Competency-based performance reviews focus on developing the behaviors the competencies that are essential for developing employees as A-players in their roles. Competency-based performance reviews look at how an employee’s actions over a defined time led to meeting or missing defined objectives, so you gain an understanding of where an employee stands at present and what additional behaviors they should develop for future success.
Competency-based performance management measures employee performance based on their improvements since the last competency evaluation. In this type of system, the employee is measured against his own past performance, and he does not necessarily compete with other employees on his competency skill levels. Competency-based performance management also involves rewarding employees who meet or exceed competency requirements. Generally, rewards are used in cases when improvement on one or more competencies is displayed, but rewards can also be given to employees who display consistent proficiency in some or all competencies required for a job.
Constitutes:
Recruiting:
Recruitment, assessment, evaluation, and hiring bring employees to the organization through an integrated process.
Workforce planning:
Hiring plans and targets along with compensation budgets are all integrated within the overall business plan.
Onboarding:
Employees are integrated swiftly into the organization through training.
Training and performance support:
Learning and development programs are provided at all levels of the organization. This support is part of a continuous process.
Performance management:
The method used to measure and manage employees; a comprehensive process involving multiple aspects of an employee’s roles and responsibilities.
Succession planning:
Organizations have a continual need to move people into new roles as and when required. Identifying the right individuals for the right roles is crucial and needs to be fully aligned with the company’s business plan.
Critical skills gap analysis:
Josh Bersin’s report identifies this as an important, often overlooked, function in many organizations. Businesses need to be able to identify the roles and individuals who are leaving, and the competencies they are taking with them. Critical talent management is required to fulfil this need.
Compensation and benefits:
Compensation is typically tied to performance management to ensure that these rewards are aligned with business goals and execution.
Defining Competencies
Competencies are defined as skills and abilities in behavioral terms that are coach-able, observable, measurable and critical to successful individual and organizational performance.
Goals are “what” part of performance and competencies are “how” part of performance.
Grouping of knowledge, skills and behaviours which may be required in whole or in part within a variety of managerial situations can be defined as competency.
Competency Development
Competency development is a carefully crafted process of research and data gathering about firm’s managers and employees with the goal of determining the specific knowledge, skills and personal attributes required for excellent performance in jobs, roles and business.
Causal Relationships
Motive, trait and self-concept competencies predict behavior actions, which in turn predict the job performance outcomes.
Competency Development
Competencies always include an intent, which is the motive or trait force that causes action towards an outcome. Behavior. Without intent, we cannot define competency. Action behaviors can include thought, where thinking precedes and predicts behavior.
Causal flow models can be used to do risk assessment analysis.
Categorizing the Competencies
Competencies can be classified in two categories:
Threshold Competencies: These are essential characteristics (knowledge or basic skills) that everyone in the jobs need to be minimally effective but that do not distinguish superior from average performer. A threshold competency for a sales person is the knowledge of the product or the ability to fill out the invoices.
Differentiating Competencies: These factors distinguish superior from average performers. For example, achievement orientation expressed in a person’s setting goals higher than those required by the organization, is a competency that differentiates superior from the average sales person.
Mapping Competencies
- Identification of the key competencies (and incorporating these with processes like job evaluation, training, recruitment etc.)
- Mapping these competencies throughout the organization’s HR processes
- Competencies become the factor for assessment of performance evaluation
- Helps in objective evaluations based on displayed behaviors.
- Results of performance evaluation can be used for need of training and development program for individuals
Identification of Core Competencies
Employee core competencies are a set of knowledge, skills, and capabilities that an employee needs in order to be successful in an organization. It is the cornerstone of the employee’s development, performance, and overall success within the company.
Competencies, core competencies, job-specific competencies, are similar terms.
As we put together a job description, there are two types of core competencies one needs to consider:
Position-specific competencies: These are the abilities and skills required for a specific role.
Organizational competencies: These are the skills and abilities a candidate will need to have to navigate the culture of an organization.
Sometimes organizations focus on the position-specific competencies and neglect the organizational competencies.
It is also assumed in organizations that older job listings and competencies identified for previous hiring periods will work for the current hire. Don’t assume that the skills required in the past will be the skills necessary for success in the future. Consider how the role has changed or may change, and hire for the competencies required for the role as it is, not as it was.
For Position Specific Competencies
To identify position specific competencies, think about what is required to complete the duties of the job.
Skills: Hard and soft skills such as technical skills, interpersonal skills, accounting skills, writing ability, knowledge of specific statistic, scientific, or project management techniques, etc.
Knowledge/ areas of expertise: Often the candidate’s field of study, such as administration, nursing, IT, accounting, history, etc.
Personal qualities and work style: What characteristics does a person need to have in the role? This can include qualities like being organized, analytical, creative, able to meet deadlines, etc.
Ideally, determining the position-specific competencies of a position will include the input of not only the position’s supervisor, but also other employees that work closely with the position.
For Organizational Competencies
While position-specific competencies need to be developed for each role, organizational competencies will be consistent across all roles in a company.
Begin by identifying the norms and behaviors that are expected across the company. Is the management style hierarchical or are decisions taken by consensus? Are employees encouraged to take risks or avoid them? What is the pace of work? Is the work environment traditional or more unconventional? How collegial are employees?
The answers to these questions will tell you which type of people will “fit” in your company. The skills necessary to be successful within the company culture need to be included in your job description to ensure candidates have the organizational competencies required to fit into the company culture.
Many of these organizational competencies will relate to the company’s brand and values. If your organization has codified its brand, values, and culture, refer to these as a starting point to help you identify your organizational competencies.
SHRM Competency Model
