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Domain Expert: Douglas W. Crisman, Vice President, Competencies, Salary.com, Inc. October 2008
Companies that adopt competency-based talent management retain valuable employees, drive efficiencies
Bottom Line
and organizational effectiveness, and build a storehouse of information about every job function.
Subjects Competencies, talent management
Indeed, one might think that the mere fact that a company is global would translate into
plentiful employee growth opportunities. But, rarely are these new career paths really
understood. Although there may be more opportunities in larger companies, that doesnt
The Salary.com job-
necessarily mean there is a common understanding of career paths or the competencies an
competency model,
employee needs to master to navigate a career path.
which we outline in this
Talent management has increasingly become strategically important, but due to corporate article, uses a four-level
financial and competitive issues not always urgent. Often theres not enough time or a proficiency scale: Basic
company hasnt had the process, technology or data to make it practical. understanding, working
But now companies around the globe are realizing talent management is critical to their
experience, extensive
survival and long term success.
experience, and subject
matter depth and
In response, suppliers with new technologies, expertise and competency data have created breadth.
solutions to assist. Companies that adopt global talent management will drive efficiencies and
organizational effectiveness and retain their most valued employees.
Whats the Role of Competency Data and whats the Best Process? We suggest an
implementation
In this article, well focus on the importance of competenciesespecially functional approach broken into
competencies (i.e. the technical skills required for success in a particular job), and a step by five phases: project
step review of a proven implementation process. planning and definition,
In order to manage talent, we must start by defining what skills, knowledge and abilities your model customization,
staff members need to succeed. This is best done job by job. This is what competencies are all staff assessments,
about and why every major talent management system includes a provision for competency results analysis and
data. actions, and
maintenance.
Each Salary.com competency description includes a set of behavioral descriptors (or anchors) that are used to assess the
proficiency level an incumbent can demonstrate in a particular competency. The Salary.com job-competency model, which we
outline in this article, uses a four-level proficiency scale, each with four to six behavioral descriptors unique to each of the four
proficiency levels. However, other scales can also be used, but four and sometimes five are the most common. See a sample of
proficiency levels for a functional competency below. Also shown are the Learning References for this competency a unique
feature of Salary.com competency models.
Knowledge, skills and abilities that result in behaviors that affect the
Business Competencies
conduct of the organization's business activities
Moreover, there are core competencies, which also come in a few flavors:
How can a company implement competencies to support a talent management program? A strong, well-designed management
process lays out a path to success. It will ensure the implementation moves along rapidly and helps avoid the pitfalls that can
derail such an important project. We recommend a well-documented methodology that outlines flexible, repeatable processes,
and accounts for multiple approaches based on the needed outcomes.
In this phase, companies must determine the project scope and objectives. This may seem simple, and in some cases it may be.
But it is absolutely critical to nail this step. If the scope and objectives are not agreed upon (and actually achievable), there is little
chance of success. Part of this step necessitates developing a project plan and an internal communications strategy.
In addition, a company must take the time in this step to determine project team roles and responsibilities and ensure executive
level commitment and visible support. Finally, a company should evaluate and select available talent management software. We
also of course highly recommend the acquisition of an off-the-shelf competency model to jump start the process.
Any off-the-shelf competency model needs to be customized to reflect the unique needs of your organization. So the project
teams and subject matter experts must work to select competencies from the model that are critical to the success of the
organization.
The best approach is top-down. A bottoms-up approach usually results in too many competencies that are hard to manage and
end up being meaningless. Moreover, it can require too much customization.
To address this concern, often a steering group is assembled to identify the core competencies the company needs. Then,
managers and individual contributors are led through a process to help them quickly and efficiently select the competencies for
each job and assign proficiency level standards. Salary.com job-competency models come with preset standards developed over
the years by working with client companies.
The typical definitions for a four level proficiency schema are as follows:
Level One, Basic Understanding: This implies a cognitive grasp of the competency in question (i.e., an intellectual or
academic understanding of it). It specifically does not imply an ability or requirement for hands-on use of the competency.
Therefore, proficiency descriptors at this level are not necessarily observably behavioral in their wording.
Level Two, Working Experience: This implies hands-on use of the competency, but to a limited degreethat is, within
one's own unit, on a single platform or environment, in a simple process or application.
Level Three, Extensive Experience: This implies full mastery of the competency, the ability to use it in multiple platforms or
heterogeneous environments, on complex applications, etc., or a track record of having done so.
Level Four, Subject Matter Depth and Breadth: This implies expert status in the competencyguru status, if you will. The
distinguishing notes here are recognition as a go-to expert inside the organizationa person who monitors the industry,
profession or specialty so as to ensure one's organization stays reasonably current with regard to new developments, trends
and best practicesincluding the regulatory environment or a person who discusses and addresses issues relative to the
competency with senior management. For technical competencies, this identifies a person who reinterprets the meaning or
applicability of the competency from an organizations business perspective. Few individuals in an organization need to
achieve Level Four in a given competency to fully meet the requirements of their job.
This step focuses on the collection of information on the competencies and proficiency levels of the selected competencies of the
employees. This is usually accomplished by providing the employee group access to the competencies critical for success in their
Like any company-wide project, a global competency effort is not without its challenges. But each one is easy to overcome if
theyre integrated into the project plan from day one.
For example:
Bottom-Up Design Building the model by soliciting input from lower-level technical or operational staff is
likely to produce a huge number of competencies. Such an approach reflects the
knowledge that exists rather than competencies that are critical to success.
Momentum and Timing Other priorities often interfere with the initial competency management
implementation. Or, the champion moves on. Make sure that key stakeholders see the
potential value and help you keep going.
Weak Governance of the To have a solid foundation and to create a common language, all areas of the
Architecture organization need to adhere to specific formats for jobs, competencies, learning
references and their interrelationships.
Lack of Ongoing Resources Organizations change continuously; new jobs are created, jobs are consolidated, new
products, technologies, disciplines and tools are introduced. People change jobs,
people leave and new people join the organization. Incumbents learn and increase
their proficiency levels. All these changes need to be monitored and reflected in the
competency database.
Underestimated Time and Cost To be truly effective, a competency initiative needs input and involvement from top
executives, selected line managers and successful performers. The competency
system itself needs to talk to other systems and remain up to date. All of that requires
time and effortsomething thats often overlooked in the initial budgeting process.
Keep the objectives in mind. Dont stray from your original project plan and definition without understanding the
consequences and resetting the plan.
Deal with organizational issues head-on. The development process can be an opportunity to clean up jobs, increase
employee morale, and reduce turnover. Use the model customization process to build cross-organizational teams.
Solicit input from successful incumbents. High performers are a storehouse of information. What distinguishes them?
Learn from the best.
Use a phased, release-based approach. Dont try to do everything at once. Go department by department, division by
division.
Keep sponsor and execs informed and involved. Establish timeframes and roadmaps then provide regular updates on
progress and successes.
Dont expect 100% acceptance. The entire company wont accept the new approach right off the bat. But dont let that
discourage you. Communicate your successes and make employees a part of that communication.
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