The role of a competency framework in the talent management

In March's edition of HR Leader Magazine, Ari Kopoulos (National Sales & Marketing Manager) offers insight into what role a competency framework plays in the talent management process. You can find the article in hard copy form in Issue #196 on page 23.

Q. What role does a competency framework play in the telent management process?

A. Let’s begin with some definitions. Talent management is a framework of tightly integrated HR processes that assist in making informed decisions that support your strategic objective as an organisation to be profitable and successful. To work effectively, talent management needs a central framework. It’s this central framework that enables the exchange of talent supply with business demand. Also known as competencies; this is the currency between capabilities and needs and integrates all the HR modules.

To the employee, competencies represent a set of behaviours they require, or must acquire to ensure success in their specific roles. They flag the organisation’s expectations and required levels of performance. They also provide the employee with a roadmap of what is valued, recognised and rewarded.

As an organisation you will need to develop meaningful and standard definitions of competencies, behaviours, and skills required throughout the organisation and relate those to a unit of demand such as a person, position, job, projects and learning. Once this is done you will have a three dimensional environment that can automate the pushing and pulling of employees through the various HR processes.

Now if I could rephrase the question with an analogy, it would be: ‘what role does currency play in a finance system?’ Without currency, all you have is numbers and no real insight into assets and liabilities. In this scenario you would be hard pressed to resolve your organisations liquidity. In a similar vein you would be hard pressed to make strategic decisions if there is no connectivity between your HR processes.

At the organisational level, a competency framework establishes the link between company objectives and personal goals, ensuring that employees are clear about how they are expected to perform in their jobs. A competency framework provides transparency and consistency across all locations and geography, ensuring greater organisational effectiveness. On a broader scale a competency framework plays a key role in any change management process by setting out new organisational requirements.

In performance appraisals, the framework forms the basis of measurement. These measurement criteria can then be linked to the learning objects allowing the performance appraisal process to identify development opportunities. This also allows you to build a standardised remuneration review process as an outcome of performance. It also provides a starting point for evaluating an individual's potential for promotion, integrating the succession planning process with the overall talent management strategy.

Similarly in the learning and development, the framework allows the HR professional or the employee to plan their career by identifying competency gaps through comparison against the competency profile of the position. This allows for a more effective training process and gives the employee a transparent development process. Indentifying an “excess” of competencies can also measure an employee’s potential and when mapped against performance provides a unique view of their talent profile.

When used in conjunction with recruitment, the framework allows you to recruit against desirable behaviours that translate into high performers. It also makes the process consistent and transparent across all positions, levels and grades.

A successful talent management strategy requires a holistic approach that includes embracing the philosophy and application of a competency framework. This is an essential component to ensure integration and consistency of your HR processes, employee performance and ultimately competitive advantage.