Successful introduction of competencies requires link to pay


Successful introduction of competencies requires link to pay

One of the secrets to success when introducing competencies is forging a link between the output of competency assessments and pay. What's more, it seems that this approach is gradually meeting less resistance from the HR profession, according to PRPi, a specialist HR consultancy.

Richard Parkhouse, managing director of PRPi, believes the proponents of competency-related pay are slowly winning out .

Parkhouse explains: Increasingly, HR directors want competencies to underpin all key HR processes, from organisation development, recruitment, career and professional development, to potential and succession planning. How can reward really be excluded?

Criteria for success

But whatever the perceived attractions and drawbacks, the introduction of competencies requires sensitive handling, So, how should your organisation approach competency-related pay?

Parkhouse offers five key tips:

1 Gain senior management commitment.

2 Keep the documentation simple.

3 Use a mix of specific, functional competences and generic personal/ or management competencies.

4 Link the output of competency assessments to pay.

5 Involve significant numbers of people in the design phase.

Want to know more?

Title: Making your competencies a success, by Richard Parkhouse, PRPi.

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Posted 1 November 2001