register / login

Go to
Sitemap

Subjects
Search for

Advanced Search Help with search

Home > Subjects > Performance management > Competencies

Competency and competency frameworks

Performance management
• General
• Appraisal and feedback
• Appraisal training
• Business performance
• Competencies
• Performance related pay
• Training and learning needs

Revised June 2010

This factsheet gives introductory guidance. It:

• defines the term 'competency' and its evolving use in HR

• looks at developing a 'competency framework'
• considers the application of competency frameworks
• includes the CIPD viewpoint.
Background
Competencies emerged in the 1980s as a response to organisational changes and to wider
changes in society. In 1982 the US academic, Richard Boyatzis wrote The competent manager: a
model for effective performance1. This book proved to have considerable influence on the
profession and, over the following two decades, competency frameworks became an increasingly
accepted part of modern HR practice.

The use of competencies was featured as a special area of investigation in our 2007 Learning
and development survey.

• See the full survey results

The survey results revealed that 60% of the respondents had a competency framework in place
for their organisation and of those who didn’t almost half (48%) intended to introduce one. That
still leaves some fifth of respondents planning to move forward without a competency framework.
However 40% of those are organisations employing 250 or less, and are mainly concentrated in
the private sector. So, with the exception of a proportion of small private sector firms,
competencies seem to be an accepted feature of a modern organisation.

Those organisations that had a competency framework in place were asked what proportion of
employees were covered. The results showed that on average almost four out of five employees
(78%) were included. Half of those with a framework in place (50%) reported that they had a
single framework across the organisation. It is common therefore for competencies to extend
across the organisation and be expressed as a single framework.

Competencies or competences?
Although Although in the 1980s and 1990s HR professionals drew a distinction between
'competencies' and 'competences', now the two terms are often used interchangeably.
'Competency' is more precisely defined as the behaviours that employees must have, or must
acquire, to input into a situation in order to achieve high levels of performance, that is a focus on
the person, while 'competence' relates to a system of minimum standards or is demonstrated by
performance and outputs, so ‘competences’ focus on the job. In line with the approach developed
in a number of CIPD publications, including Competency frameworks in UK organisations2, the
term 'competency' is used throughout this factsheet except when specifically referring to the use
of occupational standards (that is, an 'outcome-based' approach) in which case the term
'competence' is used..

Basic principles of competency frameworks

Competencies are a signal from the organisation to the individual of the expected areas and
levels of performance. They provide the individual with a map or indication of the behaviours that
will be valued, recognised and in some organisations rewarded. Competencies can be
understood to represent the language of performance in an organisation, articulating both the
expected outcomes of an individual’s efforts and the manner in which these activities are carried
out.

In a 2008 report published by Incomes Data Services3, the authors argued that competencies are
typically used to define the behaviours that an employer values and believes will help it achieve
its long-term goals. Competencies usually fall into two categories behavioural and technical. This
report, which contains a series of illustrative case studies of frameworks in organisations, uses
the term competency/competencies throughout.

Originally competency frameworks consisted mainly of behavioural elements – an expression of

the softer skills involved in effective performance. Increasingly however, competency frameworks
have become broader and more ambitious in scope and include more technical competencies.
This development has been given greater momentum by the use of the PC and the intranet.

In designing a framework care should be taken that only measurable components are included. It
is important to restrict the number and complexity of competencies, typically aiming for no more
than 12 for any particular role (preferably less), and arranging them into clusters to make the
framework more accessible to the users. The framework should contain definitions and/or
examples of each competency.

A critical aspect of all frameworks is the degree of detail. If a framework is too general (containing
only general statements about communication, team working, etc), it will not provide enough
guidance either to employees as to what is expected of them or to managers who have to assess
their staff against these terms. If, on the other hand, it is too detailed, the entire process becomes
excessively bureaucratic and time-consuming and may lose credibility.

According to our 2007 Learning and development survey (see link above), the most popular
names found in employer competency frameworks are, in order:

• communication skills
• people management
• team skills
• customer service skills
• results-orientation
• problem-solving.

Very similar findings emerged from the 2004 IRS survey4.

Developing a competency framework

Competency frameworks can be developed in a number of ways. It is possible to draw on the
competency lists produced in support of occupational standards and the framework of National
and Scottish Vocational Qualifications. Frameworks developed in this way are often linked with
progression towards recognised qualifications. Competency lists are available on the web and
these will come from a variety of sources. Many organisations develop their competency
frameworks through an internal research programme, sometimes aided by advisers from an
external consultancy. Methods of developing a framework range from importing an existing off-
the-shelf package through to developing the entire thing from scratch. The best solution usually
lies between these two extremes, namely internally generating a framework that builds in
business relevance, but do this by adapting existing models that have already been widely used
and have proved successful.

