What is a Competency Model? Its Examples and Benefits https://www.valamis.com/hub/competency-model#types-of-competenc...
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Competency model
Ivan Andreev December 29, 2021 · updated April 2, 2024
Demand Generation & Capture Strategist
[email protected] 8 minute read
Discover:
• What is a competency model?
• What are the bene�ts 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 speci�c skills, knowledge and behavioral requirements that enable an employee to
perform their job successfully.
Competency models de�ne 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.
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What is the di�erence 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 speci�c behaviors that an employee must do on the
job in order to be successful.
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What are the bene�ts of using a competency
model?
Greater performance success has been attributed to organizations with thoroughly de�ned
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
bene�ts 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.
How to conduct a skills gap analysis and what to do next
Start building your foundation for strategic workforce development.
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The types of competencies that make up the
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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 speci�c 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 ful�ll. 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 re�ected in broad competencies that re�ect 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-speci�c 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
speci�c type of �nancial 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
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include leadership skills and behaviors like decision-making abilities.
Connecting skills and learning
Valamis provides you with skills management and learning tools in the same platform,
allowing you to tailor your content to existing needs.
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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-de�ned and clear, organizations have a better chance of
�nding more closely matched candidates.
Talent/Performance management – De�ning what success should look like within the
organization boils down to the performance of the workforce; a competency model can
de�ne 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 de�ned 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
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speci�c 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 speci�c competency:
Best Practice:
• Title – Name of the competency
• De�nition – Overall de�nition of the competency
• Sub-competencies – General baseline skills and behaviors required
• Behaviors – Behaviours that re�ect the highest level of pro�ciency
• Pro�ciency Standards – Skill standards that re�ect job-speci�c requirements and
re�ect four stages of career development (early, mid-level, senior, executive)
Competency example:
• Title: Develop customer relationships
• De�nition: 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
• Pro�ciency Standards: Identify customer concerns and present methods for addressing
concerns.
How to develop e�ective competency models
1. Determine what kind of process works for your organization
The research and development involved in creating well-de�ned 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 bene�cial for some
organizations to have a shorter and more intensive method of development. Competency
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models that are also designed as �exible 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 re�ect what “great” performance
should be, not just the baseline skills for “acceptable” performance.
Previously developed competencies for similar roles should be identi�ed 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 re�ect both the values, philosophy and goals of the organization. Managers and
high-performers from relevant business departments can be interviewed to �nd 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 re�ect 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-speci�c competencies
Job-speci�c competencies should re�ect 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.
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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 �ndings, 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 speci�c-enough, it could result in an in�ux 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.
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