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Competency Framework: How to Build and Common Difficulties

competency framework is an important factor to maximize human resources in the enterprise. To make this be successful, businesses need a strict and appropriate implementation process. In the article below, Viindoo will summarize basic information about the competency framework and its implementation process.

What is competency framework?

Competency framework is a structure of knowledge and skills that an employee in an enterprise must have to perform well. The use of a competency framework will help business administrators have an overall view of employees' capabilities and devise the most effective optimization plan for human resources in the organization.

Developing competency framework is an effective human resource management method commonly used in enterprises. This is the basis for business to rationally plan resources, map out new recruitment strategy and conduct appropriate internal training.

Building a competency framework is an effective human resource management method

Building a competency framework is an effective human resource management method

The following are the four ways to approach competency framework:

  • Based on the roles in the company.
  • Based on professional expertise.
  • Based on behavioral competencies.
  • Based on the core competencies of human resources such as teamwork, office skills, communication, management, etc.

How to build a competency framework for employees

Step 1: Define a clear purpose

The first step in building competency framework is to clearly define the purpose of it. Building a competency structure framework can be used for purposes such as recruitment, employee evaluation, training planning, human resource planning, etc.

Each purpose will affect the competency assessment framework differently. Therefore, determining the right goals will help businesses build the most appropriate and accurate capacity structure framework.

Step 2: Standardize the business

The second step that businesses need to effectively build capacity framework is standardizing the structure of the organization, organization chart, task's systems and functions of specific positions in enterprise.

To do this, business need to design the tasks of each job’s position, and agree on a common tittle for the positions with the same outputs, hence setting specific requirements for each position in company.

Determine the organizational structure in the enterprise

Determine the organizational structure in the enterprise

Step 3: Develop a competency framework for each position

Each position in business has different requirements in terms of skills and knowledge. Establishing a specific human resource competency framework to each position is an important step for effective human resource management. When the required competencies are clearly defined, businesses can effectively allocate resources and perform faster and more accurate personnel assessments.

Enterprises can combine assessment by competency framework with other models and employee evaluation method such as ASK model for a more effective and comprehensive assessment

Build a framework for assessing capacity for each position

Build a framework for assessing capacity for each position

Step 4: Implement, monitor and improve

After building competency framework specifically for each position, managers need to conduct personnel evaluation. This will help businesses know the existing capacity of employees and the gap with the requirements. As a result, enterprises can plan and conduct effective human resource training.

The business environment in the current digital age is constantly changing. Therefore, the capacity requirements of employees also need to be constantly updated and improved. Businesses need to conduct a re-evaluation of competency framework after a period of time and make accordingly improvements to match the growth rate of the business as well as business environment.

Continuously monitor, evaluate and optimize the competency framework

Continuously monitor, evaluate and optimize the competency framework

Common difficulties when building a human resource competency framework

A complete human resource competency framework is important for any business that wants to grow. However, in order to acquire this, business have to deal with many challenges. Following are the difficulties when building an capacity framework:

  • As the overall level of staff has not been clearly defined, it is not easy to give out sets of capabilities for each position.
  • Many enterprises have referred to the competency framework of from other organizations, but the implementation process still lacks appropriate customization.
  • There are no specific orientations and development goals for businesses.
  • Managers lack the skills and experience to build a complete and optimal capacity assessment suite.
The building of a framework for assessing the capacity of enterprises faces many difficulties

The building of a framework for assessing the capacity of enterprises faces many difficulties

To overcome these difficulties, businesses can resort to for modern technology solutions. One typical choice is the Human Resource Management Software HRMs  from Viindoo, which supports business building competency framework optimally.

Through determining the goals of the business, Viindoo HRM helps managers plan to build a competency framework specific to each position in the business. This will supports enterprises to effectively manage human resources and take this as the core motivation to develop more in the future.

Software Viindoo HRM

Viindoo HRM

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Competency Framework plays a pivotal role in the growth of any business. Building a complete capacity structure framework will help enterprises manage human resources more effectively, increasing competitiveness in the market. Hopefully, through this article, Viindoo has helped your business find the best solution to build the best human resource management framework.

Competency Framework: How to Build and Common Difficulties
Viindoo Technology Joint Stock Company, Amber Nguyen January 18, 2023

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