Competence management: strategically developing potential
What happens when your best software developer leaves the company and his or her years of expertise disappear? Or if your sales teams suddenly need digital sales skills that nobody has in-house? Scenarios like these make companies sweat and show why strategic skills management is essential for survival today. Skills management is far more than just personnel development - it forms the foundation for sustainable corporate success and future-proof organizations. In this article, you will learn how to systematically identify, develop and strategically deploy skills.
What is competence management?
Competence management refers to the systematic recording, development and strategic management of all skills and potential in a company. It is about having the right skills available in the right place at the right time, both now and in the future.
At its core, competence management combines three central elements:
- the company's strategic goals,
- the existing skills of employees and
- the future requirements of the market.
This combination creates customized development paths that both promote individual potential and drive the company's success.
Competence management: differentiation from related concepts
Competence management is often confused with similar terms, but there are clear differences:
- Skill management focuses primarily on concrete, measurable skills and technical abilities.
- Talent management focuses on high performers and their strategic development.
- Competence management, on the other hand, considers all employees and encompasses not only professional but also methodological, social and personal skills.
Definition: What are competencies?
Competencies describe the ability to act appropriately and successfully in specific situations. Four types of competence can be distinguished:
- Hard skills comprise the job-specific knowledge and technical skills required to perform a job. These include, for example, programming knowledge, accounting knowledge or machine operation.
- Methodological skills enable you to approach tasks in a structured way and solve problems systematically. These include project management, analytical thinking and time management.
- Social skills (soft skills) enable successful cooperation with other people. Communication skills, teamwork and conflict resolution are key examples.
- Self-competencies describe the ability for self-reflection and self-control. These include initiative, willingness to learn and stress resistance.
Types of competence in practice
A distinction is also made depending on the strategic importance:
- Core competencies: unique skills that differentiate the company from the competition
- Key competencies: critical skills for business success
- Interdisciplinary skills: overarching skills that are relevant in different areas
Basics & strategic approaches
Successful skills management is based on two proven approaches that you or employees and managers can use individually or in combination, depending on the company situation.
Resource-oriented approach
The resource-oriented approach, also known as the core competence approach, focuses on the company's unique capabilities. These core competencies form the basis for sustainable competitive advantages and should be continuously expanded.
Companies identify their strategically most important skills and invest specifically in their development. The focus is on strengthening these skills in such a way that the competition cannot easily copy them. For example, a technology company could define its innovation competence as a core competence and focus all development measures on this.
Learning-oriented approach
The learning-oriented approach focuses on the individual development and self-organization of employees. The focus here is on the people with the skills - in other words, the people who carry knowledge and skills within them and develop them further.
This approach promotes a learning culture in which employees develop their skills independently. Companies create the appropriate framework conditions for this: Learning times, training budgets and an error-friendly atmosphere that enables experimentation and learning from mistakes.
Goals & benefits for companies
Strategic skills management pays off in various areas of the company and creates measurable benefits.
- Future readiness: Companies systematically prepare themselves for future requirements. By identifying future skills at an early stage, they can proactively respond to market changes and take advantage of new business opportunities. For example, a manufacturing company is already developing skills for Industry 4.0 in order to be at the forefront of the digitalization of production.
- Employee retention: Targeted skills development significantly increases employee satisfaction and loyalty. Employees feel valued and see clear development prospects. This reduces staff turnover and saves recruiting costs.
- Management developmentCompetence management systematically identifies management talent and prepares them specifically for their tasks. This creates strong internal succession plans and reduces dependence on external managers.
- Process optimization in personnel development: Instead of training according to the scattergun principle, skills management enables targeted development measures. This saves resources and increases the effectiveness of training investments.
- Optimized recruiting processes: Clear skills profiles make personnel selection much easier. Recruiters know exactly what skills are being sought and can evaluate candidates more precisely. This shortens recruitment processes and improves the match between person and position.
Central tasks in competence management
The successful implementation of skills management requires a systematic approach and clear responsibilities.
- Identification of relevant skills: The first step is to find out which skills are crucial to the company's success. In doing so, you analyze both current requirements and future challenges. The corporate strategy provides the direction.
- Creation and maintenance of skills profiles: You develop detailed skills profiles for each position or area. These describe which skills are required and to what extent. It is important to update them regularly, as requirements are constantly changing.
- Diagnosis and assessment of the skills inventory: The target/actual comparison shows where your company stands. You systematically record which skills are available and where there are gaps. This analysis forms the basis for all further measures.
- Development of targeted skills development measures: Based on the skills gaps identified, you plan specific development steps. These can be training, coaching, mentoring or job rotation - always tailored to individual needs and company goals.
- Skills transfer and prevention of skills attrition: Knowledge and skills should remain within the company and spread. To achieve this, establish knowledge management systems and promote the exchange of knowledge between employees.
- Continuous monitoring of success: regular evaluation shows whether the measures are working. You measure the development of skills and adjust your strategy if necessary.
Responsibilities & roles
Successful skills management is teamwork. The HR department is responsible for strategic coordination and provides methods and tools. It develops competency models and supports their implementation.
Managers play a key role: they identify skills needs in their teams, conduct development discussions and promote the learning of their employees. Their proximity to the operational business makes them important skills scouts.
Employees take responsibility for their own development. They reflect on their skills, identify learning needs and actively take advantage of the development opportunities on offer.
Process steps in competence management
Effective skills management follows a clearly structured process. The following four steps form the methodological backbone.
