HR and payroll

What is a competency framework, and how do I build one?

By Mahmoud SaiedLast updated 27 October 20262 min read

The short answer

A competency framework lists the knowledge, skills and behaviors a company needs from its people, with a description of each at every job level. It is built from the company's strategy, values and job analysis, then used as one shared language in hiring, appraisal, training and promotion.

Step by step

  1. 1

    Define the types

    Core competencies for all employees tied to the values, leadership competencies for managers, and technical competencies for each role or department.

  2. 2

    Gather material from real work

    Interviews with management, managers and the best performers in each role, and a review of job descriptions.

  3. 3

    Define each competency

    One clear sentence, such as: customer focus means understanding the customer's need and solving the problem the first time.

  4. 4

    Describe levels by behavior

    Three to five levels for each competency, each described by an observable behavior rather than a general trait.

  5. 5

    Link it to HR systems

    Interview questions, the appraisal form, training needs analysis and promotion criteria all come from the same framework.

  6. 6

    Start small and review

    A limited number of competencies is easier to apply, and the framework is reviewed yearly as the company's strategy changes.

A common mistake

Competencies with generic names such as teamwork and no behavioral description for each level turn appraisal into personal impression, however organized the framework looks.

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