Competence as Competitiveness

By Audun Andreassen, general manager of Compend.

For almost 25 years I have worked with various aspects of change, development and competence. I have worked in competence development as a lecturer, as a business developer and as a competence manager. I've seen what works in practice, and what gets left as nice words and good intentions. The most ambitious companies have realised that learning is not something you do once a year at a seminar. It's something that has to be a natural part of work everyday life, on par with strategy and financial management, and as natural as a midday lunch break.

After years of developing expertise in businesses, I experienced a frustration that eventually became the start of Compend. Competence was often invisible. It was poorly documented, difficult to access, both for employees, managers, customers and principals. And worst of all, was that the employees themselves lacked the motivation to document their competence. They saw no intrinsic value in it. The resumes were outdated and inconclusive, and were mostly only brought out when someone applied for a job. There was a huge gap between what people actually could, and what business thought they could.

This is not just an HR issue. It's a business risk. When the expertise weathers in an Excel sheet or in the head of each individual, the business misses out on the most important insight it has, namely what it can actually deliver and develop further. When competencies are not made visible, it also becomes difficult to plan ahead, invest properly and build a culture of learning. And it is exactly this link between documentation, accessibility and motivation for learning that I am passionate about solving.

The NHO's Competence Barometer gives me a reminder every year of how important this is, and how much still remains. Over half of NHO's member companies report unmet skills needs. Many know they lack people with the right skills, but far fewer have a plan for how to develop the one they already have. And it is especially small and medium-sized enterprises, the ones that make up the backbone of Norwegian business, that are struggling the most. They have neither their own HR departments nor large development budgets. Nevertheless, it is precisely these companies that are most in need of transformation and innovation.

My experience is that it doesn't have to be that complicated. The best businesses I've worked with have one thing in common. They view learning as an investment, not a cost. They build a culture where it is as natural to update one's own competency profile as it is to register hours. They set aside time for development because they know that expertise is fresh. And they understand that visible expertise is worth gold, both for management, employees themselves and customers.

We also have to be honest about one thing. Lifelong learning is no longer an optional good. It is a necessity for anyone who wants to be relevant in the world of work. And here we need smarter interaction between companies, educational institutions and external competence partners. The solutions must be adapted to the everyday life of small businesses, and be flexible, modular and closer to the actual needs of the business. It's not just about getting grants for courses, it's about building a learning culture where development happens continuously.

The economic potential is enormous. Research shows that companies that invest in skills development get better profitability, lower turnover and higher innovation rates. And they get something that can't be bought for money, namely a culture of learning and improvement that gives them a lasting competitive advantage.

But this is not only about the profitability of the individual enterprise. It is also about Norway's ability to compete globally. We have no chance of winning on price. Our strength lies in high competence, high confidence and the ability to adapt quickly. If we manage to make knowledge and learning our strongest competitive advantage, we can create not only profitable, but sustainable and inclusive jobs.

Don't wait. Don't put skills development on pause until things calm down. Start by getting an overview of what people can actually do. Make expertise visible. Involve your employees, show why it has value for them too, both in their careers and for their own development. Build competence development into everyday life, not as something that happens on the side.

Competence is not a cost. It is the most profitable investment you can make, both for the business, for the employees and for society. The question is no longer whether you can afford to invest in expertise. The question is, can you afford not to?