Competency management: the benefits and best practices

by Danique Geskus | Nov 8, 2023

You may have heard of “competency management. Might sound a little vague, but it’s actually super important for businesses. In this blog, we take a closer look at competency management – its meaning, why it’s so cool, how to apply it in your own team and what role tools play in it. So whether you’re an HR pro or a team leader, or just curious about better talent management, read on! There are a lot of interesting insights waiting for you.


What is competency management?

Competency management is the process of identifying, assessing and developing the skills and capabilities of employees within an organization. This is aimed at aligning these skills with the company’s strategic goals. Through competency management, organizations can help their employees grow and develop, improving their performance and contribution to the company. It also promotes employee engagement and satisfaction, resulting in higher retention and productivity. Ready to get started implementing competency management in your organization? Then download our e-guide “Map low and high performers with objective evaluations.


What are the benefits?

Higher retention and engagement already sounds great, of course. But there are many other interesting benefits to setting up competency management. We’ve listed the most important ones for you.

    • Increased productivity: competency management helps increase productivity by giving employees the necessary skills and knowledge needed to perform their tasks efficiently.
    • Improved employee satisfaction: by focusing on employee development, employees feel more valued and engaged with the company, leading to higher satisfaction and retention.
    • Better alignment with business goals: competency management ensures that employees’ skills and abilities are aligned with the company’s strategic goals, contributing to the overall success of the organization.


What are the best practices in implementing?

Already convinced of the value of competency management? These simple steps will get you started within your organization.

1. Defining competencies

The first thing to do is to define the competencies needed for different roles within the organization. This can be achieved through job analysis and assessment of the company’s strategic goals.


2. Mapping existing competencies:

Determine what skills and knowledge employees currently possess. This can be carried out through assessments, surveys and individual interviews.


3. Identifying deficiencies

After identifying current competencies, locate deficiencies where further development is needed. This helps focus training and development efforts.


4. Designing development plans

Based on the identified deficiencies, design specific employee development plans. This can range from trainings, workshops, mentoring programs and more.


5. Evaluate and adjust

Finally, after implementing development plans, assess progress and adjust as necessary. This ensures that the competency management program remains effective and continues to meet the needs of the organization and its employees.


What is the role of tooling in competency management?

Nowadays, there is a digital solution for almost everything. So is implementing competency management. There are several tools that help streamline and organize the entire process, from defining competencies to tracking development plans. Software tools allow organizations to map competencies, manage employee assessments, design training programs and track the progress of individual employees. They can also help identify deficiencies in competencies, allowing organizations to see where training or development is needed. Moreover, advanced tools can provide analytical insights that help make data-driven decisions, making the competency management process even more effective.


Gain new insights with data-driven competency management at Learned

With Learned’s AI-driven career framework, you provide all your employees with the relevant skills and competencies for his/her role. By making these role profiles an integral part of your performance management cycle, you will continuously gather new data and insights into the available skills in your organization over time.

Learned UI AI Job Matrix, showing the job house with a library of job profiles.

With Learned’s AI, you easily generate a modern job board based on market data. This makes evaluations objective and career opportunities transparent. Try Learned now for 14 days for free!

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Chart low and high performers with objective evaluations

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