Competency Framework

What is a Competency Framework?

A Competency Framework is a model in which features, characteristics and work methods are defined for a certain position or organization. The framework helps organizations coordinate their general business strategy and vision and the accompanying positions. As a result, recruiters can select and recruit employees more effectively. Besides for recruitment and selection purposes, the competency framework is often also used in career development, performance management and HR planning.

Competencies are observable behaviors and encompass skills, knowledge, attributes and personality characteristics that should have a predictive value for the position to be carried out. Consequently, a competency framework provides clarity on the desired behaviors on various levels of the organization. The competencies can be observed and will therefore often partly determine the function requirements, retention and development of personnel.

Different Competencies

Competencies can be developed for practically any position; there is a great diversity of categories within the competency frameworks. However, there are many organizations that use the following three types of competencies:

    

  ü Core Competencies

Core competencies refer to the areas where the organization is looking to gain a competitive advantage. A company’s organizational means and strategic advantages combined with desired knowledge and technical capacities are the factors that distinguish a company from others. Most companies don’t limit themselves to only one core competence. These competencies also vary based on the sector the company operates in. Hospitals focus on medical expertise and patient care, whereas a health information agency focuses on the development and health of people.

  ü Behavioral Competencies

    Behavioral competencies are more specific than the core competencies that apply to the competencies and capacities of the organization as a whole. The behavioral competencies often form the basis for assessment interviews that are conducted annually and must therefore be defined in a specific and measurable context. As a result, the degree of expertise and development of talent can be validated.

    Individual behavioral competencies encompass personal qualities such as decisiveness, analytical skills and critical thinking. Analytical competencies can subsequently be subdivided into data analysis, problem-solving ability and the extent to which a person can easily work with numbers.

  ü Functional Competencies

Functional competencies refer to the competencies that directly influence the daily activities that employees will conduct and often include behavioral competencies. Because these function-specific competencies recur daily or regularly, they are often deemed to be very important. Functional competencies are also regularly referred to as technical or operational competencies. Examples include: risk analysis, data analysis, keeping a database, machine management, etc.

Cross-functional competencies are competencies that aren’t directly selected for the position, but are still very important for carrying out related tasks. These could include: advancing teamwork, lowering costs, increasing effectiveness, boosting motivation, etc.

Use Competency Framework

  ü Recruitment & selection

Competencies are highly suitable to be included in the selection process. Interview questions are carefully designed to reveal specific skills, experiences and behaviors of the candidate that are relevant for the position.

  ü Career Development

When working for the organization, it’s important that employees learn and grow in the position they practice to encourage engagement and motivation. Unused potential can be developed with competency frameworks.

  ü Performance Management

Competencies are invaluable to the recruitment process, but also greatly impact the way employees are evaluated. A well-designed competency framework is based on the organizational values and can therefore be used in the annual assessment of the employee to see how he/she performs in the role.

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