Laying the Foundation for Success
Competence Models as a Long Term Basis for Talent Management
How can companies plan their human resources requirements in a future oriented manner and build a suitable talent pool? Competence management has undergone a tremendous development in the last number of years as a basis for the answer to this question. |
Vesselin Kantchev |
In the HR area, the concept can be applied for the identification of manager and employee competencies necessary for existing and future company success. Leading international companies develop and implement their own competence models, which have the efficient application and development of existing human resources as their goal. Core competencies are unique and exclusive for every company; they represent typical behavioural patterns derived from company strategy and serve to reach strategic company goals. Based on abilities, knowledge and attitudes, core competencies portray learnable, measurable behavioural models.
Based on the identified core competencies, the future HR needs can be planned with a gap analysis. The optimal positioning and development of existing and the recruiting of missing key personnel can be specifically derived.
Operating future orientedly
How can we create employee loyalty through fair personnel policy and a talent oriented management culture? An internationally operating Bulgarian company in the tourist branch posed itself these questions. After 15 years of tremendous company development top management sought a path towards stabilization and continual further development. The aim was to ensure that the company successfully aligned itself today to the challenges of the future.
Customer orientation was the company’s first priority. Instruments for the measurement of customer requirements and satisfaction were already being implemented. The management was however aware that customer satisfaction in the services area could be greatly influenced by employee satisfaction. In the process, satisfaction was seen as a future-oriented aspect: if a respectful leadership culture was being experienced day-to-day, and if employees were shown future perspectives in the company, then they would be truly motivated and engaged. With a headcount of many thousands, this was only possible through attentive contact with every individual.
Therefore a solution was sought which would serve as both a basis for action for management and a systematic framework for career development. It was meant to support 250 managers to lead their employees in a targeted manner, so that not only business goals would be reached, but also that employee satisfaction would be raised and retained. In addition a fair system was to be introduced, to discover, develop and optimally place talents at the earliest possible stage. The company proved itself to be innovative in the search for a solution, and in collaboration with HILL Communications was one of the first companies in Bulgaria to develop a company specific competence model.
Identifying core competencies
The creation and introduction of an own, unique and exclusive competence model took place in four phases, as in Berio & Harzallah (2005).
1. Audit:
By means of the HILL Competence Analysis© data on the existing competencies of top, middle and line management was collected. Structured interviews delivered information on typical behavioural patterns and problem solution strategies. With the help of the data a realistic picture of the existing, unstructured behavioural patterns could be created. The findings were discussed and more precisely defined in focus groups. A created primary list contained a total of 20 competencies, both existing competencies and also those recommended by the consultants as contributing to effective work.
2. Identification:
The compiled competency list was presented to the top management. In the course of multiple workshops with all management levels, the competencies which would be of future strategic significance were identified:
> Goal achievement
> Decision making capability
> Further development
> Emotional balance
> Goal oriented communication
> Innovation capability
> Leadership
> Identification and development of talents
> Time management
3. Development:
With the goal of creating a realistic-as-possible description, middle and line management made a catalogue of behavioural patterns for the newly identified core competencies. In collaboration with the top management the created competence model was pilot-checked for applicability and viability. Assessment centres for the entire management followed, to ascertain the existing levels of competencies and to arrange and implement development measures.
4. Application:
The unique competence model is applied in the daily work: as a model for target oriented development measures as well as a foundation for personnel decisions on the basis of biannual employee appraisal interviews, employee evaluations and assessment centres. Targeted recruitment can take place in the area of personnel search and selection; employees and managers can be recruited on the basis of the match between their behavioural patterns and the competence model.
Improved competitiveness
The project was a complete success: within only six months considerable improvements were achieved. Precisely in times of permanent change, the introduction of a competence model forms the basis of a stable company development. It offers a perspective for a fair career development – the evaluation is connected to transparent core competencies, thus clear and free from arbitrariness and subjectivity. Talents can be detected at an early stage and employees can be targetedly developed in terms of competence management, which means greater loyalty to the company, less fluctuation and thus also economic benefits. A climate is created in which proactive action and self-development are promoted, which increases organization culture, motivation and competitiveness. Simultaneously the introduction of competence management strengthens the image on the market, which again leads to increased attractiveness of the company for top applicants.
HILL’s tips for successful talent management
1. Make talent management a CEO priority. Communicate the importance of the topic to your whole management team and make sure that programs have the necessary funding. Get personally involved, e.g. as a mentor for outstanding talents. Be the Chief Talent Agent in your company – look out for and honor top performances.
2. Base all your actions on the business strategy. Know the future plans and goals of the company. Don’t start with the solution before knowing what talents you will need to achieve your corporate goals. Make talent management an important part of your business planning process.
3. Know what competencies your company will require. What will be the key roles, tasks, and competencies of your future leaders? Identify the core competencies – your company’s talent DNA – required to stay successful in the future. Use your competence model as a basis for talent management programs.
4. Plan your future HR needs. Once you know which resources you will need to achieve the corporate goals, you can analyze which talents you already have on board and which you need to recruit and develop. Plan ahead to reduce pressure and shortages.
5. Create a talent-oriented culture. Develop a clear employer branding and live it on all levels. Talents seek autonomy, creativity, development, and empowerment. Make sure that these personal values are aligned with the corporate culture.
6. Make all leaders responsible. Leaders throughout the organization have to be accountable for creating a high-performance work climate. Leaders should be mentors to their staff; they should encourage and recognize accomplishments, and act as talent scouts.
7. Design the whole process. How can you recruit, deploy, reward, develop, and retain your key talents? Tactical measures such as »buying« talent only have short-term effects. Create a holistic strategic talent program on an international level and support it with incentives.
8. Build a talent pool. Plan your demand in advance and have enough talents ready in the pipeline. Include staff from all levels in the talent pool. Base decisions on who will be part ofthe talent pool on objective assessments and your company’s competence model.
9. Recruit talents internationally. Both internally and externally, there is a clear trend towards global recruiting in order to overcome skills shortages in certain markets. Use international standards and methods and take cultural differences into account.
10. Be realistic. Adapt your requirements to the market. If some skills are simply unavailable on the market you have to develop talents within your company. Base decisions on objective assessment of current competencies and development potential.
About the person:
Dr. Vesselin Kantchev, Partner at HILL Communications Bulgaria, obtained his doctorate in business psychology at the Technical University Dresden/Germany. Through more than 17 years of HILL project experience with international clients, the Professor of personnel management of the faculty for German business management at the TU Sofia possesses extensive valuable experience, especially in the area of personnel development.
Literature:
Berio, Guiseppe; Harzallah, Mounira: Knowledge Management for Competence Management. In: Journal of Universal Knowledge Management, Vol. 0, No. 1, p. 21-28, 2005
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