A cursory look at the benefits of Competency based HR Management :

Competency driven Recruitment and Selection
The ability to hire the best candidate vs. the candidate who is best for the organization is a solution offered by the competency driven recruitment and selection model. It increases the likelihood of hiring people who are more likely to succeed in a particular environment.

Competency driven Training & Development
By identifying relevant skill gaps, competency models help ensure that training and development budgets are allocated to improve bottomline efficiency. It enables people to focus on the skills, knowledge, and characteristics that have the most impact on effectiveness.

Competency driven Performance Management
Provides shared understanding of what will be monitored and measured leading to a more focussed performance appraisal management. Lends an effective framework for gaining information about a person's behavior on the job.

Competency driven Succession Planning
Clarifies the skills, knowledge, and characteristics required for the job or role in question. Provides a method to assess a candidate's readiness for the role. Focuses training and development plans to address missing competencies for better manpower and succession planning.

Competency driven Reward Management
Reinforces and communicates competency driven performance expectations leading to overall clarity on what is expected specific to an organizational set up. Rewarding for competencies both organizational and technical ensures a sustainable model of repeatable and effective behavior patterns.