SKILLS MANAGEMENT

Competency Model
Updated December 29, 2021

 Knowledge Hub 

 Skills Management 

 Competency Model

Discover:

 What is a Competency Model?

 What are the benefits of using a competency model?
 The types of competencies that make up the model
 How are competency models used?
 What is an example of a competency?
 How to develop effective competency models

What is a Competency Model?

A competency model is a guideline developed by a Human
Resource department that sets out the specific skills, knowledge
and behavioral requirements that enable an employee to perform
their job successfully.

Competency models define what performance success should look

like within the organization for each individual job. The model is
applied to recruitment practices, talent management, training and
performance assessment.
What is the difference between a job description
and a competency model?

A job description and a competency model sound almost alike

because they both seem to describe what an employee is required
to do in the job. What is the difference?

The difference is that a job description is a general summary of the

skills required for a job, whereas a competency model provides
specific behaviors that an employee must do on the job in order to
be successful.

What are the benefits of using a

competency model?
Greater performance success has been attributed to organizations
with thoroughly defined competency models. In a competency
survey by the Society for Human Resource Management
(SHRM), 93% of 500 C-suite executives claimed that competency
models were important to their organization’s performance success.

Here are some of the ways that implementing the competency

model benefits organizations:
 Sets a concrete direction for workforce performance that
aligns with organizational goals and strategies.
 Enables HR to have a concrete understanding of all
employee abilities and skills.
 Enables HR and Training to more accurately identify
learning & development (L&D) needs.
 Allows employees to take ownership of the skills and
behaviors required of them in their roles.
 Empowers organizations to keep track of what skills
employees have so that strategy and planning can work
towards that future skills may be needed.
 Provides a consistent and fair system of measurement
for performance evaluation.
The types of competencies that make
up the model
There is no standard list of competencies for any given job. The
type of competency that feeds into a competency model depends
on the specific needs of the job. For example, the competencies
listed for a restaurant waiter will differ drastically from the needs of
an accountant.

Competencies can be broken down into helpful categories to better

understand the type of information that might be included, such as:

1. Core competencies

Core competencies include the baseline skills required by the

organization for all employees; these are the basic things that
employees must fulfill. This will vary from company to company, as
it depends on the values, philosophy and goals of each
organization, but can include basic requirements like
communication skills or teamwork. Most jobs require a basic
element of being able to work with other people to some degree.

The goals of the organization are reflected in broad competencies

that reflect the strength and uniqueness of the organization. For a
company that specializes in international parcel delivery, the core
competency would be logistics. Drilling down to an employee’s job
within this type of organization, a core competency for an employee
could be on-time delivery of customer parcels.
2. Functional competencies

Functional competencies are job-specific skills and behaviors that

are unique for each role. For example, a competency for a
restaurant waiter may be the ability to effectively handle customer
complaints, where a competency for an accountant may be the
ability to analyze a specific type of financial data in order to prepare
reports.

Functional competencies should describe what behaviors or skills

need to be performed in order for the employee to be a top-
performer in their position.

3. Leadership competencies

Leadership competencies are often used for supervisory and

management related roles, although can be applied to any job
position that requires an employee to lead others. They include
leadership skills and behaviors like decision-making abilities.

How are competency models used?

Competency models are used for a variety of HR practices,
including:

Recruitment – Fully developed competency models are often used

for the development of job postings. When they are well-defined
and clear, organizations have a better chance of finding more
closely matched candidates.
Talent/Performance Management – Defining what success should
look like within the organization boils down to the performance of
the workforce; a competency model can define what performance
success should look like for each role within an organization. This
benchmark helps HR to connect the function of each job with
organizational goals and also ensure that the talent of employees is
developed.

Performance Appraisal – Competency models provide the

framework needed to properly assess employees during a
performance review; both the employee and employer have a
clearly defined list of behaviors and skills to work from.

What is an example of a
competency?
The format of a competency model for any given job will be different
depending on the specific organization and profession. There is no
standardization or required structure. Often, organizations will have
their own unique templated format for competency models.

The Society for Human Resource Management (SHRM) offers a

best practice in the formulation of competencies by breaking down
what information should ideally be included in a specific
competency:

Best Practice:
  Title – Name of the competency
 Definition – Overall definition of the competency
 Sub-competencies – General baseline skills and
behaviors required
 Behaviors – Behaviours that reflect the highest level of
proficiency
 Proficiency Standards – Skill standards that reflect job-
specific requirements and reflect four stages of career
development (early, mid-level, senior, executive)

Competency example:
 Title: Develop customer relationships
 Definition: As part of the Sales process, the ability to
create a lasting relationship with customers via
interactions is integral to the role.
 Sub-competencies: Ability to communicate effectively
with customers
 Behaviors: Emotional intelligence
 Proficiency Standards: Identify customer concerns and
present methods for addressing concerns.

How to develop effective competency

models
1. Determine what kind of process works for your organization

The research and development involved in creating well-defined

competencies for a position can be lengthy; it takes time to
understand what is needed for each position. Due to today’s fast-
paced and ever-changing business environment, it could be
beneficial for some organizations to have a shorter and more
intensive method of development. Competency models that are
also designed as flexible can likewise accommodate future
changes.

2. Research available competency information

Developing competencies requires more than vague statements

about what the job position will entail. As well, the functional
competencies need to reflect what “great” performance should be,
not just the baseline skills for “acceptable” performance.

Previously developed competencies for similar roles should be

identified and used as a guideline, as well as related role
documentation, background information and organizational core
competencies.

3. Interview relevant business units and executives

Interviews with relevant stakeholders provide the insight needed for

the role’s required competencies. Executives can provide the key
organizational core competencies needed for the role that reflect
both the values, philosophy and goals of the organization.
Managers and high-performers from relevant business departments
can be interviewed to find out the key skills and behaviors that are
necessary and successful for those roles. When interviewing, the
focus should be on what skills and behaviors make for a top-
performing employee in that role.

4. Establish the core competencies

The core competencies should reflect the baseline behaviors and
skills required by the organization. How should employees act and
contribute as part of the organization so that they can integrate into
the company’s work culture and philosophy? Utilize the research
and interview content from executives and relevant organizational
stakeholders.

5. Establish job-specific competencies

Job-specific competencies should reflect the unique role skills and

behaviors as outlined by departmental managers and top-
performers at the research stage. What did these individuals need
to know and do to perform well in their role?

6. Establish leadership competencies, where needed

When management-related competencies need to be drafted, it

should be assumed that the individuals are already familiar with the
core competencies set out by the organization. The focus should be
on unique leadership attributes and skills. These can be determined
by the executive and senior management level at the research
stage.

7. Finalize the competency list

Organize the findings, but avoid being unrealistic with narrowing

down competencies. If the list is too far-fetched, it could hinder
recruitment initiatives and scare away potential applicants. If the list
is too vague or not specific-enough, it could result in an influx of
candidates that are not perfectly suited to the position; it will also
not help employees to achieve organizational goals.
Validate the competency list with all stakeholders involved in the
process, including executives and management. Signing off on
competencies is important to ensure that that all levels of the
organization’s needs are being met.