Competency Models: Definition, Examples, Step-by-Step Guide

Leaders who clarify goals empower teams to focus and grow. For example, one leader identified the top three goals and aligned team development around them, creating shared focus and accountability.

Gallup research shows employees who help set goals are 3.6 times more engaged, which leads to a better work performance. Yet only half know what’s expected at work. Competency models help close this clarity gap across hiring, performance, development, and succession planning.

This article explains competency models, how to build one, and role-specific examples for practical use.

What Is a Competency Model (and How Is It Used)?

A competency model is a structured framework that defines the specific skills, behaviors, and knowledge someone needs to perform successfully in a role. 

Most competency models organize requirements into three categories: 

• Core competencies: apply across the entire organization
• Functional competencies: specific to a department or role family
• Leadership competencies: for those who manage others. 

Each competency typically includes a proficiency scale with behavioral anchors that describe what performance looks like at each level.

Competency Model vs Job Description

A job description and a competency model are both HR tools used to define roles, but they serve different purposes. 

For example, a sales job description states "Build and maintain client relationships." The competency model breaks this down into progressive levels, showing what relationship-building looks like from beginner to expert. 

This provides employees with a clear path for growth and helps managers assess performance and potential with specific criteria.

Which Areas Do Competency Models Add Value

Competency frameworks create consistency across your entire talent management lifecycle. Here's where they make the biggest impact:

1. Hiring

Structured interview guides based on your competency model help you assess candidates against the same criteria. Instead of relying on gut feel, interviewers can probe for specific behaviors and rate candidates on a common scale. 

2. Promotion

When everyone knows which competencies matter at each level and what proficiency is required, promotion decisions become transparent and defensible. Employees can see exactly what they need to develop to advance.

3. Professional Development 

Competency models give you a roadmap for building individual development plans. Once you identify someone's current proficiency levels, the gaps become obvious. An employee development software, such as Teamflect, can then recommend targeted training, stretch assignments, or coaching to close those gaps or areas that need improvement.

4. Succession Planning 

Competency mapping makes it easy to identify who's ready for critical roles and who needs more development time. A talent management software, such as Teamflect, can track competencies across your organization, flagging potential successors and highlighting bench employee strength gaps before they become problems.

How Do You Build a Competency Model? (Step-by-Step)

Building a competency model requires time, diverse input, and careful planning. It typically takes 6 to 8 weeks for a single role family and involves six key steps that guide you from defining purpose to validating the framework across your organization.

Step 1: Scope & Success Criteria

Start by defining the purpose: What decisions will this competency model inform? Is it for hiring, performance reviews, development, or succession planning? Knowing this directs the entire process.

Best practices:

• Identify primary users and tailor detail levels for managers, recruiters, or L&D teams.
• Consider risks like legal exposure; engage legal review early.
• Set clear success criteria to measure model adoption and usefulness months down the line.

Step 2: Gather Inputs

Collect data from multiple sources including strategic priorities, job analyses, top performer interviews, and existing competency frameworks.

Best practices:

• Align competencies with organizational goals such as customer focus or growth.
• Use behavioral examples from high performers to identify key differentiators.
• Take advantage of industry frameworks to avoid reinventing the wheel.

Step 3: Define Competencies

Select 5 to 7 competencies per role that are observable and strongly linked to job performance. Avoid vague or generic terms.

Best practices:

• Connect all competencies explicitly to critical tasks.
• Develop clear, concise definitions with 2 to 3 bullet points explaining importance.
• Be specific; e.g., "cross-functional collaboration" instead of broad "teamwork."

Step 4: Create a 1-5 Proficiency Scale

Design a scale to gauge development levels from novice to expert, anchored by concrete, role-specific behaviors.

Best practices:

• Use behavioral anchors to describe observable actions per level.
• Customize anchors for different roles to ensure consistent assessments.
• Simplify scale if needed (e.g., 3 levels) but maintain clarity.

Step 5: Assemble the Matrix

Compile competencies and proficiency levels into an employee skills matrix that serves as the model's core reference.

Best practices:

• Organize as a table with competencies on rows and proficiency levels on columns.
• Weight competencies by role importance and note any minimum required levels.
• Separate core, functional, and leadership competencies for scalability.

Step 6: Validate & Calibrate

Pilot the model with multiple raters, compare results, and calibrate to ensure shared understanding and consistency.

Best practices:

• Conduct frame-of-reference training to align raters’ interpretations.
• Use calibration sessions to resolve scoring discrepancies.
• Obtain legal review prior to applying the model in talent decisions.