- Objectives and analysis of the corporate strategy: What skills do you need to achieve your strategic goals? This question is at the beginning of every skills management process. You derive specific skills requirements from the corporate strategy.
- Survey and evaluation of existing skills: Use employee surveys, 360-degree feedback or structured interviews to record the current level of skills. A combination of self-assessment and external assessment is important for a realistic picture.
- Development and implementation of measures: Based on the findings, you plan specific development steps. These can range from traditional seminars and e-learning to project work and mentoring. The decisive factor is the fit with the target group and the learning objective.
- Evaluation and continuous adjustment: Regular performance measurement shows whether your measures are working. You make adjustments where necessary and continuously develop your approach.
Methods & Instruments
The practical implementation of competence management requires proven methods and suitable tools.
Analysis & evaluation
The first step in successful competence work is to create transparency about existing skills and requirements.
- Use existing resources: Start with what is already available. Job descriptions, job profiles and existing curricula often contain valuable information about the skills required. These form a good starting point for systematic analysis.
- Competency models: A structured competency model creates a common language within the company. It defines which competencies are relevant and how they manifest themselves in different degrees. Good models are both specific enough for practical use and flexible enough for different applications.
- Competence matrices: These tools clearly visualize competencies and their characteristics. The matrix shows employees or teams with their respective competence levels. This enables quick analyses and strategic personnel planning.
- 9-Box-Grid: This proven tool combines performance and potential in a matrix. It helps to set development priorities and create succession plans. High potentials become just as visible as employees with development needs.
- 360-degree feedback: Assessments by superiors, colleagues and employees create a well-rounded picture of competencies. This method uncovers blind spots and provides valuable impetus for personal development.
Competence development
Skills are developed in a variety of ways that can be optimally combined.
- Formal learning through seminars, training courses and certifications imparts new knowledge and skills in a structured manner. These formats are particularly suitable for specialist skills and standardized content.
- Informal learning in the workplace is often particularly effective. Job rotation, project work and learning on the job enable practical learning in real-life situations. Employees apply new skills directly and thus consolidate them.
- Social learning through mentoring, coaching and peer learning makes use of the experience of others. Experienced employees pass on their knowledge, while Learners benefit from their expertise. This form of learning is particularly valuable for social and personal skills.
Performance measurement & evaluation
Without measuring success, competence management remains a blind flight. Clear key figures show whether your investments are paying off.
- Quantitative metrics provide objective data: How many employees have improved their skills in which areas? How has the internal staffing ratio developed? What cost savings have resulted from reduced external recruiting costs?
- Qualitative indicators capture the softer factors: Is employee satisfaction increasing? Is the team dynamic improving? Are new tasks being mastered more independently?
- Long-term performance measurement looks at strategic effects: Is the company better prepared for market changes? Can new business areas be developed? Is the innovative strength increasing?
Challenges & success factors
When introducing skills management, companies face typical challenges that can be overcome with the right strategy.
- Create acceptance: Employees sometimes fear that competence analyses will lead to evaluations or even dismissals. Transparent communication about the objectives and benefits is therefore crucial. Emphasize the developmental nature and point out concrete benefits for the workforce.
- Managing complexity: skills management can quickly become overly complex. Therefore, start with a manageable pilot area and expand step by step. Simple, comprehensible models often work better than perfect but complicated systems.
- Involve managers: Managers must understand the importance of skills management and actively exemplify it. Training and regular exchanges help to turn them into real ambassadors .
- Observe data protection: Competence management processes sensitive personnel data. Clear data protection guidelines and transparent communication with employees are essential. The works council should be involved at an early stage.
- Ensure continuity: Establish fixed rhythms for reviews and updates. This is the only way to keep your system up-to-date and effective.
Haufe Akademie: Your partner for strategic competence management
As a partner for strategic skills management, Haufe Akademie 's Learning Experience Platform (LXP) offers a practice-oriented solution for the systematic development of skills within the company. The platform combines skills analysis with personalized learning paths and thus enables the targeted closure of identified skills gaps.
Central functions at a glance:
- Data-based skills analysis: integration of self-assessments, feedback systems and skill mapping
- Individual learning paths: customized recommendations based on goals, role profiles and learning history
- Strategic management: reporting tools for skill gap analyses and progress measurement
- Seamless integration: integration into existing HR IT landscapes thanks to modular architecture
Frequently asked questions about competence management
What is the difference between competence and qualification?
Qualifications describe formally acquired degrees and certificates - in other words, what someone has learned. Competencies, on the other hand, show what a person can actually do in practice and how they apply their knowledge. For example, an employee may have a project management qualification, but it is only through successful project work that he or she demonstrates actual project management competence.
How often should a skills analysis be carried out?
A complete skills analysis is recommended every two to three years. In fast-moving industries or in the event of major strategic changes, an annual cycle may be advisable. In addition, you should continuously monitor current developments and carry out selective analyses as required.
What are the costs of introducing competence management?
The costs vary depending on the size of the company and the approach chosen. In addition to software investments, costs are incurred for analysis, training and external consulting. Experience shows that these investments pay for themselves after just 12 to 18 months through more efficient personnel development, reduced recruiting costs and higher employee retention.
How can competence management be implemented in small companies?
Small companies can start with simple Excel-based skills matrices. It is important to proceed systematically: First define relevant skills, then record the current status and derive targeted development measures. Cloud-based solutions also offer professional support for smaller budgets.
You might also be interested in
