[Blog 41] HR Competency-based Framework – is it a necessity or a trend?
In every organization, human capital is one of the most important resources. Managing, nurturing and developing it effectively is the key to any successful organisation across industries today.
As basic as it sounds, this process can be quite complexed. Many organisations have HR solutions, which are standalone and not integrated. This results in loss of direction across all levels within the organization.
Let’s look at a recent Case Study, where HRguru was approached to provide a one-stop integrated HR Consultancy Services. The organisation is from the hospitality industry and was facing a major manpower crunch which adversely affected the employee and business brand.
Being a major player in the hospitality industry, upkeeping service standards remains the outmost importance. In the pursuit of this, the management tends to give more importance to the overall business development in comparison to the individual employee development.
- Current employees feel unappreciated despite going the extra mile to service customers as these efforts are not recorded or kept in mind during appraisals.
- Potential employees feel the organisation does not value its employees as the turnover rate is high.
- HR team is highly stressed out as half of the time they are bogged down with trying to fire-fight the manpower shortage problems and not able to investigate the way appraisals are carried out and feedbacks are taken.
- High-potential employees are leaving the organisation to join competitors who offer better growth opportunities.
- In totality, the HR team is having an organisation-wide problem.
The HR solution:
Conduct a manpower audit and develop a HR organisation-wide competency-based framework.
To come up with a competency-based framework, it is firstly important to find out the shortcomings in the organisation’s HR system. For this a manpower audit is key. If carried out effectively, the key findings from the manpower audit can show the HR team which departments have the highest turnovers; the high and low turnover periods for all departments throughout the year; issues with the current recruitment process which starts from the job descriptions used, to advertising for a job, to shortlisting of the candidates based on which areas/competencies; and loopholes in the appraisal and feedback processes.
After an audit is carried out, with the findings, the HR team can redesign an organisation wide framework based on the competencies needed for present and future business objectives.
This redesigned framework will act as key tool for redesign all the HR processes in the organisation:
Provides a guide to hiring managers on the number of candidates and competencies needed in the candidates to meet the organization’s objectives for future
Recruitment and Selection
Hiring manager is guided to ask the correct competency-based questions to ensure candidate has the right competencies.
Performance appraisals will be outcome-based, measurable, observable and objective. This introduces the culture in an organisation to continuously gather evidence and not be a yearly affair.
Training Needs Analysis
Reveals the skills and knowledge gaps between the present and future job competencies so organisation can conduct effective trainings/interventions to close the gap.
Learning & Development
As the framework reveals the gaps, organizations can look into effective L&D solutions to enhance productivity and bring a positive career progression culture.
Talent Management & Succession Planning
As the HR framework is built on competencies which can measured objectively, it provides a clear and objective path to attract, develop and retain talents in the organization.
For the organisations that have adopted this approach, the organisation-wide competency-based framework is a blueprint on which their HR solutions/processes are built on.
A transparent, unbiased and fair framework that steers all employees in the organisation towards a common goal.
Contact HRguru today to access our deep HR experience and learn more about our HRguru Advisory, Consultancy or Solutions Services or connect with us at email@example.com. You must also check out our recently released book – Nothing Surprises Me, I work in HR for more insights on our Chief Guru Tommy Ng’s personal journey in HR. Definitely a book every HR Leaders should have!