Companies everywhere are feeling the pressure. There is already a shortage of skilled workers, and in the coming years, masses of baby boomers will leave the labor market. The resulting void cannot be filled by the next generation alone. At the same time, current issues such as digitalization, sustainability, and supply chains demand fundamental transformation processes from businesses. All these challenges require new structures and new skills. This leaves HR managers with the task of balancing a changing labor market with a changing corporate world. To do this, they need a systematic and structured approach to skills. Consequently, competency management is increasingly becoming a focus for many companies. It has never been more urgent to understand employee skills and purposefully develop staff to ensure a company's ability to act and innovate.
A company's prospects for success grow with its skills
Skills are a success-critical resource for any organization, and they are becoming increasingly valuable. Only those with competent employees can transform their company, adapt their business model to market needs, and successfully lead into the future. Competency management therefore plays a key role in successful corporate development and is relevant in many areas—such as corporate strategy, recruiting, training, succession planning, personnel development, and career paths. Competency management focuses on developing the existing workforce, which is often more promising than recruiting given the worsening shortage of skilled workers. It is therefore essential for management to continuously develop the skills of individuals and teams in line with corporate goals.
Competency management – what does that actually mean?
Competence develops over a long period and is built on various abilities, skills, and knowledge bases. A person's professional competence is demonstrated by how successfully they handle job requirements. This requires the person to be able to apply their knowledge and learned cognitive abilities and skills to the work process in a professional and responsible manner—and to be motivated to do so.
Corporate competency management describes the systematic use of a competency model to structure, maintain, and develop necessary skills within a company. The competency model identifies which skills an employee needs to be successful and creates transparency regarding skill requirements through systematic planning, implementation, and monitoring. Competency management aims to ensure that employees continuously acquire new knowledge, connect old knowledge with new, and apply it to work processes and new contexts. In a company, the constant development of skills leads to better product and service quality, thereby securing the organization's future viability and competitiveness.
Goodbye "one-size-fits-all": Focusing on essential skill requirements
In the past, traditional corporate competency models were often developed over months or years with great effort and without digital support. Modern, agile competency models, by contrast, are specifically oriented toward the individual needs of the company and its employees, as well as professional challenges. They can be integrated into new or existing HR systems and are ideal for mid-sized companies. The goal of an agile concept is to get started quickly and achieve measurable results early on.
A competency model can be designed in pilot areas first, then further developed and expanded to other parts of the company. The skills required for each role and position are defined and captured within the competency model. With an agile model, companies can purposefully and sustainably secure the necessary skills while simultaneously increasing employee motivation through transparency and involving them in the company's development.
THE MAK'ED TEAM has extensive national and international experience in corporate development and has already developed and implemented numerous competency management systems across various industries.
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