Competency in Performance Management

Employee motivation, a key component of performance management, is often driven by recognition for a job well done, total compensation beyond wages, career development opportunities, enjoyable work, enriching company culture, and company values that align, but not necessarily match, the employee’s personal values. A true strategic partnership between HR and business leaders requires organizational awareness, business acumen, and the understanding of human behavior and methodologies that help define what is working well and what is not working well in human capital of the organization. The ability for HR and business leaders to stay connected to the organizational climate, especially during change, is also critical.

Maximizing human capital against business objectives and outcomes should be at the core of performance management efforts. If is it is, it can reduce costs in employee turnover and increase opportunities for employees to develop their skills and careers at the company.   Assessing what drives employees to perform is more of a priority in some organizations than in others. Sometimes what drives employees to perform in the moment has less than desirable affects over time. Competencies, as a description of skills demonstrating a job well done, help define the performance culture in an organization. Some companies have found great value in the development a list of core competencies for all levels of employees that is published and used as a guidepost when approaching organizational change, conducting a job analysis, writing job descriptions, recruiting and hiring, and managing employee performance.  Others have a more grassroots approach to communicating what is expected of an employee through flatter organizational structures that allow integration and interdependency to create a common sense about what is expected.

Competencies, in my experience, are of value in any organization with an employee review process and are best thought of as a type of creed rather than a policy or a procedure.  Competencies can become an element for motivating employees to achieve higher levels of success and fulfillment because they describe, rather than demand, desired behaviors. Employees can then consider how to improve their attitudes, replicate what currently makes them successful, improve what is less than optimal, and assess how to contribute their talents more effectively in light of the desired behaviors competencies describe. Self-motivation is by far the most effective and pivotal element in managing performance.

Christine E. Cruver
President of Simetra Strategies