A competency framework is a standardized structure that defines the necessary skills and knowledge employees need to meet business objectives, distinguishing between individual and organizational competencies. The document outlines the steps to develop a competency framework, including setting goals, gathering data, creating the framework, and implementing it while ensuring regular revisions. Without such a framework, organizations may face challenges like unclear role expectations, poor performance, and complicated HR activities.

1. Competency
Framework
How to develop one

2. What is competence?
Competence is defined as having the necessary skills,
knowledge or ability to successfully do something. In the
workforce, it’s a measure of your proven skills and knowledge.

3. What is a competency framework?
A competency framework is a standardised structure used to
define competencies that are necessary for employees to
have in order to meet business objectives.

4. Individual vs Organisational
Individual competencies are role-based competencies that
pertain to specific job roles or work content. Essentially, it
describes how well one can perform their job.
Organisational competencies are the ‘sum’ of individual
competencies. These competencies highlight personal
performance and professional development opportunities for
your employees.

5. How do frameworks help?
By:
• Measuring competencies to assist with onboarding, training,
recruitment and hiring
• Supporting business growth, succession and scaling
• Ensuring employee skills match role requirements
• Highlighting areas for improvement and training
opportunities.

6. Developing A
Competency
Framework

8. Step 1: Outline Goals
Define the competency framework’s purpose. This can be
done by outlining relevant competencies, communicating the
need for the framework to employees and involving
employees in the process.

9. Step 2: Gather Data
Gather all the necessary information that will be used to
measure success. This includes conducting a
comprehensive job analysis by observing employees, issuing
surveys and questionnaires, and conducting interviews.

10. Step 3: Create Framework
Organise the competencies into groups and refine that list to
a manageable number.
The competencies should be named and defined clearly.
Consider dividing into core competencies (align with an
organisation’s strategic intent) and functional competencies
(relate to an employee’s specific field of work).

11. Step 4: Implement & Revise
Once the framework is implemented, you want to reward
high performance and offer training to fill gaps. This ensures
the framework is actually useful for the organisation. It’s also
critical to regularly revise the framework and align it with
changing industry standards and technological
advancements.

12. The Cost Of Not
Using One

13. Lack of career advancement
Without a competency framework in place, identifying the
skills and knowledge gaps that employees need to
succeed in their roles can be difficult. This leads to poor
performance and a lack of career advancement
opportunities.

14. Unclear role expectations
A competency framework outlines the expectations for
skills, knowledge and behaviours in each job role. Without
a clear framework in place, employees may not know how
they should develop their skills, leading to inefficiencies
and confusion.

15. Complicated HR activities
Competency frameworks provide valuable information for
HR professionals, allowing them to identify the
development needs of employees. Without a competency
framework in place, this process becomes needlessly
complicated, time-consuming and expensive.

16. You can learn more about this
topic by checking out the full
article:
https://acornlms.com/enterprise-learning-
management/competency-framework