Competency management is a key component to consider when building a strong and efficient workforce. It can provide clear processes and systems for business managers and employers to identify strengths and weaknesses within the organization, and to better lead their team.

Competency management software also offers an effective method for testing, measuring, and evaluating the competencies of an employee. It provides a technological solution to obtaining and managing data that would be otherwise difficult to analyze and utilize effectively.

This type of software can provide several benefits for any organization that is striving to improve its competitive standpoint within a given industry.

What is competency management?

Competency is the combination of factors that together determine a person's ability to perform in a given job role. This can include the knowledge (both practical and theoretical), skills, behaviours, and attitudes required to fulfill a job role.

Once the key competencies for a job role have been determined, the process of competency management can be implemented. This may involve steps such as:

• Determining the competencies required within the organization, and those that are currently being fulfilled
• Identifying competency gaps from the above. This helps to form the foundation and basis from which to take action
• Creating and implementing a targeted training plan to fill those gaps
• Retesting and measuring core competencies after the implementation of a training plan, to measure the plan's effectiveness

Competency management software can be used throughout these processes. It helps create a clear path to identifying exactly where the problems are and offering a solution to overcome these problems. Ultimately, competency management software is an important tool for running an efficient and effective workforce that aligns with a company's strategy and objectives.

Important benefits of competency management software

1. A clear-cut onboarding approach

When the key competencies of a job role are known and understood from the beginning, the process of onboarding and training new hires becomes more straight forward. Competency management software can offer new employees an outline of the skills, knowledge, and abilities they will need to fulfill a job role effectively.

These insights can help form a clear plan for training the new employee. It will also become easier to create targets that help them work towards bigger goals. Ultimately, a streamlined process can help save the company time and money when it comes to recruitment and new hire training. It can also help ensure that managers are choosing the right person for a role from the very beginning.

2. Effective execution of business strategy

Competency management software can help identify crucial gaps in core competencies. When these are known, a specific plan can be implemented to fill those gaps. This helps ensure that each team member is placed on a personalized professional development pathway.

When all the key competencies within an organization are being covered, the company's business strategy and objectives can be fulfilled as planned. Profits and productivity can be maximized when there are no major gaps that need to be addressed.

3. Helps optimize safety within the organization

Some industries and job roles are especially safety-sensitive. Industries such as construction, transportation, and agriculture carry a relatively higher risk of workplace accidents and injuries. Within these industries, a clear system for competency management is extra crucial because competency gaps could lead to serious injuries and even fatality.

Competency management software can help confirm that a worker has the required knowledge, skills, and abilities to safely carry out a given job task or role. Overall, this helps reduce workplace risks and improve safety.

4. Effective performance management and succession planning

Competency management software can help clarify expectations for employees. When they know what is expected of them, they can fulfill their job role more effectively. Managers also have a clear framework from which to provide feedback, set goals with the employee, and establish a clear training plan.

This process can also help identify employees with key competencies that would serve them well in leadership roles, or other more advanced roles within the company. Competency management is an important consideration for effective succession planning. It can help ensure that individuals within the organization are ready to move into more advanced organizational roles when they become available. This also saves time and money in the recruitment process in the long run.

Overall, an ongoing focus on training and development can help build loyalty and morale. In turn, this improves employee retention.

5. Improve the organization's overall potential for success

Competency management software can help a company to stay competitive within an industry on a number of levels. When employees have the knowledge, skills, and abilities to excel in their job roles, it helps the company to stand out from its competitors.

Furthermore, managers can ensure they are utilizing the core competencies of employees in the best way possible. When requirements are clearly defined, and in turn fulfilled, there is less room for error and more room for efficient operating procedures.

This helps the company minimize wasted time, and maximize their return on investment. Money gets spent on areas of training where it is really needed, rather than using a blanket approach that is unable to produce targeted results.

Considerations for the effective utilization of competency management systems

• Identify key competencies for success within the organization and individual job roles
• Consider the ways that each competency would be best evaluated. For example, practical, written, or oral tests, online, or in-person. It is important that you are able to obtain objective results that offer measurable evaluations
• Research competency management software to determine what will best meet your requirements. This software provides the technology you need to accurately measure, analyze, and track the competencies of your workforce. Without a technology-based solution, the data will be harder to manage and interpret, thus making strategic decisions more difficult
• Establish a plan for each identified level of competency. This may include supervision, training, and mentorship. Determine appropriate dates for retesting of competencies, to measure the effectiveness of training.