The information on design from our 2007 Learning and developmentsurvey (see link above) was
very clear-cut. The overwhelming proportion of frameworks (85%) were designed in-house or in-
house with consultants. A very small proportion (8%) used frameworks produced and made
available by an external organisation (for example a trade association or government body). Yet
many of the subjects that were included in the framework fell under expected generic headings.

In a July 2007 People Management article Steve Whiddett and Sarah Hollyforde argued that:

‘Many organisations develop a competency/behaviour framework with a view to managing

performance and progression more effectively. However, many managers and individuals find it
hard to use the frameworks to help achieve their goals and, therefore, the goals of the
organisation.

The most common reasons for this are that people don’t see the benefit of the framework and
aren’t trained adequately; there aren’t clear links to what the business is aiming to achieve and
many frameworks are a mix of different concepts which makes them unwieldy.’

• View the full article

They suggested the following simple steps to check whether a competency framework is fit for
purpose:

• Communicate the purpose - The first thing is to find out if employees understand what
the purpose is. If they don’t understand how behaviours contribute to personal and
organisational success, there is little point in updating or developing the framework
• Identify key themes - Even if staff are clear about the purpose of the framework, it still
needs to support the organisation’s aspirations (goals, values, business plans, and so
on). If people aren’t all working towards these aspirations then some individual efforts are
likely to be diversions from organisational success.
• Get conditions right - The organisation’s procedures need to support the framework,
and the culture, resourcing and management structures must be supportive too. Be
realistic: if conditions inhibit behaviours then change the conditions or change the
behaviours.
• Tackle the root cause - As well as goals and conditions, behaviour is also influenced by
underpinning characteristics (knowledge, skills and attitude). One underdeveloped
characteristic, such as communication skills, can affect many different behaviours. If
managers don’t understand this distinction they may focus on trying to improve the
behaviour without tackling the root cause.
• Keep it simple - There are two key elements to ease of use – language and structure.
However ‘perfect’ the framework, if it’s too complicated, long or detailed it won’t be used.
The language has to be meaningful to the people who use it.
• Train, don’t blame - Once you have tidied up the structure make sure that everyone who
uses the framework is trained in how to use it. A framework is a tool and, as with any tool,
if users don’t know how to use it, it will fall into disuse or fail to meet its full potential.

This approach is based on material in their Competencies toolkit, published by CIPD.

• Visit this item in the CIPD bookstore

When preparing a competency framework, it is important to take account of laws such as the
Disability Discrimination Act 1995 and ensure that none of the competencies discriminate against
any particular group of employees or potential employees.

The use of competencies

The early applications of competency frameworks were focused mainly on performance
management and development, particularly of more senior staff. Today, however, it is recognised
that an effective competency framework has applications across the whole range of human
resource management and development activities. It is becoming more and more popular in
recruitment allowing recruiters to assess against a range of criteria and behaviours.

Competency frameworks are now seen as an essential vehicle for achieving organisational
performance through focussing and reviewing an individual’s capability and potential. Moreover a
competency framework can be a key element in any change management process by setting out
new organisational requirements.

For example, when the CIPD Change agenda Focus on the learnerconsidered the place of
competencies it concluded that ‘competencies have been a feature of progressive human
resources development for more than a decade. What is new is their central importance as a
means of providing a framework for the learner, with his or her manager, to take responsibility for
their own learning.’

• Go to the Change agenda

According to our 2007 Learning and development survey (see link above), the following in order
are the main areas of application for competency frameworks:

• underpins person reviews/appraisal

• greater employee effectiveness
• greater organisational effectiveness
• more effective training needs analysis
• more effective career management.

Whatever the application of competencies in the organisation it is possible to identify some

important steps that must be taken to make them effective.

Research into the implementation and ongoing use of competencies in organisations has shown
that employers consistently identify the same issues that can 'make or break' the effective use
competencies. This is frequently seen to rest on building the motivation, understanding and
commitment of line managers and employees.

Employers report that undertaking the following activities can help to build the commitment of
employees and managers and therefore make for more effective use.

• Involving managers and employees in the design and implementation of the framework.
• Holding group briefings to explain the competency approach and the new framework.
• Providing training to managers about the use of competencies which deals with the
practicalities of using the framework to assess and manage staff.
• Provide information and training to all employees, perhaps by producing a special leaflet
or brochure to explain the new framework.
• Raise awareness by publicising it in a staff newsletter or on the Intranet.

Strengths and weaknesses

The main benefits of a competency-based system

• Employees have a set of objectives to work towards and are clear about how they are
expected to perform their jobs.
• The appraisal and recruitment systems are fairer and more open.
• There is a link between organisational and personal objectives.
• Processes are measurable and standardised across organisational and geographical
boundaries. .

