Proficiency

Term Definition
Proficiency is the quality of state of being proficient; advancement in knowledge or skill: progress; improvement; adeptness; as, to acquire proficiency in music. Proficiency indicates a mastery of knowledge and skills that allows one to function independently in the performance of that skill. For example, one who is proficient in computer programming would have comprehensive understanding of information related to programming and would be able to perform the computer programming tasks independently.

Organizations must ensure that their employees and business leaders have the proficiency to help the organization achieve their business goals. In a recent study from a global HR consulting firm, DDI, it was reported that “Nearly a third of global business leaders don't have the skills they need to help their organizations achieve business goals”. The study showed that leaders polled in 42 countries and gave themselves low grades on 10 qualities that are strong indicators of leadership performance and potential. While HR professionals surveyed identified "passion for results" and "brings out the best in people" as the most important qualities for leaders, leaders rated their proficiency in these areas between 61 percent and 73 percent--barely passing.

Strong leadership can increase the successful implementation of business strategies, and increase returns on equity and profit margins. Leadership development and succession planning are key drivers to an organization's success.

Resources are allocated based on proficiency. An employee who is proficient in finance will be assigned to work on financial tasks as opposed to being assigned to production. Organizations may assess the proficiency of employees in the pre-hire phase by testing and background checks. Once hired proficiency assessment aids companies in determining the training and development needs of their workforce.

In order to increase job proficiency, organizations are increasingly relying upon an integrated approach to training and knowledge transfer that utilizes many different training tools and methodologies including classroom training for soft skills, e-learning for product updates, software simulations for IT training and knowledge-sharing for conveying tacit knowledge. The integrated approach ensures that companies are able to get the right information to the right person at the right time, thereby increasing employee proficiency, while driving increases to the bottom line.

Area of Application
Enterprise Resource Planning
Resource Planning

Related Terms
Skill