“Only 36% of organizations with a competency model have linked it to their reward programs.”
According to the 2011/2012 Talent Management and Rewards Study, North America, by Total Rewards Association, and Towers Watson. Only 36 percent of those organizations that have competency model are actually linked to their reward programs. Somehow, this percentage is expected. In fact, it could be an optimistic view, and probably could not be used to estimate the population. It is known that only few organizations that actually have “competency model” in place, how about linking that model to its reward programs. Few here do not mean a few organizations in term of numbers. It means that a small percentage of the overall number of organizations out there. The human resources functions is not an isolated operation groups. All functions are dependent of each other. The output of one function is the input of another. In other words, the human resources framework must grant an orchestrated flow of the processes of all human resources functions. This is an essential success factor for a transformed human resources group or a “strategic partner”.
Having a framework that support a smooth stream of all business processes, is what gives the human resources group the ability to carry out its goals. A competency model is very important for many reasons. First, it helps the organization to define the set of competencies that are required for each position, therefore, the right hiring decisions. Second, it helps the organization to manage its performance management system objectively and understand what is needed to improve the overall organization performance. Third, it is important for building an effective training strategy, and measure the value of the investments. Last and not least, it helps the organization pay its employees fairly based on performance. These are few examples of what a competency model could help organizations achieve. However, those are not the only benefits of having a competency model in place, and having it linked to the other human resources centers. It is a single part of a complete sustainable human resources model.
