The Role of Competency Modeling in HRM

Monday, March 22, 2010

It continues to be evident, even in the current economic times, acquiring and retaining the “right” talent is fundamental to the success of every organization. The role of competency modeling is to help organizations find and manage the “right” mix of strategic management and professional talent required for that success. Competency modeling provides that support by linking talent acquisition, training, appraisal, reward, and succession planning to the short and long-term goals of businesses by identifying the key critical success factors for specific roles. While it is possible to apply competency modeling to an entire organization, it is also feasible to apply it to specific units, product lines, locations or a select few essential functions.

During the selection process, the right candidate must be selected for the right reasons. Seldom do organizations have the luxury of hiring an employee just because they “look good” or they have the correct pedigree. In these times of lean and leaner staffs, every member of the business unit must often perform multiple functions, usually starting on day one. Therefore, it is vital that all members of the interviewing team be on the same page when looking for those factors that will allow the new hire to be successful or point to immediate failure. Through the discovery process, competency modeling identifies those factors central to the success of the candidate and provides a road map to link the right candidate to the right role during the interviewing phase.

While employers expect the new hire to be fully trained prior to joining the organization, ongoing training and development is still an essential function in the continuing growth of high potential members of a business’s leadership team. Since competency modeling has identified the key success factors for the role and has helped to select the right candidate, those same factors need to be reinforced in the behavior of the leadership team member. Furthermore, should developmental issues be noticed in a key team member, competency modeling will help to identify them and provide a means to correct them effectively and efficiently? Competency modeling does this by allowing the organization to focus its limited training, development, and coaching resources on those skills and behaviors that are vital to the individual’s organizational success.

Employee performance appraisal is often an uncomfortable time for the employee as well as the manager. At appraisal time, competency modeling again provides the organization and incumbent with a clear picture of what performance behaviors will be scrutinized and considered as a means of measuring success or failure. It also provides for a means of focusing the appraisal conversation around issues that are significant to both the organization and incumbent. Should the organization uncover any training, developmental, and coaching needs of the incumbent during the appraisal process, competency modeling will validate whether those needs are critical to the incumbent’s success.

Regardless of how it takes place, voluntarily, involuntarily, promotion, demotion or reassignment; all employees eventually exit their current roles. Succession planning is fundamental to a robust HRM system and the continuation of business activities. By now, the role of competency modeling should be clear. It illuminates those key knowledges, skills, abilities, and personality traits vital to identifying a replacement as well as the assessment of an incumbent for their next organizational role in the case of demotion, promotion or reassignment. Moreover, it provides for a means to assess the strength and weaknesses of the incumbent’s prior direct reports and their readiness for their next move.

Although competency modeling is but a single tool in the organization’s toolkit, nevertheless it is critical in the HRM system of talent acquisition, development, appraisal, reward, and succession planning for organizations who wish to participate in today’s aggressive business environment.