Competencies are the critical knowledge, abilities, skills and personal characteristics necessary for superior performance. They are linked to the specific work performed in a particular business environment but focus strongly on the individual worker.
The first step in establishing competencies is to identify the basic competencies needed by the worker. For example, in the HR competency model developed by SHRM and the University of Michigan, the five basic competencies identified were HR delivery, HR technology, personal credibility, business knowledge and strategic contribution.
Competencies usually correlate with performance on the job and are used for measurement against well-accepted industry standards. Competencies can also be used to improve individual employee training and development programs, as well as for development of variable pay systems such as skill-based or competency-based pay plans. This toolkit offers a compilation of resources to help you understand competencies and establish them for your employees.
