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.
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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?
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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
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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.
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