The Human Resources is becoming of vital importance to the company’s value growth and is coming out of its traditional role. The HR should come up with strategies and use the latest technology available at their disposal to hire the suitable talent to support these strategies.
The data that is collected by using these technological advances need to be applied to the right management system. A potent Competency Management System (CMS) is designed precisely for the purpose of providing this data. A key component that supports all facets of Human Capital Management (HCM) is CMS and is therefore helpful in improving the productivity in almost all the areas of HCM in the organization. Some of these areas include:
- Hiring and Recruitment
- Talent development
- Retention of staff
- Human resource planning
- Sales
To prove itself potent, a Competency based HCM system must allow to have a skilled workforce, information regarding important business decisions, an overall idea of the capability of the organization and business strategy development techniques. It is of utmost importance to therefore have an organized and thoughtfully processed system to bring the organization at par with its competition in today’s ever changing and stimulating environment.
A CMS that is clear, easy to use and applicable to the employees of the organization is considered good. Requirement of skill is considered more relevant these days rather than a distribution of capabilities in the employees, making today’s work environment complex and creating a shortage of talented staff. This is where a good CMS will come into play to attract, select and retain the good employees.
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When there is a focus on the individual and organizational capabilities about talent management, the competencies help in creating the best value. Thus, a shift in culture is observed, where the focus turns to how employees and the CEO’s work together through HCM and create a successful business. Organizations that boast of a great CMS have the following in common;
- Good HODs and management staff
- Skillful employees
- Great deal of focus on modernization and technological capability
- Recognition of the workforce
- Highly organized processes and organization
It is important to develop a good CMS so that the chances of human errors and risks is greatly reduced and this helps motivate staff to boost their performance. The main functions of the CMS include:
- A boost in the motivation of employees and their overall performance
- A framework for talent identification in the organization , management and development
- Reduced human errors and incidents
- Higher level of efficiency
- A common framework, which reduces administration and duplication across the organization
It doesn’t matter whatever the size of the organization, the capabilities of the employees is of importance while achieving the goals of the business. The need to develop and monitor the competence of the staff is also greatly important. Some companies are making progress. HR departments of large organizations are building centers of excellence (COEs) in areas of strategic importance such as talent acquisition and talent management.
This strategic role of HR provides better support to managers and improves the overall health of the organization. The use of workforce analytics and HR strategy to help rethink the role of business heads should be dealt as a priority in order to achieve more success.
Role reversal of the business partner
Human resources are the cream of any successful organization. Unlike before, these HR individuals are more involved in the general functioning of the entire company. Managers under them are counseled on talent issues and implored to refrain from acting as owners of the talent asset. Today the HR is no longer a back bencher rather it has become a culture centre of a successful company. This shows that the business- partner role has gone for a complete makeover with a new talent value leader (TVL). As a result it has helped the business heads connect directly from talent decisions to value-creating outcomes and also be fully accountable for their performance.
The talent value leader
The most important asset in a given company are its people, namely the staff. In today’s constantly changing environment one is of the view that talent is one of the only sustainable source of competitive advantage. Therefore, it should be given the real authority right from hiring to firing, even if the final decision rights are enjoyed by the managers and the financial aspect by the finance department.
The TVLs have taken over the role of the typical HR business partner thus capturing the year-to year skills development, capability gaps, engagement and attrition. It should be noted that the HR team is more apt in solving employee issue, has the right tool to iron out the hurdles, thus keeping the TVL disconnected from the day-to-day concern of the company.
Broader leaders for a bigger role
Changes in any field is inevitable. HR teams are an experienced lot and along the way, they learn from their experience and develop an eye to search for new talent, carve out new candidates to fill the bigger HR shoes. This in itself is a bigger challenge. A decade ago many business partners have known to grow in traditional HR roles following the old operational-service culture. Presently, the scenes have changed due to various reasons. Companies are ready to take chances and experiment using high-potential programs and other means thereby bringing out a whole range of new skilled based talents. Rewarding executives for the work well done and especially when an employee is from other functions thus building better business-strategy capabilities.
Put people analytics at the core
Organizations these days are using the prowess of their predictive HR analytic capabilities along with their knowledge of systems and coding in their COE’s. These COE’s are responsible for providing a good insight into the performance of the employees. The only thing missing now is the ability to record this data into the daily processes, so as to use this predictive HR analytics to make the right decisions.
References:
- “McKinsey: The CEO’s guide to competing through HR” by TALENTTALKS on August 18, 2017
- “How to Use HR Analytics to Drive Results” -by Balance Point Team June 6, 2017
