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Job/Role Competency Practices Survey ReportBy Kevin W. Cook, Ph.D., and Paul Bernthal, Ph.D.

The impact of linking job/role competencies to human resource

systems increases over time. . . . Identifying results-oriented

competencies requires the input of managers and job incumbents. . . .

PurposeThe objective of this study was to investigate howorganizations identify and use job/role competenciesand how their application affects organizationaloutcomes. The study, based on survey results from292 members of the HR Benchmark Group,addressed the following areas:

r A general profilepercentage of organizationswith defined job/role competencies, job levelsfor which competencies were first defined, thelength of time organizations have used them,and usage differences across the globe.

r How organizations identify job/rolecompetencies.

r Links to organizational systems.

r Value of job/role competencies.r Bottom-line impact.

r Barriers.

r Job/Role competencies for success.

Types of CompetenciesThe word competencies is used in many contexts,with very different meanings. Basically,competencies fall into three categories or types:

1.

Organizational competenciesunique factorsthat make an organization competitive.

2.

Job/Role competenciesthings an individualmust demonstrate to be effective in a job, role,function, task, or duty, an organizational level,or in the entire organization.

3.

Personal competenciesaspects of an individualthat imply a level of skill, achievement, oroutput.1

This survey, however, focuses only on job/rolecompetencies, that is, how organizations use thecompetencies that are associated with a specific jobor role.

1Byham, W.C. (1996). Developing dimension-/competency-based human resource systems. Pittsburgh, PA: Development Dimensions International.

Definition and CoverageSurvey results revealed that competencies arerelatively new to most organizationstwo-thirds ofthe respondent organizations have been usingcompetencies for five years or fewer. However, theinformation provided was compelling and revealedseveral trends.

Findings Overview

Priority in Defining Competencies

Organizations define competencies mostcomprehensively for first-level managers and leastfully for senior-level managers. Nonmanagementemployees typically are the first group for whichcompetencies are defined.

Sources

r Most widely used sources. Eighty-five percentor more of respondent organizations rely onmanagers and job incumbents to provide data foridentifying job/role competencies. They alsorely heavily on human resource staff. And, in70 percent of the organizations, senior leadersare involved in the identification process.

r Multiple sources. Organizations rely on anaverage of five separate sources for input andmost (86%) collect data from three to sevensources to identify/define competencies.

Methods

r Traditional job analysis. Most organizations(80%) use interviews to collect competency data.They also use focus group discussions (68%) andsurveys (61%). Many combine these methods tosome degree, but only a small number relyextensively on all three.

r Analysis of organizational values/objectives.Nearly 75 percent of respondents rely on ananalysis of their values/objectives for competencyinformation, and 31 percent use it extensively.

Links to HR SystemsOrganizations use job/role competencies, in varyingdegrees, to support one or more of their humanresource systems. Competencies are critical assystems building blocks because they can be used toevaluate performance and guide actions.

Findings Overview

r Competencies are prevalent. Seventy-fivepercent of respondent organizations use job/rolecompetencies to support selection andpromotion and also use them equally to supporttraining and development.

r Performance management. Sixty-five percentof respondents performance managementsystems link to job/role competencies.

r Planning activities. Individual career planningand succession planning are well supported byjob/role competencies in more than half therespondent organizations.

Value and ImpactFindings Overview

r Job/Role competencies strengthen HRsystems. Organizations report positive impactin specific areas and outcomes whencompetencies supported corresponding humanresource systems. For example, 91 percentreported improved processes for selecting anddesigning training programs when theysupported training and development practiceswith competencies. In contrast, only 48 percentreport such impact when associated practices arenot supported by job competencies.

r Supporting multiple HR systems withjob/role competencies increases overallperformance. The following table illustratesthe percentage of organizations reportingimprovement in overall performance as afunction of the number of HR systems supportedby competencies.

Organizations ReportingOverall Improvement

Systems Supported byCompetencies

30% 2 or fewer

57% 3

73% 4

84% 5

91% 6

r Competency impact increases over time.

Many (67%) respondents reported job/rolecompetencies to be at least moderatelyeffective in improving overall organizationalperformance. However, only half that usedcompetencies for less than a year reportmoderate or better effectiveness inimproving overall performance.

