Article
6 min read
Author
Lorelei Trisca
Published
May 21, 2024
Last Update
June 24, 2024
Table of Contents
Step 1: Define the purpose of creating the competency model
Step 2: Pick a relevant system for your organization
Step 3: Conduct extensive research
Step 4: Compile and organize your research data
Step 5: Compile competency profiles in your draft competency model
Step 6: Define your implementation plan
Step 7: Develop a review mechanism to keep the model updated and relevant
Competency model examples
Deel Engage: Your one-stop-shop for everything competency
Competency models, or competency frameworks, are essential tools for HR professionals. These powerful tools map out the skills, knowledge, and behaviors required for success in a role.
Follow this comprehensive step-by-step guide to create a well-structured, and future-proof competency model. You will find examples and free competency model templates to assist you in your process.
Before you start creating a competency model, ask yourself:
The purpose of your model will determine what information and specific competencies you should include in the model.
The goal of competency models can be:
Having no clear goal in mind and rolling out a company-wide competency model might result in zero usage, time waste, and a loss of trust in the framework or even HR practices among employees and managers.
Your system will define the types and the amount of competencies, the levels for each, and whether you distinguish between leadership and individual contributor competencies.
Depending on your goal, company size, and company structure, decide to structure the model around:
You can also mix and match the various structures. For example, you can combine core competencies shared across the entire organization with role-specific technical and functional competencies. Use the different types of competencies as building blocks for your model.
Deel Engage customer, reev, used this approach. Their People and Culture team started by defining a library of 30 core competencies linked to their organizational values. Then, team leads had to select seven relevant core competencies from the library and add three new job-specific competencies.
At the end of this process, they defined 48 career paths and 152 competencies with individual contributor and leadership tracks, Deel Engage helping them save four months of work.
The total amount of competencies will largely depend on the goals of your competency model within the talent management processes. However, as a general rule of thumb, we recommend keeping the model to a maximum of 12 competencies for individual contributors and 15 for leaders.
Note: You can adjust the competency distribution based on the organization's specific needs and structure.
For instance, you might allocate more technical competencies if your organization is highly technical. Similarly, if you are building a leadership pipeline or have many managerial roles, you should emphasize leadership competencies more.
Consider how many levels you want to include in your model. The more levels, the easier it will be to get more nuanced reviews. However, defining every single level will require more effort to ensure that each level is distinctive and clearly defined.
Here are some options you can use for leveling competencies:
5-level competency | mastery leveling | framework examples |
---|---|---|
1. Basic | 1. Foundational | 1. Not shown |
2. Intermediate | 2. Experienced | 2. Inconstant |
3. Competent | 3. Advanced | 3. Solid |
4. Advanced | 4. Inspirational | 4. High |
5. Expert | 5. Transformational | 5. Role model |
3-level framework:
6-level framework:
Tip: Focus on the competencies critical to organizational success. Limit the number of proficiency levels to simplify the model.
Once you have a rough idea of how the competency model should be structured, you can collect information to guide you when selecting and defining competencies.
Even if your human resources team has never worked with competencies before, there will still be a good amount of relevant information you can collect from documents such as:
Use observation as a data collection tool for this stage. Make notes about the common competencies you notice in top employees and influential leaders in your organization.
You can turn to online research:
You can also browse our comprehensive templates:
HR professionals cannot have in-depth knowledge about every department and project in their organizations. As a result, talking to internal subject matter experts is vital for creating relevant and comprehensive competency frameworks.
Select one or more of the following research methods for collecting insights from SMEs.
Interviews and focus groups: Have one-on-one interviews and focus groups with subject matter experts across departments and ask them about their work, responsibilities, and most needed skills and knowledge.
Tip: If you create a company-wide model, interview people with varied skills, seniority levels, and roles. For leveling, ask team leads what they expect from an entry-level employee vs. a senior employee.
Executives can provide information on core competencies that reflect the organization's values, philosophy, and strategic goals.
Managers and high-performers from relevant business departments can highlight the skills, knowledge, and behaviors necessary for success in those roles.
