Free White Papers
Ask the experts
Got a question? Put us to the test
Getting the Most out of a Competency Framework
Jo Potter, Management Consultant, and Nick Cotter, Head of Organisational Development, Oakleigh Consulting Ltd.
In this article, we examine the use of competency frameworks and their role in driving up performance. If done well, a competency framework can have major benefits for an organisation. However, if done badly it may not be worth the paper it is written on.
The Potential Benefits of Competency Frameworks
Competencies are a signal from the organisation to the individual of the areas and levels of performance that the organisation expects. They provide the individual with a map of the behaviours as well as the skills that will be valued, recognised and in some organisations rewarded. As such, one of their main benefits is to drive up performance in an organisation. As one of our clients commented,
‘Since the introduction of the competency framework our organisation has become a much more attractive place to work…. As a result, our recruitment and retention difficulties have eased considerably and our performance is on the increase. ‘
Competency frameworks can also present the organisation with a number of additional benefits:
- They can link organisational and personal objectives and ensure that employees are clear about how they are expected to perform in their jobs.
- They can also make the appraisal and recruitment systems fairer and more open and differences between levels, job titles and grades more transparent.
- Competencies can be standardised across organisational and geographical boundaries enabling staff to transfer more easily within the organisation. Links can also be made to professionally based competencies enabling clearer comparison when moving between organisations.
- For employers, a competency framework can help to make an organisation more cohesive by breaking down traditional professional boundaries. For example, links can be established between different professions that share similar competencies enabling more efficient and effective working across traditional boundaries (e.g. licensing, environmental health and trading standards or nursing and social care)
- Competency frameworks have also been shown to play a major role in both attracting and retaining staff, particularly when linked to career progression and pay.
- The identification of required competencies can assist with workforce planning and succession planning – identifying the requirements for a job and how staff can develop to move up within an organisation.
- Finally, competency frameworks help to target scarce training and development resources more effectively and encourage individuals to take more responsibility for their own development.
Avoiding the Pitfalls and Realising the Benefits
However, competency frameworks are not always successful in achieving these benefits. In many cases, they can be so long, complicated and lacking in clarity that it is not surprising that managers resist using them. Lack of communication with staff often means that the objectives and benefits of such frameworks are not fully understood and unless it is developed with the full involvement of managers and staff, it will not reflect the local picture and will not fully describe the competencies required to do a job.
It doesn’t have to be this way! Our experience of developing competency frameworks has provided us with a 15 point plan for developing a successful competency framework:
- Be clear about why you want to implement a competency framework and what it is for.
- Communicate the purpose; ensure staff understand why it is important.
- Involve managers and staff in its development. This helps to get it right – ensure all relevant aspects are covered and that the language used is meaningful.
- Identify key themes and ensure it supports the organisation’s aspirations. If people do not all work towards these organisational aims then some individual efforts are likely to be diversions from organisational success.
- Get conditions right - the organisation’s procedures need to support the framework, and the culture, resourcing and management structures must be supportive too.
- Aim not to layer or duplicate other similar processes (e.g. performance appraisal). Incorporate the framework into existing processes where possible to avoid unnecessary time being spent on it.
- Keep it simple - however ‘perfect’ the framework, if it’s too complicated, long or detailed it won’t be used.
- Train staff to use it. Once you have developed the structure make sure that everyone who uses the framework is trained in how to use it. A framework is a tool and, as with any tool, if users don’t know how to use it, it will fall into disuse or fail to meet its full potential.
- Encourage management to start by building upon their employees’ existing strengths, and only after that, to adopt strategies to compensate for, the areas of under performance.
- Make sure it is easily accessible and understandable. Use practical examples and case studies and ensure forms and guidance are easily available on the intranet.
- Agree the data outputs required and how they will be used, whilst protecting individual’s confidential information.
- For organisations going through transformational change, you may need to consider a competency framework for existing staff, as well as having the future competencies defined for the acquisition or development of new capabilities.
- Allow sufficient time for competency assessments which (particularly the first time round) will take time to do.
- Update it. Required competencies will develop and change over time, so the framework needs to be reviewed on a regular basis.
- Aim to integrate the framework with other HR policies and processes e.g. recruitment, performance management and disciplinary procedures. This will help to embed competencies and the desired organisational approach into the organisation
Summary
In summary, a good competency framework will be clear and accessible and relevant to staff and managers. The communication about why a competency framework is being used, supported by good training, will be the key in unlocking the development potential of this approach, as opposed to it becoming just another administrative chore.
Competencies create best value for the individual and the organisation when the dialogue around performance improvement starts with a focus upon individual strengths and natural preferences, and then deals with performance shortfalls, rather than only focusing upon competency gaps. This will shift the culture from being primarily a deficit focus, to understanding how individuals and groups contribute to organisational success.
Finally, integration of the competency framework with other HR policies and processes is essential to successfully embed the anticipated behavioural and performance changes.
For more information about creating new competency frameworks, or how to get more out of your existing framework, please contact us by clicking here.