Where competencies are instrumental factor in the delivery of the person’s desired outcome, having a profile of the person’s competencies will help in the best utilization of the person’s capabilities through the employment lifecycle, while help in:
- Selection and placement: Once the competencies needed in jobs have been identified, selection and placement activities must be revised to focus on assessing the needed competencies of individuals.
- Compensation and performance management: Shifting from a task-based pay system to a competency-based pay system requires significant efforts. Assessing performance by measuring results and competencies, especially if work teams are used, is a big challenge – especially if the organization is highly structured. Rewarding individuals for demonstrating competencies, particularly those that are less evident and more behavioral, leads to significantly different compensation structures.
Competency-based compensation is the least common use of competency approaches in organizations.
Shifting to competencies may lead to revising individually focused performance management and pay systems, and changing training efforts to focus on competency development. Yet, this shift to broaden jobs and competencies may not be compatible with the typical formal structures and job-focused activities in many organizations.
- HR development: Training and development efforts must be revised to stress a full range of competencies, rather than being narrowly focused on job skills and knowledge. The hidden competencies are more behaviorally based and require more varied approaches than have been common in many training.
Also, in assessing training needs and evaluating the meeting of those needs, the focus must be on abilities, not just knowledge and skills.
- Promotion and demotion decisions: Many companies – especially after revolution used its’ competency models to create critical strategic decisions that relate to promotion, recruiting and/or demotion plans through an assessment centers. An assessment center is usually conducted by a group of assessors made up of members of an employer’s HR team, technical experts and consultants. In theory this makes the process more objective, because the final decision on each employee/candidate must be agreed on by a team of assessors, using a range of structured assessment methods, rather than one person.
At an assessment centre employee/candidates are usually marked objectively, in terms of highly structured competencies. The tasks they are asked to perform usually reflect the work they will be doing if promoted/hired, and consequently their ability to perform at assessment is thought to be a direct indication of their potential ability to perform the job in question.
Assessment centers can’t be implemented unless the company has its updated and accurate competency model.