Measuring Competencies as Way to Increase Your Productivity Suzanne Simpson, Ph.D. President Human Resource Systems Group Ltd. IMAC ’99 Conference

Any skill, knowledge, or other attribute that is observable / measurable and identifies successful (excellent) performance. It is a term that describes a pattern or cluster of actions taken to achieve a result. What is a competency?

Competencies - other definitions... the ingredients (skills, knowledge, attributes and behaviours) that contribute to excellence a reflection of how people will apply the knowledge and skills at their disposal

Competencies -- another view... Self-concept Trait Motive Skill Knowledge Visible, surface, easy to identify and manage Hidden, difficult to identify and manage Source: Spencer & Spencer, 1993

Why competency-based HRM? Competencies translate the strategic vision and goals for the organization into behaviours or actions employees must display for the organization to be successful.

Mission Vision Values Strategy Action Plans Competencies for Success

Why are organizations moving to competency-based HRM? u Links individual employee contributions to organizational success u Supports and communicates strategic direction u Communicates the values of the organization u Addresses need for “flexible” employees with “transferable” skills u Promotes employee-directed career development u Supports a “learning” organization

Reasons for implementing competency-based HR 45% 42% 39 % 34% 19% Create awareness & understanding for the need for change Enhance skill levels of the work force Improve teamwork/coordination Reinforce corporate values/strategy/culture Enhance attraction/retention of desired employees Source: American Compensation Association

Is Competency-based HRM something new?

Competency-Based HRM Recruitment & Staffing Learning & Development Performance Management HR & Succession Planning Career Planning Competencies Compensation Rewards & Recognition

Results Orientation Focusing efforts on achieving excellent work outcomes in line with the strategic direction and vision for the organization. What does a competency look like?

How are competencies assessed? Example: Results Orientation

How are competencies assessed? Level1Manages personal performance Sets challenging and realistic work goals for self. Regularly self-evaluates and seeks feedback from others. Level 4Sets the standard by which success will be measured Sets the expected standards and criteria for measuring success. Delivers a clear message throughout the organization on the standards expected. Example: Results Orientation Indicators

How are competencies assessed? Example: Developing Others

What are the Steps in developing Competency Profiles? 1. Develop business case 2.Develop approach/strategy 3.Communicate and listen 4.Develop profiles 5.Validate 6.Implement and maintain

Common Steps 1.Develop Business Case <What is driving the need for competencies? <What are the benefits? <How will the competencies be used? <Who are the stakeholders? <What is the level of readiness? <Who will drive the process? <What are the internal success stories?

Common Steps 2.Develop Approach/Strategy < At what level will the competencies be developed? Core, Functional / Job Family, Job? < What data gathering methods will be used? < What is the communication strategy? < Who should be in the working groups?

Layers of Competencies ± Core ± Functional / Job Family ± Job Specific

Layers of Competencies Core 1.Business knowledge 2.Service Orientation 3.Working in teams Common across the organization

Layers of Competencies Core Functional / Job Family (Security) 1.Business knowledge 2.Service Orientation 3.Working in teams 1.Conduct/deportment 2.Performance under stress job families/clusters

Layers of Competencies Core Functional / Job Family (Security) Job Specific (Compensation Officer) 1.Business knowledge 2.Service Orientation 3.Working in teams 1.Conduct/deportment 2.Performance under stress 1.Knowledge of job evaluation/compensation 2.Conducts salary surveys 3.Applies pay equity plans

Organizational-Wide Competencies Cluster Competencies Knowledge & Skills (Job Family) NRC Basic Competency Architecture

Layers of Competencies Factors to consider reinforcing the vision, values, goals driving change integrating HR initiatives & promoting mobility developing tools organizational readiness practical considerations (budget, timing)

Uses of Core, Functional & Job Specific Profiles UseCore Functional Job Specific Standards for performance x x x Translate vision/values into behaviours x Recruitment and Selection x x Career planning & development xx Succession Planning xx Job Evaluation factors x Rewards and recognition x xx Cross functional training programs x Individual training and development xx HR planning xx Competency Assessment x xx Performance Evaluation x xx Job and Team design x x

Common Steps 3.Communicate & Listen <Senior management <Employees <Other stakeholders

Common Steps 4.Develop Profiles <Gain information about current and future behaviours required for successful performance <Build on goals & values of the organization, future vision, strategic direction. <Use applicable methods (focus groups, questionnaires, interviews, documentation review) <Involve employees, managers, stakeholders

Common Steps 5.Validate <Use a different sample to validate <Methods: focus groups, questionnaires, interviews <Validate with managers, employees and stakeholders

Common Steps 6.Implement and Maintain <Develop tools and guidelines <Train <Pilot <Evaluate <Modify and maintain

Critical Success Factors Current and future perspective Stakeholder communication and involvement Management commitment Structured and defensible method for competency profiling Use of job content experts

Critical Success Factors Effective vs superior performers Validation of content and terminology Cross-representative samples Maintaining profiles Developing applications

Competency-Based HRM Recruitment & Staffing Learning & Development Performance Management HR & Succession Planning Career Planning Competencies Compensation Rewards & Recognition

Competency-based Recruitment & Staffing UCandidates screened on competencies (knowledge + experience + behaviour) UAssessment based on behaviours required in the job UTools include interviews, reference checking, role plays, performance tests

Competency-Based Selection TM Interviewing UAssesses the competencies required in the job UUses past performance (behaviours) to predict future performance UStructured interviews and rating process UVery high validity

Components of a Behavioural Answer Situation/Task: describes the circumstances which resulted in the accomplishment Action: describes what was done in a particular situation Result: describes whether the action taken (or not taken) was effective or appropriate

Learning & Development U Identifies the critical gaps in employee competencies for the job (current vs required). UFocus on development priorities and learning plans. U Tools include self-assessment questionnaires, multi-source assessment, upward feedback, performance feedback

Career Planning / Development UFocus on development of competencies for future jobs & assignments UEmployee directed career planning based on assessment of competencies U Supported by structured and unstructured programs (mentoring, coaching, career assignments, learning resources)

Performance Management UCompetency profile defines job-related behaviours UEvaluates employee competencies as demonstrated through behaviours UResults in development plans to address performance gaps UCan be used for career planning, succession planning, selection UResults can be used for rewards and recognition

Compensation Rewards & Recognition Job Evaluation / Classification - competencies required for job / organizational success Rewards/recognition - competencies demonstrated through individual or team performance (standards are the job or organizational competencies)

Human Resource Planning Employee Competencies Organizational Requirements Recruitment & Selection Training & Development Career Development Organization/Job Design Succession Planning Compensation Gap