Competency data does not belong in the HRM system

Competency data does not belong in the HRM system

When knowledge is moved out of administrative silos and into a tool designed for development and use, business gains a completely different basis for learning, value creation and competitiveness.
Audun Andreassen, CEO Compend

In many companies, it is taken for granted that information about the competence of employees should be contained in a personnel or HRM system. It might seem logical since HRM handles personnel data, but the question is whether it's really the best solution. Competence is not just something we record and archive for the sake of control. It is the very driving force of development, growth, innovation and competitiveness. Therefore, we should also rethink how we collect, organize and use competency data.

By moving competency data out of the traditional HRM system and into a tool designed specifically for the purpose, completely new possibilities open up. You get better functionality, more flexibility and, most importantly, a stronger foundation to work strategically and holistically with the development of your employees and the business.

A specialized tool provides better visibility and more precise use
HRM systems are often designed primarily for administrative tasks. They can be good at keeping track of job titles, work contracts and course certificates, but are little suited to capturing the complexities of actual expertise. A dedicated competency tool gives you the tools to map, analyze and understand the competencies of your organization in a completely different way. It makes it possible to work on development plans, resource management and professional mobilization, all in a way that mirrors how expertise is actually applied in practice.

When employees own their own competency profile
In a flexible competence tool, each employee can update and maintain their competence profile. It not only makes the data more up-to-date and relevant, but also increases ownership and engagement. Employees are given the opportunity to showcase their entire competency picture, including experiences, projects, courses and skills that are otherwise not always captured. This data becomes useful in many situations, such as during development interviews, when recruiting for projects, in tender work or when planning the next career step.

More accurate and efficient offers
When a business is to deliver offers, whether to public or private clients, it is often crucial to be able to document the right expertise and experience. A searchable and up-to-date skills tool makes it easy to assemble teams, extract relevant profiles and document compliance with competition requirements. It saves time, increases precision and gives a better impression, which in turn increases the chance of winning more missions.

Insights that strengthen business development
Competency data is not only useful for HR, but also strategically valuable for others in the organization. When more functions access up-to-date and well-structured data, it opens up smarter and better decisions. You can use the insights to plan recruitment, identify new skills needs, build strong professional environments or develop new services and business areas. This not only provides better management, but also creates new opportunities.

Informal competence becomes visible and valued
Much valuable expertise is never formally documented. What is learned through work experience, project management, volunteering, or life experience is rarely caught up in HRM systems. A good competence tool allows each individual to register this type of knowledge. It gives a fairer and more holistic picture of what people can actually do, and helps to highlight strengths that would otherwise be lost in statistics.

Expertise in use across the organisation
When competence data is available to managers, professionals, project managers and sales departments, it becomes easier to apply the right expertise in the right place. You will have better interaction across departments and academic environments, and it will be easier to mobilize quickly when new needs arise. A common data base for expertise strengthens collaboration, efficiency and quality in deliveries.

Competence gives competitive advantage
Companies that have control and overview of employees' experience and competence, and can document it, are stronger in competition with others. An up-to-date, structured and accessible competence base builds trust both internally and externally. It makes it easier to win assignments, promote the professional community, show professionalism and develop new services. In addition, it attracts skilled people, creating attractive jobs. A really nice topping on the cake.

By lifting competence data out of the HRM system and into a more customized tool, we provide the knowledge with better conditions to grow and be used, for the benefit of the entire business.

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