This document discusses competency models and their benefits for organizations. It defines competencies as observable skills, knowledge, and behaviors tied to business needs. Competency models establish a common language for performance and provide frameworks to integrate HR functions like recruitment, performance management, and development. Implementing competency models communicates expectations, assesses potential, and closes skills gaps. Research shows competency strategies can increase productivity by 23% on average and reduce turnover by 69%. Competency models tailored for different business strategies like product leadership, customer intimacy, and operational excellence. Organizations benefit from competency models' ability to define and measure great performance.

1. ©The Human EdgeThe Human Edge Tel: 00 44 791 262 3990
Lesley Harvey
Talent Management
Element 1 - competencies
1

2. ©The Human EdgeThe Human Edge Tel: 00 44 791 262 3990
Why have a
competency Model

3. The Human Edge Tel: 00 44 791 262 3990
What is a Competency?
The practical application of skills, knowledge
and behaviour measured against a
predetermined standard of performance as
defined by the organisation and its business
needs.

4. The Human Edge Tel: 00 44 791 262 3990
What are competencies?
“Skills and abilities described in behavioral terms
that are coachable, observable, measurable, and
critical to the success of an individual or organization
performance.”
The pieces of the puzzle that form a common language about
success

5. The Human Edge Tel: 00 44 791 262 3990
The ‘ HOW’ we achieve our
goals.
Identifying Competencies

6. The Human Edge Tel: 00 44 791 262 3990
“What” “How”
Development-based
Competencies
Development-based
Competencies
Results-based
Goals & Objectives
The How

7. The Human Edge Tel: 00 44 791 262 3990
Competency Frameworks
Two main benefits:
• An opportunity to agree a common language for
describing what is effective behaviour in an
organisation
• An opportunity to achieve a high level of consistency
when assessing performance

8. The Human Edge Tel: 00 44 791 262 3990
What Does a Competency
Framework Link To?
• Talent Management Programmes
• Development opportunities
• Career planning
• Recruitment and selection
• Role development
• Performance management
• Communicating expectations
• Company values
• Employee Engagement

9. The Human Edge Tel: 00 44 791 262 3990
Competency Frameworks
They can improve performance by:
• Communicating what is a ‘good job’ within the
organisation; common language
• Listing behaviours that high performers demonstrate
that account for their success

10. The Human Edge Tel: 00 44 791 262 3990
Components of a ‘Good’
Competency
• A title for the competency
• A description of the competency
(technical/functional or behavioural/personal)
• A number of behavioural indicators which are
observable/measurable behaviours employees use
to succeed in their jobs

11. The Human Edge Tel: 00 44 791 262 3990
Teamwork
Co-operates well with others when working towards shared goals.
Supports others by sharing information and ensuring all have the
opportunity to contribute.
Behaviours:
T1 Discusses ideas and issues by involving others
T2 Asks others for input – uses others strengths to advantage
T3 Shares relevant information with team members to assist them
T4 Encouraging and supportive of other team members e.g. uses ‘we’ not ‘I’
T5 Ensures equal balance of involvement between all parties
T6 Ability to lead the team when necessary as well a being part of the team
T7 Identifies when other team members need support and assistance
T8 Co-operates with others, actively seeking out and taking on board their
views and ideas – encourages them to reach consensus

12. The Human Edge Tel: 00 44 791 262 3990
Example:
Level 1 Level 2 Level 3 Level 4
Speaks clearly, concisely and
confidently
Listens actively without
interrupting, asks questions to
clarify points and confirms
other’s statements to check
mutual understanding, and
responds accordingly
Uses appropriate eye contact
and gestures to help convey
the message, uses appropriate
tone and volume for audience
Uses a variety of media
and communication aids to
reinforce points and
maintain interest
Uses effective strategies to
communicate ideas and
views in busy meetings and
discussions
Asks open ended questions
and or paraphrasing to draw
out concerns or additional
information/thoughts of
others in an effort to better
understand.
Presents difficult ideas and
Keeps all employees, upper
management and key
stakeholders informed of
progress on relevant projects
Uses professional judgment
and carefully crafts messages
by taking the listener’s
perspective into consideration
with the aim of establish clear
understanding.
Negotiates mutually
acceptable (win/win)
solutions with all parties
involved
Possesses excellent verbal
and written communication
skills and the ability to use
them in a multitude of
different situations.
Facilitates meetings to
ensure all are able to share
their ideas; promotes the
input of those more junior
Conveys passion,
commitment and enthusiasm
Networks and utilises
informal communication
methods to share information
and gain insight..
Title: COMMUNICATING EFFECTIVELY (universal)
Definition: Through both words and actions, demonstrates the ability to consistently foster an
environment of information sharing and open dialogue by demonstrating the ability to listen, explain,
persuade, convince and influence others by expressing views effectively at a level appropriate to the
intended audience.

