The idea behind competency-based HR is to hire for a role based on the standards that have been identified for that position. It serves as the link between HR and the strategic success of a company, and ensures that each employee is able to perform specific tasks needed for their jobs.
When you implement competency-based systems, the employee benefits from clear blueprints of a role and the picture of success. They receive transparency when it comes to recruitment, succession planning, expectations, and evaluations. Employers benefit from reduced turnover, a high level of competence among their team, good skill matches, and high efficiency.
Although it sounds like it should be common sense (and practice), competency-based human resources isn’t always practiced in the industry.
Here are a few more benefits of competency-based human resources.
- Enables clear internal employee mobility
- Creates a framework for clear feedback
- Clarifies success in a job for employee reviews
- Provides direction for needed skills
- Provides goals and benchmarks for professional development
- Gives employees the tools they need to take initiative and further their competencies
Combining human resources planning with business planning will allow your business to work comprehensively to achieve your mission and vision. It will align your team with your resources and goals, and ensure your personal, team, and department strategies are all working toward the same thing. It will also show any gaps that need to be filled with additional training or planning.