Competency Frameworks

Competency frameworks define the set of skills, knowledge, and attitudes that an individual should possess to correctly perform the tasks of a given profession.

Why are competency frameworks defined?

Primarily, to uniformly describe a given position and to standardise the scope of knowledge, skills, and attitudes required for it.

Simply put, defining competency frameworks ensures that, on one hand, it is clear what knowledge and skills are needed to effectively perform tasks in a given position, and on the other hand, that a person whose competencies have been confirmed within the defined framework is recognised as competent by all entities.

Who defines competency frameworks?

The definition of competency frameworks varies by country or region, but most often, governments or institutions responsible for education and vocational training, as well as industry organisations and trade unions, are involved in this process. At the European level, competency frameworks have been developed by the European Commission, and in Poland, the Ministry of Education and Science and the Polskie Centrum Certyfikacji Kompetencji (Polish Centre for Competency Certification), among others, are responsible for this.

How are competency frameworks used in companies?

The use of competency frameworks in companies allows for:

1. Establishing skill standards for a given position within a company (competency grids),
2. Efficient execution of recruitment processes,
3. Assessing employee performance within the company.
4. Defining development plans for employees,
5. Effective management of employee knowledge and experience,
6. Defining training programmes,
7. Enabling the definition and monitoring of the company's strategic goals.

Many companies use competency frameworks as a basis to create their own competency grids for specific positions. Frameworks then serve as guidelines for designing specific job competency profiles.

Competency frameworks also make it easier for companies to assess employees during recruitment processes. On the one hand, they allow for precise definition of the skills and knowledge required for a given position, and on the other hand – in the case of employees with certified qualifications based on competency frameworks for a given profession – they gain certainty that they are hiring an individual who possesses the knowledge and skills defined by the frameworks. This way, they can select the right candidate who meets the job requirements.

Competency frameworks are also used in the employee appraisal process. They allow employees to be assessed based on specific criteria, which enables a precise comparison of each employee's achievements and the identification of their strengths and weaknesses. This, in turn, makes effective development planning for each employee possible.

Competency-based certification

Competency-based certification involves assessing the competency level of employees or job candidates in accordance with established competency frameworks. It is a process in which an individual or organisation obtains official confirmation of their possessed competencies based on specific standards or competency frameworks. Examples include certifications in the financial industry – such as ACCA or CIMA.

Competency-based certification is particularly popular in industries where specific skills and qualifications are essential for job performance, such as IT, finance, HR, and project management. The certification process can take various forms, depending on the industry and type of certification, but it is always based on specific standards or competency frameworks.

The benefits of competency-based certification vary for different parties. For employees, it can mean obtaining official confirmation of their skills and qualifications, which can help them find a new job or advance in their current one. For employers, competency-based certification can help identify the best job candidates and assess the competency level of employees within the company.

In addition to benefits for employees and employers, competency-based certification can also help standardise competency frameworks and standards within a given industry, making it easier to compare skills among employees and candidates from different companies.

It is worth noting that many companies and institutions certify within specific competencies but do not base this on any general industry standards – such certificates may not provide any value.

What is the difference between competency frameworks and competency grids?

A competency grid (also known as a competency matrix) is a set of requirements regarding the skills, knowledge, and experience necessary to perform a specific job or role within an organisation. It is a detailed list of specific competencies and qualifications that employees should possess to effectively carry out their tasks.

Competency frameworks, on the other hand, provide a more general description of the required skills and qualifications that apply to a group of professions or fields. They are very often defined at an institutional level, for example, to create a common standard for a given position or profession. Competency frameworks help to define and describe employee competencies in relation to their work, but without reference to a specific company.

Examples of competency frameworks

• European Digital Competence Framework DigComp
• European Competence Framework for Public Procurement Professionals
• Internal Audit Competency Framework developed by The Institute of Internal Auditors (IIA)

It is important to note, however, that competency frameworks and competency grids are related and often complement each other. A competency grid can be based on competency frameworks, and competency frameworks can help in developing a competency grid for a given organisation or position.

Is there any difference between competency frameworks and qualification frameworks?

Competency frameworks define a set of skills, knowledge, and attitudes that are essential for performing specific tasks and achieving goals in a given profession or field. These frameworks serve to define expected standards of work performance and also help employees and employers in developing and improving their skills and competencies.

In turn, qualification frameworks are a tool used for classifying, describing, and comparing different types of qualifications across various educational and training systems. They include descriptions of qualification levels, the skills and knowledge required for different professional fields, as well as methods for their assessment and certification. Qualification frameworks are used to facilitate the comparison of qualifications between different countries and training systems, and to ease access to training and qualifications for individuals seeking to develop their skills and qualifications.

In practice, it should work so that if Zosia obtains confirmation of her competencies as an auditor, then companies in Poland, Germany, and the Netherlands will all recognise that Zosia understands how to conduct audits. Zosia will therefore not have to additionally confirm her knowledge and skills when she wants to change jobs.

In summary, competency frameworks and qualification frameworks differ in their application and scope, but both tools are important for the development of professional skills and qualifications.