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Build a competency framework that actually works

A step-by-step guide to build a framework that enhances employee performance and strengthens your organization.

A happy diverse team of people are sitting at a table smiling at the camera.A happy diverse team of people are sitting at a table smiling at the camera.

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Insights from Ellen Raim, Founder of People MatterWe focus more on solving than preventing People problems.

Tired of vague job descriptions and employees who seem lost? A competency framework is the answer. It provides clarity on expectations, supports development initiatives and aligns talent management with business objectives. Plus, your employees will know exactly what skills, behaviors and qualities they’ll need to succeed.

Here are 9 steps to create your framework (without losing your mind):

Step 1: Define the purpose and scope

Before you dive in, ask yourself: What exactly are we trying to fix here?

  • Clarify objectives: Pinpoint your goals (Hint: "Everything" is not a goal)
  • Identify scope: Decide which teams, departments or groups of employees the framework will support
  • Secure leadership buy-in: Leadership support is integral to the success of the framework

Step 2: Gather input from key stakeholders

Newsflash: Your framework can't exist in a vacuum. A strong competency framework reflects both business needs and employee realities.

  • Consult leadership + HR: Chat with leadership about real strategic needs to ensure alignment with strategic goals and company culture
  • Engage managers + employees: Gather insights from managers and employees about actual skills that matter in different roles
  • Benchmark industry standards: Research industry best practices and frameworks

Step 3: Identify core competencies

Core competencies are skills that apply to all employees and represent the organization’s values and culture. Examples include:

  • Communication + collaboration
  • Adaptability + resilience
  • Problem-solving + critical thinking
  • Customer focus
  • Emotional intelligence

Step 4: Define role-specific competencies

​​Not all jobs are created equal. Shocking, right? Break competencies into job levels and functional areas.

  • Competencies by level: Differentiate expectations for entry-level employees and leaders
  • Competencies by function: Create skill maps for different departments like HR, IT, or Sales

Example competencies:

  • Managers: Delegation, coaching, strategic thinking
  • Sales teams: Negotiation, relationship management
  • IT teams: Data security, agile methodologies

Step 5: Define behavioral indicators for each competency

Turn competencies into observable behaviors into something you can actually measure with simple, clear language.

Strategic thinking example:

  • Basic level: Identifies short-term business priorities.
  • Intermediate level: Analyzes trends to anticipate future challenges.
  • Advanced level: Develops and executes long-term strategies that drive business growth.

Step 6: Validate and refine the framework

Ensure the framework is practical and applicable.

  • Pilot with a small group: Get initial feedback from employees and managers to make sure you’re on the right track
  • Adjust based on feedback: Refine language, expectations or structure
  • Ensure accessibility: Make it user-friendly and easily referenced in daily work

Step 7: Integrate into HR and L&D processes

A competency framework should be embedded into key talent management processes. Make sure it’s a tool people can use:

  • Revamp recruitment: Use competencies to define job descriptions and interview criteria
  • Supercharge performance reviews: Assess employees based on competency-based expectations
  • Design meaningful training: Create training programs aligned with competency gaps
  • Create career paths: Provide employees with a roadmap for growth and promotion

Step 8: Communicate and train employees

If nobody knows about it, did it really happen? To drive adoption, ensure employees and managers understand how to use the framework.

  • Host training sessions: Educate managers and employees on applying competencies in their roles (in a way that keeps their attention)
  • Provide reference materials: Create a competency guidebook or intranet resource that people will actually read
  • Make competencies a normal part of conversation: Make competencies part of 1:1 meetings and team discussions

Step 9: Continuously evaluate and improve

Your framework is a living document. As business needs grow and evolve, your competencies should, too.

  • Collect feedback annually: Assess effectiveness through surveys and performance reviews
  • Adapt to business + tech changes: Update competencies to reflect new technologies, market shifts and strategic goals
  • Measure impact: Track performance improvement, employee engagement, and retention rates.

Stop guessing. Start building a framework that transforms your talent management.

Creating a robust competency framework takes expertise. By following these steps, your organization can create a competency framework that supports employee growth, strengthens leadership and drives business success.

Learn live. Adapt faster.

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