Competency Management Market

Introduction

Competency Management is the practice of identifying critical abilities (competencies) needed by personnel to achieve short- and long-term goals through optimized training, building organizational success, enhancing operations coaching programs, and more. Every organization’s management, Public or Private has reacted to competency management after Globalization. It plays a major role in talent Management. With recent times and changing complexities of workspace competence management are not only a need but a necessity. 

How to Achieve Competency Management?

Four components need to be analyzed to make up an effective model of competence management. The elements are as follows:

• Determining the abilities required to reach objectives.
• Determining the present skill levels of your employees.
• Constructing a strategic road map to enable employees to work potentially
• Executing the Plan

Market Scenario

Organizations are emphasizing optimizing business operations and enhancing productivity by employing highly skilled individuals. This has created a demand for training courses, corporate e-learning, and developing soft skills among students. This has tended to create a supply of specific software which can access the progress of employees and help organizations in achieving competence management. By 2030, the market is anticipated to grow at a CAGR of 14.2% to reach a worldwide value of USD 39,924.7 Million.

Global Market Players Consist of companies like Global Training solutions, interaction Associates Inc., New Horizons Worldwide, Edx, TATA interactive systems, NIIT Limited, Vital Smarts, Honeywell International, Wilson Learning Worldwide, and among others.

Several businesses are trying to break into the industry as a result of this noticeably rising market and significant technology improvements. There are several regional and local companies in the highly fragmented industry. Businesses across all sectors are encouraged to increase their position in the market.

Recently in September 2021 “Skillnet” announced the expansion of regional territory by launching a subsidiary in Mexico. The company expects that it will help expand its network through an increased customer base and global recognition as a prominent team Player

Regional Analysis

The abundance of technological resources in nations like Canada and the USA makes North America the dominant market participant. One of the main factors driving the market's growth in the area is the use of skills management software by small and medium-sized businesses.

Almost 60% of the world's workforce is concentrated in the Asia-Pacific area, which is anticipated to rise over the next ten years due to the presence of numerous emerging nations including China, Japan, India, and South Africa as well as the region's progression in technological development.

Market segmentation

The market is Segmented on the basis of

• Soft Skill Type – every organization has its own need and tailored services help them to achieve better results. The demand can be broadly classified into these broad four categories; Leadership &Management, Productivity & communication, Administration, or Personal.
• Delivery Mode- The services differ mainly in two categories that is On-premises (Offline) or cloud-based (Online).
• Industry – The type of industry for example- Finance, Banking, Manufacturing, Education, Retail, IT, and others. The IT and Telecommunication Industry captures the maximum market share due to digital Competition and an unpredictable economy. The demand for management in BFSI Industry is driven by mainly evolving dynamics of employee relationships and due to dependence on domains of digitalization and management.
• Provider- There are many players in the market who provide competence management services, this part of segmentation defines the kind of institution, whether it is a corporate or Academic/ Education

Socio-Economic Contribution

An increasing market of competence management not only has global value added in quantitive terms but also qualitatively. Increasing competence management will directly affect the quality of human capital. In regions like  Asia where countries are witnessing the third stage of development, accompanied by a population outburst, this will add to an advantage as quantity combined with quantity will deliver exponential results also it will help improve the HDI score of the country contributing to global growth aligning with the Sustainable development Goal Of United Nations Agenda 2030.

Conclusion

Making decisions regarding the priorities of the workforce, productivity, and development should be done using a framework that is metrics-driven and competency-based. Competency management, as an enterprise program, provides important insights into an organization's workforce now and its potential for future success. The market is on the rise and is forecasted to grow to USD 18.92 billion by 2023 with a CAGR of 14.2%.

The major challenge in this market is that it, cannot provide generalized services to every client. The companies have to provide customized and tailored services as per the client’s need and sometimes identifying those particular factors can pose a major challenge.