Last updated on Sep 14, 2024

What are some best practices for developing a competency framework for your organization?

Competency based interviewing is a method of assessing candidates based on their ability to demonstrate specific skills, knowledge, and behaviors that are relevant for a given role. A competency framework is a tool that defines the key competencies required for different positions and levels within an organization, and provides a common language and criteria for evaluating performance and potential. Developing a competency framework can help you align your talent strategy with your organizational goals, improve your hiring and development processes, and foster a culture of learning and feedback. Here are some best practices for developing a competency framework for your organization.

1 Identify your core competencies

The first step is to identify the core competencies that reflect your organization's vision, mission, values, and strategy. These are the essential skills and attributes that every employee should possess, regardless of their role or function. Examples of core competencies could be communication, collaboration, innovation, customer focus, or integrity. You can use various sources of information to identify your core competencies, such as your strategic plan, your customer feedback, your employee surveys, or your industry benchmarks.

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Dan van der Werf, Ph.D

I partner with HR professionals to define and implement competencies, empowering fair performance evaluations, effective hiring decisions, and clear employee career paths.
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Before identifying competencies, a critical first step is to define your competency architecture or framework. Just as you would never build a house without a blueprint, you should not begin your competency project without a clear competency architecture. This competency architecture should outline what you are building. Questions to consider: - What types of competencies will we include (e.g., Core, job family, job-specific, leadership)? - How many of each type of competency will be included in a competency profile? - What will our competencies look like (elements, length, # of levels, etc.)? - How will we divide our roles into job families? - How will we treat leadership roles?

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2 Define your role-specific competencies

The next step is to define the role-specific competencies that describe the unique skills and knowledge that each position or level requires. These are the specialized or technical competencies that differentiate one role from another, and enable employees to perform their tasks effectively and efficiently. Examples of role-specific competencies could be project management, data analysis, sales, or accounting. You can use various methods to define your role-specific competencies, such as job analysis, competency modeling, or interviews with subject matter experts.

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Dan van der Werf, Ph.D

I partner with HR professionals to define and implement competencies, empowering fair performance evaluations, effective hiring decisions, and clear employee career paths.
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Regardless of your method, it's important to consult subject matter experts (SMEs) who know the roles very well. These SMEs are often top performers currently in the role or people who lead the people in the role. Consult your SMEs to first pick the most important role-specific competencies. Then meet with them some more to ensure the wording of these competencies applies to the roles.

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3 Create your competency levels

The third step is to create your competency levels that indicate the degree of proficiency or mastery that each competency requires at different stages of career progression. These are the behavioral indicators that demonstrate how employees apply their competencies in various situations and contexts, and how they can improve or develop their competencies over time. Examples of competency levels could be basic, intermediate, advanced, or expert. You can use various frameworks to create your competency levels, such as the STAR model, the Dreyfus model, or the Bloom's taxonomy.

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Dan van der Werf, Ph.D

I partner with HR professionals to define and implement competencies, empowering fair performance evaluations, effective hiring decisions, and clear employee career paths.
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You should decide on the number and labels of your levels before starting your competency project. I usually recommend 4 or 5 levels. Each level of the competency should include 3-6 example behaviours of what successful performance looks like at that level.

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4 Validate and communicate your competency framework

The final step is to validate and communicate your competency framework to ensure that it is accurate, relevant, and consistent. This involves testing and reviewing your competency framework with your stakeholders, such as managers, employees, candidates, or external partners, and collecting their feedback and suggestions. You should also communicate your competency framework to your organization, and explain its purpose, benefits, and applications. You can use various channels to communicate your competency framework, such as intranet, newsletters, workshops, or webinars.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Emend HCM

Human Capital Management Consultants at EMEND Human Capital Management
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A competency management framework is a written description of how the organization's competencies will be identified, managed and assessed. Competency models have two critical elements (a) Functional Competency also called core competency and (b) Leadership attributes or skills. In a Competency Management framework, these attributes are: ▪ Described in behavioural terms, using behavioural indicators to recognise the competencies when demonstrated. ▪ Assigned to a proficiency level, which facilitates comparison of jobs and roles in terms of competency requirements and proficiency levels needed using a common incremental scale.

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What are some best practices for developing a competency framework for your organization?

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1 Identify your core competencies

2 Define your role-specific competencies

3 Create your competency levels

4 Validate and communicate your competency framework

5 Here’s what else to consider

Competency Based Interviewing

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