To motivate employees, start with competencies.

If You Want to Motivate Employees, Start with Competencies

Motivated employees are willing to invest more time, energy, and effort into their work and are more responsive and flexible. They need to feel that the company cares about their development and motivation and that their efforts are recognized and rewarded. To achieve this, unified evaluation standards are necessary, and the foundation for this is a competency model.

Employee Engagement Brings Measurable Results

High employee motivation and engagement are reflected in various areas. The two most easily measurable positive effects of employee satisfaction in a company are increased productivity and reduced absenteeism. A satisfied workforce is more innovative, generates more ideas, and from a business perspective, this can translate into the creation of new products or services. Motivated employees are prepared to invest more time, energy, and effort into their work and are more responsive and flexible. This is closely linked to a sense of belonging to the company and greater loyalty. Additionally, in companies where employees are satisfied, there are fewer sick leaves and other absences, which directly reduces costs for the employer.

Employer Branding

For progress, it is crucial how a company positions itself in the market and the image it projects outward. Feedback from employees that the company is a responsible employer that invests in its workforce and ensures their development and long-term motivation is important for two reasons: on the one hand, it creates a positive image in the eyes of customers and business partners, who typically seek trustworthy partners for long-term relationships; on the other hand, a company’s reputation as a reputable employer attracts high-quality talent. Low turnover and a strong employer brand represent high added value for the company in the eyes of top talent and a long-term investment in their career development.

Succession Planning

The development, motivation, and retention of employees in a company are closely linked to cost reduction when it comes to promotions and cultivating successors for key positions. Companies that identify talent within their ranks and develop them appropriately based on their attributes and competencies have a significant competitive advantage. They can use internal resources for promotions, having systematically trained them for more responsible roles. This reduces the need for constant external recruitment, avoiding additional costs and saving significant time otherwise spent on searching for and selecting suitable candidates.

Competency Development

The field of competency development is relatively new and continuously evolving. There are multiple definitions of competencies, but most authors agree with Boyatzis' theory, which defines competencies as an intrinsic characteristic of an individual that influences their work performance and ability to achieve above-average results. According to him, performance is affected by motivation, abilities, self-image, knowledge, skills, and social roles.

Competency Model as the Basis for Employee Development and Motivation

To identify competencies within a company, a systematic and clearly defined competency model is essential. The purpose of implementing a competency model is to establish unified competency evaluation standards that are clear and understandable for both HR managers and all other employees. It is important that the competency model aligns with the company's vision, strategy, values, and organizational culture. There is no single universal competency model—each one is tailored to the needs of the specific organization.

A competency model is highly versatile in the field of human resource management, as it enables the systematic development of competencies. It facilitates better-quality hiring when recruiting externally and more efficient development and career planning for existing employees. A competency model establishes clear criteria for assessing work performance and more objective standards for the reward system. Competency models are not only intended for HR professionals but also for managers and all employees in an organization. They assist in annual performance reviews, team role analysis, and leadership style recognition.

The implementation of a competency model is a demanding and time-consuming process that involves organizational change and is not always positively received by employees. When a company decides to introduce a competency model, it must have clear directions and goals regarding why this project is important and necessary and what long-term benefits it will bring to the company. The foundation for developing a competency model can be job systemization, but it is important that competency identification is not based solely on job analysis but also on employee analysis.

There are two primary approaches to developing a competency model. The first approach establishes a competency model for the entire organization first, defining competencies for all employees before specifying them for individual job positions. The second approach works in reverse—competencies are first established for specific job positions and later for the organization as a whole (Tomažič, 2003, p. 24).

Regardless of the approach chosen, selected competencies must be clearly defined:

1. Justification – Ensure that the concept is accurately defined and described in the best possible way.
2. Neutrality – Focus on the meaning of a given competency while avoiding any subjective evaluation.
3. Unambiguity – Each competency should be described in a way that allows only one interpretation.
4. Clarity – Competencies should be described in an understandable manner to ensure employees comprehend them.

It is crucial not to select too many competencies for a specific job position, as this could dilute the message and obscure the most essential competencies among less important ones.

For competency models, defined competencies must also be ranked. For example, using a scale from 1 to 5:

• 1 – Underdeveloped competency
• 2 – Poorly developed competency
• 3 – Well-developed (100%) competency
• 4 – Above-average competency
• 5 – Highly above-average competency

Each ranking must have a precise and objective definition of what it represents. Some competencies are common across all job positions (e.g., teamwork), while others are specific to certain roles. For each job position, the expected competency level should be stated. The expected level of competency development varies by job type, role complexity, and career level. For example, strategic thinking ability is essential for management positions, where a high level of development is expected, while it is less critical for an entry-level administrative role.

Competencies are assessed using various methods, such as competency questionnaires, the 360-degree method, development and assessment centers, etc. Regardless of the method used, the foundation is always a systematically designed competency model, which provides clear and objective results. These results enable companies to plan long-term goals and strategies in human resource management.

The role of competencies in employee development, motivation, and retention is closely linked to organizational cost efficiency in the long run. Therefore, this “soft” aspect must be taken into account when making strategic decisions related to cost reduction.