Advantages of a Competency Framework

Developing a competency framework can be beneficial for both the employer and the employee. It helps build a transparent and valid blueprint for hiring, job description, performance evaluation, and career path. Personal discretion and subjectivity are minimized in decisions related to hiring and development, creating a more positive work culture and a stronger relationship between employee and employer.

Order & Direction: A competency framework helps define the strategic intent in terms of behavioral indicators and organizational competencies. By applying it across levels – functional and hierarchical, it provides a sense of order and structure. It furthers adds to the sense of growth, productivity and creates culture of performance.

Objectivity in Measurement: Competency framework provides an objective method to measure softer and qualitative aspects of resource deployment. Whether its human resource or machines, organizations benefit from high utilization and productive application of resources. By applying a well thought through competency framework, organizations can measure the impact of development programs, recruitment methods and hiring strategy on business results. It can further assist us in determining gaps at individual, organizational and functional level.

Integration: Because competency framework can be applied widely, they can act as a glue binding several functions and aligning them towards similar goals and measures. Human resources, recruitment, performance management, project management, customer relationships and rewards and recognition – can all benefits from having a common competency framework.

Differentiator: By identifying the unique behaviors and cultural aspects that create success, competencies can help organizations create a distinction in its identity and way of doing things. Competency frameworks are unique to organizations and seldom remain the same when mapped for a competitor or a similar organization into similar business line. Uniqueness in identity is important form the aspect of branding, employee engagement and cultural disposition of the organization.

Some key definitions:

Competency Identification: Process of identifying what competencies are necessary for successful performance.

Competency Model: A structured and narrative description of competencies for a specific job category / business unit or a business group.

Competency Mapping: Identification and incorporation of key competencies in various organizational processes such as recruitment, job evaluation, training and performance management.

Competency Assessment: The process of comparing an individual’s competencies as defined in the framework to those narrated in a competency model.

Competency Standard: Essential (minimum) skills, knowledge and aptitude that employees must demonstrate for threshold performance levels in a specific job role.

Competency Profile: A booklet / document that describes the set of competencies, mapped to a job role or business unit.