What is Competency Management?

Companies/OrganisationsGrowth & EmpowermentManagement

Definition: Competency Management

Competency management is the system of recognizing, managing, and enhancing a group of workers' competencies. It regulates employees’ capabilities and conduct with the organization’s goals. When used as an outline to recruit, increase, involve, and maintain employees, it gives agencies an aggressive benefit. Competency control is a method to manipulate and increase the competencies of an employee. It identifies vital talents which might be had to enhance overall performance and create competencies

Competency management is the exercise of figuring out the important abilities essential for a worker to attain goal overall performance of their particular role, after which growing and optimizing the ones abilities to find align with the commercial enterprise approach of an organization. When searching on which means of competency control, it's miles first useful to study skills themselves.

Competencies are also called skills, values or behaviors, and constitute the ‘how this has to be accomplished’ in place of the ‘what's the objective’ of a goal. Having absolutely described abilities permits personnel to recognise precisely what's anticipated of them and the way they have to accomplish their tasks.

Examples of abilities are integrity, consumer focus, protection or technical capacity and more.

Examples of Competency Management

The following are the illustrative examples of competency management:

Example 1 − Business Capabilities

Business skills are processes, practices and offerings that an enterprise calls for to acquire its goals. An expertise of your modern and destiny commercial enterprise skills is beneficial in figuring out talents required via the means of your enterprise. Example, if a corporation plans to enlarge its records middle operations skills this calls for talents inclusive of community layout.

Example 2 − Organizational Structure

Another source that may be used to pick out your desired talents is your organizational shape inclusive of an organizational chart and task specs for every role..

Example 3 − Workforce Planning

Planning the future skills wishes of an organization. This may be executed at the extent of roles and competencies.

Example 4 − Competency Model

A competency model is a method for structuring the abilities required through a position into classes or a hierarchy.

Example, skills, knowledge, experience, and relationships can be used as classes. It may be a mistake to make competency fashions too complicated such that they may be overly summary and non-intuitive. Flat competency fashions which are enormously unstructured are frequently less difficult to map to roles, enterprise capabilities, overall performance and training.

Example 5 − Competency Inventory

An electronic system consisting of a competencies stock or competency management system is used to seize your capabilities. It is regularly beneficial to create mappings among capabilities and roles, personnel, commercial enterprise capabilities, profession planning, overall performance control and schooling entities. This lets you pick out capabilities for a huge variety of commercial enterprise scenarios.

For example, if a worker quits you could pull up a listing of personnel who've the capabilities required in their role.

Example 6 − Succession Planning

Succession planning is the technique of figuring out key roles in a company and constructing out bench power to be greater resilient to the lack of employees. Succession making plans are blessings from a properly evolved competency stock and can amplify these records to consist of modern-day insurance tiers for every competency, estimates of destiny competency desires and danger measures.

Example 7 − Recruiting

Recruiting is the procedure of hiring personnel that fortify the capabilities of an agency. Understanding the capabilities required through a position and greater widely required through an agency is a crucial detail of recruiting.

Example 8 − Career Planning

Career planning is the manner of running with every worker to become aware of their professional dreams and speak the abilities they require to reap those dreams.

Example 9 − Learning Plans

Plans for an employee to increase new skills with strategies consisting of education, training, mentoring and challenging work assignments.

Example 10 − Training Development

Programs that develop the capabilities of personnel together with inner and outside training sessions.

Example 11 − Leadership Development

The improvement of a pool of expertise to guide succession making plans desires along with minimizing the commercial enterprise disruption due to the departure of key employees.

Example 12 − Competency Management

Setting goals for worker overall performance and comparing personnel towards those targets. This produces competency data and can be used along with competency assessments to credit a worker with having tested a competency

Example 14 − Competency Reporting

Developing competency information to guide selection making and strategy.

For example, a file document that highlights competency dangers inclusive of center capabilities which might be low in deliver and excessive in demands.

