Competency Frameworks: A Powerful Talent Management Tool
The critical role of competencies in driving organisational success is well documented. A McKinsey Global Survey revealed that over 90% of executives consider capability building a top priority, yet only 25% believe their organisations are effective in this area. This disparity underscores the need for structured approaches like the CSA Competency Framework, which offers a tailored and measurable method for developing essential skills and behaviours aligned with strategic objectives.
This disparity highlights a significant challenge: while businesses recognize the importance of developing their workforce, many struggle to implement effective strategies.
This is where structured approaches, like the CSA Competency Framework, become invaluable. By offering a tailored and measurable method for developing essential skills and behaviours, competency frameworks align talent management practices with strategic business objectives. This blog delves into the concept of competencies, exploring their different types, their role in talent management, and how they can be used to enhance selection, development, succession planning, and performance management.
What Are Competencies?
Competencies are sets of behaviours that are instrumental in achieving desired outcomes within an organisational context. They are not merely technical skills or knowledge but encompass a broader range of attributes that contribute to effective job performance. According to Bartram et al. (2002), competencies are “behaviours that support the attainment of objectives within the context of that specific organisation’s strategy”. They represent the “how” of performance, focusing on observable actions that lead to successful outcomes.
Competencies are often categorised into different types, including core competencies, functional competencies, and leadership competencies. Core competencies are fundamental to all roles within an organisation and align with its vision and values. Functional competencies pertain to specific fields and include both technical (hard skills) and universal (soft skills) competencies. Leadership competencies, on the other hand, capture the essence of effective leadership behaviours.
Types of Competencies: Observable vs. Derived
Competencies can be broadly divided into two categories: observable competencies and derived competencies. Understanding the distinction between these types is essential for HR professionals in selecting the appropriate tools and methods for assessment.
Observable Competencies
Observable competencies are those that can be directly assessed through observable behaviour. These are typically evaluated in assessment centres using methods such as role plays, in-basket exercises, fact-finding, and analysis exercises. These exercises are designed to simulate real-world scenarios, allowing assessors to observe and measure specific behaviours that indicate competency in a given area.
For example, in a role-play exercise, a candidate might be asked to manage a difficult conversation with a subordinate. The assessor would observe behaviours such as communication skills, emotional intelligence, and problem-solving ability to determine whether the candidate possesses the necessary competencies for the role.
Derived Competencies
Derived competencies, in contrast, are inferred from responses to structured assessments, such as personality questionnaires or cognitive ability tests. These competencies are not directly observed but are deduced based on the individual’s answers, which are then mapped to a competency framework. An example of this is SHL’s Universal Competency Framework.
Derived competencies are valuable in providing insights into an individual’s potential and predicting future behaviour in the workplace. They offer a more nuanced understanding of an individual’s strengths and development areas, complementing observable competencies.
The Value of Competencies in Talent Management
According to SHRM, competency models can be used to improve almost all talent management processes, from selection and development to succession planning and performance management.
Let’s have a closer look at the value of competencies as both a framework and an assessment tool across these critical HR processes.
Selection
Competencies provide a robust framework for making objective, fair, and equitable selection decisions. By defining the success profile for each role, comprising the required competencies and qualifications, HR professionals can assess candidates more rigorously. This approach reduces the reliance on subjective criteria, such as past experience, which may not always correlate with future success.
Moreover, competencies help predict an employee’s success by ensuring that candidates demonstrate the necessary behaviours at the required level of proficiency. This predictive power is particularly valuable in ensuring that new hires are not only a good fit for the role but are also likely to succeed in the long term.
Employee and Leadership Development
Competency-based development programs are critical for nurturing talent and ensuring continuous growth within the organisation. By identifying the competencies required for success in different roles, organisations can design targeted development programs that address specific skill gaps.
Leadership development, in particular, benefits from a competency-based approach. By assessing current and potential leaders against a set of leadership competencies, organisations can provide focused development plans that prepare individuals for future leadership roles. This approach ensures that leadership development is aligned with the organisation’s strategic goals and that future leaders are equipped with the necessary skills to drive success.
