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Competency-based Human Resource Management: Planning for Success Suzanne Simpson, Ph.D., C. Psych & Lorraine McKay M.A. Contents: ď€ Understanding Competency-based HR management ď€ Planning: business case and strategy
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Competency-based Human Resource Management: Planning for Success
Planning the framework for a HR system in which employees are selected, evaluated, developed, promoted and rewarded based on competencies that support organizational goals requires the right leadership and an approach sensitive to employee needs. Success requires careful selection of the method best suited to support the identified needs and sound communication at all stages of the planning, development and implementation process.
By communicating competencies, organizations empower employees to take charge of their careers, direct their own personal development and continually selfevaluate and improve.
What is Competency-based Human Resource Management? A competency is “any skill, knowledge, or other attribute that is observable and identifies successful performance.” Effectively, competencies translate the strategic vision and goals for the organization into measurable and observable behaviours or actions that employees must display. A common framework of competencies provides the means for integrating all aspects of the HR system so that employees are selected, evaluated, developed, promoted and rewarded based on competencies that support organizational success. By communicating these competencies, organizations empower employees to take charge of their careers, direct their own personal development and continually self-evaluate and improve. At the same time, the framework allows the organization to proactively plan for its human resource needs both in the immediate and long term, and to establish programs that support employees in acquiring the competencies needed for organizational success.
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Competency-based Human Resource Management: Planning for Success
Planning for Competency-based Human Resource Management It takes effort and commitment to implement a fully-elaborated and integrated Competency-based human resource management (HRM) system. It is important, therefore, to take the time to evaluate the needs of the organization, and to create a strategy and plan that will meet these needs - in other words, getting it right the first time. Stakeholder participation is important not only to create "buy-in" but also to ensure competencies truly reflect the behaviours that contribute to and sustain organizational success.
Developing the Business Case Our years of experience in implementing Competency-based human resource management programs have shown that, as with any other significant change initiative, there must be a compelling need and will to change. It is not sufficient for the organization’s human resource or training professionals to see the need; leaders of the organization must also see the benefits and be willing to champion the initiative. Likewise, employees must understand how the program will benefit them both in their current jobs, as well as in advancing their careers. For this reason, many organizations have chosen first to implement components of a Competency-based HRM system that address the expressed needs of employees, preferably in a non-threatening way - for example, a Competency-based self-directed learning program.
Developing the Strategy Having identified the business need, the champions for change and the organizational readiness, the organization is in a position to more precisely define a staged approach for developing and implementing competency models. As the first major challenge the organization must decide to what level the competencies will be defined. For example, will it be sufficient to define the common / core competencies for everyone in the organization, or do specific competencies have to be developed for particular classifications and levels, functions, or jobs? The answer to this question hinges on how the competencies will be used. For example, to staff particular positions, competencies should be defined for the job. On the other hand, for appointments to level, for appointments to level, competencies need only be defined at the core or common level.
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Competency-based Human Resource Management: Planning for Success
The organization must also determine the competency modelling method best suited to support the identified needs. In our experience no one single method will effectively support all components of the human resource management system (i.e. training and development, selection, performance management, etc.), the full range of occupations and levels (executive, professional, skilled, semi-skilled, etc.), or the various types of organizational and business environments. Finally, communication is imperative at all stages of the planning, development and implementation process. In addition to promoting the value, benefits and ways in which the Competency-based initiative will be implemented, stakeholder participation in the process is also important, not only to create "buy-in" for the initiative, but also to ensure that the competencies truly reflect the behaviours that will contribute to and sustain organizational success. Common Pitfalls of Competency Initiatives 1. No sponsor, or sponsor with insufficient power, influence, credibility or strategic perspective. 2. No perceived need for change, among senior leaders or groups with power. 3. Resistance to change across the organization. 4. No clear identification of stakeholders – not involving them. 5. Losing momentum – priorities change. 6. Non-existent / inadequate training – managers, supervisors, employees, HR staff. 7. Support infrastructure and finding not in place. 8. Inadequate project management / project talent. 9. Not implementing right away. 10. Competencies / applications too complicated.
Conclusion Many organizations are using competencies as the means for identifying and developing this talent. Our experience shows that unless the competency framework is well planned and defined, organizations will not have the proper foundation for developing and implementing a system of human resource programs and initiatives for renewal and sustained success.
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Competency-based Human Resource Management: Planning for Success
About the Authors Dr. Simpson is a registered Industrial / Organizational Psychologist. Her focus throughout her thirty-five year career has been on developing and implementing Talent Management systems that propel organizations to higher levels of success and encourage respectful and welcoming work environments. She has managed and supported many organizations as well as whole occupational sectors in defining competency frameworks and in developing and implementing Competency-based talent management products, programs, processes and assessment systems. She is well recognized by her peers in Industrial Psychology in Canada and sought after around the world as a speaker and facilitator on the topic of Competencybased Talent Management. As an entrepreneur and business owner, the Women's Business Network recognized Suzanne as a finalist for the title of Business Woman of the Year (2007).
Lorraine McKay has over 20 years experience as a human resources practitioner in a wide variety of practice areas, and is particularly well known for her expertise and extensive experience in developing Competency-based human resource management programs and tools, such as self-assessment and multirater feedback systems, Competency-based interviewing, Competency-based human resource planning and development, and job evaluation systems. Much of Ms. McKay's work involves the design, facilitation and delivery of training courses and programs to managers and HR professionals. She delivers extensive briefings to conferences and in the context of workshops and facilitated discussion sessions. As part of the CHRP designation offered through Algonquin College and Carleton University, Ms. McKay regularly teaches two courses: Personnel Selection and Human Resource Planning.
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Competency-based Human Resource Management: Planning for Success
About HRSG Human Resource Systems Group Ltd. specializes in providing clients with innovative, integrated HR solutions that facilitate the alignment of their human resource strategies and tactics with the strategic vision of their organization. HRSG is a recognized leader in the field of Competencybased talent management, and its flagship talent management software, i-SkillSuite®, is the culmination of more than 200 competency projects with leading organizations around the world. For more information about HRSG products and services, visit www.hrsg.ca. For more information, please contact info@hrsg.ca.
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