Competency development and labour remuneration system

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 acquirement; scope of possible appliance. The need to spend time and effort for obtaining and developing nearly all possible competencies was pointed out. Special attention is paid to forming labour competencies during the period of a person’s life when he is employed. 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 employees need to share the weight of means and efforts required for competency formation and development to enable the latter to perform their duties more effectively in the future.