Advantages of Competency Management

Employees use their competencies to help the organization achieve its goals and objectives. By linking the competencies of an organization with employee jobs, you can determine how employees can best help the organization meet its goals and objectives, thereby giving employees competency based job descriptions that provide clear, detailed expectations and illustrate the ways in which each employee fits into the whole organization.

Some types of competencies, such as education and training, are relatively simple to track and quantify, while more intangible skills, such as negotiation skills or knowledge of pricing strategies, are more difficult to quantify. Categorizing and quantifying competencies enables you to create a searchable database that you can use to locate employees who possess specific competencies, thereby enabling you to efficiently reallocate employees in response to market or organizational changes. Such reallocation can help the organization reduce operating costs and make employees more productive.

Effectively managing competencies can also help the organization train and retain competent employees. The organization benefits by having more productive employees and less employee turnover, which results in a lower operating cost. Employees benefit by having a set of goals and expectations to do their job and improve in their careers. The challenge for human resource representatives is to align and link the goals and objectives of the corporation with the valuable human assets within the organization.