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An introduction to competencies for performance management
What do we mean by competencies? All jobs or roles have two components: What and How. What includes tasks, responsibilities, accountabilities and targets. Competencies are the how component, including the knowledge, skills, attitudes and behaviours which make a significant contribution towards effective performance in a role. A job description will contain important information about what the job involves, and a competency framework (or skills development framework, employee behaviours) will contain the important information about how the job holder is expected to do it. As well as performance management, an effectively used framework is likely to underpin all people processes: training and development, recruitment, succession and talent planning. What are the advantages of using competencies? - Measuring performance is tailored to both the organisation and the individual
- Employees are aware of both what is expected in terms of outputs as well as how they need to achieve them, and are thus more likely to achieve objectives
- They focus on relevant personal qualities, as well as skills and knowledge
- They can help identify training and development needs
- The process is consistent so all employees are clear about what is expected from them
- They can fit well with diversity and equal opportunity policies by eliminating bias and embedding organisational values
Questions to ask when implementing competency based performance management: - Has the input of team leaders and team members been invited when building the competencies?
- Are the competencies flexible enough to be relevant to different roles and working styles?
- Are the competencies user-friendly, e.g. do they use language that managers will easily be able to relate to the workplace?
- Are competencies related to long-term business goals and do managers understand how they relate to these goals?
- Is the time that management are expected to work on performance management activities clear in job specifications? Are managers supported to find this time?
- Do you have in-house expertise in developing competency frameworks or should professional help be sought from outside the organisation?
- Are performance management processes, such as appraisals, regular feedback, 1:1s and coaching, promoted as essential ongoing activities for all staff, rather than end of year exercises?
- Are the competencies fair to everyone affected by their use? This could include those in other roles, e.g. if a certain competency level is required for one role and a higher level is required for a comparable role then this may be viewed as unfair.
How to use competencies for performance management Performance reviews involve a one to one meeting between the individual and their line manager at least once a year, although many companies do interim reviews more frequently. The review will explore the feedback on the individual's performance which may be gathered from the individual and their manager, as well as others such as customers, peers and direct reports. The review will involve discussing the information and agreeing appropriate outcomes and performance levels as well as future development plans. It is important that these reviews are the formal documentation of performance conversations that have been happening during the review period and do not introduce new aspects that the individual is not aware of. Earlier this year Learning Consultancy Partnership published a report entitled Difficult conversations, which provides some useful guidance to support managers when engaging in difficult conversations, such as discussing poor performance. If you would like a free copy of this report, simply email natashastone@lcp.org.uk with 'difficult conversations' in the subject line. - Identifying the appropriate competencies Competencies could be identified as follows: a) What are the job role's most essential tasks? b) What do good and great performers consistently do to successfully complete these essential tasks? c) What level of competency do employees need to exhibit to be effective for their grade, job role? Competencies should be reviewed regularly with consultation from line managers and job holders, our recommendation would be at least annually and when there is a major change in the organisation. Similarly, input from both should be sought if building a competency framework from scratch as involvement is critical in getting 'buy-in' to the process. - Gathering the information on performance against behavioural competencies Information can be gathered from various sources and these will often depend on the purpose of the review. For example, levels of performance may be necessary if the review is to link to pay, whereas comments and questionnaire results may also be sought for ongoing development. It is important that evidence of performance against competencies is valid, reliable and fair in that the assessment is a fair reflection of consistent performance rather than a one-off incident. For example, if an individual is being assessed on 'teamwork' there may be one example of good teamwork but for the rest of the review period the individual does not act as a 'team player' so the isolated incident is not a fair reflection of their consistent performance over time. - Discussing competency based information It is important that the individual reviewee has a thorough understanding of the behavioural requirements of the role and is trained to sensitively deliver results. In order to do this the reviewer should invite the reviewee's input as to how they think they have performed against the competency indicators and provide examples of when they have done this. The reviewer then adds their own examples and both parties discuss and agree the competency level achieved. Four key tips: - Competency frameworks should be holistic, flexible and written in a language that employees and line managers understand - Competencies should be constantly related to job requirements at all stages e.g. when being developed, used for review, or used for interviewing candidates - Discussion should never focus solely on the numbers and examples of how behaviour meets the required level are needed to bring the competency to life. Well-designed competency frameworks bring many benefits to employees, managers and businesses. There is a danger however, of taking shortcuts such as solutions with inadequate planning which can risk employee disengagement - of both managers and their teams - and higher turnover. But if done well the benefits offered by competencies can in the long-term far exceed the time taken to get them right. For a thorough introduction to using competencies in a range of contexts including performance management, we recommend Steve Whiddett and Sarah Hollyforde's The Competencies Handbook (London: Institute of Personnel and Development, 1999). In addition for a comprehensive guide to succession planning see William J. Rothwell's Effective Succession Planning: ensuring Leadership Continuity and Building Talent from Within (New York: Amacom, 2010). Learning Consultancy Partnerships are specialists in performance management and developing competency frameworks. We can also offer a range of psychometric tests as well as 360- degree feedback. If you would like help with this don't hesitate to get in touch to arrange a free telephone consultation. | 
