Competency Based Training Model – How to Create It From Scratch

What Is a Competency-Based Training Model?

A competency-based training model is an employee development model where each class, seminar, or coaching program is designed according to a competency that is required for the successful execution of certain job duties.

The key question of the competency-based training is no longer “has the employee been to the class?”, but rather “is the employee capable of doing what should have been learned there?” This difference from traditional classes is the essence of the competency-based training model.

This guide will help you understand what the competency-based training model is, why traditional training fails, how to develop a competency-based training model, including how to design competencies, build training programs for different roles, create a skills matrix, avoid the most common pitfalls of implementation, and implement competency-based training with examples and templates.

Why Traditional Training Programs Fall Short

The vast majority of old school L&D programs are oriented on content, but not competency. The newly hired person goes through videos from the repository, ticks the checkbox, and becomes “trained,” whether they actually learned something or are able to use it.

Here are some problems that arise as a result:

• The skills gap becomes visible only when it manifests itself in performance problems.
• Training does not seem relevant, as it is not aligned with requirements for a particular position.
• Career development becomes ambiguous due to the absence of common understanding of what it means to be “ready for promotion”.
• Expectations do not match because there is no written down standard to refer to.

Competency-oriented approach solves all these problems.

The Building Blocks: Competency Framework Design

Any training program must be preceded by a framework. Competency framework is a comprehensive document outlining competencies that matter to the organization as a whole, and their classification, which is logical and corresponds to the reality of people’s functioning.

Competencies are generally divided into three primary groups:

• Core (organizational) competencies – what is expected of all people in the organization regardless of their position, for example, communication, adaptability or collaboration.
• Functional or technical competencies – the actual knowledge and skills of a department or discipline related to it, such as data analysis in a finance department or code reviewing in engineering.
• Leadership competencies – delegation, strategy development, and conflict resolution, among others.

Well-designed frameworks remain streamlined. For example, a common benchmark is to limit the number of competencies assigned to any role to no more than 15 to 20; if there are more, the framework is too complex to use in training.

Step-by-Step Instructions to Develop a Competency-Based Training Model

Step 1: Start with Strategic Goals, Not Job Descriptions

Do not even attempt any of the other steps until you have established some idea of the direction the organization will take during the next one to three years. Competency models that ignore the strategic direction of the organization may end up rewarding people for old skills, rather than equipping them for future needs.

Step 2: Job and Task Analysis

Identify the key responsibilities of the job, along with those typical tasks performed in a week by analyzing: Job descriptions, Performance appraisals, Interviews with current job holders and their managers, Observation of difficult to describe jobs

Step 3: Required Competencies

What are the key pieces of knowledge, skill, or behavior needed to perform the tasks identified in Step 2? Collect similar information, and you have your first set of competencies.

Step 4: Get Subject Matter Experts (SMEs) Onboard

It is the high performers in a particular job who are the ideal sources for knowing what constitutes “good”. Have a few SMEs come onboard and review the draft list because a framework developed purely by HR that lacks any input from the ground-level people will seldom withstand scrutiny.

Step 5: Define the Proficiency Levels

A competency without an associated proficiency level is just a term to be found in the dictionary. Develop 3–5 proficiency levels per competency (e.g., Developing, Proficient, Advanced, Expert) that can be clearly observed in action.

Step 6: Assign the Competencies and Their Level to Roles

It is here that the task of competency mapping occurs – deciding on what competencies and their levels are needed for what roles. This exercise forms the base of your skills matrix, to be discussed later in the article.

Step 7: Create Training Programs Based on the Gap Analysis

When you have a particular proficiency level assigned to a specific role and a way to assess the employee’s proficiency in a particular competency, you get the training content based on it.

Step 8: Validate, Pilot and Implement

Test the model using one team or department before implementing it enterprise wide. Gather feedback and revise the proficiency descriptions that did not make sense and then scale.

Step 9: Conduct Reviews on a Regular Basis

Competency models deteriorate. Review the competency framework at least once a year or sooner in case of very dynamic technical roles, so the framework stays current with what really changed in your work environment.

Creating a Skills Matrix

The skills matrix is the living manifestation of your competency framework – it is usually a table with employees (or job titles) on one axis and competencies along another, with proficiency level ratings filling up all the cells.

