As more organisations standardize and automate employee performance management, the use of standard competencies is also increasing. How do organisations use competencies, and which competencies drive higher business results? The subject is the focus of a new report from Bersin & Associates, a California-based learning research and consulting firm.
Bersin worked with SuccessFactors, a provider of performance and talent management systems. They analyzed the use of competencies in high-profit and high-growth companies in financial services, high technology, industrial manufacturing and retail.
The study, The Role of Competencies in Driving Financial Performance, found that competency-based performance management varies widely by industry, market maturity and phase of growth. It said growth oriented companies focus on strategic competencies to drive leadership behavior, while those in lower-growth markets focus on general management behaviors. High-performance companies value competencies that build organisational capabilities, while lower performing companies focus on competencies that build individual capabilities.
Bersin suggests that focusing on the right competencies for an organization will impact its business performance, retention, employee engagement, resilience and profitability.