A competency model describes the skills, knowledge, and behaviors that employees need to succeed in a specific role. It forms the foundation for strategic hiring, targeted development, and fair performance evaluation. Research recommends a maximum of 12 competencies per model for practical applicability (Campion et al., 2011).

What Is a Competency Model?

A competency model is a structured framework that defines the success-critical skills for positions or the entire organization. It captures both professional qualifications (hard skills) and personal and social abilities (soft skills), making them measurable.

The term "competency" refers to more than mere knowledge: it describes the ability to apply existing knowledge and skills appropriately to solve tasks independently. A competency model translates this abstract definition into concrete behavioral expectations.

Unlike traditional job descriptions, competency models take a more forward-looking perspective: they define not only which skills are currently required but also which competencies will become relevant for future challenges. A competency profile, on the other hand, describes the individual abilities of a single person – comparing the model with the profile reveals development needs.

The 4 Types of Competencies at a Glance

Competency models typically distinguish four fundamental types of competencies that together provide a complete picture of requirements.

Technical Competency

Technical competency encompasses job-specific knowledge and the technical skills required for a position. This includes educational qualifications, certifications, language proficiency, or software skills. These competencies can usually be objectively verified through certificates or tests.

Methodological Competency

Methodological competency describes the ability to work on tasks systematically and solve problems in a structured manner. This includes systems thinking, project management, time management, and analytical skills. Employees with high methodological competency can effectively apply their expertise in practice.

Social Competency

Social competency enables productive collaboration with other people. It encompasses communication skills, teamwork, empathy, and conflict resolution abilities. In an increasingly networked work environment, this type of competency is gaining importance.

Personal Competency

Personal competency refers to the ability for self-management and personal responsibility. This includes accountability, self-motivation, resilience, and the willingness to develop further. These competencies significantly determine how employees handle challenges and change.

Benefits of a Competency Model

A well-designed competency model offers organizations several strategic advantages:

Strategic Workforce Planning: The model reveals which skills exist within the organization and which are missing. This enables HR professionals to recruit strategically or plan training programs.

Fair Performance Evaluation: Clear competency definitions create uniform assessment standards. This reduces subjective judgments and makes evaluations more transparent.

Targeted Employee Development: Comparing target competencies (model) with actual competencies (profile) reveals individual development needs. Training can be planned precisely.

Transparent Career Paths: Employees understand which competencies they need for their next career step. This increases motivation and retention.

Effective Recruiting: Job postings become more precise, interviews more structured. Matching requirements with candidate profiles becomes more objective.

Creating a Competency Model: 5 Steps

Developing a competency model requires a systematic approach. Research shows that successful models follow certain best practices (Campion et al., 2011).

Step 1: Define Organizational Goals

Every competency model must align with corporate strategy. What goals is the organization pursuing in the coming years? What skills does the workforce need to achieve these goals? These questions form the starting point.

Step 2: Identify Success-Critical Behaviors

In the second step, the behaviors that distinguish top performers from average employees are identified. Suitable methods include interviews with managers, analysis of performance data, and observation of successful employees.

Step 3: Cluster and Define Competencies

The collected behaviors are grouped into overarching competencies. Important: A maximum of 8-12 competencies per model is optimal. More competencies make the model unwieldy and difficult to apply.

Step 4: Formulate Behavioral Anchors

Behavioral anchors are concrete, observable examples that show how a competency manifests in daily work. They make abstract terms measurable and enable objective assessments. Anchors should be defined for different proficiency levels for each competency.

Step 5: Validate with Stakeholders

The finished model is reviewed with managers, HR, and ideally with employees. This step ensures that the model is practical and understood by all parties involved.

Competency Models in Practice

The greatest challenge with competency models lies in practical application. Critics argue that many models are too abstract and difficult to apply in daily work. The solution lies in objective measurement of defined competencies.

Application Areas in HR Management

Competency models are used in various HR processes: creating job postings, conducting structured interviews, performance evaluation, development discussions, and succession planning. The key advantage: all HR activities are guided by the same criteria.

Measuring Competencies Objectively

A competency model only realizes its full potential when the defined competencies can be validly measured. Traditional methods such as unstructured interviews or pure resume analysis have limitations: they are susceptible to unconscious bias and often fail to provide reliable predictions about actual performance.

Modern talent assessment therefore relies on scientifically validated methods. The digital platform Aivy uses game-based assessments to capture competencies objectively. These gamified tests measure behaviors in standardized situations – independent of resume or gut feeling.

Practice confirms the effectiveness: Lufthansa achieves a 96 percent accuracy rate in predicting assessment center results using this approach. At the same time, 81 percent of applicants report a positive experience. Susanne Berthold-Neumann from Lufthansa explains: "We look at the documents late because they only show a small part of the person and say little about whether someone has the competencies for future challenges."

Frequently Asked Questions About Competency Models

What is a competency model?

A competency model is a structured description of the skills, knowledge, and behaviors required for success in a role or across the entire organization. It derives from corporate strategy and forms the basis for talent selection and development.

What are the 4 types of competencies?

The four fundamental types of competencies are: technical competency (job-specific knowledge), methodological competency (problem-solving and work techniques), social competency (communication and teamwork), and personal competency (self-management and accountability).

How many competencies should a competency model have?

Research recommends a maximum of 12 competencies per model, ideally 8-10. More competencies make the model confusing and hinder practical application. The description of a single competency should not exceed half an A4 page.

What are behavioral anchors?

Behavioral anchors are concrete, observable examples of how a competency manifests in daily work. They make abstract competency terms measurable and enable objective assessment. Good behavioral anchors are defined for different proficiency levels.

How do you measure competencies objectively?

Objective competency measurement is achieved through structured interviews with predefined behavioral anchors, assessment centers with standardized exercises, psychometric tests, game-based assessments, and 360-degree feedback. Combining multiple methods increases predictive accuracy.

What is the difference between a competency model and a competency profile?

The competency model defines the target requirements for roles or the entire organization. The competency profile describes the actual competencies of an individual person. Comparing both reveals individual development needs.

When should a competency model be updated?

Competency models should be reviewed at least every two to three years. Strategic realignments, major organizational changes, or digitalization initiatives may require earlier updates, as requirements can change rapidly.

Conclusion

A competency model creates clarity about which skills your organization needs today and in the future. It improves talent selection, performance evaluation, and employee development – provided the defined competencies are also validly measured. The combination of a clear competency model and scientifically validated assessment makes hiring decisions transparent and fair.

Would you like to learn how Aivy objectively and scientifically measures your candidates' competencies? Learn more about Aivy's talent assessment solutions

Sources

• Campion, M. A., Fink, A. A., Ruggeberg, B. J., Carr, L., Phillips, G. M. & Odman, R. B. (2011). Best Practices in Competency Modeling. Personnel Psychology, 64(1), 225-262. https://doi.org/10.1111/j.1744-6570.2010.01207.x
• Krumm, S. & Mertin, I. (2012). Kompetenzmodelle. Göttingen: Hogrefe.
• Schuler, H. & Höft, S. (2007). Construct-oriented methods of personnel selection. In H. Schuler (Ed.), Textbook of Personnel Psychology (2nd ed.). Göttingen: Hogrefe.
• ITB Consulting (2024). HR Wiki: Competency Model. https://www.itb-consulting.de/HR-Wiki/kompetenzmodell/
• Erpenbeck, J. & von Rosenstiel, L. (2017). Handbook of Competency Measurement (3rd ed.). Stuttgart: Schäffer-Poeschel.