HRSG Best Practice Guide - Implementing Competencies
HRSG Best Practice Guide - Implementing Competencies
implementing competencies
Contents
INTRODUCTION3
GETTING STARTED 3
RECRUITMENT & SELECTION 9
LEARNING & DEVELOPMENT 11
PERFORMANCE MANAGEMENT & MULTI-SOURCE FEEDBACK 14
CAREER DEVELOPMENT & SUCCESSION MANAGEMENT 17
STRATEGIC HUMAN RESOURCES PLANNING 19
OVERARCHING POLICY, PROCESS & TOOLS 21
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Introduction
This guide provides guidance for developing policy, processes
and tools to support the full and effective implementation of Competencies are observable
competency-based management across the complete talent abilities, skills, knowledge,
management lifecycle, including: Recruitment and Selection, motivations or traits defined
Learning and Development, Performance Management, Career in terms of the behaviors
Development and Succession Management, and Strategic needed for successful job
Human Resource Planning. performance.
You will learn about key factors that need to be taken into
account to make sure that the competencies will support all the
intended applications in the long term, and overarching considerations to ensure alignment of the
talent management lifecycle and strategic organizational goals.
Properly designed, competencies translate the strategic vision and goals for your organization
into behaviors employees must display for your organization to be successful. Competency-based
management standardizes and integrates all HR activities based on competencies that support
organizational goals.
Getting Started
The start point for any competency initiative is a valid
competency profile that supports all intended HR goals. A competency profile is a
Establishing a clear competency structure is one of the first selection of competencies
and fundamental steps in profile development. This structure is with specified proficiency
refered to as a Competency Architecture. levels required for successful
performance in a particular job.
Competency Architecture
A competency architecture describes the common rules that
guide the development of competency profiles. It describes how
the profiles will be designed for your entire organization, including the format for displaying the
competency profile and the content for the profile.
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There are three basic criteria that competency structures must meet:
1. The competency profile includes the competencies that employees must have, both now
and in the future, to ensure your organization can achieve its vision and support its values;
2. The competency profiles must support all of the intended HR applications; and
Several competency architectures are possible, and you will need to identify the architecture
that best meets your needs. Figure 1 represents a model that is commonly used. This, or
similar models, have been used successfully by many organizations as the basic framework for
developing competency profiles.
COMPETENCY LAYERS
The competency profile depicted in Figure 1 builds from the vision, values and strategic business
priorities of the organization and includes the following competency layers:
Core Competencies are shared by every employee in the organization—from the CEO to the
parttime temporary worker. Core competencies describe, in behavioral terms, the key values and
strengths that help an organization achieve a competitive advantage by differentiating itself from
its competitors. Core competencies are typically general competencies—competencies describing
the general behaviors required to perform effectively in a range of jobs.
Job family competencies are shared by a ‘family’ of related jobs that have common functions and
form a logical career path. A job family may define a specific department or organizational unit,
but it may also define jobs across departments or units that share common tasks and functions.
(For example, salespeople selling different products in different divisions may belong to the
same job family.) They often include general competencies that tend to be required in a number
of job families, as well as technical competencies—competencies describing the application of
knowledge and skills needed to perform effectively in a specific role or group of jobs.
Job specific competencies define the skills needed to perform effectively in a specific role or
subset of roles beyond those included in the job family competencies. They tend to be technical
competencies that specify the skills and knowledge needed to perform effectively.
Leadership competencies (not depicted in Figure 1) are used to define roles in an organization
that involve managing, supervising or influencing the work of others in some way. Depending on
the organizational structure or culture, leadership competencies may be reserved for a specific
leadership team, or applied more broadly to all employees. Leadership competencies can be
treated either as an additional layers on a profile, or as a specific job family.
Consistent with the requirement for ease of use, organizations typically define a limit on the
number of competencies that are included in the profile for any job within the organization. As a
rule of thumb, best practice organizations establish a limit on the total number of competencies
included in any one profile in the range of 10 to 12.
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Fig 1. Sample Competency Profile
The Human Resources Manager guides and manages the overall provision of Human Resources
services, policies, and programs for a company within a small to mid-sized company, or a portion
of the Human Resources function within a large company.
Competencies
Job Family
Using Information Technology Uses a range of IT tools to accomplish tasks.
• Experiments with different solutions to solve
Using software and information problems and produce the desired effect.
technology to accomplish one's work. • Customizes own interface with the software.
• Uses a wide range of features or options for a
Level 3 given software package.
