Skip to content

Three C’s of HRM explained

Human Resource Management (HRM) is an important arm of any organization. It is related to how people at work are managed to ensure their contentment and productivity along with the highest class performance. There are a lot of ways to look at HRM, but one of the simplest yet effective ways is against the framework of the Three C’s: Competence, Commitment, and Compensation. Let us break down each of them and learn how they contribute to successful HRM.

  1. Competence

What is Competence?

One of the three C’s in HRM is Competence. Competence is about putting the right people with the right skills in jobs to be done; hence, it is providing an employee with the appropriate and sufficient qualities. Likewise, it means that the employees have the necessary knowledge, ability, and skills to do their job competently. It is a competence that forms the very basic core of HRM, for competent employees are largely responsible for determining whether or not a company can succeed.

How to develop competence in HRM?

a.Recruitment and selection

 The first building block to a skilled workforce – hiring the right people. This includes: 

  • Examining the possibilities for gaining the skills necessary for a successful HRM department. The HRM competency development guide can be made unique by updating the competencies that are offered to align with the program’s chosen competencies. 
  • Using the ideas given as a starting point, brainstorm possible experiential, relational, and formal training methods. 
  • Assessing the prospects for advancement that the organization now provides. 
  • Figuring out how well the development opportunity fits with the L&D plan. 
  • Examining the learning opportunity’s viability in terms of available resources and assistance.

b.HRM training and development

HRM training and development become important to keep their skills sharp and help them grow after being able to hire the right people. This can be done through:

Onboarding: Assisting new employees in quickly acclimating to work. 

Continuous training: Providing courses, workshops, and skill upgrades. 

Career development: A place for employees to grow in the various paths of their careers and take on new challenges with open arms.

c. Performance Management

Regular checks on how employees are doing help in making sure that they maintain competence through:

Setting clear goals: Ensure employees understand what is expected of them.

Description of: Ongoing continuous and constructive feedback about their performances.

Performance appraisals: Carrying out formal reviews to go over development goals and improvement areas.

  1. Commitment

What is Commitment in HRM? 

Commitment in HRM is the extent to which engaged workers feel involved and attached to their work and their employing organization. Committed workers are more motivated, likely to make extra efforts, and stay with a firm for longer periods.

How to develop commitment in HRM?

a. Building a positive work environment- The commitment of an employee can be greatly enhanced by providing a supportive and positive atmosphere for working. This comprises:

  • Human leadership: The presence of inspiring and supporting managers for their teams.
  • Strong corporate culture: Create a working environment that fits employees’ values and makes employees feel like they are part of something bigger.
  • Work-life balance: Ensuring wellness for the achievement of personal life.

b. Employee Engagement – Employees who are engaged are consequently more committed. Examples of methods of increasing engagement include:

  • Employee decision-making involvement: Provide staff members with a say in how decisions are made. 
  • Acknowledgment and incentives: Give your staff members credit for their diligence and excellence. 
  • Professional growth: Professional growth is the process of enabling staff members to advance in their professions by teaching them new skills.

c. Communication– Commitment in HRM is built through open and honest communication. This means keeping the employees engaged and informed about the company’s doings and changes.

  • Listening to people: Actively seeking and acting upon employee input.
  • Transparency: Making open what organizational goals and results are, including problems.
  1. Compensation   

What is Compensation in HRM?

What matters most in compensation is how workers are recognized for their contributions. This covers pay, benefits, incentives, and all other benefits that come with working for the company. To draw in and keep the greatest personnel for the company, the remuneration package must be competitive and fair.

How to manage compensation in HRM?

  • Just pay: Paying a fair wage for work done by employees
  • Market research: Understanding what other companies are paying for the same positions.
  •  Pay equity: Equal pay for different people with the same job in a certain workplace, be it about gender, race, or anything else.
  •  Regular reviews: Periodic reviews and adjustments in salaries to align with market trends.
  • Present and future gains: Being able to provide a comprehensive array of benefits makes an organization much more desirable to potential and current employees. A few such benefits include Both vision and dental insurance together with medical. And programs for retirement, including 401(k) plans and a pension.
  • Other Perks: Something like flextime, working from home, health-related activities and courses, and tuition coverage.

Rewards and incentives

Incentives and bonuses to motivate the employees for optimum performance. This could take the following forms:

  • Performance Bonuses: Pay a little more for meeting the goals.
  • Profit sharing:  It is the process of dividing an organization’s earnings among all of its workers. 
  • Stock options: Employees who have stock options can purchase business stock at a fixed exercise price that is lower than market value.


Understanding and applying the Three C’s of HRM—Competence, Commitment, and Compensation—can make a difference in how effectively a company manages employees. To recap quickly:

Competence: Acquire the right people and develop their competencies continually through training.

Commitment: Develop a satisfactory work atmosphere and a positive approach toward work to keep employees engaged and communicate openly, all of which will highly motivate the employees and keep them committed.

Compensation: Pay fairly, offer good benefits, and give incentives and rewards for hard work. This all serves to create a devoted, competent, and motivated workforce. It would help in creating the feeling of value and support for an employee not only in his or her overall company but also with better performance and success. If you are in HR or a manager, keep in mind the Three C’s of HRM because those are key to having a happy, productive workplace.

Key Takeaways

Competence – Hire smart and never stop learning

  • Source for the most suitable candidates: Ensure you bring people on board who fit both the job and the company culture.
  • Ongoing training: Give ongoing training to help your team continue building new abilities and stay skillful in performing effectively.
  •  Review regularly: Offer benchmark performance reviews on the regular.

Commitment – Develop a loyal and enthusiastic team

  • Create a positive environment: Developed a supportive and positive work environment in which all employees feel valued.
  • Involve your employees: Let them make decisions, and appreciate them by giving them growth opportunities. 
  • Openly communicate: There should be open, two-way communication constituting transparency and openness in communication. 

Compensation: Paying and rewarding people fairly and competitively 

  • Pay fairly: Pay your employees a competitive wage and at the same time commensurate with market rates and the nature of the job. 
  • Offer good benefits: Offer solid benefits that include medical coverage, retirement plans, and many other perks. 
  • Incentivize: Give bonuses or offer perks to reward hard work that is part of working toward corporate objectives. 

You will thus have a team that is highly motivated, very skillful, and full of dedication because they will be competent, committed, and compensated. This will eventually result in better performance and an overall bearing on success for your company. Let the three C’s in HRM guide you to a happy and productive workplace!

We found search results for