Competencies are qualities and/or characteristics that people possess. At the time of hiring, during recruitment, the HR team uses these competencies to identify whether the candidate has the right profile for the job. These characteristics can be physical, mental or a set of skills that can be included as necessary competencies to carry out a job.
This type of performance evaluation has been used since the 1970s, after psychologists discovered that traditional tests, such as knowledge-based tests, did not accurately predict success in a given role. Over time, competency processes have become an HR practice, and are now part of most employers' assessment procedures.
What is the difference between competence and skills?
Although similar, competencies are not skills! The big difference is that skills are learned, while competencies are inherent qualities that an individual possesses. An example of a skill is the ability to do something, while competencies are behaviors. Specific competencies provide managers and leaders with clear profile references, which can be used in interviews, tests and especially in performance appraisals.
Different types of skills
Competencies generally fall into three categories:
- Behavioral competencies - are softer skills that are directly involved in an employee's performance;
- Technical skills - are linked to the use of processes and/or any skills required for a job function;
- Leadership Competencies - qualities that make up a good leader and that can be transformed into measurable behaviors.
Knowing that skills are not the same as competencies, it is possible that within a company, an employee may have the same basic competencies as another employee, but have different skills. This type of behavior is called "borderline competencies".
10 main types of skills
1. teamwork: In times of hybrid offices, it is very important that people are in complete harmony and above all in organization with their team and activities;
2. Responsibility: People who take responsibility feel more comfortable making decisions or taking responsibility for their work. At senior levels this responsibility is greater, even for basic activities;
3. Alignment with the business: Employees who understand the real significance of their role for a company's goals know exactly what their contribution to the team and the result is;
4. Making decisions: Employees who make decisions are likely to take calculated risks in order to succeed, whether they are making decisions about processes or managing people;
5. Communication: Having an excellent ability to convey information in a confident, professional and easy-to-understand manner, regardless of level and/or position;
6. Leadership: Leadership skills are extremely important when measuring a management position. Leadership involves skills such as delegating and setting deadlines, but it also involves the leadership style of that employee.
7. Reliability and ethics: A person who is reliable and in line with the company's ethics will build better relationships with employees and clients, as they are more honest when asked about difficult situations or problems that may arise;
8. Results-oriented: If an employee is results-oriented, they focus on their goals and understand the steps needed to achieve them;
9. Problem solver: People who are calm when a problem arises are better able to identify possible solution opportunities. For some jobs, problem-solving is a fundamental aspect, such as management and/or customer service;
10. organizational skills: In any business, being organized is essential for greater efficiency and achieving results.
Main types of technical skills
Technical competencies are defined to become increasingly important in the processes of sector transfers, salary increases, promotions, hiring and firing. We've listed some of them below:
- Creative thinking: Developing innovative solutions and creative thinking are important in a variety of sectors. It can be related to using mind mapping to come up with ideas or looking at something from a different perspective;
- Technical skills: IdentifIdentifies how the employee uses systems and technology to improve their work process;
- Data management: Important for monitoring and understanding how to use data to improve processes and operations, and can present improvements to managers and staff;
- Coaching and mentoring: Understanding how company policies work and how to comply with them is an important skill for maintaining greater alignment with the business and mentoring possibilities with other employees;
How does competency-based performance evaluation work?
Traditionally, companies have focused only on knowledge and skills, believing that behaviors could be learned or modified through effective management. However, the use of competencies in the evaluation process means that leadership and human resources can delve deeper to obtain a complete profile of the employee. Competency-based performance management measures the performance of employees based on their results since the last competency assessment. In this type of process, the employee is measured against their own previous performance and does not necessarily compete with other employees.
A performance evaluation performance appraisal also involves rewarding people who meet the competency requirements; generally these rewards are used in cases where there are improvements (in one or more competencies) or they can be given to employees who have shown the greatest results. These results obtained in evaluation cycles serve to improve people management and adjust an employee's actions over a period of time, understanding which additional competencies need to be developed for better results.
