What is a competency model?
A competency model is a set of guidelines that defines and describes the competencies needed for performance success for a particular job, department or team. It may be expressed in a simple bulleted list or more visually as a diagram.
The competencies a competency model contains are essentially the knowledge, skills, abilities and conduct that a worker needs to be successful in their role at the company. These competencies are often divided into categories, which may include the following:
- Industry knowledge
- Technical skills
- Academic background
- Management experience
- Personal effectiveness
- Workplace competencies
A competency model should also identify target proficiency levels needed to help a worker develop competency when performing specific tasks. This provides workers and employers with a clear, concise picture of what success looks like in a specific position.
Who is a competency model for?
Competency models are created to provide useful information for both employer and employee. Although these models are often used by training professionals and HR departments to help companies fill positions with suitable workers and to maintain high standards, they can be created for any department, team, role or level.
Models are sometimes designed around a specific industry or organization, and may be created for specific jobs, job groups or occupations. They may also incorporate accepted industry standards, especially in areas such as sales and leadership where essential competencies have been widely examined.
How competency models are used in business
Competency models can be an effective tool for businesses of all sizes, because they can be used across all levels of an organization. They set a benchmark for success and provide employees with a clear roadmap to effectively performing their jobs, which can be especially helpful for new hires.
Competency models can also provide a framework that companies can use to enhance HR practices in several main areas:
- Job postings: Using competency models as a basis for creating job postings may help you find candidates that closely match specific job requirements.
- Interviews: Interviews based on a competency model can help you assess a candidate’s relevant skills and experience to better determine if they’re suited to the job.
- On-the-job training: By providing a well-defined list of the knowledge, skills and conduct a worker needs for success, a competency model can create an easy-to-follow roadmap for trainers and new hires.
- Performance reviews: Competency models set expectations that may help supervisors and HR personnel better assess an employee’s performance.
The benefits of using competency models
Well-defined competency models can help you make critical decisions when it comes to everything from hiring to firing. Businesses that use competency models may reap the following benefits:
- Improved strategic alignment: Competency models let companies more easily align workforce performance with organizational goals or strategies.
- Better employee engagement: By providing a clear set of guidelines, a competency model lets workers take ownership of the knowledge, skills and conduct they’ll need to be successful in their roles.
- Upskilling opportunities: By identifying the skills and behaviors needed for success, a competency model creates opportunities for upskilling your employees, preparing them for future advancement opportunities within the company.
- Identification of learning opportunities: By comparing current worker skills with the benchmarks defined in a competency model, companies can identify deficiencies and discover opportunities for learning and professional development.
- Consistent performance measurement: Competency models remove uncertainty from performance evaluations, providing a clear benchmark to measure against when assessing a worker’s effectiveness on the job.
Best practices: how to create a competency model
Your HR department may be best suited to creating competency models for your organization, but if you don’t have a dedicated HR staff, you can still craft this helpful tool by following four basic steps.
1. Do your research
Before sitting down to build a competency model, gather and analyze relevant resources. Be sure to look at:
- Job descriptions
- Project reports
- Company goals and strategies
- Relevant industry research
- Past employee performance reviews
During the research phase, you may also want to interview executives and supervisory staff to learn what competencies are required for a team or individual role. These team members can help identify the skills and behaviors that top-performing workers share.
It may also be helpful to take a close look at the deliverables created by workers in certain positions and see how they impact business outcomes. This can help you identify the knowledge, skills and behaviors that are needed in specific roles so you can achieve your business goals and grow your business.
2. Create a competency list
This list may include job-specific competencies and core competencies that reflect the values, goals and corporate culture of your company. Leadership competencies may be added as needed for specific roles.
At this stage of the process, it’s important to critically assess your competency list. Make sure it’s specific enough to help your employees achieve their goals, but not so detailed that it makes it impossible to find suitable candidates for the position.
3. Create a framework
The components you choose for your competency model and how you structure them should reflect the needs of your business. The framework may include broad, company-based information such as your organization’s goals and values. It may also feature a role-specific overview, which can include a job description, learning resources and a potential career path.
Here are several other common components you may wish to include when deciding on a framework:
- Technical skills
- Job qualifications
- Essential knowledge
- Attitude and behavior
- Industry certifications
At this point, you may also want to decide what form your competency model will take. You can opt to make a simple bulleted list or go for a more visual design such as a pyramid, flow chart or Venn diagram.
4. Build the model
A competency model may be built from the top down, starting with a specific role and breaking it into its components, or from the bottom up by identifying skills and then mapping them to projects, jobs and business outcomes. Some modern competency models even use a document-driven approach, which maps out connections between skills, behaviors, jobs and projects.
For the best results, make sure to incorporate insights you’ve taken from your research and get feedback from talent professionals, supervisory staff and other relevant members of your team. As you build your competency models, it may be helpful to get feedback from subject matter experts, and tweak your draft as necessary.
Example of a competency model
Competency models can take on many forms, and they should ultimately reflect the needs of your business. A simple competency model may look like the one shown here:
Job title
Manager
Educational requirements
B.A, B.S. or five years of relevant workplace experience
Competencies
Interpersonal skills:
- Build and maintain positive working relationships with team members and other company representatives
- Build trust with team members and customers
- Demonstrate excellent communication skills
Attitude and behavior:
- Adaptability
- Focus on quality
- Ability to organize
- Willingness to lead
- Readiness to learn
Career path
Mid-level manager, senior-level manager, executive-level manager
Implementing a competency model
Once you understand what a competency model is and how to design one that’s effective for your company, you can use this tool to create positive change in your business. Just remember that as your company changes, your requirements will, too. By periodically assessing your competency models, you can make sure that they stay in line with your business’s strategic goal to offer you the best chance of success.
