Competencies vs. Skills – What is the difference and why do we need Competency Management?
When HR and Managers are discussing about Competencies very often misunderstandings happen. HR people talk about (behavioral) Competencies and Managers understand Skills. The following possible definition according Competency (incl. attached screenshot) could clarify the differences and support a profound discussion:
Competency = a set of behaviors, skills and knowledge that will enable you to be successful in a job. Can be developed either through training, coaching, mentoring, feedback, or through On-the-Job learning. Competency embodies skills, knowledge and personal attributes and describes individual’s capability to perform in behavioral terms.
Skills can be “easier” measured (e.g. in a matrix with high/medium/low in a short discussion between manager and employee) to get benefits from the outcome but according to my experience you can measure (behavioral) Competencies with an acceptable outcome quality only in a structured behavioral interview done by trained assessors (approx. 15 minutes needed for each Competence).
BTW organizations tend to use the “quick &dirty” approach to measure Competencies by just ticking boxes. This is very often the reason why organizations fail to measure Competencies in the appropriate way: They invest not enough time and training for a sustainable and meaningful Competency Management.
That brings us to a possible definition of Competency Management:
Competency Management lets the organization describe and assess the competencies and skills needed to meet business goals, supporting the alignment of our employee’s individual capabilities with the constantly changing organizational requirements.
Why is Competence Management so important?
We need Competence Management to …
- understand our capabilities
- identify gaps (both individual and organizational)
- create development actions for professional development
- identify training needs and to create training plans
- target development
- promote professionalism for potential new recruits
- have best possible people in most important projects.
L&D Business Partner
4 年Very useful article! Thank you for sharing!
Strategy Manager Central Europe at B&R Industrial Automation
6 年Thanks for sharing this article. I understood competence management is a kind of cross functional management compensation: if all business organizations would works in the right way and all people would be on there right positions, everybody increases his or her skills and competences from his or her leader. Competences would increase in the right way: top-down; in-line with the companies growth! I learned that key is to have the right people on the right place. Good people delight and motivate others ... thanks for inspiring us with your idea of HR business.
I am sharing with others, thanks Udo!! ??
Founding Director of Aalberg, Bauer & Wilson Konsult - Strategy development, tactical implementation, leadership skills & team performance improvement. Identifying business & reputational risks and mitigating actions
6 年Hi Udo, a very interesting article and right on the mark. Simply put, it is one's attitude that determines success rather than one's aptitude. One can learn to do something well, but it is attitude that makes one actually do it.