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Competencies vs Skills: Why the Distinction Matters

Written by Salary.com Staff

December 13, 2023

23090638MP Competencies vs Skills: Why the Distinction Matters hro

Competencies and skills are the foundation of career growth. Most people confuse competencies and skills, but distinct differences are essential to grasp and advance one’s career.

Competencies refer to the behaviors, attitudes, and motivations that enable someone to perform a task effectively. Skills are the actual capabilities and technical knowledge required to execute a task. Both competencies and skills are needed to thrive at work, but competencies are what truly set the rock stars apart.

Keep reading to learn why competencies matter more than skills alone and how to develop key competencies to fast-track success.

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Defining Skills and Competencies

Skills are the abilities acquired through training or experience that allows performing specific tasks. For example, required skills for a manager include things such as:

  • Conducting performance reviews
  • Delegating responsibilities
  • Managing budgets

Competencies encompass skills including behaviors and qualities that enable being effective in a role.

The competencies for a manager cover a much broader range, such as:

  1. Leadership: Ability to motivate and guide others toward a common goal. Qualities such as providing clear direction, empowering teams, and mentoring direct reports.
  2. Communication: Strong verbal and written communication skills. The ability to explain complex ideas clearly and concisely and actively listen to others.
  3. Problem-solving: Able to logically work through issues and challenges. Skilled at resourcefully finding solutions promptly.
  4. Adaptability: Willing and able to adjust to change. Can shift priorities and perspectives as needed to thrive in ambiguous or evolving circumstances.

Developing competencies is as important as having technical skills for career growth. Building up key competencies makes a well-rounded candidate, regardless of how much a job's specific skills changes over time. Work on developing both skills and abilities to succeed in a career.

Competencies vs Skills: Key Differences

Competencies and skills may sound similar, but they mean different things. Understanding their differences helps develop abilities and pursue the right career path. Here is a quick comparison of competencies vs skills:

Nature:

  • Skills are specific abilities or knowledge.
  • Competencies are a combination of skills, knowledge, and behaviors.
  • Skills are abilities and techniques learned from training, practice, and experience.
  • Competencies are the behaviors, attitudes, and motivations that enable job performance.

Application:

  • Skills are what one can do. They can be used across job roles.
  • Competencies are about how well one applies skills in various situations.

Scope:

  • Skills are narrower and more task-oriented. Examples: Writing, coding, data analysis.
  • Competencies are broader and relate to overall performance and capabilities. Examples: Creativity, adaptability, communication, and problem-solving.

Measurability:

  • Skills are easier to measure and assess directly.
  • Competencies are more challenging to measure because they involve multiple aspects of performance.

Understanding these differences help guide professional development. Develop both transferable skills and role-based competencies through experience. Remember the differences as you set goals for a chosen career path. Focusing on competencies will help one thrive in a desired role.

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Why the Distinction Between Competencies vs Skills Matters for Employees?

For employees, understanding the difference between skills and competencies matters because it impacts how to pursue career growth and advancement.

Career Planning

Focus on both skills and competencies when planning career path. Skills are job-specific talents such as problem-solving and communication. Competencies are general abilities applicable to multiple situations. Having multiple competencies makes you more adaptable and prepared for anything.

Performance Reviews

Bosses evaluate skills and competencies during reviews. Skills are the ability to perform tasks, while competencies use skills in different situations. Show strength in both. Give examples of applying competencies and using skills like communication or leadership in different situations.

Advancement Potential

When it comes for a promotion, competencies may play an even larger role than skills. Leadership is a combination of technical and soft skills. As you grow into more senior positions, focus on developing these skills to set yourself apart.

How Organizations Benefit from Identifying Competencies vs Skills

Identifying the difference between competencies and skills is also beneficial to the company.

Improved Recruiting and Hiring

Knowing the required skills and competencies for a job allows companies to hire people who fit the role perfectly. This enables them to locate the most suitable candidate who can perform the job efficiently. Employers seek those who learn and improve skills for company success.

Performance Improvement and Development

The skills and competency framework help the company identify the skills and competencies that need improvement. Companies can develop their employees' skills by offering training programs and mentoring from experienced people.

Strategic Planning

Identifying competencies and skills helps companies make informed decisions about their future needs. This aligns workforce with long-term goals, ensuring they have the right talent for upcoming projects or expansions.

Succession Planning

Knowing the skills and competencies for leadership roles helps prepare skilled employees for advancement. Businesses can train their promising employees and assign them roles that make the most of their strengths. This way, when important positions open, there are already skilled people who can step in and handle the tasks effectively.

Tips for Developing Your Skills and Competencies

Developing skills and competencies takes ongoing work and practice. Here are some tips to help strengthen both:

Identify skills gaps

The first step is recognizing which skills one lacks or needs to improve. Ask for feedback. Talk to a manager, mentor or co-workers. Track progress and evaluate areas of improvement.

Take online courses

Many free or low-cost courses are available on websites such as Coursera, Udemy, or LinkedIn Learning. Choose classes related to skills gaps and competencies to build. These courses allow independent learning and often provide hands-on exercises.

Practice regularly

The only way to truly develop skills and competencies is through consistent practice. Improve skills in communication, practice active listening, and give more presentations. Look for opportunities at work, in volunteering, or in other community groups to utilize and strengthen your skills.

Find a mentor

Get a mentor to guide and help you grow professionally. A mentor can provide advice, accountability, and connections to other helpful people. Remember, mentoring is a two-way street. Find ways to help the mentor as well.

Continuously evaluate your progress.

Developing skills and competencies is an ongoing process. Regularly revisit goals and track progress. Get additional feedback from others and adjust as needed. Celebrate big and small wins to stay motivated for continued growth and learning. Continuous effort and evaluation strengthen skills and competencies over time.

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Conclusion

Skills and competencies are the building blocks of success. While both are important for career, understanding their distinction makes a difference. Competencies are broader and more complex, encompassing skills, knowledge, behaviors, and attitudes. Focusing on competencies helps ensure developing well-rounded employees and can thrive in various roles and situations.

While technical skills are important, they are only one piece of the puzzle. Spend time reflecting on competencies and how to strengthen them. Investing in oneself will pay off in helping achieve full work and life potential.

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