Competency development and labour remuneration system

T V Sabetova

doi:10.20914/2310-1202-2016-1-282-287

Abstract

This article addresses the problems of competency development and of competency-based approach to labour stimulation. The objective of the performed research was to determine the key types of professional competencies, their influence upon work performance, and way of their development. Two variants of competency understanding are outlined depending on the actual performance enabled by the competency presence and maturity: competency as an employee’s potential, and competency as the measure of labour activity goal achievement, which is in fact the realization of the potential. The system of labour remuneration based on the competency approach and including three types of bonuses was worked out. It includes minimum bonus applied for one-time reward of an employee’s success, qualification bonus requiring formal proof of the qualification level, bonus rewarding successful competency appliance. The competency classification based on three key features was suggested for more efficient analysis of competency appliance opportunities: maturity, or development degree; source or way of acquire ment; scope of possible appliance. The need to spend time and effort for obtaining and developing nearly all possible competencies was po inted out. Special attention is paid to forming labour competencies during the period of a person’s life when he is emp loyed. The sources of the competency formation for the employees were discussed and the problem of performing competency development activities at the expense of other types of activities was stressed out. The conclusion was made, that the employers and em ployees need to share the weight of means and efforts required for competency formation and development to enable the latter to perfo rm their duties more effectively in the future.

Highlights

We suggest that the system of labour stimulation taking the competencies into account should include three types of bonuses: 1) Minimum bonus is applied for one-time reward of an employee’s success untypical and unreasoned from the point of view of the competence-based approach, even if it is achieved due to some favourable combination of external circumstances which can be termed as ‘stroke of luck’
The example of such situation is receiving additional amounts of profit, but not because of professionalism and effort of the employees, but due to sudden auspicious changes in the market conditions. In such case bonus is expected and customary but we suggest it should be minimum as such payments do not stimulate the employees to any activity but believing in luck and miracles
We suggest that more frequent smaller bonuses are more preferable due to both convenience for the company’s cash-flow and better ability to affect and correct the employees’ labour behavior

Summary

Introduction

We suggest the following grounds for competency classification which are most important for their development and appliance: i) maturity (if the ability of a person is ready to be used in professional performance; they can be well formed and ready; those in the process of achievement; and absent or insufficient); ii) source of acquirement or the way of formation (inherent; formed through education and with the help of second party to be called ‘tutor’; formed in the process of self-education without any external help; and acquired along with professional or general experience); iii) the scope of appliance (universal ones which can be applied for any type of work or even other human activities; professional, necessary for quality performance in a certain professional field; and special, applied for particular job or operations in a given company).

Results

Conclusion