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Competency – Importance and meaning

Updated on: 22nd May 2024

4 mins read

KRA

Competency in employees is vital for every workforce to flourish well. Highly competent people make the workplace energetic, lively and driven. Such environments help in higher ROI and attract talent from outside. Competency helps in making a work culture and is the soul source behind a man’s success. Competency also helps in shaping the work culture and is the prominent reason behind a man’s success.

In this glossary, we delve further and answer the following

  • Competency Definition
  • Job Competency Meaning
  • Competencies of HR Manager
  • Difference between skills and competencies
  • How to measure competencies?
  • How can important job competencies for a profile be determined?

Competency Definition

Competency is a set of skills found in an individual that helps self and the company alike in achieving their goals. One may be called competent if they possess knowledge, acquired skill sets to go with their knowledge, attitude, social skills and physical attributes.

Job Competency Meaning

Job competency means the same as competency. So, while competency is a term that can be used in general, if we talk about job competency definition, it is a set of skills or a skill that a working professional requires to excel in his job. 

While the job competency term can be used when analysing the competency of a candidate and employee, the term employee competency is not used while hiring. Employee competency measurement helps the manager delegate the right tasks and share feedback to improve. 

Competencies of HR Manager 

When we talk about HR competencies, just like we mentioned in the competency definition, HR should have excellent communication skills proficiency in their tasks, e.g., sourcing candidates for job profiles. In addition, competencies for HR managers can be leadership, critical evaluation, relationship management, and such. 

Difference between skills and competencies

Skills are a set of abilities you have acquired to perform your job tasks like writing, designing, coding. On the other hand, competencies include behavior and knowledge that excel at your jobs like strategic planning for marketing or HR dept. , negotiation for sales and such. 

How to measure competencies?

There are multiple ways to know how competent is an employee is. Here are some ways- 

  • 360 Degree Feedback

It is always wise to collect feedback from people who are closely working with the employee or the employee is working for. First, list the stakeholders and then ask them for feedback using performance management software or emails, whatever you prefer. 

  • The OKR Framework

Competency can be measured easily when you decide to specify Key performance indicators and key result areas. This helps the employee work in a direction that is an accurate measure of his skills and competency. For instance, for an SEO person, it could be making specific keywords rank on the 1st page in Google search and such.

  • Meetings and initiatives

Organizing meetings can help employees be supportive and discuss the performance in detail; It is important to make MOM of these meetings record the strengths and weaknesses of the employee. This helps the employee work better on his competencies. In addition, these meetings should be done often to check progress and share feedback for the work done. 

How can important job competencies for a profile be determined?

Employee competencies are like the means to achieve the end, i.e., the set business goals. 

These act as a strong indicator of the performance of team members for the managers. Here are some pointers that can help you define job competencies or employee competency for any position. 

  • Is decision-making ability expected in the role?
  • What are the responsibilities and authorities?
  • Does the job need the employee/ candidate to interact with clients?
  • What level of aptitude and knowledge or skill does the job position require?
  • Would the employee/ candidate be in touch with different departments? 

Remember, every job role is different and requires different competencies. 

Also Read: Gamification: The Best HR Tech Trend Of The Decade

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