According to the Onboarding Reloaded 2022 survey by softgarden, almost 18% of employees resign in the first 100 days of their employment. This early fluctuation not only causes considerable costs, but also puts a strain on the dynamics of the company. The reasons for resigning during this period vary.
Competency models offer a solution to this problem. They precisely record which skills are actually required for a position. The comparison between requirements and existing skills reduces mismatches and at the same time forms the basis for targeted development measures. Find out more about the benefits of competency models and how to develop them successfully below.
What is a competency model?
A competency model is the foundation of personnel development. The model records existing skills and defines the skills required by employees and managers. To this end, personnel managers carry out an inventory for each position in the company and create a requirements analysis.
HR management uses the competency model as a strategic management tool, for example for recruitment measures, performance appraisals and targeted development measures. Competence models also play a central role in organizational development: behaviours reflect corporate values and thus support change processes.
Competence models as a result of management diagnostics
As part of management diagnostics, personnel managers use scientifically sound methods to identify the strengths and development areas of specialists and managers. During the conception phase, the competency model is created as a decisive basis for further steps.
More about the management diagnostics procedures
These competence models exist
The following three competency models address different company requirements. They are used depending on the size of the company, the sector and the strategic objectives.
Generalized competence models
Generalized competency models define overarching skills that apply to all positions in the company. They focus on core competencies such as communication, teamwork or problem solving and form a uniform standard. These models are often used in large organizations that want to establish a common competency language.
Advantages
- Universal applicability in various areas of the company
- Simple implementation without complex adjustments
- Cost-effective implementation thanks to standardized structures
- Good comparability between different departments
Disadvantages
- often too general for specific requirements of individual positions
- Little consideration of industry-specific features
- Possibly less acceptance due to lack of reference to business practice
- Less precise development impulses for employees
Specialized competence models
Specialized competence models are tailored to a company. They take culture, strategy and success factors into account. These models are often the result of extensive analyses of employee and management successes and reflect the unique requirements of the company.
Advantages
- Customized adaptation to the corporate culture and strategy
- High acceptance through recognizable reference to your own organization
- Precise mapping of the skills actually required
- Direct competitive advantage through focus on specific success factors
Disadvantages
- Complex and cost-intensive development
- Difficult to compare with other competence models
- Continuous need to adapt to organizational changes
- Complex implementation, requires intensive change management
Functional competence models
Functional competence models are based on specific roles and fields of activity. They define specific requirements for different departments such as sales, IT or production. These models take into account the challenges and success factors of the respective department and enable targeted development.
Advantages
- Optimally tailored to specific functions and fields of activity
- Clear differentiation between different positions and hierarchy levels
- Particularly suitable for specialist careers and specialist development
- Supports targeted career planning and succession management
Disadvantages
- Risk of silo formation between different functional areas
- Difficult to switch between different departments
- High maintenance effort with numerous different functions
- Too strong a focus on specialist skills at the expense of social skills
This is how competence models are structured
As the name suggests, competency models for managers and employees are made up of specific competencies. They take into account different types of competencies, which together provide a comprehensive picture of performance:
| Types of competence | Description |
| personal skills |
|
| Social skills |
|
| Professional skills |
|
| Methodological skills |
|
| Leadership skills |
|
The structured design of the models enables competencies to be systematically recorded and assessed. As the table shows, the competencies used for this are very different. A comprehensive understanding is crucial - for the development and successful use of the competency model.
Developing a competency model: how it works
The development of a successful competency model follows a structured process. Proceed as follows:
Step #1: Goal definition and needs analysis
Start by clearly defining your goals. Ask: What is the purpose of the competency model? Is it about personnel selection, performance appraisal or development planning? Analyze the current and target status of your organization's competencies. Take strategic corporate goals and future challenges into account.
Step #2: Carrying out a job and role analysis
Examine the requirements of different positions. What are the tasks and responsibilities? What skills do employees need for this position? Use job descriptions, conduct interviews and ask managers. Discussions with top performers in particular provide valuable insights into skills that are crucial to success.
Step #3: Identification and categorization of competencies
Derive the relevant skills from your analysis. Group these into meaningful categories such as technical, methodological or social skills. Define specific behavioral anchors and different levels of proficiency for each competence. Make sure that the number of competencies remains manageable - models that are too complex make practical application difficult.
Step #4: Development of evaluation and measurement methods
Determine how you will measure and evaluate the defined competencies. Develop observation criteria, questionnaires or interview guidelines. Define which methods of management diagnostics are to be used - from potential analysis to 360-degree feedback and assessment centers. Make sure that the selection and evaluation are comprehensible.
