Partner Article

Lack of competency measures costing businesses millions

A survey of FTSE 100 companies has revealed that a failure to adopt and use appropriate competency frameworks is costing British businesses millions every year.

The research from sales performance company, Silent Edge, shows that 71% of British blue chip organisations measure the skills and capability of their staff in their role using a competence framework, although 39% of these see no benefit in doing so.

Silent Edge suggest that employing the wrong people, or not training them to perform at their peak, contributes to staff churn or lower productivity output.

Silent Edge’s CEO Russell Ward said: “Let me explain in simple terms: We found that 50% of blue chip organisations are wasting millions of pounds and thousands of days of valuable time.

“This on a process used by all their managers and staff; one that achieves no change of behaviour and has no impact on revenue growth. All it does is add cost to the bottom line.”

A large percentage of UK organisations demonstrated lack of motivation, skill or desire to identify, develop and implement a sound and easy to use system.

Objective frameworks have proven to be relevant, yet are only used 8% of the time, while more commonly used subjective frameworks appear to provide no value to UK businesses.

Mr Ward continued: “Subjectivity is a dangerous thing. A manager will have their likes or dislikes of people in their team.

“If you are asked to assess the capability of someone you don’t like how hard will you be on them?

“Conversely, if you are asked to assess someone you really like and go drinking with often, how generous or forgiving will you be?”

This was posted in Bdaily's Members' News section by Tom Keighley .