The Benefits of a Competency Framework in the Workplace

Posted on Jan 03, 2024 at 08:01 PM

Generally, frameworks help to develop the work of companies. But there are a large number of useful ones for work! This makes us wonder why using the competency framework, in particular, is recommended to achieve more progress and prosperity in small, large, and medium companies in light of the intensely competitive environment. Well, this is what we will learn about in today's article.

What is a Competency Framework?

A competency framework is one of the effective professional frameworks used by economic and business firms. It helps identify the competencies an employee should possess when performing a particular role.

In another definition, it is a matrix containing the skills, behaviours, and knowledge that employees need to apply. To effectively perform a job, raise efficiency, advance, and excel at work.

Recently, interest in the competency framework has increased due to its positive occupational characteristics. It serves as a standard for improving and evaluating the performance of employees in terms of assistance and determination of their development and learning requirements. Hence, the ability to achieve better results and its various benefits in management.

The Work Competence Framework helps establish a high-level, clear, and transparent approach for education, assessment, recruitment, performance review, and development plans. The framework can minimise the personal judgment of employees and identify the size and amount of areas for improvement within the organisation.

One subtle distinction to be aware of here is the difference between the terms ‘competence’ and ‘competency’. Competence describes the ability to do something successfully or efficiently. Competency describes the skills, knowledge, and behaviours needed to perform a work function or task successfully.

For example, a dentist who treats a patient may be described as competent. However, the competencies required as a dentist also include technical skills, communication, teamwork, problem-solving, and empathy.

So, the dental nurse must be equally qualified to be effective in their role, but it only requires a few competencies. Hence, there is a need for competency frameworks, as they identify and quantify the competencies employees need for their specific roles within an organisation.

What should be included when designing a competency framework?

In creating a competency framework, care should be taken to include only measurable components. It's essential to restrict the number and complexity of competencies, typically aiming for no more than 12 for any particular role (preferably fewer) and arranging them in separate groups to make the framework more accessible for users. 

The framework should contain definitions and examples for each competency, mainly when dealing with different performance levels for expected behaviours and knowledge. It should also outline unacceptable behaviours - competencies that are negative indicators of competency.

A critical aspect of framework competency is the degree of detail of the framework's contents. Suppose a framework is too broad (containing information and detail). In that case, it will fail to provide adequate guidance either for employees as to what is expected of them or to managers who have to assess their staff against these terms. 

On the other hand, if the framework is too detailed, the company becomes hostage to excessively bureaucratic and time-consuming processes and may lose its credibility.

The competency framework may include different types:

• Core Competencies: They support the values ​​and mission of the organisation. They relate to all functions within the organisation.

• Common Competencies: These are only important for specific jobs. For example, in management roles, the employee must have team leadership competencies and strategic awareness.

• Technical competencies: related to specific roles within the organisation. They define the expertise or technical skills required for their performance and assess the depth and breadth of that experience or knowledge.

• Leadership competencies: Competencies that contribute to leadership performance. By using a competency-based approach to leadership, organisations can better identify and develop their next generation of leaders. 

• Meta' competencies - relate to the recruitment of high-potential individuals whom the organisation would like to promote and develop,

When preparing a framework, it is essential to consider the legal background. This ensures that none of the competencies discriminates against any particular group of employees within the organisation.

What are the benefits of a competency framework in the workplace?

Undoubtedly, the competencies benefit both employers and employees alike. For employees, a well-defined competency framework gives them a clear understanding of the expectations and what is required of them in their roles. This not only helps them understand the behaviours and skills that need to be exhibited, but it also helps them understand their weaknesses and fill in the gaps, which will lead to more significant development in their business.

In addition, the competency framework provides a consistent approach to communicating with employees and defining job descriptions. Accordingly, it eliminates the risk of misunderstanding or misinterpretation.

When used as part of an appraisal, skill gaps can be identified and addressed, strengths can be further improved, and career progression requirements can be defined. It also empowers employees to self-assess their performance in their current role and identify what is required for the ‘next step up’.

As for employers, these frameworks enable them to obtain many advantages. The competency framework will help align behaviours and skills with the organisation's mission, culture, and goals. It will help consistency in recruitment, development, learning, management, and planning and increase the efficiency of HR.

A competency framework also helps business owners minimise objectivity while evaluating employees and will create a structure for constructive feedback. In addition, it will also allow managers to take a much more active role in learning and development, as they will be able to see where their team members have gaps and engage them with the training they need to strengthen their skills.

How do we implement the competency framework effectively?

Designing an appropriate competency framework is not a solution to prosperity and progress. Many managers and business owners find it challenging to use and apply these frameworks to achieve their and, therefore, the organisation’s goals.

The most common reason is that people don't see the framework's benefit and need to receive adequate Training Competency Framework. The problem may be with describing the framework because it contains various concepts, making them unwieldy.

These steps will help assess whether a competency framework fits the purpose.

• Identify the purpose: 

Find out if employees understand the purpose of the competency framework. If they don’t know how behaviours contribute to personal and organisational success, there’s little point in updating or developing the framework.

• Identify key themes:

Even if the purpose is clear, it must also support the organisation's aspirations, values, and goals. As everyone must work together to achieve this, some individual efforts are likely to be divergent.

• Get conditions right:

The organisation’s procedures must support the framework, and the culture, resourcing, and management structures must also be supportive. If working conditions and behaviours are contradictory, one must be changed.

• Tackle the root cause:

Underlying characteristics (such as knowledge, skills, and attitudes) influence behaviour. One underdeveloped characteristic, such as communication skills, can affect some other skills. Managers who need help understanding this may focus on improving the skill without tackling the root cause.

• Keep it simple:

Using a competency framework is about two things: language and structure. The framework should be simple, not complicated, long, or detailed. The language must be understandable to the team that will use it.

• Training:

Like any tool, when developing or updating the framework, you must ensure that everyone using it is trained. If users need to learn how to use it, they can apply it.

In Conclusion,

A clear and transparent competency framework will provide an effective way to assess, monitor and grow the knowledge and skills of the organisation's employees. It will enable organisations to link their goals to the individual performance of their employees. It will also help managers make informed decisions about development, management, recruitment, and learning.