+91 62892 03280 support@thehrmonks.com

High-performance organizations have today realized that their success will ultimately depend on the quality of their human resources.


Strategic talent management today depends on Competency-based human resource management


Syncing individual competencies with organizational competencies is the key to building a sustainable business fortune for any company.

Though in most countries there is no dearth of employees with good formal education, it is not necessarily equipping those employees with the appropriate skills to thrive in the workplace.

Human resource planning should serve as a link between human resource management and the overall strategic plan of an organization.

Here Competency Creates a Win-Win Environment.

In a competency-based system, both the employer and the employee benefit

When the management focuses only on competencies, personal judgment and subjectivity are minimized.

Competencies have become a precise way for employers to distinguish superior from average or below average performance. The reason for this is because competencies extend beyond measuring baseline characteristics and or skills used to define and assess job performance.

As a result, it establishes a transparent blueprint for recruitment, job expectations, performance evaluation, and advancement paths for employees.

It creates a more positive work environment and a stronger relationship between employee and employer.

Competency models can help organizations align their initiatives to their overall business strategy

By aligning competencies to business strategies, organizations can better recruit and select employees for their organizations.

In addition to recruitment and selection, a well sound Competency Model will help with performance management, succession planning, and career development.

Thus, competency-focused management supports the integration of human resources planning with strategic business planning by allowing management professionals to assess the current human resource capacity based on their competencies against the capacity needed to achieve the vision, mission and business goals of the organization.

In recruitment and selection, the use of behavioural interviewing and testing where appropriate can be applied to screen job candidates based on whether they possess the key necessary job competency profile.

Moreover, development of individual learning plans for individual or groups of employees based on the measurable “gaps” between job competencies or competency proficiency levels are required for Training and Development ROI and the competency portfolio processed by the incumbent.

Regarding performance management competency focused HRM provides a regular measurement of targeted behaviours and performance outcomes linked to job competency profile critical factors.

These strategies and programs need to be monitored, reviewed and evaluated on a regular basis to ensure that they are moving the organizations in the desired direction, including closing employee competency gaps, and corrections should be made as needed.

Benefits of a Competency focused HRM for Employers:

  • Ensures that organization-funded training and professional development activities are cost-effective, goal-oriented and productive
  • Enables employees to achieve a high level of competence in an efficient and time-bound manner
  • Reduces cost overruns caused by poor performance or miscommunication of job expectations
  • Improves communication between employee and management
  • Increases internal employee mobility, providing the organization with greater ability scale and be flexible in manpower as needed
  • Establishes a framework for constructive feedback by management at scheduled training and performance appraisal at regular intervals
  • Clarifies job standards for performance appraisals
  • Outlines employee development and promotional paths within the organization

Benefits of a Competency focused talent management for Employees:

  • Sets clear performance expectations for employees, enabling them to make better decisions and work more effectively
  • Creates greater engagement and motivation among employees
  • Enables employees to be more proactive beyond their individual roles, by learning additional competencies that are valued by the organization
  • Provides clear direction for learning new job skills
  • Increases the potential for job satisfaction
  • Provides employees clarity about job-specific behavioural expectations
  • Provides an unbiased mechanism for the recognition of employees’ abilities
  • Ensures that individual professional development and competency focused training milestones are recorded and acknowledged by the organization

For examples of some competencies click here.