Leveraging Competency Science to Shape Company Culture

Since the Great Resignation, employees have quit in droves, with companies shuffling to maintain employee retention. One of the major reasons behind high turnover rates is due to a company’s culture. A company’s culture are the values, attitudes, and beliefs that a company has that guides everything that a company does. It is initially established by leaders and strengthened through consistent application that outlines an employee’s perceptions, behaviors and understanding.

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Why Improve Company Culture?

Culture can also make or break a company. 25% of employees who have quit their job, listed “toxic company culture” as their main reason for leaving a job. Improving company culture not only reduces turnover rates, but it also improves employee productivity and performance. More specifically, a positive work culture generates more productive employees. A 2018 study analyzed the relationship between leadership, company culture, and employee competence, tracking how various elements  affected employee performance. Their findings concluded that in order to have a more productive company, the company needs to be backed by a leader who has strong leadership competencies that include competencies that make them able to effectively communicate, support and connect with employees. 

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What are workplace competencies?

Workplace competencies are the list of required abilities and characteristics that can determine how effectively an individual is able to perform a specific job. They give employees a clear understanding of what is expected of them regarding their performance, while also providing a tool for employers to benchmark their needs. 

Competencies concretely define a company’s standards by exhibiting workplace behaviors on a daily basis. These behaviors are then reinforced by company culture, encouraging certain behaviors or competencies, and discouraging others. By including competencies in job profiles, the company’s culture is set out as clear guidelines for behavior. Once company principles in combination with competencies are experienced regularly, then it becomes proof of a strong company culture.

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Workplace Competencies and Hiring for “Cultural Fit”

Competencies can define behaviors that should be aligned with company values. If there are clear company values, without defined competencies, it will be difficult for employees to realize their purpose and the beliefs that represent the company. 

Relating competencies to company values has the potential to improve recruiting strategies on top of reducing turnover rate. 89% of employees either quit or are fired due to poor cultural fit. Competencies outline the larger concepts in position descriptions, and solidifies company values and beliefs. When workplace culture is better defined and competencies are laid out initially, candidates can make better conclusions in their job search and hiring managers have a better understanding of candidates who may be a better cultural fit. The term “cultural fit” is used loosely in this sense. Company culture has the potential to expand to the development of competencies. In order to maintain a productive organization that refrains from a hiring bias, employers must be sure to diversify their employees which can lead to the development of new competencies. While a best fit system in determining which competencies should champion the organization does not exist, it becomes an easier solution when companies relate competencies to the values they currently have or want to see in their organization. In other words, cultural competencies are dynamic, and companies need to keep a watchful eye on their development with a tool like Claira.

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Looking Ahead

Company culture is the values, beliefs, and attitudes that a company shares. Cultural values of a company are shaped by, and even influenced by, competences that are valued in the organization. By clearly defining the values of an organization through competencies, these same abilities concrete the values and beliefs of the organization. It is important to understand that competencies are not fixed within an organization. With time, the required competencies needed within an organization may change. In the same vein, company culture also has the potential to shift as well, either through a change in leadership, shift in goals, etc. “The culture of an organization can guide and uphold the development of certain competencies to the detriment of others, depending on their configuration.” 

To avoid the pitfall of creating a biased workplace culture, it is important for companies to diversify their staff and periodically revisit their current values and belief systems. Since workplace biases can impede on the development of new competences that ensure future success of an organization.

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