Transforming Competency and Appraisal Systems

THE CHALLENGE?

In the face of rapid technological advancements and evolving industry demands, organisations constantly seek innovative strategies to effectively map competencies and link them to performance appraisals. A global IT organisation recognised the need to refine its talent development and performance management approach. This case study delves into how Yaksha brought insight into the industry’s familiar yet complex challenges of competency mapping and performance appraisal integration. With a global workforce exceeding 100,000 employees, the firm recognised the critical need to enhance its Learning & Development (L&D) strategies to stay ahead in the fast-paced technological race.

THE SOLUTION

Refining Competency Mapping and Appraisals

The client, a global IT business, wanted to make employee skills central to their strategy and performance appraisals. They hypothesised that it will enhance their competitive edge. They had identified two critical action points for moving in this direction.
  • Mapping employee skills and aligning them with the organisation’s strategic objectives
  • Enhance the performance appraisal process by integrating skills into it
They wanted to test this hypothesis and were looking for solutions to help them accomplish these, but there were some obstacles.

Accurate skill mapping is often challenging

To achieve the first one, the organisation needed a system that could:
  • develop an understanding of the skills necessary for each role and create a mapping framework accordingly;
  • measure and track these skills for employees over time.
Accurately identifying and assessing employees’ skill levels within their respective roles is often challenging with standard multiple-choice questionnaires. This was the major obstacle in aligning employee skills with the organisation’s strategic objectives.And until this challenge was solved, any integration into the performance appraisal system would have been ineffective. This is why traditional appraisal systems have often failed to consider individuals’ specific skills and competencies adequately. This was the second obstacle in achieving the client’s objective. They recognised that overcoming these obstacles required a solution to accurately assess and map competencies and integrate them into a comprehensive performance management system. This system needed to be dynamic, able to adapt to the evolving skill requirements of the industry, and capable of providing meaningful feedback and incentives to employees, encouraging continuous learning and development.

A tailored multifaceted approach

The client commissioned a pilot with Yaksha. Yaksha assessment platform was tailored for the client, to help them overcome these obstacles. It enabled them to accurately assess and map employees’ technical skills and competencies across various organisational levels and roles.

Curated Competency Mapping

Yaksha created a customised question bank containing 150 to 200 MCQs in collaboration with the client. This tailored question bank was designed to evaluate the current competencies of employees accurately, shedding light on their technical skills and knowledge. Moreover, it aimed to assess employees’ potential for future roles, helping to determine how they can advance their careers based on the outcomes of their assessments. Also, since the assessments were adaptive by virtue of being AI-powered, they were easily scalable for the entire organisation.

Integration with Appraisals

In the pilot, Yaksha integrated 5% of the appraisal outcomes with the assessment results, making it a three-step process – Assessment results, Self-rating and Employer-rating. This integration made the appraisal process more objective, transparent and relatable for employees. The results encouraged them to focus on their skill development actively.

STRATEGY FOR SUCCESS

Yaksha’s solution empowered the organisation to meet its objective of bringing skills at the centre of its business. They were able to ensure that appropriate resources were allocated towards developing the right skills that align with organisational goals. In an industry where access to multiple learning platforms is the norm, Yaksha’s approach has challenged the organisation to question whether this widespread access effectively contributes to skill development or if a more targeted approach is required. The insights gained from Yaksha’s solution helped the client prove their hypothesis. It helped underscore the importance of aligning learning resources with the organisation’s specific needs and strategic objectives, ensuring that investments in talent development yield tangible benefits. Moreover, by considering the skills integration with performance appraisals, the organisation can move towards making its appraisal process more precisely reflect employee performance and potential, aligning closely with actual competencies and contributions. This initiative has enhanced the organisation’s understanding of its ROI in talent development and spurred a broader organisational reflection on the effectiveness of its learning and development strategies and the accuracy of its appraisal systems.

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