Measuring Competencies as Way to Increase Your

Productivity

Suzanne Simpson, Ph.D.

President

Human Resource Systems Group Ltd.

IMAC ’99 Conference

Any skill, knowledge, or other attribute that is observable / measurable and identifies successful (excellent)

performance.

It is a term that describes a pattern or cluster of actions taken to achieve a

result.

What is a competency?

Competencies - other definitions...

• the ingredients (skills, knowledge, attributes and behaviours) that contribute to excellence

• a reflection of how people will apply the knowledge and skills at their disposal

Competencies -- another view...

Self-concept

Trait

Motive

Skill

Knowledge

Visible, surface, easy to identify and manage

Hidden, difficult to identify and manage

Source: Spencer & Spencer, 1993

Why competency-based HRM?

Competencies translate the strategic vision and goals for the organization into behaviours or

actions employees must display for the organization to be successful.

Mission

Vision

Values

Strategy

Action Plans

Competencies for Success

Why are organizations moving to competency-based HRM? Links individual employee contributions to

organizational success

Supports and communicates strategic direction

Communicates the values of the organization

Addresses need for “flexible” employees with “transferable” skills

Promotes employee-directed career development

Supports a “learning” organization

Reasons for implementing competency-based HR

45%

42%

39%

34%

19%

Create awareness & understanding for the need for change

Enhance skill levels of the work force

Improve teamwork/coordination

Reinforce corporate values/strategy/culture

Enhance attraction/retention of desired employees

Source: American Compensation Association

Is Competency-based HRM something new?

Competency-Based HRM

Recruitment & Staffing

Learning & Development

Performance Management

HR & Succession Planning

Career Planning

Competencies

CompensationRewards & Recognition

Results OrientationFocusing efforts on achieving

excellent work outcomes in line with the strategic direction and vision for the organization.

What does a competency look like?

How are competencies assessed?

Example: Results Orientation

Level Underlying Notion1 Manages personal Performance

2 Seeks to improve organizational performance

3 Establishes methods for managing work and measuringsuccess

4 Sets the standard by which success will be assessed

How are competencies assessed?

Level1 Manages personal performanceSets challenging and realistic work goals for self.

Regularly self-evaluates and seeks feedback from others.

Level 4 Sets the standard by which success will be measured

Sets the expected standards and criteria for measuring success.

Delivers a clear message throughout the organization on the standards expected.

Example: Results Orientation Indicators

How are competencies assessed?

Example: Developing Others

Level Underlying Notion1 Shares expertise with others

2 Supports individual development

3 Empowers others to self-develop

4 Creates a continuous learning environment

What are the Steps in developing Competency Profiles?

1. Develop business case

2. Develop approach/strategy

3. Communicate and listen

4. Develop profiles

5. Validate

6. Implement and maintain

Common Steps1. Develop Business Case

What is driving the need for competencies?What are the benefits?How will the competencies be used?Who are the stakeholders?What is the level of readiness?Who will drive the process?What are the internal success stories?

Common Steps2. Develop Approach/Strategy

At what level will the competencies

be developed? Core, Functional / Job

Family, Job? What data gathering methods will be

used? What is the communication strategy? Who should be in the working

groups?

Layers of Competencies

Core

Functional / Job Family

Job Specific

Layers of CompetenciesCore 1. Business knowledge

2. Service Orientation

3. Working in teams

Common across the organization

Layers of CompetenciesCore

Functional / Job Family (Security)

1. Business knowledge

2. Service Orientation

3. Working in teams

1. Conduct/deportment

2. Performance under stress

job families/clusters

Layers of CompetenciesCore

Functional / Job Family (Security)

Job Specific(Compensation Officer)

1. Business knowledge

2. Service Orientation

3. Working in teams

1. Conduct/deportment

2. Performance under stress

1. Knowledge of job evaluation/compensation

2. Conducts salary surveys

3. Applies pay equity plans

Organizational-Wide

Competencies

Cluster Competencies

Knowledge & Skills

(Job Family)

NRC Basic Competency Architecture

Layers of Competencies

Factors to consider• reinforcing the vision, values, goals• driving change • integrating HR initiatives & promoting

mobility• developing tools• organizational readiness• practical considerations (budget, timing)

Uses of Core, Functional & Job Specific Profiles

Use Core Functional Job Specific

Standards for performance x x x

Translate vision/values into behaviours xRecruitment and Selection x xCareer planning & development x xSuccession Planning x xJob Evaluation factors xRewards and recognition x x xCross functional training programs xIndividual training and development x xHR planning x xCompetency Assessment x x xPerformance Evaluation x x xJob and Team design x x

Common Steps

3. Communicate & ListenSenior managementEmployees Other stakeholders

Common Steps4. Develop Profiles

Gain information about current and future behaviours required for successful performance

Build on goals & values of the organization, future vision, strategic direction.

Use applicable methods (focus groups, questionnaires, interviews, documentation review)

Involve employees, managers, stakeholders

Common Steps

5.Validate Use a different sample to validate Methods: focus groups, questionnaires,

interviews Validate with managers, employees and

stakeholders

Common Steps

6. Implement and Maintain Develop tools and guidelines Train Pilot Evaluate Modify and maintain

Critical Success Factors

• Current and future perspective

• Stakeholder communication and involvement

• Management commitment

• Structured and defensible method for competency profiling

• Use of job content experts

Critical Success Factors

• Effective vs superior performers

• Validation of content and terminology

• Cross-representative samples

• Maintaining profiles

• Developing applications

Competency-Based HRMRecruitment & Staffing

Learning & Development

Performance Management

HR & Succession Planning

Career Planning

Competencies

CompensationRewards & Recognition

Competency-based Recruitment & Staffing

Candidates screened on competencies (knowledge + experience + behaviour)

Assessment based on behaviours required in

the job

Tools include interviews, reference checking, role plays, performance tests

Competency-Based SelectionTM Interviewing

Assesses the competencies required in the job

Uses past performance (behaviours) to predict future performance

Structured interviews and rating process

Very high validity

Components of a Behavioural Answer

Situation/Task: describes the circumstances which resulted in the accomplishment

Action: describes what was done in a particular situation

Result: describes whether the action taken (or not taken) was effective or appropriate

Learning & Development Identifies the critical gaps in employee

competencies for the job (current vs required).

Focus on development priorities and learning plans.

Tools include self-assessment questionnaires, multi-source assessment, upward feedback, performance feedback

Career Planning / Development Focus on development of competencies

for future jobs & assignments

Employee directed career planning based on assessment of competencies

Supported by structured and unstructured programs (mentoring, coaching, career assignments, learning resources)

Performance Management Competency profile defines job-related

behaviours Evaluates employee competencies as

demonstrated through behaviours Results in development plans to address

performance gaps Can be used for career planning,

succession planning, selection Results can be used for rewards and

recognition

Compensation Rewards & Recognition

Job Evaluation / Classification - competencies required for job / organizational success

Rewards/recognition - competencies demonstrated through individual or team performance (standards are the job or organizational competencies)

Human Resource Planning

EmployeeCompetencies

OrganizationalRequirements

Recruitment & SelectionTraining & Development

Career DevelopmentOrganization/Job Design

Succession PlanningCompensation

Gap