What is Competency Management?

A competency refers to applying a set of skills to successfully perform work tasks and operations. Competency management involves identifying which qualifications each employee needs to have to effectively do their job and then developing them.

A company committed to competency management can boost business operations and worker satisfaction. When you define needed skills, workers know exactly what is expected of them to accomplish tasks.

One of best ways to track employee skills and identify any gaps is through competency management software. We will explain more about competency management systems in the following sections:

The importance of competency management software
Benefits of a competency management system
Five essential management competencies to follow
FAQs about competency management

The importance of competency management software

Competency management software is helpful in keeping track of employee skills and how they have developed over time. This is especially useful in large companies, where maintaining individual worker records manually can be timely and expensive.

When an organization knows the competencies of its workforce, managers can better assign tasks and fulfill specific roles.

Benefits of a competency management system

A competency management system helps a company achieve many goals. The benefits of using this type of software include:

Identifying which skills a worker needs to cultivate to succeed in their specific role.
Helping HR better identify which candidates may be right for a role based on skills needed.
Creating a smoother employee onboarding process. For example, workers who receive clear guidelines of their job parameters often do better in their roles.
Boosting productivity by identifying which skills employees are lacking so that adequate training can be provided to close the gap.
Helping reduce human error by improving training opportunities.
Boosting employee retention rates. Workers who feel like leadership is investing in them are more likely to keep their jobs and cultivate skills within the company.

Five essential management competencies

A competency management system not only improves worker productivity, but also can benefit leadership.

There is a range of skills managers can cultivate to help their employees create a more productive work environment. We recommend following the five competencies below:

1) Planning
Having a clear vision and plan is important to master any task. A plan starts with setting a clear objective and outlining what needs to be done to reach a goal.

2) Communication
Communication is key. It’s crucial to articulate goals to workers and answer any questions that may come up.

3) Decision making
Making decisions and following through are important skills to master. Leadership should be able to quickly and efficiently inform workers of expectations and guidelines.

4) Delegation
This skill involves knowing how to effectively assign tasks to employees. Managers and supervisors must demonstrate leadership to successfully delegate tasks best suited to each employee.

5) Problem solving
Knowing how to identify the root of a problem and tackle any issues that may arise is helpful in optimizing production processes.

FAQs about competency management

What is the purpose of a competency management system?

The purpose of a competency management system is to track employee skills and identify weak areas that need to be addressed. In a nutshell, this software can help align workers’ skills with business goals.

When used correctly, this system can help managers develop, engage and retain skilled employees — giving companies a competitive edge.

What are the common features of a competency management system?

A competency management system typically contains the following features:

A prepopulated database of competencies
A database for tracking employees, including contractors and partners, and their skills
Search functionality
Reporting capabilities
Performance reviews

How do you implement competency management in manufacturing?

Implementing competency management in manufacturing involves various steps, including:

Do a job analysis that involves asking workers what skills are needed to perform their jobs.
Identify aptitudes, skills and knowledge needed to complete tasks.
Come up with job descriptions based on specific skillsets.
Make the competencies identified the basis for performance evaluation.
Identify any skill gaps or training needs based on the information gathered.

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