HR Glossary  >   Competency


What is a Competency?

Competency is the combination of observable and measurable attributes that contribute to enhanced employee performance. The components of competencies include personal attributes, knowledge, abilities, and skills. These competencies of the workforce play a key role in driving an organization’s success.

Types of Competency

Competencies are broadly classified into these 4 categories:

1. Core Competencies -The skills and abilities used by an individual to gain competitive advantages are their core competencies.

2. Leadership Competencies -Leadership competencies are the leadership skills and behaviors that are required for superior performance.

3. Technical Competencies -Technical competencies are the technical abilities and knowledge required to apply on any technical job.

4. Behavioural Competencies -Behavioural competencies are any behaviours, attitudes, or personal traits that improve an individual’s performance.

Competency FAQs

1. What is a Competency Model?

A competency model is a collection of defined skills, knowledge, and abilities required for an employee to perform their job successfully. It is used by the HR department of an organization to screen and evaluate candidates during recruitment.

2. What is Competency-based pay?

Competency-based pay refers to a salary structure where employees are paid on the basis of their skills, knowledge, and abilities, rather than their job position or title. It encourages employees to reach the pay rate they want by improving their skills and work.

3. What are the different types of Competency Models?

There are many competency models out there, but according to research done, here are the 4 best competency models to understand employees' performance:

  1. Job Competency model
  2. Organizational Core Competency Model
  3. Functional Competency Model
  4. Leadership Competency Model

4. What is Competency Mapping?

Competency Mapping is the process of evaluating the skills, abilities, knowledge, and behavior required for a job position. Companies often begin this process by determining their goals and analyzing the abilities of the existing employees.

5. What is the difference between Skills and Competencies?

Skills are specific abilities that an employee can learn to get and perform a job well, for example - Painting, handling accounts, and cooking. On the other hand, competencies are the behaviours and knowledge that directly lead an employee to success in their job, for example - negotiating, strategic planning, and problem-solving.

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