A competency model is a specific set of competencies that apply to be as productive as possible in a particular work environment. It is used to easily determine what is needed for high performance in a particular field of work.
Different types of competency models can be used for successful recruitment practices, further training, performance appraisal, and talent management.
In most companies, competency models for different types of activities are developed by the HR department to determine performance metrics for a particular area of work activity.
A complete competency model should contain the fullest possible set of skills, knowledge, and requirements that the worker will need to perform the job as efficiently as possible in the workplace.
What Is a Competency Model?
A competency model should necessarily be a part of a set of tools to be applied by HR specialists to create a complete list of knowledge, skills, and abilities (KSAs) that are necessary for each worker of the company to be as productive as possible.
As a result, each employee of the company receives an algorithm that can help improve professional reputation and overall performance in a particular industry or specific area of activity.
How Competencies Differ from Skills
Competency is a broader concept than a skill. Specifically, the former is the ability of an employee to properly implement his/her skills into a certain workplace environment. The term includes the following elements:
- Knowledge, behaviors, attitudes, skills, and abilities to perform efficiently (e.g., making successful business decisions could be considered a competency);
- Observability, measurability, and connectivity (with the employee’s workplace or scientific environment).
A different model is developed individually for each position.
On the other hand, a skill or an ability can only be acquired through professional knowledge, specific training, or necessary practice. For example, this could be typing, working with Exel, or graphic editors.
That said, the list of general competencies for any field of work may include:
- Good decision-making;
- Analytical thinking;
- Leadership skills;
- Ability to work in a team;
- Work performance management;
- Empathy, etc.
Obtaining these requires not only the development of professional skills but also the acquisition of certain knowledge and the improvement of necessary personal qualities.
How a Job Description Differs from a Competency Model
Both of these documents have a similar purpose since they describe in detail exactly how the employee should perform his/her professional duties. However, a job description only contains a complete list of the employee’s duties.
In its turn, as a finished document, a competency model can contain:
- A set of specific behaviors that contributes to the employee’s professional and personal growth;
- General and special skills required to perform a specific area of work;
- Definition of the level of skills, knowledge, and abilities.
Determination of the level of skills, knowledge, and abilities that an employee needs to succeed.
Therefore, for the successful development and operation of the company, HR specialists would need to develop both documents for all employees.
Basic Elements of a Competency Model
Such a model usually contains the following basic elements:
- Detailed definition of the competency: For example, for the “leadership qualities” one, these are self-confidence, organizational skills, communication skills, motivation, honesty, readiness for risk, and active lifestyle;
- Detailed description for each competency or way of behavior: This could be a set of personal qualities, abilities, and skills that are included in various professional and life areas, as well as provide the ability to successfully build a team and lead other people;
- A detailed model scheme, e.g., an infographic that would provide the most complete visual representation of a model.
For some competency models, additional elements like the assessment of skills, abilities, and aptitudes necessary for achieving a certain level of mastery in a certain professional activity field can be used.
Advantages of Competency Models
The use of competency models helps businesses and organizations achieve developmental success and makes employee management more effective.
Such models can also be used to shape a training program that is aimed at the rapid development of the professional and soft skills of employees.
Why are these models so beneficial? Here’s a list of reasons to consider:
- They improve labor productivity;
- HR specialists get a complete picture of the professional skills, abilities, and qualities of their employees. Based on this, a comprehensive training program can be created for each employee;
- The company’s management and HR specialists can analyze the need for professional, advanced, and additional training;
- Employees receive a “road map” for their professional improvement and are able to independently assess their level of professionalism for specific activities;
- Successful performance management, etc.
Competency models can be applied in any field of activity. Also, HR specialists and recruiters have an opportunity to compose the most informative description of the job, based on a complete model. Such a description would include a full skill set of knowledge, professional skills, and abilities. It will help find an ideal candidate for each position.
How Competency Models Are Used
They can be successfully used for effective recruitment practices at all stages of team management. The main areas of the company’s work where it’s recommended to use competency models are as follows:
- Employee recruitment. A model is required both for creating a complete list of professional skills and abilities for the vacancy and an algorithm for assessing the level of competence of candidates;
- Performance management for all team members. With the help of a competency model, you can increase productivity for each professional role or position in the company;
- Regular, systematic performance evaluation. In this case, both managers and employees have all the necessary behaviors and a set of skills that require improvement for professional development and a successful career.
However, a competency model should be made individually for each organization, taking into account the specifics of activity and development strategy. Also, the head of the company can use standard templates, which can be adapted to the needs of the organization.
Types of Competencies Used to Compose a Model
There are a few basic types of competencies used to create a model, which can be roughly divided into 3 categories:
- Basic. Their list is compiled in compliance with the company’s goals, philosophy, and values. These are the basic knowledge and skills a staff member should possess to successfully fulfill his/her job duties;
- Functional. Their list implies all the specific skills, abilities, and competencies enabling a specialist to grow professionally and perform at the highest possible level;
- Leadership. This is a group of skills, abilities, and capacities required for executives and managers to manage employees.
The list of competencies for each category directly depends on the company’s goals, its industry, and the field of activity. Whereas the goal of such a model creation directly depends on these components.
It’s important that the list of competencies for each model is coordinated with team members who will use a certain model in their work. For example, these could be heads of departments, managers, or HR specialists.
How to Develop an Effective Competency Model
Developing an effective competency model is a lengthy process as it involves collecting a lot of information and then analyzing it in detail.
Conventionally, the whole process of model development can be divided into the following basic stages:
- Goal identification;
- Conducting research;
- Competency model project creation;
- Definition of all types of competencies for the company;
- Creating a list for each type (core, functional, and leadership);
- Review of the model.
The first stage, i.e., target definition, is directly connected to the initial collection of information about the company’s needs. The type of competency model and its effectiveness directly depend on who it is designed for and what needs are expected to be addressed through it.
The second stage is research, which implies communication with experts in the required industry or interviews with managers of the company, which are required for the model.
Also, at the stage of information collecting, you can use the survey of employees whose work is the most productive. You can ask employees what they need to succeed and what professional skills and abilities are essential for that.
In the third stage, you need to analyze the results of the research. With its help, certain patterns will be revealed. Based on the latter, a basic list of competencies for a certain field of activity is created. Next, you need to make a detailed description for each competency in the list.
In the fourth stage, the resulting list of competencies and their descriptions should be divided into types, proceeding from the goal to be achieved with their help. All of them are divided into 3 categories: core, functional, and leadership.
The fifth stage implies working with each type of competency. Core ones are intended to answer the question of how employees should act so that the results of their work are in line with the company’s goals and mission. Functional competencies define a list of special knowledge and skills that each employee requires. Leadership ones define a list of abilities for team management.
The sixth stage is the review of the draft competency model by business unit managers and, if necessary, the introduction of amendments and additions. The competency model can then be implemented in the form of an infographic or presentation.
Conclusions
A competency model is an HR professional’s tool for creating a list of competencies that each employee needs to be productive and grow professionally. Such a model includes a list of professional and soft skills, abilities, and knowledge necessary for successful goal attainment.