Role-Based Competency Model Examples

These examples illustrate how competency models work across different roles, aligned by core competencies, sample proficiency anchors, assessment methods, and outcome metrics.

Competency Model Example for Sales Departments

Sales competency models need to balance relationship-building skills with results orientation. The best sales competency frameworks measure both the how and the what.

Core Competencies:

• Consultative selling
• Pipeline management
• Objection handling
• Negotiation
• Account planning
• CRM proficiency

Sample Proficiency Anchors:

• Consultative Selling (Level 3): Asks probing questions, connects features to business outcomes, adapts pitch, advances prospects from discovery to proposal.
• Pipeline Management (Level 4): Maintains forecasts with <10% variance, identifies at-risk deals, coaches juniors, balances short- and long-term goals.

Assessment Methods:

• Structured interviews with situational questions
• Manager ratings combined with CRM data
• Role-play exercises for negotiation skills

Outcome Metrics:

• Quota attainment
• Average deal size
• Sales cycle length
• Win rates
• Correlated with proficiency levels

Competency Model Example for Management

Management competencies focus on how leaders get work done through others. The best frameworks distinguish between people management, operational execution, and strategic thinking.

Core Competencies:

• Team development
• Performance management
• Strategic planning
• Resource allocation
• Change leadership
• Stakeholder management

Sample Proficiency Anchors:

• Team Development (Level 3): Creates development plans, offers regular coaching, assigns stretch tasks, team understands growth priorities.
• Performance Management (Level 4): Fair reviews using multiple data sources, early issue resolution, rewards based on contribution, calibration with peers.

Assessment Methods:

• 360-degree feedback
• Direct report surveys
• Peer and upward feedback
• Review of team turnover and engagement data

Outcome Metrics:

• Team engagement
• Voluntary turnover
• Internal promotions
• Percent meeting performance goals.

Competency Model Example for Human Resources

HR competency models need to cover both technical HR knowledge and business partnership skills. The best models reflect how HR has shifted from administrative support to strategic function.

Core Competencies:

• HR systems and compliance
• Talent acquisition
• Employee relations
• Organizational development
• Data analysis and reporting
• Business acumen

Sample Proficiency Anchors:

• Talent Acquisition (Level 3): Builds pipelines, writes job descriptions, conducts structured interviews, meets time-to-fill targets.
• Organizational Development (Level 4): Designs competency frameworks and succession plans, partners with leaders, measures program impact.

Assessment Methods:

• Project reviews
• Operational metrics (time-to-fill, offer acceptance)
• Business leader feedback for partnership skills

Outcome Metrics:

• Time-to-fill
• Quality of hire
• Employee engagement
• Compliance audits
• Internal mobility
• Leader reliance for strategy.

Competency Model Example for Customer Service

Customer service competencies balance soft skills like empathy with hard skills like product knowledge and problem-solving speed. Great models account for both dimensions.

Core Competencies:

• Customer communication
• Problem diagnosis
• Product knowledge
• De-escalation techniques
• Process improvement
• Multi-channel support

Sample Proficiency Anchors:

• Customer Communication (Level 3): Listens actively, explains solutions clearly, follows up, maintains professionalism.
• Problem Diagnosis (Level 4): Identifies root causes, escalates complex issues, documents solutions, resolves cases on first contact.

Assessment Methods:

• Quality assurance scores
• Call/chat reviews
• Customer satisfaction metrics
• Mystery shopper assessments

Outcome Metrics:

• First contact resolution
• Handle time
• Customer satisfaction
• Quality scores

Competency Model Example for Engineering

Engineering competency models need technical depth plus collaboration skills. The best frameworks recognize that code quality matters as much as the ability to work cross-functionally.

Core Competencies:

• Technical architecture
• Code quality and testing
• Problem decomposition
• Cross-functional collaboration
• Technical documentation
• Continuous learning

Sample Proficiency Anchors:

• Technical Architecture (Level 3): Designs scalable and maintainable components, evaluates tradeoffs, writes clear design docs.
• Collaboration (Level 4): Translates technical info for stakeholders, gathers requirements, negotiates scope, builds cross-team trust.

Assessment Methods:

• Code reviews
• Peer feedback
• Delivery metrics
• Post-project evaluations

Outcome Metrics:

• Code quality scores
• Bug rates
• Project timelines
• Peer collaboration ratings

Competency Model Example for Marketing

Marketing competencies span creative and analytical skills. Modern marketing roles require both data fluency and storytelling ability.