Criticisms of a competency-based system

To quote from the CIPD Competencies toolkit:

‘Criticisms of competency frameworks usually follow one of the following themes:

• they capture the past and are therefore out of date

• they cannot keep up to date with the fast changing world
 • they were introduced to improve performance and they have not done so
• they are unwieldy and not user friendly
• they create clones; everyone is expected to behave in the same way.

These criticisms have been levelled with justification at frameworks produced using poor practice.
Such criticisms also reflect a lack of understanding of competencies .These are common and
justified criticisms for some competency frameworks and their use in some organisations.
However these criticisms do not challenge the need and usefulness of competency frameworks,
highlight the need for care and understanding when developing and implementing competency
frameworks’.

The CIPD viewpoint

Competency frameworks can be extremely useful in a number of settings from recruitment
through development, talent spotting and performance management. However they will only be
successful in decision making if they accurately reflect the needs of both the job and the
organisation in terms of skills, experience and behaviours. They should therefore take account of
job and/person specification and the organisations medium and long term needs for talent as well
as reflecting the organisational ethos and values. They should contain a mix of job specific and
organisation specific behaviours and reflect the need to build a diverse workforce, a broad talent
base and complimentary team roles.

To be effective, they need to be constantly reviewed against the needs of jobs and informed by
future focussed workforce planning predicting the nature and requirements of future roles.

References

1. BOYATZIS, R.E. (1982) The competent manager: a model for effective performance.
London: Wiley.
2. MILLER, L., RANKIN, N. AND NEATHY, F. (2001) Competency frameworks in UK
organisations: key issues in employers’ use of competencies. London: Chartered Institute
of Personnel and Development.
3. INCOMES DATA SERVICES. (2008) Competency frameworks. HR studies, 865. London:
IDS.
4. RANKIN, N. (2004) The new prescription for performance: the eleventh competency
benchmarking survey. Competency & Emotional Intelligence Benchmarking Supplement
2004/2005. London: IRS.

Further reading
CIPD members can use our Advanced Search to find additional library resources on this topic
and also use our online journals collection to view journal articles online. People
Management articles are available to subscribers and CIPD members on the People
Managementwebsite. CIPD books in print can be ordered from our Bookstore

• Go to Advanced Search
• Go to our online journals collection
• Go to People Management online
• Go to our online Bookstore

Books and reports

ULRICH, D., BROCKBANK, W. and JOHNSON, D. (2008) HR competencies: mastery at the
intersection of people and business.Alexandria, VA: Society for Human Resource Management.

WHIDDETT, S. and HOLLYFORDE, S. (2003) A practical guide to competencies: how to

enhance individual and organisational performance. 2nd ed. London: Chartered Institute of
Personnel and Development.

WHIDDETT, S. and HOLLYFORDE, S. (2007) Competencies. Toolkit. London: Chartered

Institute of Personnel and Development.

Journal articles

BYWATER, J. (2007) Future-oriented competencies: a framework for job profilers and

competency modellers. IRS Employment Review.No 879, 20 August. 5pp.

CLARDY, A. (2008) The strategic role of human resource development in managing core
competencies. Human Resource Development International. Vol 11, No 2, April. pp183-197.

CRISMAN, D.W. (2008) Using competencies to drive talent management. Workspan. Vol 51, No
9, September. pp70-75.

Definitions of key competencies. (2005) Competency & Emotional Intelligence Benchmarking

supplement 2005/06. pp35-48.

MILSOM, J. (2009) Key trends and issues in employers' use of behavioural competencies. IRS
Employment Review. No 918, 30 March. 8pp

RANKIN, N. (2008) Survey: competencies in the workplace. IRS Employment Review. No 906, 6
October. 13pp.

This factsheet was written by Clare Hogg of Helios Associates Ltd and updated by CIPD staff.

Bookmark and share

What are these?

• del.icio.us

• Digg

• Twitter

• Google Bookmarks

• Facebook

• Printable version
 • Discuss this subject
• Enlarge text size
• Email a colleague
• Edit 'My profile'

Related publications
Competencies
by Steve Whiddett, Sarah Hollyforde
A Practical Guide to Competencies
by Steve Whiddett, Sarah Hollyforde
Training courses
• Competency-based Recruitment
• Working with Competencies
Copyright CIPD 2010
151 The Broadway, London SW19 1JQ, UK
www.cipd.co.uk
Incorporated by Royal Charter, Registered charity no. 1079797
About us, Contact us, My profile, Terms & conditions, Privacy policy, Link to us, Social media, HR jobs