Why outsource workforce competency management?

Posted on 17/05/2023
Mz 90

Human resources (HR) is a vital part of building a happy and productive team. To help them with their tasks, workforce competency management systems have become a key ingredient in selecting the right staff, for the right role, at the right time.

In this blog post, we want to show you how to outsource your workforce competency management to build bigger, more productive teams.

What is workforce competency management?

Competency management is the strategy and practice for recognising the essential skills your employees need in their roles so that you can create training systems to specifically develop these functions within your workforce.

Competencies fall into three categories; skills, qualities and mindsets.

Each employee is hired based on their competency to do a given job. This means understanding where their adaptive and technical skills fit the role requirements, their qualities align with business missions and their mindset allows them not only to fulfil their job but succeed beyond the role’s original remit.

We look at employee understanding as a holistic approach.

Firstly, we consider their skills - what can they bring to the job and how can we adapt and grow this individual to fill this role?

Then we look at their qualities - will they thrive in our environment?

And finally, we consider their mindset - how will they fit into our organisation?

At the core of the HR process, it is important to build a workforce competency management framework that considers each category of competency, and then use this to create further employee programs. Programs like skill training, or team building exercises.

From here we can build a business-wide HR framework that helps us employ, train and encourage staff productivity across all areas of our organisation.

And what is a workforce competency management system?

A competency management system is a framework based on the understanding of business roles and its people, to provide processes for:

  • Performance management

  • Selection and retention

  • Succession management

  • Workforce planning

  • Career management

  • Rewards programs

The aim of any competency management system is to help your human resources team identify top talent during recruitment, based on competency matching, train them to work towards the organisation’s goals and set out clear remits for job functions.

Combine this with the opportunities of a stellar learning and development platform (L&D), well-being practices and even functions like payroll and you have a human resource program that is fit for any modern business and organisation.

The 4 biggest benefits of outsourcing competency management to a people-focused partner

Choosing the right path of competency management for your business is critical, as it can mean the difference between the right hire and keeping them over time, or not.

A good competency management service provider can help you create:

  • Better skill management processes ​

  • Improved workforce planning

  • Elevated levels of productivity ​

  • Targeted training for individual employees

  • An upswing in employee retention

  • Reports based on real-time data

Now you can use skills management software and build your team in-house. Software is a growing industry worth almost US$363 Million in 2022 according to Future Market Insights, but we believe there is another route. Outsourcing.

Outsourcing to an industry-focused service provider who has both the tech and the human element to their service is a great option and one that many organisations are now taking advantage of.

Here’s why we believe it could be the right choice for you too.

4 things to consider in outsourcing your workforce competency management

If you are going to outsource your competency program, then here are our top tips.

1. Understand how and where competency management services fit into your HR process

Outsourcing elements of organisational departments can be hugely advantageous to growing enterprises, but it can also have a negative effect if you don’t quite understand where it fits, or when it should be introduced.

We recommend taking some time to establish what you already have in place for your human resources department and how outsourcing one or more of their systems will play a role in effective communications and department targets.

2. Understand how competency management services inform your HR process

If your HR department doesn’t already have a competency management system to establish skill gaps, staff development and improve retention rates, then it is time to consider how a well-managed and outsourced system can give you the tools you need to boost your people-power.

Take some time to work with your competency partners to deliver a process that informs all areas of your already functioning HR department.

3. Understand how competency management services inform workforce planning and business growth

Scaling your business starts with an idea, then research, strategic planning and of course, recruiting manpower. Coming up with the best workforce plan for your growth is about understanding not only which job roles you need to fill but also who the ideal candidate would be.

Recruitment can be a costly business, so it is always worth creating an extra layer of reassurance in your choices. This is where competency management works in tandem with HR in the recruitment process to deliver a better hire, first time.

4. Do you need to outsource the whole HR function instead?

As we have discussed, competency management is part of the HR function. If you find the right partner it could well be worth exploring if outsourcing the entirety of your HR needs would work better for you long-term.

Frequently asked questions about outsourcing workforce competency management with mselect

We offer Competency Management Services here at mselect and have done for years. Having been the case, we occasionally get questions from potential clients and so we thought it would be helpful to answer them here on the blog.

How does outsourcing competency management work at mselect?

You simply give your local office a call or fill in our online contact form and outline your needs. We will get back to you with an expert representative to set up a meeting with you, to explore your opportunities.

Is outsourcing competency management a good idea?

It is entirely possible to outsource this task to a partner, like mselect, as a standalone service.

Working with us at mselect you will find our team highly skilled and efficient, making our service an easy integration to your existing HR solution.

Of course, we do offer the full HR solution, should you need it.

When should I outsource competency management to mselect?

Competency management is an incredibly important part of the HR process and so we believe you should have a system up and running. If you haven’t or you aren’t seeing the results you’d like then it is time to consult the experts.

Need help setting up and running a competency management system for your business? Contact us today!