Development of employee competencies as a key element of an organization’s competitiveness in a changing business environment
Modern organizations operate in a dynamically changing business environment that forces companies to adopt a flexible approach to human resource management. One of the key elements of building a competitive advantage is the development of employee competencies, which not only affects their effectiveness, but also the organization’s ability to adapt to market changes. The article discusses how various forms of competency development can contribute to improving employee effectiveness and how these forms can be assessed. I hope that the article will provide a better understanding of how competency development and their assessment should be integrated with overall human resource management.
What are Competencies and How Do They Influence Employee Effectiveness?
Competencies are a complex concept that includes not only knowledge and skills, but also attitudes, values, motivations and behaviors of employees. They can therefore be understood as the ability to effectively perform specific tasks in specific conditions, which makes them one of the most important resources of an organization. The effectiveness of employees’ actions depends to a large extent on the level of developed competencies, which can affect both the efficiency of the work performed and the ability to adapt to new challenges. In this context, organizations are increasingly using competency models that help systematically define and develop key employee skills, aligned with the company’s strategy.
Division of Competencies into Hard and Soft – What Distinguishes Them?
- Hard skills – include technical knowledge, specific skills and abilities needed to perform tasks. They are usually easier to assess because they are measurable (e.g. knowledge of software, mathematical skills or knowledge of foreign languages).
- Soft skills – these are traits such as communication, teamwork, time management, and problem-solving. In their case, the assessment may be more subjective, making them harder to measure, but equally important for the effectiveness of the organization.
Forms of competence development
The development of employee competences can take place in many ways, depending on the specifics of the organization, positions and individual needs of employees. The most important forms of their development include:
Training and courses – this is one of the most popular forms of developing skills, especially hard ones. Training can be organized internally or externally and is used to acquire new knowledge or improve existing skills. Regular training is essential in industries where technologies and work methods change rapidly.
Coaching and mentoring – these forms are based on individual work with the employee, helping them develop both professional and personal competences. Coaching focuses on developing specific skills, while mentoring on support in career development and making professional decisions.
Job rotation – temporary change of duties or jobs within the organization allows employees to gain experience in different areas, which develops their multi-faceted competences. Such rotation increases organizational flexibility and facilitates a better understanding of the company’s functioning.
Participation in projects – engaging employees in the implementation of various projects can be an effective form of developing both hard and soft skills. Working in projects requires cooperation, flexibility and problem-solving, which translates into the development of a wide range of skills.
Self-education – employees can also develop their skills independently, e.g. by reading industry literature, attending conferences or using educational platforms. In an era of easy access to online materials, this form of development is becoming increasingly popular.
Organizations also often implement development programs, which are complex systems of activities aimed at long-term development of employee competencies. These programs can include training, mentoring, and participation in international projects, allowing for the development of global competencies.
Methods of assessing forms of competence development
Evaluating the effectiveness of competency development forms is crucial to understanding which ones bring the greatest benefits to the organization. The selection of assessment methods should take into account both the needs of employees and the organizational goals. The most popular methods of competency assessment include:
360-degree feedback – involves collecting feedback from various people with whom the employee works, such as superiors, co-workers, or customers. This allows for a broad picture of the employee’s competences.
Tests and exams – mainly used for hard skills that can be measured using knowledge or skill tests. An example would be a language exam or technical certification.
Performance appraisals – consist of analyzing employee achievements in the context of set goals. This is a method that allows for direct linking of developed competencies with the results achieved by the employee.
Questionnaires and surveys – these tools allow for obtaining a subjective assessment of employees regarding their development of competencies. They can be used by both employees themselves and their superiors.
Analysis of behaviors and attitudes – in the case of soft skills, the assessment may consist of observing the behavior of employees in specific situations. This method is particularly useful in assessing interpersonal skills, such as cooperation or conflict management.
OutcomSkills – using tools that enable quick analysis of developed competencies in connection with work results and achieved goals.
Selected challenges in competency assessment
One of the main challenges in assessing forms of competency development is the subjectivity of some assessment methods, especially in the case of soft skills. The assessment of employee behaviors may depend on the individual preferences of the assessor, which leads to the risk of non-objective conclusions.
Another challenge is the difficulty of directly linking the effects of competency development to the business results of the organization. In this case, the solution may be competency-by-outcome mapping. With the help of Outcome Skills, you can track competencies over time and correlate them with performance results. This model provides clarity on how developing employee skills contributes to the success of the company.
Development of competences
There is a need to integrate competency development with overall human resource management. This development must be directly linked to organizational goals and anticipated market changes, especially in the context of the dynamic VUCA world.
Competency systems should be integrated with other HR processes, such as career planning, remuneration and recruitment. By assessing employees based on competencies, organizations can better manage talent and match human resources to the current needs of the company. It is also important to use precise assessment tools that are flexible and adapted to the complexity of modern organizations. Creating a well-functioning system for assessing and developing competencies allows for effective development of the employee and their career, and thus for professional development, which supports the entire organization in the long term.
Summary
The development of employee competencies cannot be a one-way process. It requires integrated organizational actions that take into account both business needs and individual employee aspirations. Competency models help in effective talent management, and regular development programs provide tools for their development. Employee competencies are the basis for building a competitive advantage and must be systematically developed and assessed in the context of changing market challenges.
Source texts:
“Methods of assessing the forms of employee competence development” by Joanna Żukowska,
“Competency-based employee assessment systems” by Małgorzata Sidor-Rządkowska