13. The Human Edge Tel: 00 44 791 262 3990
Pushing Competencies Deeper
into the Organisation
• Improved recruitment and selection
• Improved assessment of potential
• Improved performance appraisal process
• Use of a common language when describing
effective performance
• Self assessment and development
• Basis of coaching and training initiatives
• Builds/supports internal organisational culture
• Supports the building of successful teams

14. The Human Edge Tel: 00 44 791 262 3990
Integrated HR Management
Systems
• Position profiles
• Interview questions
• Competencies linked
to goals
• Development
activities linked to
competencies
Workforce
Planning
Selection
Performance
Management
Compensation
Career
Development
Training
Succession
Planning
Leadership
Development
• Pay increase based on
competency development
• Recognition for demonstrating
competencies
• Career bands based on
competencies
• Competency
assessment tools
• Organization gap analysis
• Leadership
competency
profiles
• Planning for future
leadership needs
Competencies
• Competencies as
roadmap for career
development

15. The Human Edge Tel: 00 44 791 262 3990
Does it pay to integrate management systems around competencies?
Communicate valued behaviors
“Raise the bar” of the
competency level of all employees
Reinforce new values while continuing
to support achievement of business objectives Close skill gaps
Positive effect No effect Negative effect Don't know/too early to tell
Source: Hewitt Associates’ Study “The Role of Competencies in an Integrated HR Strategy” ACA Journal, Summer 1996)
Impact of Competencies on
Business Success

16. The Human Edge Tel: 00 44 791 262 3990
Impact of Competencies on
Business Success
Support superior performance in roles/units
that have a critical impact on organization success
Focus people on total quality/
customer-centered behaviors
Provide an integrating vehicle
for human resources
Positive effect No effect Negative effect Don't know/too early to tell

17. The Human Edge Tel: 00 44 791 262 3990
What Is the ROI From
Using a Competency Strategy?
Industry ProductivityTurnover
RetailSales +19% -50%
WholesaleSales +16% -50%
ComputerSalesTrainees NA -90%
CosmeticSales +33% -63%
RetailTelemarketing +24% -99%
FinancialServices +24% NA
AverageChange +23% -69%
Impact of competency-based selection process on
productivity and turnover.
* Source: “ROI of Competency-Based Strategies” by Richard J. Mirabile, Handbook of Business Strategy

18. The Human Edge Tel: 00 44 791 262 3990
Different Competency Models
for Different Strategies
•Examples
Product Leadership
• Innovation
• Flexibility
• Conceptual Thinking
• Continuous Improvement
• Technical Expertise
Customer Intimacy
• Relationship Building
• Interpersonal Skills
• Partnering
• Negotiation
• Organizational Savvy
Operational Excellence
• Analytical Thinking
• Continuous Improvement
• Attention to Detail
• Teamwork
• Resourcefulness

19. The Human Edge Tel: 00 44 791 262 3990
Different Implementation Models
• Progression based on Capability
• Progression based on Role
• Broad level Definitions
Each have their strengths and applications

20. The Human Edge Tel: 00 44 791 262 3990
Summary
• Competency Models help an organisation
to:
▫ Articulate what “Great Performance” looks like
▫ Provides a fair and objective method of
evaluation
▫ Provides a framework for all HR initiatives
from Recruitment and Selection through to
Succession Planning and Leadership
Development
▫ Ensure their people live their values whilst

21. ©The Human EdgeThe Human Edge Tel: 00 44 791 262 3990
Thank You!
For taking the time to read
this document – if you want to
meet us to discuss further please
call us soon.