Competency-based HR aligns people management with an organization’s overall goals, strategies, and resources. You hire based on determined success factors, such as skills, behaviors, and values. Since this approach to HR is much more considerate of a bigger picture, it tends to get better results in a variety of areas.
Here are a few ways competency-based HR can help your business see better results.
Hiring with a competency-first mindset instead of a rush-to-fill or out of urgent necessity means you’ll hire highly qualified team members who will fit in with the company long-term. In the bigger picture, these are team members who will be needed and useful even as your company grows and changes. This makes for fewer hiring mistakes and helps you create a team who can see the big picture.
Instead of studying what the job is, competency-based HR pays special attention to the people who can do the job well and catalog their characteristics and behaviors. This leads to more qualified hires, since you know the skills and behaviors that have been proven to do well for a role.
When you hire with a holistic consideration of succession, growth, goals (for company and employee) and skills needed for success, you’ll consistently get better fit hires than when you hire with no vision of the future. This will result in lower turnover, because you’ll operate HR with an eye on their future and how well they will do with the company.
Enjoyable workplace culture
Competency includes workplace professionalism and the ability to remain calm and communicate well. Since attitude is taken into consideration, you’ll find yourself working in a team that’s overall more enjoyable to interact with.
Better problem management
Finally, you’ll get a team that has good problem solving skills. This includes internal conflict, issues with a project, and complaints from clients. Competency-based HR actively searches out the candidates with the best problem solving skills compatible with the issues that your company commonly faces. It results in better decisions overall, and fewer problems escalating.
Have you implemented competency-based HR yet? If not, why not?