HR competencies: Getting them right

Over the past decade, the human resources function has adopted various means of helping organizations to optimize the value of their people. One concept is using competencies as both a map and a measure for the growth of human capital.

A study by Watson Wyatt, Competencies and the Competitive Edge, identified “core” or organizational competencies that are key to business success within the services industry.

Given that human resources, as a service function, is strategically important, the following competencies will help drive organizational performance and shareholder value:

•ability to influence or persuade;

•interpersonal skills;

•technical knowledge; and

•ability to deal with ambiguity.

In contrast, the top five competencies mentioned as important for HR managers in this study, HR’s Quest for Status: Fantasy or Emerging Reality?, were (not in priority):

•organizational skills;

•ability to lead others;

•communication skills;

•interpersonal skills; and

•willingness to learn.

Comparing these findings gives rise to a number of observations and questions:

•While the skills and/or competencies mentioned by participants are relevant to HR management, one might question why “Ability to Influence or Persuade” did not rank as high given the need for HR to become a viable business partner. Many of the top five competencies are also those required from a administration and management perspective. However, these may not be the distinguishing competencies required from a strategic partner where contribution is measured more by creating or influencing a strategic vision for the organization.

•Even though other competencies, such as Business Acumen, did not make the top five listed above, these are becoming critical to specialty functions such as HR to ensure that all stakeholder interests are addressed including shareholder value.

•With many organizations shifting business gears at every opportunity to improve performance, it is not surprising to see the importance of Organizational Skills or Willingness to Learn for HR to cope with the ever increasing level and intensity of change. However, is this shift impacting or, at worst, reducing HR’s strategic influence on business direction?

To gain further strategic momentum, HR professionals need opportunities for concentrating on the right competencies to drive business success in their own organizations.

Liz Wright is a consultant in the Toronto office of Watson Wyatt Worldwide. She may be contacted at [email protected].

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