Study shows that companies that follow competency frameworks are 3.4 times more likely to be the top-rated places to work. For companies that wish to reach the top and continue leading the market, monitoring employee performance is crucial. This makes it vital for companies to work with the various performance management solutions.
Surveys show that over 20% of the working population feels inspired by proper performance reviews. Such a systematic approach develops and educates potential employees to manage more responsibilities. For the longest time, the 9-box grid model has been considered a valuable tool within the competency model structure.
This model is not only used to monitor performance but also to assess and develop talent. However, with changing workspaces and their demands, the greater question arises: is this model even relevant? Modern requirements have proven that such a model might no longer be as relevant. So, let’s look at what a competency model is and if the 9-box grid stands up to modern standards.
What is a Competency Model?
The competency model is an inclusive structure specifying the key development objectives needed for efficient work in a particular position or company. Here the competencies generally include a mix of several skills, behaviors, knowledge, and attributes that ensure that the requirements of such a high-performing job are met, leading to the success of the company.
Benefits of a Competency Framework
Creating a well-designed framework has various benefits for both the company and its employees.
Features of an Ideal Competency Model
Different businesses need different competency models. These are structured based on the unique needs of the company. Regardless, every model has certain basic criteria at its foundation.
Competencies and Skills
While competency and skills may sound the same, they are quite different from each other. A skill is job-specific; it is the precise ability to efficiently complete a task. Thus this is something that you can acquire and develop. However, competency is a combination of skills that people gain through various experiences.
Core Value
This is something that keeps the company running and on top. Thus, every employee irrespective of their position, is expected to work and execute their job accordingly with these core values. These values include being punctual, hardworking, honest, and others. Focusing on the core values of an employee is vital as that is what composes the base of a company.
Functional Competencies
Functionalities within a competency model are skills and abilities specific to every particular position. This includes typical skills required for HR jobs such as interpersonal skills or being able to manage a project. Whereas engineering jobs will have different requirements like expertise in technical and programming languages.
Leadership Competencies
These remain applicable to every employee working in a significant position and higher roles. Such employees need to show a certain competency that positively guides not only the company but other employees.
How Does the 9-Box Grid Stand Up To These Standards?
The 9-box grid model is an effective system of employee performance management. It assesses employees based on certain key factors. These factors include performance and potential. The grid consists of nine boxes, each varying from low performance/low potential to high performance/high potential, and involves other “mid-level categories” as well.
For decades this model has been a popular tool within the competency model structure. However, with modern needs, this structure has proved to be insignificant. Here are some of the factors that have made it fall behind:
- Oversimplification: A lot of times, this often oversimplifies complex human performance and potential in 9 categories. It does not give any data on the unique demands and issues of an employee. This affects the deciding factor as the information is often out of context.
- Static view: Often it provides a single snapshot rather than offering a dynamic view of employee growth. This development structure does not provide an overview of the plans and strategies. This makes it difficult to assess future growth with only a vague sense of progression.
- Potential bias: Some jobs do have subjective elements that can unknowingly promote biases in placements. This means that there aren’t any solid categories for what an employee can do to perform better or what makes them rank low.
Success Circles™: A Capable Alternative
Considering the requirements of today’s workspaces, various tools have been built to replace this model. These modern tools ensure an unbiased and fresh approach to maintaining a functional company. Such performance management tools help the company grow, develop, and be more productive. One of the most popular tools among these is Success Circles™. Success Circles™ is a far more holistic model of talent review and development. This model normally consists of
It has various advantages.
- It provides a more potent understanding of the competencies of the employees
- This fosters continuous learning in various areas
- It is connected closely to the culture and values of the company
Conclusion
For years, performance management tools have become a significant element in analysing how employees work and their potential to do more. Although the 9-box grid performance management framework has become outdated and proven flawed in the competency model, various other effective tools like Success Circles™ have come up to help the issue.