AscentHR Survey Unveils Trends in Competency Frameworks and Talent Tech Adoption

Bengaluru, July 31st, 2024 — A recent survey conducted by Ascent HR Technologies Private Limited (formerly Ascent Consulting Services Pvt. Ltd.) unveiled critical insights into competency frameworks, talent management processes, and technology adoption across organizations. The survey, encompassing responses from professionals across various sectors, highlights significant trends shaping the future of Talent Management. The study conducted through AscentHR’s “SurveyBerry”, gathered insights across various industries and organizational sizes, focusing on key dimensions.

Key findings include:

Competency Framework Development: The survey reveals that organizations predominantly base their competency frameworks on internal job analysis (45.95%), supplemented by industry standards (21.62%), or a combination of both (37.84%). This dual approach underscores a balanced method in defining essential skills and qualifications.

Integration with Talent Management: Competencies are extensively integrated into various talent management processes, notably in talent acquisition and performance management (79.07%) and succession planning (76.74%). This integration enhances alignment between organizational goals and workforce capabilities.

Challenges Faced: The adoption of competency-based talent management faces challenges such as unclear competency definitions (37.21%), employee resistance (20.93%), and insufficient technology support (13.95%). These obstacles highlight the importance of clear frameworks and robust technological infrastructure.

Technology Utilization: Organizations vary in their use of technology in talent management, with 40.48% describing their technology as moderately advanced, 35.71% at a basic level, and 14.29% as highly advanced. However, 9.52% either do not use technology or use it minimally, indicating a need for greater technological integration.

Learning Needs Identification: Learning needs are primarily identified through performance reviews (36.59%), competency gap assessments (24.39%), and training needs analysis (17.07%), emphasizing the role of data-driven insights in shaping development
strategies.

Desired Technological Improvements: Respondents expressed a need for improved integration with other HR systems (35.00%), comprehensive competency profiling tools (27.50%), and enhanced reporting and analytics capabilities (17.50%) to optimize talent management processes.

Career Development: Employees explore career opportunities through internal job postings (46.34%), career development discussions (34.15%), and assessments against role competencies (14.63%), highlighting internal mobility as a critical aspect of talent development.

Sector-Specific Insights: The survey also identifies sector-specific practices in industries like IT and finance, where competency data plays a pivotal role in decision-making processes, showcasing best practices for other sectors.

Subramanyam, Founder & CEO of AscentHR, highlighted, “Organizations are increasingly recognizing the importance of integrating talent management with organizational goals, and robust competency frameworks and standardized taxonomies drive strategic workforce planning.”

The findings underscore the critical role of standardized skills definitions and technology-enabled tools in enhancing talent management practices. Addressing challenges such as unclear competency definitions and leveraging comprehensive technology solutions are crucial steps for organizations aiming to optimize their workforce effectiveness and strategic alignment.

The findings highlight the strategic role of technology in enhancing competency management processes and aligning workforce skills with organizational objectives. Based on comprehensive survey responses, several critical findings have emerged:

Technology Adoption for Competency Management

•  Current Usage: Most organizations (54.76%) utilize basic technology-based assessments to capture and assess competencies.
•   Comprehensive Platforms: 26.19% of the surveyed organizations employ comprehensive technology platforms for detailed competency assessments, indicating a strategic focus on enhancing competency management capabilities.
•   Future Developments: 14.29% of organizations plan to develop technology solutions for competency matrix creation, demonstrating a proactive approach to advancing competency management practices.
•   Minimal Adoption: Only 4.76% reported no current use of technology for competency matrix development, suggesting potential opportunities for adopting digital solutions.

Implementation Status

•  Varied Readiness: Organizations exhibit varying readiness levels in implementing technology solutions for competency management, ranging from basic to comprehensive assessments.
•  Future Development: 14.29% of organizations express interest in future technology development, highlighting ongoing efforts to enhance competency management practices.
•  Untapped Potential: A small percentage (4.76%) has yet to adopt any technology for competency matrix creation, indicating potential areas for growth and enhancement.

Strategic Importance

The survey underscores the strategic significance of leveraging technology to enhance competency management processes. By aligning workforce skills with organizational goals and supporting talent development initiatives, organizations can optimize their Talent Management practices amidst evolving market demands.

Based on the study, insights reveal:

•  Large organizations benefit from established competency frameworks but require regular updates to remain relevant. MNCs and the IT sector showcase advanced competency frameworks, which could serve as models for other industries.
•   Smaller companies and younger organizations often lack mature competency frameworks, hindering career progression. Industries like IT and Financial sectors excel in mapping clear career paths through competency frameworks.
•   MNCs and companies with multiple locations integrate competencies more effectively into recruitment processes. Sectors such as manufacturing and retail lag in integrating competencies, leading to recruitment inefficiencies.
•  Older organizations and the financial sector demonstrate better alignment between competencies and strategic goals. Large organizations and the IT sector employ diverse and effective assessment tools to identify skill gaps.
•  Companies with advanced technology systems show superior talent management practices compared to those with basic systems.
•  IT and Financial sectors lead in leveraging technology for personalized learning pathways.

Challenges Identified:
The report captured the several challenges faced by the organizations in competency-based Talent Management, including:
 Lack of clarity in competency frameworks, leading to decreased motivation and engagement among employees.
 Limited career pathways, where employees struggle to identify growth opportunities.
 Recruitment inefficiencies due to difficulty in matching candidates to job openings.
 Misalignment of competencies with organizational goals, impacting workforce planning.
 Difficulty in assessing and quantifying specific skill gaps hindering effective training planning.
 Challenges in talent management, particularly in matching employees to new opportunities based on skills.
 Barrier to creating personalized learning pathways without standardized competency frameworks.
 Role alignment issues, causing misunderstandings in skill needs between operational units.
The Recommendation:
To address these challenges and leverage the insights gained:
 Standardize competency frameworks across all organization to provide clarity and alignment.
 Implement standardized skills frameworks to map out transparent career progression paths, especially in smaller companies and younger organizations.
 Integrate standardized competencies into recruitment practices to streamline candidate selection and improve hiring outcomes.
 Regularly update competency frameworks to align with evolving business goals and ensure organizational cohesion, prioritizing integration efforts in younger companies and lagging sectors.
 Adopt standardized assessment tools across all organizational sizes to accurately pinpoint and address skill gaps, with smaller and medium companies adopting comprehensive practices.
 Standardize competency data to facilitate more effective employee-role matching, encouraging organizations with basic systems to invest in advanced technology solutions.
 Develop standardized competency frameworks to enable personalized and effective learning and development plans.
 Standardize role definitions and skill requirements to ensure clarity and alignment across all operational units, promoting adoption of best practices from tools and repository available in the market.