• Uses a few different software packages to produce
the desired result.
Job Specific
Human Resources Management Advanced: Demonstrates advanced knowledge and
ability, and can apply the competency in new or
Applying an understanding of human complex situations. Guides other professionals.
resource management (HRM) • Develops solutions for difficult, complex and
practices, policies and principles. multidisciplinary HRM issues (e.g., complex staff
relations issues).
Level 4 • Shares information on the latest HRM issues and
best practices.
• Identifies long-term human resource implications
of organizational initiatives and changes.
• Develops strategies that promote integration
across HR functions.
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Proficiency Levels
To get the most of out of a competency-based approach, we recommend using multi-level
competencies that allow you to articulate a particular competency at multiple, progressive levels
of proficiency. A proficiency scale reflects the breadth of proficiency typically required by the
organization within a competency area. For example, communication skills may be a requirement
for most entry-level jobs as well as at the executive levels; however, the depth and breadth of
communication proficiency needed at these two levels may be quite different.
• It facilitates planning and development for improvement within current jobs; and
• It allows for comparisons to occur across jobs, roles and levels, not only in terms of the
competencies required, but also the proficiency levels needed using a common incremental
scale.
• Entry is the standard expected of employees on entry into a role. This is often used when the
new entrant must learn to be able to perform to the standards required within the job.
• Fully Effective is the level required of employees who are performing at the standard
expected for their role.
• Stretch/Mastery is typically displayed by employees who have mastered their job. These
employees are often sought out by others to provide advice and assistance.
It is important to define what standard of performance will be modeled in the competency profiles
as a component of the competency architecture. An example of how these standards for employee
performance relate to competency proficiency is shown in Figure 2.
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Figure 2 - General Competency
1 3
2 The proficiency scale provides multiple proficiency levels for each competency. Each level
reflects a progression from a basic demonstration of the competency towards a more
complex and strategic demonstration. For example, an entry-level employee may need to
demonstrate level 1 proficiency, while an executive may need to demonstrate level 4 or 5.
Proficiency scales help you compare requirements across jobs, which is especially useful
when determining potential career paths within the organization.
3 The notion for each level provides a high-level summary of the overall theme identified for
that proficiency level.
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Competency Dictionary
A competency dictionary includes all of the competencies needed to cover all of the jobs in your
organization.
Purchasing a competency dictionary from a reputable company has the advantage providing a
well-developed and researched dictionary that can be used in a timely manner to support profile
development and implementation. The disadvantage is that the dictionary may not reflect the full
range of competencies needed, nor reflect them in a language that is suitable for the organization.
We are one of a handful of global competency specialists to develop original competencies in house. Each
of our 550+ competencies is created by our own team of industrial-organizational psychologists and
subject-matter experts, and has been industry-validated to ensure it reflects the needs and best practices
of today’s companies.
We offer one of the most extensive competency dictionaries available, spanning multiple sectors including:
accounting • auditing • engineering • finance • health, safety & environment • human resources • information
technology • marketing • sales • research & development • retail • supply chain management • oil & gas •
petrochemical • police • security
For more information on HRSG’s competencies, please call 1-866-574-7041 or email info@hrsg.ca.
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Recruitment & Selection
The introduction of competency-based management provides organizations with a unique
opportunity to create and shape a recruitment and selection system based on competencies that
have been identified as being critical for success.
Best Practices
Competencies support recruitment and selection by:
• Providing bona fide, validated, fair and unbiased standards against which to assess
applicant competencies to perform in the targeted job.
• Improving the transparency of the selection process by clearly communicating the behaviors
employees must display for success in the job.
• Providing explicit, clear and transparent criteria on which to give candidates feedback on
their performance in the selection process.
• Providing standards for evaluating the success of the selection process by correlating the
results of the selection process with on-the-job performance.
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OTHER COMPETENCY-BASED ASSESSMENT METHODOLOGIES
A variety of other competency-based assessment methodologies can be incorporated into
the selection process, such as role-plays, simulations, or multi-source input. When designing
and implementing any methodology, it is important that it be defensible—reliable, fair, valid and
unbiased.
Implementation Stages
As competency profiles are developed for varied job groups, the following implementation stages
are suggested for their use in recruitment and selection on a corporate-wide basis.
STAGE 1 STAGE 2
• Define the policies for using competencies • Develop and implement recruitment
in the recruitment and selection and selection processes, tools and
processes. templates consistent with the policies
defined in Stage 1. Review and evaluate
• Identify considerations and guidelines for
the effectiveness and efficiency of these
including information on competencies in
processes and adjust as required.
notices of job requirements.