Surveys and questionnaires: A survey is one of the easiest ways to collect information. Questionnaires also empower you to have more employees give input than an interview, making quantifying this data easier.
Behavioral Event Interviewing (BEI): Conduct structured interviews to uncover behaviors that distinguish high performers.
Gain clarity on roles and responsibilities
Understand performance key performance indicators (KPIs)
Identify the skills and knowledge that make employees successful in their roles
Identify behavioral competencies
Understand future trends that could shape the must-have competencies
You will collect extensive information while researching, so the more structured you are, the more accessible and usable this data will be for the next steps.
Set up a digital folder structure to store all collected information. Use cloud-based tools like Google Drive, SharePoint, or dedicated HR software.
Tip: Organize folders by type of information (e.g., Business plans, Job descriptions, Surveys, Interviews).
For each category, create summary documents that distill the main points. Use bullet points, tables, and charts to make the information easily digestible.
Once you start compiling your data, break down the information into key categories such as technical skills, soft skills, behavioral competencies, and industry trends.
Highlight any recurring themes or critical competencies that appear across multiple sources.
Rank competencies based on their importance and frequency of mention across sources. Use a scoring system or a priority matrix to help with ranking.
For example, if most top performers acknowledge having "emotional intelligence," you can mark it as a core competency for your organization.
Define the role-specific competencies for the various departments, teams, and roles.
Identify the most relevant role-specific competencies by consolidating information from job descriptions, SME interviews, and performance data.
A more straightforward way to approach this task is to start with job descriptions for each role and map competencies to tasks. However, you must ensure they are updated and reflect current roles.
You can use this competency mapping template for the task.
Beware that competency models can become overly complex, with too many competencies and levels, making them difficult to implement and use effectively. So, ensure that each competency is essential and distinct.
Once you have identified all relevant competencies for your organization, it’s time to develop competency definitions. Ensure that each competency definition includes specific, measurable components.
For example, you can define written communication as “the ability to convey ideas, information, and messages effectively through written language. It includes clarity, coherence, conciseness, and correctness in written documents, emails, reports, and other forms of written communication.”
Finally, identify specific behaviors and actions that demonstrate each competency in practice. Define different levels of mastery for each competency to differentiate between novice, intermediate, and expert levels.
Clearly outline the behaviors and skills associated with each level to provide clarity to employees and evaluators.
Tip: Focus on observable behaviors rather than abstract qualities or characteristics to ensure that assessments are objective and actionable.
For example, a basic mastery of written communication would imply writing simple and clear messages with basic grammar and spelling accuracy. In contrast, an expert would set standards for written communication across the organization, ensure consistency and quality in all written materials, and develop guidelines for effective written communication practices.
This final step ensures reviewers have clear benchmarks and objective and measurable evaluation criteria.
Use a template to ensure consistency across profiles. Include sections for primary responsibilities, technical skills, soft skills, and behavioral competencies.
Follow this checklist when defining your final list of competencies for each profile:
Use a competency matrix model to map out the required competencies against different job roles within your organization.
You can visually display which competencies are necessary for each role and the proficiency levels required.
Tip: Use software tools like Excel or specialized HR tools to create interactive and easily updatable matrices.
Develop an implementation plan that outlines the steps for rolling out the competency framework, including training for managers and employees.
Include a timeline, responsible parties, and specific actions for each step.
Tip: Allocate sufficient resources, including time, budget, and personnel, to support the full rollout.
Employees and managers may resist adopting a new competency model because they are comfortable with existing processes or fear increased scrutiny. Prevent and address resistance with change management strategies.
Develop comprehensive communication and training sessions to educate all stakeholders about the competency model.
To reach everyone, use multiple communication channels, such as emails, intranet posts, town hall meetings, and team briefings.
Ensure managers understand how to use the model in performance evaluations, development planning, workforce planning, and other relevant HR processes.
Offer resources such as guides, FAQs, and example scenarios to help employees and managers understand the new system. Develop a checklist or toolkit for managers to use during performance reviews and development planning.
