The World’s Highest Performing Organizations LOVE Competency-Based Training (And Why You Should, Too!)

High-performing organizations are quickly realizing that their success depends on how capable their people are. They are also aware that many formal training methods aren’t equipping their employees with the skills they need to thrive in the workplace. Properly equipping staff to effectively do their job can only be done by helping them to meet the specific requirements of their organization. Which is why many organizations are now turning to competency-based training.

In the past, traditional employee training methods used a “one size fits all” approach. This meant that every employee, regardless of their level of knowledge or skill, received the same training. But no two workers are the same. Different people have varying levels of knowledge and skill, and they learn at different rates.  

Competency-based training is learner focused, i.e. it recognizes these differences among individuals and matches the training with the learner. So, rather than covering a large set of topics over a specific time period, employees on a competency-based training program work on one relevant competency at a time (which is usually a small component of a larger learning goal), and learn it at their own pace. The employee is then evaluated on the individual competency, and can only move on to the next once they have mastered it. Meaning employees can focus on new content for longer, without spending unnecessary time going over material they are already familiar with. The learner grows in confidence as they become more competent in a particular skill, and their time is used efficiently, as they are only spending time learning content they haven’t achieved mastery in. 

Essentially, competency-based training puts employees in charge of their own professional development.

There are several benefits associated with this type of training versus other more traditional employee training methods. We’ve outlined the most notable for both employees and employers below: 

Employee benefits: 

• Improves on-the-job performance – As employees can pick and choose which learning materials best suit them and/or which lessons they will explore next, on-the-job performance is boosted because it puts them in control of their skill set development.


• Greater understanding of organizational goals – As the training is focused on teaching employees the knowledge and skills they need to succeed in their role, it provides them with a greater understanding of the overall strategy of their team, department and organization. 


• Gives direction – After taking an assessment to establish their current competencies and capabilities, employees are given clear information about what knowledge and skills they need to attain to improve their performance and reach their professional development goals. 


• Sets clear expectations – When an employee knows what is expected of them within their role, it makes it easier for them to make better decisions and work more effectively. 


• Improved job satisfaction – When an employee believes that they have the knowledge and skills they need to meet their work objectives, understand what is expected of them, feel their abilities are being recognized, and have a good understanding of the overall strategy of their team, department, and organization, they are usually more motivated and enjoy higher job satisfaction.

• Improved performance – When employees are motivated and enjoy high levels of job satisfaction it usually results in increased levels of productivity for your organization. And because training, development, and assessment can be done on the job, you don’t lose your workforce while staff are training. 


• Reduced costs – As training activities and assessments in a competency-based approach are goal-oriented, your organization doesn’t waste money or time on training in the ‘wrong’ areas. Cost overruns caused by poor performance and miscommunication of job expectations are also reduced. 


• Increased employee retention – The more satisfied and “embedded” an employee feels within a company, the less likely they are to leave. 


• Increased customer satisfaction – More competent staff will provide higher service levels, resulting in increased customer satisfaction. 


• Increased competitiveness – Employee development is a prerequisite to staying competitive in the global marketplace.


• Standardized performance across your organization – Agreed benchmarks are set. 


• Better recruitment process – Standardizing performance competencies across your organization can help define important job-specific and company-related competencies that your recruiting and HR team can leverage to strengthen its selection processes.

There are six key stages in implementing a competency-based training program in your organization: 

1. Define the business mission 

What is your organization trying to achieve? Is this part of a business and/or learning transformation initiative, for example? How do specific teams/departments support the aims of the organization? And how do the individuals in those teams/departments work to achieve these aims? 

2. Establish a detailed description of role and responsibility 

Establishing an outline of performance objectives and expected behaviors from each job role. What characteristics and capabilities are critical to the success of each job role? What are the common traits and strengths associated with the top performers in those teams/departments? 

3. Define and calibrate 

Agree performance expectations for each development level – Beginner, Intermediate, Advanced, Master and Specialist. This is best done as a collaborative effort between human resources, L&D and the business stakeholder. 

4. Develop a competency framework and assessment 

Create a role-aligned competency framework that describes the knowledge, skills, and competencies expectations of a person in that role and at each development level. This includes creating assessment methodologies (e.g. online, simulation, and role-play) to test learner capabilities. Based on the individual’s results, you can create a personalized training plan that nurtures individual strengths, and targets specific skill gaps. 

5. Align the curriculum 

Review the current training portfolio and align it with knowledge and skill requirements as outlined in the new competency framework. Perform an analysis to understand where there may be gaps in training content. The content development team may want to focus on bridging these gaps as a priority. 

6. Create personalized learning paths 

Provide employees with access to their assessment scores, so they can assess their own competencies against those required for their role and their personalized learning path. Employees can then take steps to acquire the competencies they need. Implement a culture of continuous self-assessment as the employee progresses through their learning path, and support them with coaching and mentoring.