For organizations using job/rolecompetencies for 2 years or more, thispercentage rises to more than 75 percent;86 percent of those using competencies formore than 10 years report moderate or betterimprovement.

r Improvement differs across the globe. Amajority92 percentof Asian and PacificRim organizations reported moderate or betterorganizational improvement because they usedcompetencies. This result is statistically higherthan improvement reported by the other fourregions (Canada, Europe, the United States, andLatin and South America).

BarriersFindings Overview

Respondents rated each of eight potential barriers tothe effective application of competencies.

r Time and cost. More than half (54%) theorganizations report that the time and expenseassociated with conducting comprehensive jobanalyses are barriers.

r Competency strategy. Nearly half (41%)report lack of a strategy for using job/rolecompetencies as a significant barrier, and fewer(38%) find linking competencies to otherorganizational strategies as a significant barrier.

Many organizations experience difficulty in creatinga competency strategy. The process requirespatience, planning, and a clear vision of where theorganization is headed. But the benefits faroutweigh the time and cost involved.

Competencies for SuccessFindings Overview

Given a list of 16 competencies, respondentsindicated 5 that are important to leaders successand 5 important for associates success.

r Balance = Success. Respondents reported thatsuccessful leaders should focus on strategicdecision making (66%) and that associatesshould emphasize customer focus (70%).Leaders also should focus on building teamsand coaching; however, good interpersonalcommunication is critical to their success.Associates also should hone their initiative,continuous learning, and interactive skills, suchas collaboration and communication.

Participant ProfileThe study sample includes 292 organizations.

r The typical survey respondent is a humanresource director or manager (54%) or vicepresident (24%).

r Most respondent organizations (78%) are fromthe United States. All regions of the country arewell represented in the sample.

r The sample is dominated by manufacturing(31%) organizations, with a number ofwholesale/retail/trade (15%) and health care(13%) organizations. Other industries also arerepresented, although not as extensively.

r In 1997 one-third of the organizations reportedrevenue in excess of $1 billion.

r Organizations comprise mostly hourlyemployees (mean = 45%) and technical/professional employees (mean = 32%).

r Companies range in size from 147 to 379,000employees with a median number of 4,755.

A Look ForwardSurvey results revealed two keys to reapingthe benefits of identifying and applying job/rolecompetencies:

1.

Support multiple HR systems with job/rolecompetencies.

2.

Exercise patienceincreased impact andimprovement come with time.

Findings assert that, across organizations of all sizes,industry types, and geographic regions, positiveimpact increased and organizational and specificoutcomes improved as competency use increased.

Most organizations rely on traditional sources andjob analysis methods for gathering data to identifycompetencies. Managers, job incumbents, andhuman resource staff provide information ininterviews, focus groups, and surveys. This is themost accurate process for defining competencies,and organizations will continue to use it. However,the competencies identified in this processbecome even more effective when linked to theorganizational/core competencies that seniorleaders define.

Organizations use competencies primarily in theareas of selection, training and development, andperformance management. But as they reap thebenefits of basing these systems on competencies,companies will increasingly use competencies inother systems, such as career and successionplanning. It makes good economic and strategicsense to use the already established competenciesfrom assessment and evaluation to train, develop,and promote incumbents.

Organizations have the capability to clearly definecompetencies that are supported by management.But cost and lack of strategic application arepotential barriers. However, the fact that feworganizations define them as large barriers isencouraging. Competencies have little valuewithout an established strategy for applying andaligning them with organizational objectives.Leaders and non-leaders must be evaluated,selected, and developed against a balanced set ofcompetencies. To do this, organizationsincreasingly are focusing on motivational, or fit,competencies to complement the more traditionalbehavior and knowledge competencies. Companiesare realizing that they no longer can afford to focusonly on technical ability or results-oriented skills.They need a complete picture to determine whethersomeone is right for the job or doing it well.

For more information, contact:HR Benchmark GroupPaul BernthalDevelopment Dimensions International1225 Washington PikeBridgeville, PA 15017Phone: 1-800-9-DDI-MAIL, extension 7533Fax: 412-220-5204E-mail: hrbench@ddiworld.com

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