What is a competency framework and how to develop one?

As a recruiter, you will always try to get the best candidate for your team. However, finding the right candidate is not about matching CVs to job descriptions and ticking the right boxes. It is the ability to understand what skills, behaviors, and attributes at a deeper level would result in successful performance within a particular role or organization.

That’s where the competency framework comes into play.

In other words, the competency framework is a structured way of describing essential competence synonymous with success in any given role. This allows talent to be linked to your business’s core objectives, making recruitment more strategic and effective.

Let us first take you through what a competency framework is, where the value lies, and how you would construct one for your organization.

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What is a competency framework?

A competency framework is, at the most basic level, a modeled structured set of competencies—skills, behaviors, and attributes required for good job performance. In simple terms, it is a blueprint or roadmap to succeed in any role taken in the organization.

A typical competency framework would be:

Competencies: Fundamental abilities and behaviors that are needed.

Proficiency levels: The skill level required is basic, intermediate, or advanced.

Performance Examples: Examples of practice demonstrating competency at various levels.

It is not just a list of competencies but an integrated framework encompassing technical competencies—data analysis, programming, and soft skills that constitute an employee. Areas of assessment include communication or leadership. The idea is to provide a rounded view of what constitutes success in a professional’s role.

Components of a competency framework 

Developing a good competency framework requires focusing on only a few key components. Let’s break them down.

1. Distinctive competencies

These basic skills and behaviors are required for excellence in several organizational roles. Core competencies show the values and culture of the company.

2. Core competencies

These are competencies that cover specific jobs or departments. For one to consider a marketing position, for example, certain competencies required would be data analysis, creativity, or project management. Core competencies could be different depending on the department or role.

For example, some common core competencies that most organizations may have could be communication, teamwork, and problem-solving.

3. Leadership competencies

Other competencies may relate to leadership or management levels, emphasizing decision-making, strategic perspective, and people management. Leadership competencies are necessary for positions requiring employees to lead teams or entities that steer the direction of a company.

4. Behavioral Indicators 

Each competency in your framework will exemplify what exemplary behavior might look and feel like at different levels of expertise.

For the competency “teamwork,” it might look something like this: novice-“attends team meetings and contributes ideas”; expert-“leads cross-functional teams and resolves conflicts.”

Advantages of a competency framework

According to a report by the Harvard Business Review, organizations that implement competency frameworks see a 20% improvement in employee performance and a 30% reduction in hiring costs.

So first, let’s touch on exactly why the competency framework is so important and why this is such an important instrument in the context of recruitment.

1. It standardizes the recruitment process

Competency frameworks provide a consistent language for evaluating candidates. You can assess all applicants based on the same criteria, making the process more objective.

2. It improves employee performance

Knowing what competencies will drive success, employees can work to develop the capabilities that will make them successful. This typically creates a snowball effect toward higher performance, more engagement, and lower turnover.

3. It aligns talent with business outcomes

Competency frameworks let you spell out the competencies, skills and behaviors that make a real difference to your business’s bottom line. Give attention to such competencies, and rest assured that your talent is geared toward realizing company-wide objectives.

4. It supports learning and growth

A clear competency framework can be used to design particular training an development programs to close the skill gaps. With this, you can ensure more focused and effective employee development.

5. Allows succession planning

Next, this competency framework can help identify high-potential employees and develop them for leadership positions. You might apply the competencies in assessing development readiness for promotion or leadership transition.

How to develop a competency framework

Now, with a little understanding of what a competency framework is and its essence to organizations, let’s jump to how to create one.

The following are steps to develop a competent competency framework in an organization.

Step 1: Define objectives clearly

Before developing a competency framework, determining the set goals must identify what the process will be.

Ask yourself:

• What problems do you attempt to solve with this framework? Example: inconsistent hiring, unclear performance metrics
• What are the major functions or activities that need to be depicted?
• How does the framework support the strategic goals of your organization?

A clear set of targets drives the entire process of development.

Step 2: Identification of key competencies

After setting the objectives, the key competencies for each position or department have to be identified.

This is how it is done:

• Begin by reviewing all job descriptions and determining what qualities and qualifications are called for in each position.
• Meetings and discussions with managers, team leads, and even employees will help point out the competencies one should master at work.
• Compare your roles with key industrial benchmarks to ensure key competencies are not missed.

Remember that core competencies vary from functional and leadership competencies and are, therefore, all-encompassing to help numerous levels of your organization.

Step 3: Determine the level of competency

Once each competency has been identified, the next procedure is to define different levels of competence for each to indicate at what stage an employee or candidate may stand in his or her career.

Common levels of proficiency:

• Basic: Limited or no experience; requires supervision.
• Intermediate: Experienced and has only the independence to work on advice at that level.
• Advanced: Proficient and can demonstrate expertise, teach others, and solve complex problems.
• Expert: Recognized authority, able to teach others and lead strategic initiatives.

These proficiency levels should be complemented by behavioral indicators showing performance at each stage.

Step 4: Development of behavioral indicators

Behavioral indicators are examples of how each competency looks in behavior. They indicate whether a person is meeting expectations of a particular proficiency level.

For example, a probable behavioral indicator may look like competence, for instance, ‘problem-solving’ on the basic level: ‘identifies and suggests likely solutions to routine problems.’ On an advanced level, this could be: ‘develops and implements solutions for complex, cross-functional issues.’

