TOPIC 3  (Continued)

What you really need to know to optimise your operation

Road Transport encounters an abnormally high staff churn due to a tricky and challenging working environment

How important is Competency-based Management (CBM) in the road freight industry?

Optimising diverse skillsets

Career profiles in the road freight Industry show the average worker changes employer in under three years with many Road Freight companies experiencing what is termed a staff Churn-Rate (CR) above 15%, particularly in the hourly paid sector.

Churn rate can describe the number of employees that move within a certain period; for example, the annual churn rate would be the total number of staff changes completed in a 12-month period, divided by the average number of employees during the same period.

Quarterly churn rates can also be calculated. Attrition rate (%) = (Number of employees resigned during the quarter / average number of employees during the Quarter) x 100 ,where average number of employees during the quarter = (Total number of employees at the start of the Quarter + Total number of employees at the end of the month divided by 2).                Acknowledgement: Wikipedia

It means companies with high Churn-rates may never operate at their full potential, or work in a stable Competency-based management (CBM) situation.

Competency-based management supports the integration of human resources planning with business planning by allowing organizations to assess the current human resource capacity based on their competencies against the capacity needed to achieve the vision, mission and business goals of the organization. Plans and programs to address gaps (e.g. recruitment, learning, career development, and succession planning) are then designed, developed and implemented to close the gaps.

Competency-based human resources planning serves as a link between human resources management and the overall strategic plan of an organization.

 By Shing Hin Yeung - Own work, CC BY-SA 3.0,

Competencies are defined as observable abilities, skills, knowledge, motivations or traits defined in terms of the behaviours needed for successful job performance

While competencies are not new to most organizations, what is new is their increased application across varied human resource functions (i.e., recruitment/selection; learning and development, performance management, career development and succession planning, human resource planning). Organizations are looking for new ways to acquire, manage and retain the precious talent needed to achieve their business goals.

Properly designed, competencies translate the strategic vision and goals for the organization into behaviour or, actions employees must display for the organisation to be successful. Competency-based management standardises and integrates all HR activities based on competencies that support organizational goals.

Competence must include the ability to respond to the dynamic nature of an organisation's external environment and of its own internal processes. The requirement of sustainability in the above definition of competence encompasses both forms of dynamics. To be sustainable, a competence must respond to the dynamics of the external environment by enabling an organisation to maintain its ability to create value in the marketplace even as changes take place in market preferences and available technologies.

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