Competency

What is a competency?

A competency is a measurable combination of knowledge, skills, behaviours and personal qualities that a person needs to perform a job successfully. Competencies describe not just what someone knows, but how they apply it to get results in real work situations.

Companies use competencies to write job profiles, assess performance, plan development and make promotion decisions. Together they form a competency framework: a shared description of what good performance looks like in each role.

Competency vs competence

The two words are often used interchangeably, but in HR they usually mean different things. A competency is a specific requirement that can be described and measured, such as negotiation or analytical thinking. Competence is the overall ability to perform effectively in an area, achieved when a person has the right competencies and uses them well.

Types of competencies

Communication competence

Communication competence is the ability to communicate effectively with colleagues, managers, clients and partners. It includes several skills:

• expressing ideas clearly and concisely in speech and writing;
• active listening and asking clarifying questions;
• adapting communication style to the audience;
• giving and receiving feedback;
• resolving conflicts calmly.

It matters most for managers, sales, customer support and HR, but every team member needs it.

How to assess employee competencies

1. Build a competency model. Define the company's core competencies and the requirements for each role.
2. Describe levels. For each competency, set a scale with behavioural indicators for basic, intermediate and expert levels.
3. Collect ratings from several sources. Self-assessment, manager review and 360-degree feedback give a more objective picture.
4. Compare against requirements. A skills matrix shows the gaps between required and actual levels.
5. Plan development. Gaps become learning and mentoring goals.

Competency frameworks in practice

Large employers often publish their frameworks. The UK Civil Service, for example, moved from a competency framework to Success Profiles in 2019, which assess candidates on behaviours, strengths, abilities, experience and technical skills. For digital skills, many organisations use the European DigComp framework as a starting point.

In the PeopleForce Perform module, competencies are described in a library and linked to performance reviews: managers and employees rate each competency on a scale, and the results are saved with the review. With competency management, the company sees gaps between the required and actual level and turns them into individual development plans.