by the individual and the organization.

In many industries, particularly those facing labour shortages, this distinction is breaking down. The classic methods of acquisition and development are failing to provide qualified employees for all positions. One solution is to shift the discover/develop line to a position earlier in the cycle, using competency concepts.

The Employee Life Cycle

   Suspect  Recruit
     
   Applicant  Qualify
     
   Candidate  Select
 Discover    
 Develop    
   New Hire
 Train
     
   Incumbent  Improve
     
   Mentor  Leverage


Moving competency measurement into all levels of the employee cycle provides many benefits to organizations. Less personnel time is wasted evaluating candidates who are not qualified for the job. Better candidates are selected from the pool of applicants, and better new hires are selected from the group of candidates. New hires are productive more quickly. Incumbents receive just-in-time, just-as-needed development. Mentors help to develop the competencies of those around them and help to create additional mentors before moving on to another position. All it takes is to put the necessary systems in place.


TIPS AND TECHNIQUES

Much of the hard work has been done with the development of models and assessments. For a small marginal investment, organizations can leverage this intellectual capital into HR functions beyond the development of current employees.

Traditional measures of applicant or candidate qualifications are largely ineffective. Objective assessment of competencies is a requirement in a hiring process.