As we know competencies are the skills required to perform a job/task. Performance Management is a process to evaluate the performance of skills used to do a job.
Aren’t they both intersecting? Let’s see. Both focus upon skills. One identifies and the other measures.
We commonly hear “Should we eye the new upcoming business, are my people ready” and also “I am not evaluated or rated as per my worth”. For such scenarios the answer is Performance Management through Competency Mapping
When the competencies of an organizations are identified and mapped, list of skills that are required to perform a job are identified. As well as organization gets a list of prominent competencies available within. Therefore, competency-based performance management is both organization centric and employee centric.
Competency mapping is not restricted just for the performance of the employees it also evaluates the performance of the organization. When the competencies are identified and mapped the company gets a clear picture about its performance in quantifiable terms; what is their core strength or what are the skills available within. This will give an ongoing input towards the available strengths in the organization. Organizations will be able map themselves with the market needs and their strengths.
Competency mapping also gives insights into where they stand against their competitors. Organizations can forecast the market and prepare their employees for the upcoming ventures.
On the other hand there are inputs towards financial planning. Budgeting can be managed with the inputs on the expenses to be occurred to hire new resources, to train the current resources, to procure latest software/hardware etc.
With competency-based performance management organizations can also be ready with the skills available at different levels with different proficiency ratings. This provides a healthy environment. A great sense of ownership is developed within the employees to upgrade and upskill themselves to achieve the desired proficiency. Performance management through competency mapping generates a healthy competition in the organization. Competency provides list of measureable skill for every role, therefore each and every employee is aware about how they should perform to get the desired proficiency. It is a transparent and objective tool for evaluating the performance.
When organizations decide to move towards Competency based performance management they need to be prepared that it is a time-consuming project. It can’t be done in a hurry. But once the current competencies are mapped with the current employees, it will be an easy and quick tool. It is also important to hire external experts to prepare the competency dictionary. Before the program is launched on the floor, organizations have to ensure that a change management training is carried out and the purpose is communicated clearly to the employees. This sensitizes people about the exercise and helps them in accepting changes that come with a competency-based performance management system. It depends on organization to organization whether to use Performance Management as an input to performance appraisals or only for training need analysis.
Competency Mapping is a key tool to evaluate companies and their employees’ performance.