Step #5: Involvement of all stakeholders
Involve various stakeholders in the development process. Managers contribute their experience, experts experts their methodological expertise. The employees' perspective is also valuable. This broad participation promotes the subsequent acceptance and practicability of the model. Communicate the goals and benefits of the competency model transparently.
Development Programs
And what about the skills gaps?
Create a competency model and identify any missing competencies. Use this knowledge to your advantage. With the development programs of Haufe Akademie – practical, modular training courses for employees and managers – close these gaps.
Find out more now
Competence models are used here
Another advantage of competency models is that you can use them in a variety of ways. They create a common thread and ensure consistency in different areas of HR management. Here you can see the most important areas of application:
Personnel development
In the area of personnel development, competency models form the basis for targeted development measures. personnel managers use them to identify employees' strengths and areas for development - and on this basis, tailor-made corporate learning (organizational learning). Individualized development plans are created by comparing target and actual profiles. This systematic approach makes learning progress measurable and ensures sustainable skills development.
Recruitment and selection
Competency models provide personnel managers with clear selection criteria during the selection process. They support the creation of precise job advertisements and interview guidelines. Competency-based selection procedures increase the likelihood that new employees will be an ideal fit for the company. In addition, candidates experience a professional process with transparent requirements.
Performance assessment
Competence models create objective benchmarks for performance assessments. They replace subjective impressions with observable behavioral anchors. This leads to fair assessments and constructive feedback discussions. Employees better understand which behaviors lead to positive evaluations.
Career planning
Competency models show clear development paths for individual career planning. Employees can see which skills they need to build up for the next step in their career. This transparency promotes personal responsibility and targeted self-development.
Succession planning
In strategic succession planning, competency models help to systematically identify potential candidates for specific positions. They enable a structured comparison between the requirements of a position and the existing skills of potential successors. This allows personnel managers to recognize development needs at an early stage and address them in a targeted manner. This secures important key positions in the long term.
Advantages and benefits of competence models
A well thought-out competency model offers numerous advantages for employees and the company itself.
Advantages for companies
- Strategic orientation: You anchor corporate strategies directly in the required employee competencies.
- Uniform standards: You establish a common language and consistent evaluation standards throughout the company.
- Better personnel decisions: You make informed decisions on hiring, promotions and development measures.
- Greater employee loyalty: you increase satisfaction through transparent development opportunities.
- Competitive advantages: You specifically promote the skills that are crucial to the company's success.
- Cost efficiency: You make targeted investments in important further training measures.
Advantages for employees
- Clear expectations: Employees know exactly what performance and behavior is expected.
- Transparent development paths: You recognize which skills are required for the next career step.
- Objective assessments: You receive fair and comprehensible performance evaluations.
- Targeted support: You benefit from development measures tailored to your individual needs.
- Self-determined career planning: You can shape your professional development more actively.
- Greater satisfaction: They experience greater appreciation through the systematic promotion of their strengths.
Support for strategic personnel development
- Long-term planning: You develop your personnel resources with foresight in line with future requirements.
- Talent management: you systematically identify and promote top performers.
- Effective skills management: you recognize and close critical skills gaps at an early stage.
- Evidence-based decisions: You make personnel decisions on the basis of well-founded skills analyses.
- Agile adaptation: You can develop the skills portfolio of your workforce in a targeted manner in response to changing market conditions.
- Measurable success: You make the success of development measures visible through clear increases in skills.
Challenges and points of criticism
Despite their advantages, competency models harbor a number of pitfalls. Overly complex structures overwhelm users, standardized models ignore company-specific characteristics. There is often a lack of concrete practical relevance and competence assessments can be subjectively distorted.
However, these challenges can be solved. Reduce the complexity to a few relevant dimensions. Involve managers and employees in the development process to create acceptance. Schedule regular reviews and integrate the model into everyday working life. Train users thoroughly and combine different assessment perspectives to minimize subjectivity. Use the results consistently for specific development measures - this will turn the competency model into a valuable management tool.
Closing skills gaps with targeted development programs
You can fill the previously identified competency gaps with tailor-made development programs . Instead of isolated individual training, you benefit from the offers of Haufe Akademie from a well-thought-out overall concept. Development Programs combine different learning formats and systematically build on the results of your management diagnostics .
Whether leadership skills, project management skills or change management expertise - we tailor the measures to your individual needs. With modern learning methods such as practical workshops, individual coaching and interactive simulations, you ensure the transfer of knowledge into your employees' day-to-day work.
