SHRM Competency Model

Competency model development begins with aligning relevant business outcomes with your HR competency model. To ensure that your competency model process is business-focused from start to finish, follow these steps and you’ll be able to rest easy knowing you’re hiring the best employees to help your company achieve success.

Step 1-Collect Data It’s not enough to rely solely on interviews with potential employees as the cornerstone of your competency model development. This strategy is not only shortsighted but doesn’t provide the necessary information needed to identify critical competencies for a particular job. By collecting data from potential employees, leaders, and internal or external customers through multiple formats, you’ll be able to obtain more information and enhance the relevance of your HR competency model.

Step 2-Integrate Data
While it’s essential to collect data from multiple perspectives, it’s not enough. Data must be analyzed separately then brought together to create a cohesive story around the critical knowledge, skills, abilities, and characteristics that will ensure the success of your competency model.

Step 3- Focus on Goals
When you focus on specific goals, you reinforce the alignment between your competency model development with the needs of your organization, creating a sense of urgency.

Step 4- Make it Practical
Your competency model is not useful unless everyone in the company can follow along. Avoid using technical jargon and fancy acronyms when describing the competencies needed for particular roles within your organization. By making your competency model interesting instead of a tedious process, you bring it to a level where action can be taken easily.

Step 5- Establish a Strategy
Since your competency model can be used to determine whether you should hire new talent to join your organization or provide internal staff training to meet essential HR competencies, your competency model should be used to assess the time, effort, and budget available to create a strategy that will provide your organization with personnel that meet these requirements.

Step 6- Set Minimum Requirements
Your HR competency model needs to address the minimum acceptable levels of performance for each competency included in your model. Without leaders and managers across the organization understanding the minimum level at which individuals can perform and still be successful in their roles, they will not be able to hire employees that meet the requirements of your competency model.

Step 7- Business Outcomes
By linking your competency model to your desired business outcomes, you’ll be able to validate your HR competency model and show its direct business impact. This is an essential step in developing your competency model because it helps to drive your training, hiring, and performance strategies since you have a better understanding of which competencies to focus on based on their importance to your bottom line.

Step 8- Include Standards of Performance
It is essential that you make values and standards of performance a central part of your competency model because these standards represent a key piece of how the job should be performed.

Your SHRM competency model isn’t complete once you’ve created the perfect version of it. It is essential that you continue to refine your HR competency model and the strategy you use to create it. Try revising your competency model at least every year and a half to reflect the new roles of your organization and to ensure its comprehensiveness and relevance to your business objectives. Without an updated competency model on hand, the leaders of your organization will not be able to hire competent employees and your bottom line will suffer.


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