Ensure all employees know the competency framework, its purpose, and how it will be used. Use microlessons and quizzes to ensure everyone understands the new process.
Select a few departments for initial implementation. Standardize processes and provide clear guidelines to ensure consistent application across all departments.
Establish a system for collecting feedback from managers and employees about the competency framework.
Collect feedback on the pilot rollout process:
Based on the feedback received by all the stakeholders, make the necessary changes. For example:
It’s time to implement your competency framework organization-wide.
Be ready to answer questions and offer additional guidance for those struggling to adjust to the new system. Make sure your internal HR policies reference the new competency model.
Your system's rollout is not a race. Take the time to ensure clarity at each step for managers and employees.
According to our internal research, building a comprehensive competency framework can take up to 16 months.
Use Deel Engage to shorten your process. Our learning scientists already did the research for you with comprehensive templates and manager workshops.
The rapidly changing business environment can quickly render competency models obsolete. Be prepared to adjust the framework based on feedback and changing organizational needs.
Regularly review and update the competency model to ensure it remains relevant. Use surveys, focus groups, and one-on-one meetings to gather feedback and identify areas for improvement. Involve business leaders in ongoing assessment and refinement to align with evolving business strategies and industry trends.
One of the most important aspects of creating a competency model is finding examples of how different organizations use it.
Checking complete frameworks will help you better understand how to structure your competency model, how many competencies to include, how to define them, etc.
Here are ten examples of competency models and resources that you can use as inspiration:
For more examples of competency models with commentary and best practices, read our complimentary resource: Competency Model Examples to Clarify Expectations and Growth for Your Employees.
Implementing a well-designed competency model is crucial for fostering a skilled workforce and achieving long-term organizational success.
However, developing competency models, especially a comprehensive company-wide model, can take up to 16 months.
Deel Engage will help you establish clear expectations and a path forward for everyone in your organization using competency models and career frameworks. You will get:
Talk to our experts about creating a custom competency model for your organization.
Investing in our employees and their development is critical for us. We use Deel Engage’s smart tech to give employees a transparent outlook on their career progression, run bi-yearly feedback reviews, and train people globally.
—Barbara Imm,
Director of People and Culture, roadsurfer
Yes, you can customize a competency framework model for different industries. Customization involves tailoring the competencies to reflect the specific skills, behaviors, and knowledge required in a particular industry. With customization, you ensure that the framework is relevant and effectively addresses your industry's unique challenges and demands, thereby improving the performance and development of employees.
In the healthcare industry, a competency framework might include specific competencies such as patient care, medical knowledge, and clinical skills, which are critical for roles like nurses and doctors. In contrast, a competency framework for the technology sector might focus on competencies like software development, cybersecurity, and data analysis, which are essential for roles like software engineers and IT specialists. By customizing the framework to the industry, organizations can ensure employees have the right skills to excel.
The competency pyramid model is a hierarchical representation of competencies, typically structured in layers to depict the progression from foundational to advanced skills and behaviors. The pyramid's base includes fundamental competencies that all employees must possess, while the higher levels represent more specialized and advanced competencies. This model helps organizations identify and develop the necessary skills at different levels of employee development.
The core competency model of an organization identifies the key skills, behaviors, and attributes that are essential for the organization's success and competitive advantage. These core competencies usually align with the organization's mission, values, and strategic objectives. They serve as a foundation for various HR processes, including recruitment, training, and performance management, ensuring that all employees contribute to the organization's goals.
The competency matrix model is a tool that maps out the required competencies against different job roles or individuals within an organization. It visually displays which competencies are necessary for each role and the proficiency levels required. This model helps identify skill gaps, plan training and development initiatives, and ensure that the workforce has the capabilities to meet organizational goals.
A competency model in performance appraisal is a structured framework that defines the specific skills, behaviors, and attributes required for effective performance in a role. It serves as a basis for evaluating employee performance, identifying strengths and areas for improvement, and guiding professional development. The model ensures that appraisals are consistent, objective, and aligned with organizational goals.
Competencies should be written in a clear, specific, and actionable manner. Follow these guidelines:
Example: Communication skills
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