Core Competencies:

• Campaign strategy
• Data analysis and reporting
• Content creation
• Channel expertise
• Project management
• Cross-functional partnership

Sample Proficiency Anchors:

• Campaign Strategy (Level 3): Develops multi-channel campaigns, sets clear metrics, adjusts tactics, meets ROI targets.
• Data Analysis (Level 4): Builds dashboards, conducts analysis, presents insights and recommendations.

Assessment Methods:

• Campaign metrics
• Content quality
• Stakeholder feedback
• Frequency of campaign reuse

Outcome Metrics:

• ROI
• Engagement
• Lead quality
• Project delivery

Competency Model Example for Healthcare/Nursing

Healthcare competency models must address clinical skills, patient safety, and communication under pressure. Regulatory requirements shape much of the framework.

Core Competencies:

• Clinical assessment
• Patient safety protocols
• Care coordination
• Patient communication
• Emergency response
• Documentation accuracy

Sample Proficiency Anchors:

• Clinical Assessment (Level 3): Conducts thorough assessments, identifies risks, documents accurately.
• Patient Communication (Level 4): Explains plans clearly, adapts communication style, patients feel heard.

Assessment Methods:

• Direct observation
• Chart audits
• Patient satisfaction
• Simulation exercises

Outcome Metrics:

• Safety indicators
• Documentation compliance
• Satisfaction scores
• Peer review

Competency Model Example for Finance

Finance competencies combine technical accounting knowledge with business partnership skills. As finance teams shift toward advisory roles, models need to reflect both dimensions.

Core Competencies:

• Financial analysis
• Reporting accuracy
• Business partnership
• Process improvement
• Risk management
• Systems proficiency

Sample Proficiency Anchors:

• Financial Analysis (Level 3): Builds models, conducts variance analysis, presents actionable insights.
• Business Partnership (Level 4): Identifies risks/opportunities, challenges assumptions, guides decisions.

Assessment Methods:

• Work product reviews
• Business partner feedback
• Adoption of recommendations

Outcome Metrics:

• Forecast accuracy
• Error rates
• Satisfaction
• Business impact

How Do You Keep Competency Models Fair and Current?

Even well-designed competency models drift over time or introduce unintended bias. Three practices keep your frameworks useful and legally defensible.

1. Bias Controls & Observable Language

Clear and unbiased language prevents misinterpretation and reduces legal risks. Using observable behaviors instead of subjective traits makes assessments fairer.

Best practices:

• Write competencies as specific, visible actions (e.g., "influences through data") rather than vague traits (e.g., "has executive presence").
• Avoid gendered or culturally loaded words that can cause bias. Use neutral terms focused on behaviors and results.
• Test competency definitions with diverse groups, refining language until consistent understanding is achieved.

2. Calibration & Evidence

Consistent rating standards and evidence-based feedback improve accuracy and reduce evaluator bias.

Best practices:

• Provide training that shows examples of each proficiency level and practice scoring to align raters.
• Require clear evidence for ratings, linking scores to observable results or behaviors.
• Host calibration sessions where managers review and discuss ratings together to identify and correct inconsistencies.

3. Governance: Owners, SLAs for Updates, Annual Reviews

Accountability and scheduled reviews keep competency models accurate and relevant as business needs change.

Best practices:

• Assign clear ownership for model maintenance, typically shared between HR and functional leaders.
• Define update schedules (at least annually) and track competency relevance and predictive value for performance.
• Communicate changes widely when updates occur, ensuring all related documents and systems reflect revisions.

Build Better Competency Models With Teamflect

Teamflect gives you the tools to turn competency frameworks from static documents into living systems that drive real performance improvement. Our talent management software lets you track competencies across your organization, build targeted individual development plans, and run calibration sessions that keep your ratings fair and consistent.

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FAQs

What is a competency model?

A competency model defines the skills, behaviors, and knowledge needed for success in a role or role family, usually including 5-7 core competencies with proficiency levels and behavioral examples.

How is a competency model different from a job description or framework?

Job descriptions list tasks and responsibilities; competency models define how to perform those tasks well. A competency framework organizes multiple models across the organization by role and level.

What are examples of competency models and matrices?

Examples include sales models with consultative selling, management models with team development, and technical models for roles like engineering. A competency matrix shows competencies and proficiency levels in a table format.

How often should a competency model be updated?

Review annually or when roles, strategy, or technology change. Adjust the model based on which competencies predict actual performance.

How do you use competency models in hiring and promotions?

Use them to create interview guides and rating scales. For promotions, set clear competency requirements showing which skills and levels are needed for advancement.