• Plan for and train managers and HR
• Develop sample notices of job
personnel on appropriate competency-
requirements as the competency profiles
based interviewing approaches.
become available for use.
• Design and implement an orientation
• Customize or build an interview and
program for employeeson the new
reference checking question bank
processes and tools.
organized by competencies.
• Collect data on the effectiveness of the
• Customize or build other competency-
new recruitment and selection process
based tools or processes applicable
and make adjustments to the process, as
across the organization.
required.
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Learning & Development
Once your have defined the competency requirements, it becomes possible to develop learning
strategies to address gaps in organizational competencies and to focus learning plans on the
business goals and your organization’s strategic direction.
Best Practices
Competency profiles assist in effective learning and development by identifying the behaviours,
knowledge, skills and abilities that are necessary for successful performance in a job. Employees
can assess their competencies against those required for their own job, or for another job in which
they are interested, and then take steps to acquire or improve any necessary competencies.
• Focusing on the critical competencies needed for success in the job and organization,
• Providing the framework for identifying learning options, curriculum, or programs to meet
employee and organizational needs,
• Providing standards for determining how well learning has occurred, both at the individual
and organizational level.
• Self-Assessment: Typically, the behavioral indicators for the competencies and proficiency
levels needed within the target role are used as the standard for assessing the performance
of the employee using a common rating scale. The results are compiled and a report
is provided that includes the results for all competencies, highlighting both employee
strengths and competencies requiring improvement. This information can then be used to
support the development of an individual learning plan.
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the employee, supervisor and others, such as a coach, mentor, or learning advisor, to target
learning and development efforts to the particular needs of the employee.
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LEARNING EVALUATION / VALIDATION
Competencies that have been identified for roles within the organization can serve as the
standards or criteria for determining the level of success of learning interventions. This
approach is particularly powerful because assessments based on the competencies provide the
organization with an indication of the extent to which employee workplace behavior has improved.
For example, pre- and post-learning event assessments can be conducted to evaluate the extent
of development at both the individual and aggregate level. Based on this, the organization can
determine whether the learning investments are paying off and, as appropriate, what changes need
to be made to address performance gaps.
Implementation Stages
The following implementation stages are suggested for mid to large organizations implementing
competencies in learning and development on a corporate-wide basis.
STAGE 1 STAGE 2
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Performance Management & Multi-source
Feedback
Performance management is about achieving results in a manner that is consistent with
organizational expectations. Integrating competencies within the performance management
process supports the provision of feedback to employees not only on “what” they have
accomplished, but also “how” the work was performed. Assessing competencies as a part of
performance management is an important means of assisting employees in understanding
performance expectations and enhancing competencies. Multi-source feedback is a method that
is often used in performance management to assess and provide employees with feedback on
“how” they preformed their work.
Best Practices
Performance management programs are set up to provide feedback to employees on how
effectively they are performing in their jobs. Such programs normally include a set of goals or
objectives the employee must accomplish within the review period, as well as the standards or
criteria for determining whether the defined goals have been accomplished.
• Linking individual goals to the corporate and work unit business plans and goals.
• Training for both managers and employees on how to effectively give and receive feedback,
including providing feedback to employees who experience challenges in performing to the
standards required in their roles.
• Training for managers on how to provide performance evaluations that are valid, fair and
unbiased.
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The advantage of using this method is that the competencies being assessed are entirely
consistent with the employee’s performance goals for the performance review cycle. The
disadvantage is that not all competencies within the competency profile for the employee’s
role will necessarily be assessed within the cycle.
• By integrating the competencies for the employee’s job into the performance management
process: In this case, the performance plan includes the performance goals/objectives for
the review period, as well as the complete set of competencies from the competency profile
for the employee’s role. The performance goals address “what” must be accomplished
during the review period, and the competencies measure “how” the employee conducted
him/herself to accomplish their work. The advantage of this method is that all competencies
defined in the competency profile for the employee’s role are evaluated. The disadvantage
is that due to the specific nature of the performance goals, key competencies required for
effective performance during the review cycle that are not included in the competency profile
will not be assessed.
In both cases, feedback provided on the employee’s competencies typically feeds into the
development of a learning or action plan to address gaps in performance and development within
or beyond the employee’s current role.
