What is Competency Management and Why does Company Need It?

What is Competency Management and Why does Company Need It? Source: PudgeDesign

Laci Loew, Vice President & Principal Analyst, Talent Management Research of Brandon Hall Group said that many companies or organizations can be characterized as distributed, global and matrix, with functions that operate autonomously in the governance absence. These cause an effective and efficient identification and an implementation of competencies difficult. Therefore companies and organizations need Competency Management System. However, what is Competency Management and why does company need it?

Competency Management System Definition

Competency management is a method of categorizing and tracking the employees qualification hence they can be more competent. The competency can be anything such as the fluency of Spanish or the advanced skill of using Photoshop, for instance. Companies can implement the software to identify their employees competencies.

By using this software you can assign, assess, or track both of your resources skills and experiences that are needed for their activities in the office. Therefore companies can detect the key role that can trigger their performance to meet the business goals.

Why does company need competency management?

There are many benefits you once your company implement competency management system. No wonder that there are more and more companies consider to utilize particular software to identify their resources skills much easier. Here are three reasons why you need to start to implement the competency management system according to Tom White from Workforce Solution.


Employees will know exactly what are they good at and vice versa. If the company implement the system correctly, it will trigger the employees to improve their skills hence they will fulfill the companies requirements. Furthermore the employees will have insight what they need to do to help both of them and company grow.


If there’s any skill gaps seen, it means company needs to give the employees special training. By utilizing this system, both employees and company will find out what course that they need. The qualified and well-trained employees are the great asset for the company. Therefore considering the best training that they need is a must.

Workforce Planning

Competency management allows you to do the workforce planning in your company becomes better and more efficient. By tracking and managing everything in one system you can look up, analyze project and assign your best employees based on their competencies. Competency management software also allows you to complete the process quickly.

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