Types of Competencies Models

There is no standard list of capabilities for any given job. The type of competency that feeds right into a competency version relies upon the particular wishes of the job.

For example, the capabilities indexed for an eating place waiter will range notably from the wishes of an accountant.

Competencies can be broken down into helpful categories to better understand the type of information that might be included, such as:

Core Competencies

Core competencies encompass the baseline talents required via the means of the enterprise for all personnel; those are the primary matters that personnel need to fulfil. This will range from enterprise to enterprise, because it relies upon the values, philosophy and desires of every enterprise, however, it can encompass primary necessities like verbal exchange talents or teamwork. Most jobs require a primary detail of being able to work with different humans to a few degrees.

Functional competencies

Functional skills are job-unique abilities and behaviors which are particular for every role. For example, a competency for an eating place waiter can be the capacity to correctly cope with purchaser complaints, whereas a competency for an accountant can be the capacity to investigate a particular sort of economic information which will put together reports.

Leadership Competencies

Leadership competencies are frequently used for supervisory and control associated roles, despite the fact that may be carried out to any process role that calls for a worker to guide others. They consist of management competencies and behaviors like decision-making abilities.

How to Develop Effective Competency Models?

Following are some of the ways to develop effective competency models −

  • Determine what kind of process works for your organization

    The studies and improvement in growing well-described competencies for a role may be lengthy; it takes time to understand what is needed for every position. Due to today’s fast moving and ever-converting commercial enterprise environment, it may be useful for a few businesses to have a shorter and greater in depth technique of improvement. Competency fashions which can be additionally designed as bendy can likewise accommodate destiny changes.

  • Research available competency information

    Developing competencies requires extra than indistinct statements approximately what the task function will entail. As well, the useful capabilities want to mirror what “great” overall performance needs to be, now no longer simply the baseline capabilities for “acceptable” overall performance. Previously evolved capabilities for comparable roles need to be recognized and used as a guideline, in addition to associated position documentation, historical past data and organizational middle capabilities.

  • Interview relevant business units and executives

    Interviews with applicable stakeholders offer the perception wished for the position’s required capabilities. Executives can offer the important organizational center capabilities wished for the position that mirror each the values, philosophy and desires of the organization.

    Managers and high-performers from applicable commercial enterprise departments may be interviewed to discover the important competencies and behaviors which might be essential and a hit for the ones roles. When interviewing, the focal point must be on what competencies and behaviors make for a top-appearing worker in that position.

  • Establish the core competencies

    The core competencies have to replicate the baseline behaviors and abilities required via the means of the employer. How do personnel act and make contributions as a part of the employer as a way to combine into the company’s paintings lifestyle and philosophy? Utilize the studies and interview content material from executives and applicable organizational stakeholders.

  • Establish job-specific competencies

    Job-specific competencies must replicate the particular functional talents and behaviors as mentioned by means of departmental managers and top-performers on the studies stage.

  • Establish leadership competencies, where needed

    When management-related competencies want to be drafted, it ought to be assumed that the people are already acquainted with the middle abilities set out with the aid of using the organization. The cognizance ought to be on particular management attributes and skills. These may be decided with the aid of using the government and senior control stage on the studies stage.

  • Finalize the competency list

    Organize the findings, however keep away from being unrealistic with narrowing down talents. If the listing is just too far-fetched, it is able to preclude recruitment projects and scare away capacity applicants. If the listing is just too indistinct or now no longer specific-enough, it is able to bring about an inflow of applicants that aren't ideally fitted to the position; it's going to additionally now no longer assist personnel to gain organizational goals.

    Validate the competency listing with all stakeholders worried within side the process, such as executives and management. Signing off on talents is vital to make certain that each one stages of the organization’s wishes are being met.


Competency management is the act of recognizing, managing, and developing the capabilities of employees. It ensures that employees' talents and behaviors are in step with the company's objectives. An aggressive aspect is won with the aid of using corporations after they use a framework to recruit and increase their personnel, in addition to interact and preserve them.

Updated on 19-Aug-2022 08:16:50