Developing a Competency Model – The Basic Elements and Steps

What is a competency?

A competency is the capability to apply a set of related knowledge, skills, and abilities to successfully perform functions or tasks in a defined work setting. Competencies often serve as the basis for skill standards that specify the level of knowledge, skills, and abilities needed for success, as well as potential measurement criteria for assessing competency attainment.

What is a competency model?

A competency model is a collection of competencies that together define successful performance in a particular work setting. Competency models are the foundation for important human resource functions such as recruitment and hiring, training and development, and performance management. Competency models can be developed for specific jobs, job groups, organizations, occupations, or industries.

ETA's industry competency models are resources for identifying the knowledge and skill needs of employers.

Elements of a competency model

Competency models can take a variety of forms. Typically, they include the following elements:

• Competency names and detailed definitions. For example, a competency model could include a competency called 'Teamwork' defined as:
  • establishing constructive and solid interpersonal relationships;
  • treating others with courtesy, tact, and respect;
  • working effectively with others, regardless of organizational level, background, sex, race, or ethnicity;
  • working to resolve disagreements, attempting to persuade others and reach agreements;
  • abiding by and supporting group decisions;
  • facilitating team interaction and maintaining focus on group goals.

• Descriptions of activities or behavior associated with each competency. Example behaviors for 'Teamwork':
  • handling differences in work styles effectively when working with coworkers;
  • capitalizing on strengths of others on a team to get work done;
  • anticipating potential conflicts and addressing them directly and effectively;
  • motivating others to contribute opinions and suggestions;
  • demonstrating a personal commitment to group goals.

• A diagram of the model. Typically, the model (or summary) is presented graphically to help users grasp the key features quickly.

Some competency models include information about skill levels required at different occupational levels.

The Employment and Training Administration (ETA) uses a Building Blocks model to depict key competencies needed in specific industries. Learn about ETA's industry competency initiative and explore the Building Blocks Model.

The Competency Model Clearinghouse also offers real-world examples of competency model use. Explore how business, educators, and the workforce investment system are developing and using industry competency models to address workforce challenges.

Step 1. Gather background information.

The development of an industry competency model is based on analysis of existing standards, curriculum, and certifications. Collaborate with industry experts (SMEs) familiar with the terminology, processes, and skills required.

The process involves:

• cataloging existing resources,
• organizing the resources,
• comparing the contents to the building blocks framework,
• analyzing the contents to determine commonalities.

Step 2. Develop a draft competency model framework

• identify themes and patterns in the information,
• relate the information to content areas,
• organize the information using the selected framework,
• develop a draft competency model.

Step 3. Gather feedback from SMEs

• summarize purpose and process,
• review draft model,
• discuss each competency,
• consider:
  • does the framework reflect major competency groups?
  • any missing competencies?
  • terminology changes needed?

Step 4. Refine the competency model framework

• analyze feedback,
• edit competency names, definitions, behaviors,
• add or delete competencies as appropriate.

Repeat Steps 3 and 4 until SMEs agree the model represents necessary knowledge, skills, and abilities.

Step 5. Validate the competency model framework

• distribute draft model to potential users,
• gather input and comments,
• reach consensus on content completeness.

Explore real-world competency model use in business, education, and workforce systems.

The Build a Competency Model Tool guides you through creating a model that identifies knowledge, skills, and abilities needed in your industry.

The tool requires you to select a competency framework. You can choose:

• a pre-existing industry model
• the generic building blocks model

Use the Build a Competency Model Tool to develop a competency model for your industry