Abstract
When businesses invest in the competency model, they want to know they are putting businesses' financial resources in the right place. The literature and the evidence support the use of competency models. Those best-in-class organizations outperform their competitors when organizational competencies are in place for employees and the business has a valid competency model. The discussion that follows discusses executives' return on investment (ROI)—providing specific formulas relative to competency modeling. Finally, the discussion supports the reader through various resource tools for the executives to use and questions to be answered when examining competence-based ROI.
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