The Competency-Based Management method is key to the success of some companies. It is through this method that the skills of each employee are identified, favoring the team as a whole. In this way, this method has the ability to make things work in a more improved way in the day-to-day running of the organization and, consequently, generates excellent results.
Do you want to better understand all the features of Competency-Based Management, and what benefits it can bring to your company? Then read on!
What is Competence Management
A competency can be defined as knowledge, skills or attitudes that are compatible with the performance of a specific task. It can also be seen as the ability to put this potential into practice whenever necessary. So a competence is a responsive and recognizable action that makes it possible to add economic value to an organization, as well as social value to the individual.
With this method, it is also possible to measure the different types of competencies that make up a company. In this way, associating the results of a particular employee with their behavior, technical and professional skills will become less complex, and you will be able to align your strategic objectives with the development of each employee in your team, achieving good results.
What are the characteristics of Competence Management?
By adopting competency-based management, the company is changing its HR processes, updating existing ones and incorporating new ones. As a result, it is possible to see the emergence of certain characteristics, such as:
- Mapping and constant measurement of competencies
This model requires identifying the needs of each position and function, as well as understanding the distance between demands and the potential of each employee.
Therefore, one of its main characteristics is the constant mapping and measurement of these competencies.
- Change in selection processes
In general terms, it is possible to say that selection techniques are becoming more important in this management model. Situational tests, group dynamics, psychodramas (group psychotherapy), more in-depth interviews, etc. become part of this process in order to validate the potential described in the CV and to explore others.
- Use of technology
Dealing with competencies requires managing a large volume of information, which is why companies tend to implement IT solutions for automating tasks. The use of recruitment software, ERPs and cloud storage applications, for example, is commonplace these days.
- Competency-based pay
In this model, career plans are also affected by competency-based management. The tendency is to hierarchize individual capabilities, so that positions are designed based on the set of competencies required and their occupant. In this way, the most capable people tend to occupy the highest positions, with the best pay.
- Emphasis on training
Organizations that start using Competency-Based Management take on a leading role in developing the potential of their employees. Training becomes commonplace and makes room for encouraging professional qualification.
- Establishing a culture of professional development
When a company defines qualification and professional improvement as the main expected behavior, the tendency is for employees to develop more in this direction. And then, over time, valuing competencies becomes part of the organizational culture, becoming something appreciated by the whole team.
- Recognition of the organization's competencies
Last but not least, a crucial feature is the emergence of company competencies as a reflection of individual competencies.
How does competency-based management work?
Considering that a competency, in short, is a professional's ability to deliver, we first need to understand the company's current situation. The initial work, however, consists of identifying which competencies the organization possesses, and which are needed to perform specific tasks.
Once this has been identified, the information gathered needs to be cross-referenced in order to recognize the expected development of your employees. And all of this can be summed up in a cycle based on competencies, as listed below. Check it out:
- Mapping: The first step is to map all the competencies that the company needs to be competitive and identify the need to adapt the employee's profile to the demands of the position.
- Assessment: This involves assessing whether each employee has the necessary skills to take on the responsibilities that their position requires, taking into account the competencies of the job.
- Development: This is the improvement of the skills of those employees who have a level of proficiency below the qualities required by their job.
- Monitoring: An analysis is made of whether the changes have had an effect and have achieved the objective of the training, i.e. adaptation to the competencies. Then the competency cycle begins again.
How to apply this method?
Competence Management works best when implemented in all areas of the organization where people are managed. Among the activities that can be carried out when this method is introduced are recruitment and selection, performance evaluationtraining and development.
As with any other management model, there are no fixed rules that generate results. Everything will depend on the characteristics of the company, such as the area in which it operates and the profile of the manager. But it is still possible to make efficient applications that will have an effect on any business.
Conclusion
Competence Management is more than just knowledge control, as it is also related to the organization of work. It requires conditions as well as instruments for developing initiative and responsibility, space and time for reflection, and trust between the worker and the company.
Applying this method involves mapping the competencies that every company should have. This information is then combined with the skills needed for the company to grow, with the aim of improving results. This results in employees who are better able to do their jobs more effectively.
We hope this information has cleared up your doubts, helped you implement the Competency-Based Management methodology in your company and brought you excellent results! To help you even more, we've put together an article on People management: why it's important and how to do itto add even more value to your organization.