It’s of utmost importance, as this is an indicative way of telling the recruiters and managers if the candidate or employee shows the desired competencies.

Step 5: Model fit checking

After developing the competency framework, there comes a time to test and validate it. Here is how one can do that:

Piloting tests the framework against a small number of roles or departments to see if it reflects competencies one has in mind that drive success.

Share the model with managers, employees, and other key stakeholder groups to seek their input on whether competencies and proficiency levels accurately portray their experience and expectations.

Apply this feedback to the framework through revisions to ensure everything is mapped correctly.

This fits in because validation ensures that the model will be relevant and work for the individuals who implement it.

Step 6: Communication and implementation

With validation, the competency framework can now be rolled out for an organization.

However, that implementation is more than just a paper matter. Rather, it involves everybody’s understanding of what to do with it.

The mode in which the framework will be applied in recruitment, performance management, and development shall be trained to all recruiters and managers.

Inform the employees about the competencies that need to be developed. Such an articulated communication will assist them in realizing how much such a framework furthers their growth.

Make the conversation ongoing so that this framework becomes a living document instead of a one-time project.

Step 7: Periodic review and updating of competency framework 

Competency frameworks are never static. They constantly change as your organization does. With new competencies, organizations can attain different levels of success. And that is why competency frameworks need to be scrutinized periodically.

Here is what you can do:

• Make a review schedule for appraisals, maybe yearly or half-yearly. 
• Make sure the competency framework has been reworked if there are new business goals. 
• Facilitators should obtain feedback from recruiting staff, managers, and employees on the relevance of the framework and its utility. 

This is a continuous process that helps to keep your competence framework up-to-date and working for its purpose.

Example of a competency framework

Let’s walk through a simple example of a competency framework for a Marketing Manager role to bring the concept to work. 

Strategic planning

To be able to manage planning in the area of marketing.

• Proficiency level: From very basic strategy comprehension to guiding enterprise-wide marketing efforts.
• Behavioral Indicator: Develops long-term plans consistent with market and business direction.

Digital marketing skills

Channels of marketing through digital media, including SEO, social media, and PPC.

• Proficiency level: Contribute to developing digital campaigns and building a cross-channel digital strategy.
• Competency: Plan and execute relevant high-impact digital marketing initiatives for successful results.

Leadership and team development

The marketing manager ‘motivates’ his team members to achieve organization-based goals. 

• Proficiency level:  This varies from small workgroup headship to great division leadership. 
• Behavioral Indicator: Encourages team members; clarifies goals and produces desired outcomes.

Such a framework explains role expectations, supports performance appraisal, and guides career development to help a marketing manager keep in tune with organizational objectives.

Applications of competency frameworks

Competency-based frameworks offer multi-dimensional utilities to support a wide array of HR functions, and hence, they can add immense value for recruiters and organizations. Some applications include:

1. Hiring and selection

The first practical area of using the competency framework is recruitment. You can craft effective job descriptions and interview questions by specifying what competencies are required for each particular role.

Besides, one need not base the search solely on qualifications; recruiters can screen out most candidates by those particular skills, behaviors, and attributes targeted through the framework.

According to a study by HBR, companies that use structured competency assessments are 25% more likely to outperform their competitors. You can also use talent assessment platforms like Testlify to assess candidates for these skills.

The competency framework may single out communication, empathy, and problem-solving as the most relevant competencies for a customer service position. This allows the interviewer to prepare appropriate questions and assessments matching these competencies to ensure a more objective hiring process.

2. Performance management

Competency frameworks are also crucial in performance appraisals. Managers will use the framework to set expectations and evaluate employees against predefined competencies.

This ensures consistency in the appraisal and makes the process very transparent for the employees because they know what is expected of them.

For example, an employee who excels in teamwork but struggles with leadership can be evaluated based on the specific behavioral indicators for each competency. This allows managers to provide targeted feedback and support for improvement.

3. Learning and development

A competency framework acts as a roadmap for employee development. Defining what needs to be improved, either skills or behaviors, will support the organization in developing individual learning and development plans. Employees will focus on these competencies for their organizational role and career development.

For example, a very good example may be that if leadership is a key competency for growth, then the employee may be sent to sessions on leadership training or can pursue leadership in projects to learn this skill.

4. Career pathing and succession planning

A survey by Deloitte revealed that 68% of companies using competency frameworks reported improved succession planning and leadership development, indicating that these frameworks play a significant role in nurturing future leaders.

This forms the basis for career mapping since one can easily perceive the competencies required to move from one level to another, and this means it would be easy for the employees to set out career goals.

An organization could also use the framework to screen high potentials, take leadership positions, and plan succession.

For example, a competency framework would indicate that to move into an executive position from a middle management level, employees will demonstrate superior competencies in strategic thinking, decision-making, and people management.

5. Organizational development and change management

A competency framework guides and directs employees in times of change, such as growth, restructuring, or new strategic initiatives. It also links the skills of the employees to the new direction that the company takes. This ensures that the workforce is properly competent for organizational success.

For example, the new competencies that can be created for digitization refer to the adoption and dispersion of technology innovation. Updating the competency framework will enable direct training programs related to re-competency building.

Wrap up

A competency framework is an advantage in today’s very competitive job scenario. It helps hire the right talent and grows and develops even more employees on its way to success within the company. By developing a well-structured competency framework, you’ll create a clear roadmap for success that benefits everyone, from candidates to your entire organization. 

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