It is by far the most useful document you can produce through the whole process, as it allows you to answer questions such as:

• Which team members are ready for a stretch assignment?
• Where are our biggest single points of failure (one person holding a critical skill)?
• Which competencies need the most urgent training investment this quarter?

A simple skills matrix might look like this:

Competency Mapping in Practice

Competency mapping refers to linking certain competencies to certain roles, and it is easy to make mistakes when approaching the practice as just a documentation exercise.

How it can be done right:

• Start mapping from the level of the roles, not the individuals. First identify what a “Senior Marketing Manager” is supposed to know before moving on to mapping an actual individual who holds the position.
• Assign weights to the competencies depending on their importance. Not all competencies have the same level of importance for every role; a salesperson might assign high importance to persuasion and low importance to technical writing.
• Compare to career ladders. Competency mapping should reveal the logical progression in competencies: the set of competencies for Level 2 should flow naturally to Level 3.
• Ensure that the map is available to employees. If a competency map cannot be accessed by everyone due to its location in an HR drive, then it is useless.

Role-Based Competencies: Getting the Granularity Right

The mapping of competencies is the association of certain competencies with certain roles, and there is always room for error when one approaches the process as a simple documentation effort.

What makes competency mapping correct:

• Begin competency mapping at the level of the roles and not the individuals. Determine first what a “Senior Marketing Manager” needs to know before attempting to map a specific individual occupying the role.
• Allocate weights to the different competencies based on their level of importance. The degree of importance of each competency is relative to each role. While a salesperson considers high importance to persuasion, he will consider technical writing unimportant.
• Compare to career ladders. Competency mapping should present a clear pattern of development among competencies – the set of competencies associated with Level 2 should seamlessly transition into Level 3.

Make sure that the map is accessible to everyone. An inaccessible competency map, such as the one kept on the Human Resource folder, is a futile effort.

Competency Model Template (Ready to Adapt)

Here is a basic template that contains the following components for each competency:

• Name of the competency (e.g., “Stakeholder Communication”)
• Definition of the competency 1 or 2 sentences explaining the meaning of this competency in simple words
• Category Core, Functional/Technical or Leadership
• Proficiency Levels 3-5 levels of proficiency, with behavioral descriptors.
• Roles Applicable to the Competency the positions to which this competency is applicable, along with the required proficiency level
• Method of Assessment How is proficiency assessed? Manager’s evaluation, peer review, testing, certification etc.
• Training Resources Applicable to the Gap How are gaps in proficiency in this competency addressed through training courses or other means

Repeating this structure for all competencies in your competency framework will provide you with a functioning competency model.

Real-World Examples of Competency-Based Training

Certified technical career pathways: Information technology and engineering departments often utilize progressive certifications (from junior developer up to senior developer), where progression is based upon the demonstration of certain coding, architecture, or debugging competencies, as opposed to simply having completed a training class.

• Customer service performance scorecards: Contact centers often evaluate agents based on specific behavioral competencies such as de-escalation, active listening, and first call resolution, while training is assigned directly against the lower scoring competencies.
• Healthcare nursing career ladders: The healthcare industry frequently utilizes clinical ladder programs where nurses need to show certain competencies to advance on the clinical ladder (rather than just working time).
• Sales Enablement Programs: The sales organization defines competencies like discovery, objections and negotiation and on-boarding training is specifically designed to fill gaps in these competencies.

The common denominator in all the above is that the behavioral competence is defined, assessed and trained against.

Common Mistakes to Avoid

• Without the input of SMEs while developing the framework, the competencies become based on what HR thinks is required by the job, not on what it truly is.
• Too many competencies for each position, which leads to a lack of focus and makes it impossible to measure.
• Non-descriptive measures of proficiency, such as “good communicator,” which are difficult to assess by even two different managers.
• Thinking of the model as a static project rather than a dynamic one that must be reviewed regularly.
• Failure to incorporate the framework into the training process.

Final Thoughts

Competency-based training does not amount to one piece of paperwork; it is an entire system with which the organization operates its approach to skills development, learning, and readiness. When done right, competency-based training creates an entirely new language around which everyone in the organization understands what good performance really means.

Designing such a system is hard work: strategic alignment, job analysis, validation from subject matter experts, and continuous support are all essential aspects of this process. But the result is a training program that truly develops the necessary skills rather than merely occupying time on people’s calendars.

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