Skills development is no longer a thing HR doing something on the side of day-to-day operations. It has become a crucial part of how businesses develop and achieve the goals they set.
For those of you who work with HR , development or compensation, competency work is therefore about much more than courses and training. It is about creating structure, gaining an overview and ensuring that the development of employees is connected to the direction the business is taking.
Many businesses are experiencing this in practice. The need for new skills is arising more and more rapidly, while it can be difficult to get an overview of what the organization actually knows today. Perhaps the skills are already there, but no one has a complete overview?
But what is competency development really about? And how can you work more strategically with competency in your organization?
We will answer that in the sections below.
What is skills development?
In short, competency development is about strengthening employees' knowledge, skills and ability to do their jobs well - both today and in the future.
It could be, for example:
- Professional updates and certifications
- Leadership development
- Development of digital competence
- Training in new systems or work processes
- Development of collaboration skills and other interpersonal skills
These are areas that most businesses are already working on. The challenge is often not the willingness to develop employees, but doing so in a structured way.
Traditionally, skills development has often consisted of individual courses or initiatives. Strategic skills development, on the other hand, is about something more holistic. Here, you see the development of employees in the context of the company's goals, changes in the market and future needs.
Why is strategic competence important?
When we talk about strategic competence, it is in practice about understanding what competence the business needs to succeed, and ensuring that it exists in the organization.
Before HR It often means being able to answer questions like:
- What expertise do we have today?
- What skills do we lack?
- Where are we most vulnerable?
- Which roles will be critical in the coming years?
Without a good overview, skills development often becomes somewhat haphazard. Measures are initiated because needs arise then and there, rather than as part of a comprehensive plan.
However, when competency work is linked to the company's strategy, it becomes an important management tool. It also makes it easier to prioritize correctly.
From individual courses to comprehensive competence development
Many companies invest heavily in employee development. Yet many in HR that it can be difficult to see what effect the measures actually have.
The courses are carried out, but what actually changes afterwards?
It is not necessarily because the measures are bad, but because they are often not clearly linked.
A more structured approach could, for example, involve:
- Mapping the competence that exists in the organization today
- Defining what skills the business will need in the future
- Preparation of a clear plan for development
- Ongoing follow-up and insight into developments
When competence work is supported by good systems and clear processes, it becomes much easier to gain an overview, identify competence gaps and prioritize the right measures. Many companies therefore choose to combine competence, goals and development in one solution, for example through a HR system as SAP SuccessFactors , so that development work becomes an integrated part of everyday life.
What should a competency plan actually contain?
A good competency plan is more than an overview of courses and training measures. It should also give the organization a clear direction for how competencies should be developed over time.
It should include, among other things:
- Overview of existing expertise per role or department
- Clear competency requirements related to the business's strategy
- Planned development measures
- Who is responsible for follow-up?
- Timeline and milestones
- How development should be measured and followed up
Once this is in place, the competence work becomes much easier to work with systematically, both for HR , managers and employees.
Skills development that actually adds value
When competency work is linked to the company's goals, something important happens: employee development becomes not just a HR -measures, it becomes part of how the business develops.
Then it will be easier to:
- Prioritize the right skills
- Develop employees in line with the needs of the business
- Identify vulnerability before it becomes critical
- Make better decisions about both development and recruitment
Before HR It is largely about moving from gut feeling to insight. From individual measures to more comprehensive competence work.
And perhaps most importantly: When competence, goals, roles and development are linked, it becomes much easier to build an organization that is actually ready for what is to come.
Read more about goals and employee development here .
Frequently asked questions about skills development
What is the difference between training and competence development?
Training often involves specific courses or initiatives. Competence development is more holistic and long-term, and is linked to the company's strategy, needs and future competence requirements.
Why is skills development important for businesses?
Upskilling enables employees to develop in line with changes in technology, markets and organisations. It also helps to reduce vulnerability, strengthen competitiveness and ensure that the business has the right skills over time.
How can HR work more strategically with expertise?
By mapping existing competence, defining future needs, creating clear competence plans and systematically monitoring development over time.
Ready to work more structured with expertise?
Most businesses know that competence is crucial to success. The challenge is often not the will to develop employees, but getting structure, overview and good processes in place.
When competence, roles, goals and development are linked, it becomes much easier to work systematically with competence throughout the organization. Then HR also better insight into where the business stands today, and what is needed to move forward.
Modern HR solutions make it possible to gather expertise, development and follow-up in one system. This provides both HR and managers a better basis for working more strategically with employee development.
Would you like to know more about how competence development can be supported in SAP SuccessFactors ?
Please contact us at Sariba. We are happy to share experiences from businesses that already work more structured with expertise.