Career Development
Competencies are also instrumental in supporting career development and mobility within the organisation. By defining the competencies required for various roles, employees can better understand what is needed to advance their careers. This transparency empowers employees to take ownership of their career development, aligning their aspirations with the organisation’s needs.
Competency frameworks also enable organisations to offer more diverse career paths by identifying transferable competencies that apply across different roles. This flexibility supports lateral moves and career shifts, ensuring that employees can explore new opportunities without leaving the organisation. Such an approach fosters employee engagement and retention by offering clear, achievable pathways for career growth.
Succession Management
Effective succession management relies on identifying and developing future leaders who can step into critical roles as the need arises. Competencies play a vital role in this process by providing a clear and objective basis for assessing leadership potential.
Rather than relying on intuition or biased assessments, organisations can use a common set of leadership competencies to evaluate their talent pool. This approach ensures that succession decisions are based on valid, observable behaviours and that potential leaders are well-prepared for their future roles. Additionally, competency-based succession planning allows organisations to provide targeted developmental feedback, helping individuals strengthen the competencies needed for leadership.
Performance Management
Competency-based performance management systems offer a more comprehensive and fair assessment of employee performance. By focusing on both the “what” (results achieved) and the “how” (behaviours exhibited), these systems provide a balanced view of an employee’s contributions.
Competencies help ensure that performance appraisals are aligned with organisational goals and values. They also facilitate more meaningful feedback and development discussions, as managers can base their evaluations on specific, observable behaviours. This clarity enhances the effectiveness of performance management, driving continuous improvement and aligning individual performance with organisational objectives.
Conclusion: Using Competencies as a Talent Management Tool
As organisations continue to face challenges in attracting, developing, and retaining talent, competencies offer a powerful solution. By serving as a common language that connects various HR processes, competencies enable more objective and effective talent management. Whether used for selection, development, succession planning, or performance management, competencies provide the framework and tools needed to ensure that the right people are in the right roles, driving organisational success. By integrating competencies into every aspect of talent management, you can build a workforce that is not only capable but also agile, adaptable, and aligned with the company’s strategic goals.
CSA Competency Framework by Competence SA
Competence SA offers a powerful talent management tool: the CSA Competency Framework. Designed to cater to the unique needs of organisations across various industries, our framework provides a comprehensive approach to identifying, assessing, and developing the competencies that matter most.
What sets the CSA Competency Framework apart?
The CSA Competency Framework is built on a deep understanding of the behaviours and skills that drive organisational success. It offers a structured method for defining and measuring the competencies required at different levels within an organisation, from entry-level positions to senior leadership roles.
Key Features:
- Customisable Competency Models: The framework allows for the creation of tailored competency models that align with your organisation’s specific goals and values.
- Integrated Assessment Tools: The CSA Competency Framework includes a suite of assessment tools designed to evaluate observable competencies, providing insight into each employee’s capabilities.
- Actionable Insights: By providing clear, actionable insights into competency gaps and strengths, the framework empowers HR professionals to make informed decisions about hiring, development, and succession planning.
- Scalable and Flexible: Whether you’re a small business or a large enterprise, the CSA Competency Framework is scalable to meet your needs, providing a consistent and reliable method for managing talent.
By implementing the CSA Competency Framework, organisations can ensure that their talent management practices are not only aligned with their strategic objectives but also foster a culture of continuous improvement and accountability.
The framework supports key HR processes, including:
- Performance Management: Align performance evaluations with the competencies that drive success in your organisation, ensuring that assessments are both fair and meaningful.
- Leadership Development: Identify and cultivate the leadership competencies needed to guide your organisation into the future.
- Career Pathing and Succession Planning: Provide clear pathways for career advancement by defining the competencies required for success at each level.
Contact us for more information about the CSA Competency Framework.
About Competence SA
Competence SA identifies, develops, and enables potential through the provision of the following services:
If you’d like to know how we raise the bar, visit www.competencesa.co.za.
Contact us at hello@competencesa.co.za or 082 853 7456