The results are compiled and a report is provided to the employee. The report includes the results
for all competencies, highlighting both the competencies that are strong, as well as those rated
lowest by the different stakeholder groups. In almost all cases, individual ratings from others,
excluding the employee’s supervisor, are combined in such a way as to protect the anonymity of
the individuals providing the feedback. The report is set up to show similarities and differences in
ratings across the different stakeholder groups. The results of the process are normally used to
develop learning and action plans for improvement. They can also feed into broader assessment
programs to support employee career development or succession management within the
organization.
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Implementation Stages
The following implementation stages are suggested for mid to large organizations implementing
competencies within performance management on a corporate-wide basis.
STAGE 1 STAGE 2
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Career Development & Succession Management
The populations of most western countries are aging, while most developing countries are
experiencing accelerated demand for qualified workers who can meet the needs of their fast-
growing economies. Many organizations are experiencing difficultly keeping their organizations
fully staffed with qualified resources, and organizations world-wide are realizing the importance of
putting in place programs and initiatives to attract and retain well-qualified workers. These trends
underscore the importance of career development and succession management initiatives aimed
at preparing employees for increasing responsibilities within their organizations.
Best Practices
Career development traditionally has been driven primarily by employees. Organizations provide
the frameworks, tools and processes, but the responsibility rests with employees to take
advantage of these to advance in their careers.
Succession Management, on the other hand, has traditionally been management driven. Critical
roles are identified, and ranked lists of suitable candidates are prepared based on their existing
competencies and potential to perform.
More recently, however, the lines between the traditional concepts of career development and
succession planning have blurred. Organizations are instituting development programs that allow
employees to progress through a phased program of development aimed at increasing employee
competencies and preparing them to take on increased responsibility. These programs typically
include formalized in-class training, planned work assignments, assessments, and, “gradation”
defined through some form of assessment, certification, or appointment to targeted roles or levels.
• Defining career streams and roles: Beyond this, typical roles and career streams within the
group to be profiled are defined. This allows both managers and employees to see how
progression typically occurs. It also allows the organization to develop career development
and succession management programs, tools and processes that support progression.
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Common Tools and Practice
• Training for both managers and employees on how the program works and how to gain the
maximum benefit,
• E-learning elements,
• Final assessment to validate that the employee has acquired the necessary competencies to
be considered for targeted role.
Implementation Stages
The following implementation stages are suggested for mid to large organizations implementing
competencies in support of career development and succession management.
STAGE 1 STAGE 2
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Strategic Human Resources Planning
Aging worker populations in most western countries and growing demands for qualified workers in
developing economies have underscored the importance of effective human resources planning.
Best Practices
The planning processes of most best practice organizations define not only what will be
accomplished within a given timeframe, but also the numbers and types of people that will
be needed to achieve the defined business goals (for example, number of people, the required
competencies, when the resources will be needed).
These strategies and programs are monitored and evaluated on a regular basis to ensure that they
are moving the organizations in the desired direction and closing employee competency gaps.
Work Work
Current State Vision / Values
Competencies Competencies
Ongoing Evaluation
Gap Analysis
Change Management
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Implementation Stages
The following implementation stages are suggested for mid to large organizations implementing
competencies in support of strategic human resource planning.
STAGE 1 STAGE 2
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Overarching Policy, Process & Tools
Best Practices
COMMON COMPETENCY DICTIONARY AND Human resources planning is a process
ARCHITECTURE that identifies current and future human
resources needs for an organization to
Establishing a common competency dictionary
achieve it goals.
and architecture is fundamental for the successful
implementation of competencies throughout the Human resources planning should
organization. Maintaining this common architecture serve as a link between human
is essential for ensuring that all human resource resources management and the overall
management applications are fully integrated and strategic plan of an organization.
that maximum efficiencies can be gained. It is
important, therefore, to identify an organizational group
accountable for the maintenance of the competency
dictionary and architecture on an ongoing basis.
SUPPORTING TECHNOLOGY
In a recent review, the Gartner Group noted that competency-based talent management initiatives
have not necessarily yielded the desired benefits and return on invest, for the main part because
organizations have not invested in the infrastructure to facilitate full and effective implementation.
To gain maximum benefit from competency-based management, organizations need to have a
technology solution that will support many of the implementation recommendations contained in
this document.
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Implementation Stages
The following implementation stages are suggested for mid to large organizations.
STAGE 1 STAGE 2
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For more than 25 years…
To discuss your competency initiative and see the HRSG multi-level competencies in action, call us at
1-866-574-7041 or email info@hrsg.ca.