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What is Competency Assessment and Why Do You Need One?

Written by Salary.com Staff

December 14, 2023

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Competency assessment is the key to knowing when employees have the necessary skills and experience the company needs. It evaluates a person's skills, knowledge, and behaviors for a specific role. The assessment objectively matches people to suitable jobs and reveals any skill gaps.

Competency assessment is crucial for building strong teams and developing employees.  It helps set clear expectations, identify strengths, and uncover hidden talents creating a growth roadmap that benefits both individuals and the organization. Having a competency framework is what distinguishes good companies from great ones.

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Defining Competency Assessment

A competency assessment evaluates skills and abilities for specific roles. It assesses competencies to perform successfully. Competency assessment finds skill gaps and helps employees improve.

Assessments also guide hiring decisions and improve performance management by setting clear expectations and measuring progress. Competency assessment gives valuable insight into employees strengths and weaknesses so they can work on continuously improving their skills and reaching their full potential.

Benefits of Competency Assessment: Why Do You Need One?

Competency assessment is crucial for several reasons:

  • Identify skill gaps. See what skills employees lack to provide necessary training. This helps ensure they can take on more responsibility and advance in their careers.
  • Improve performance. Pinpoint specific areas that need improvement to teach team members. Set clear goals to enhance their performance over time.
  • Guide hiring and promotions. Use the results to determine the key competencies required for open positions to hire the right people. Make better-informed decisions about promotions and career pathing.
  • Boost employee engagement. Employees appreciate knowing what is expected of them and how they can progress. Competency assessment provides clarity and a roadmap for growth, which leads to higher job satisfaction and motivation.
  • Prepare for the future. Regular competency assessment helps determine skill gaps. This helps in developing training programs to build competencies that will be in demand in the future.

Conducting competency assessment is a win.  Gain a skilled, motivated workforce, and let employees get the feedback and development they need to thrive in their roles.

How to Develop a Competency Model

A competency model identifies the knowledge, skills, and abilities that are essential for success in a role. To develop a competency model:

Conduct a job analysis. Analyze the key responsibilities and tasks for the specific role. Determine what knowledge, skills, and abilities are required to perform the essential functions of the job successfully.

Identify key competencies. Based on the job analysis, determine 3-5 key competencies, or areas of expertise, for the role. These can include communication, problem-solving, adaptability, and technical skills.

Define levels of proficiency. For each key competency, outline levels of increasing proficiency, from basic to expert. Describe what each level looks like in behavioral terms.

Validate and test. Share the draft competency model with people currently in that role to ensure the key requirements are accurate. Make revisions as needed.

Use and update. Apply the competency model for recruiting, hiring, training, and performance management. Review and update the model regularly to account for any changes in the role.

A well-designed competency model help ensure having the right people in the right roles with the right skills. It provides a shared language and understanding of what excellence looks like for a position.

Developing a competency model is an investment that pays off through improved hiring, training, and performance management.

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Tips for Creating Effective Competency Assessment

A competency assessment evaluates how well employees perform the core skills and abilities required for specific roles. To create an effective competency assessment, here are some tips:

Focus on key competencies

Identify 3-5 of the most critical skills for the role. Assess how well employees demonstrates these key competencies in their work. For example, for a customer service role, focus on skills such as communication, problem-solving, and adaptability.

Use realistic scenarios

Develop scenarios that reflect common situations in the actual role. Ask employees to walk through how they will handle the scenario. This shows their thinking process and how they apply their skills.

Multiple assessment methods

Use a mix of assessments such as simulations, work samples, multi-rater feedback, and self-evaluations. This provides a balanced and comprehensive view of employees competencies.

Provide constructive feedback

Share thoughtful feedback, both positive and constructive, to help the individual understand their strengths and opportunities for growth. Discuss specific examples and strategies for improvement.

Review and revise

Regularly review and update competency assessment to ensure it continues to reflect the key requirements of the role. Make revisions as needed to keep the assessment relevant and valuable.

Competency assessment is the key to helping employees grow in their roles and careers. Develop assessments that provide meaningful insight into performance and guidance for development through these tips.

Using Competency Assessment Results to Improve Performance

Competency assessment provides valuable insights into a team’s strengths and areas for improvement. Analyzing the results help boost performance and productivity.

Using the Results

Review the outcomes of the competency assessment with the team. Discuss each person’s strengths and weaknesses, as well as those of the group. Look for patterns and connections across roles. This helps build self-awareness and highlights opportunities for coaching or mentoring.

Targeted learning and development programs can be created to strengthen key skills. I Implement regular meeting rhythms, encourage active listening, and coach people on giving constructive feedback.

For specific individuals, create personalized development plans. Work with them to set concrete goals and key actions to enhance their competencies over the next 6-12 months. Provide guidance and check-ins to keep them on track.

Reassessing competencies on an annual or bi-annual basis tracks progress and allows for revisiting development priorities. Continuous learning is the key to performance improvement and business success. Competency assessment, when used proactively, becomes a strategic tool for growth.

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Conclusion

Competency assessment provides insight into strengths, weaknesses, and potential areas for improvement of employees and teams. They open eyes to skills and talents that are not recognized. and they give a roadmap to professional development and reaching new heights.

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