A competency model is a key tool in competency management. It helps companies to clearly define the competencies required for individual roles and to provide targeted support for employee development in everyday work. But how can a competency model be developed that fits the company's strategy and areas of activity? Lucca shows what is important.
The most important steps at a glance
Define the goal and scope of the competency model in line with the company's strategy.
Put together an interdisciplinary team (HR, managers, specialists).
Identify and prioritize the key competencies for each function or profession.
Classify the competencies into categories (knowledge, skills, behavior, languages).
Rate each competency on a four-point scale from beginner to expert.
Create a clearly structured document that is accessible to all employees.
Update the competency model regularly to respond to new requirements.
How can a competency model be developed in 6 steps?
The following steps are crucial for developing an effective competency model:
set a goal
define the scope
put together an interdisciplinary work team
identify key competencies
prioritize competencies
create a clear document
1 - Define the goal of the competency model
The first step is to clearly define the goal of the competency model. This could be, for example, to structure career paths or to promote internal mobility in a targeted manner.
Ask yourself the following questions:
Who uses the competency model in their daily work?
What is it used for specifically?
How will the insights gained be used?
The answers will help you determine what content should be included in the competency model.
2 - Define the scope of the competency model
The scope of a competency model can vary. It can refer to:
all functions and professions in the company
a specific area of the company
a single function or occupational group
For example, a competency model may refer exclusively to functions in sales.
Depending on its scope, the development of a competency model requires varying amounts of human and financial resources.
Good to know: Creating a competency model for all functions of a company is particularly time-consuming.
3 - Put together an interdisciplinary working team
Developing a competency model is a collaborative process that incorporates different perspectives. These include:
representatives from HR
managers from the operational area
specialists with in-depth practical knowledge
This diversity ensures that the competency model is realistic, practical, and technically sound.
Good to know: For a competency model in the IT sector, for example, an HR specialist, IT management, a technical project manager, and an experienced IT developer can work together.
4 - Identify key competencies
In this step, the competencies that are relevant for each function or profession within the defined scope are recorded. These include, for example, teamwork skills, problem-solving skills, and confidence in using digital tools.
The following are suitable for identifying existing competencies:
brainstorming
observations in everyday work
In addition, competencies that could become more important in the future should also be taken into account.
5 - Prioritize competencies
Once the skills have been defined, they are prioritized according to their relevance and the level of proficiency required.
Lucca recommends a four-level scale for this:
Level 1 – Beginner: Has basic knowledge to understand the skill.
Level 2 – User: Applies the skill independently in everyday work.
Level 3 – Advanced user: Uses the skill confidently even in complex situations.
Level 4 – Expert: Passes on the skill and embeds it sustainably in the company.
This classification makes it easier to assess skill levels, define development goals, and classify profiles, for example in recruiting.
6 - Create a clear document
The competency model should be clear and well-structured so that it can be easily used in everyday work. It is recommended to:
organize competencies by category (languages, knowledge, skills, behavior)
briefly describe each competency
specify the required competency level for each function
The document should be easy to read. It can be created as an Excel spreadsheet or presented visually, for example in the form of a competency map by function or area.
It is also important that the competency model is easily accessible to all employees, for example via the intranet or integrated into an HR tool.
What is a competency model?
A competency model is a reference document that maps the core competencies for individual functions or professions within the company.
It includes, among other things:
languages required for a function
knowledge, i.e., theoretical knowledge from training or further education
skills acquired through practice and experience, as well as the ability to use appropriate methods and tools, such as handling specific software or creating budgets
behavior, also known as soft skills, such as adaptability, stress resistance, or leadership skills
Good to know: In education or healthcare professions, technical knowledge, empathy, and communication skills are often at the forefront.
Why is it worth using a competency model?
A competency model helps companies to manage their human capital in a targeted manner and make informed strategic decisions.
Among other things, it serves to:
Identify and appreciate talent: The competency model makes it possible to evaluate employee performance in relation to the company's expectations and to recognize their competencies in a targeted manner through promotions and salary adjustments.
Plan further training: By identifying competency gaps and development potential, targeted further training can be planned as part of competency development.
Career guidance: The competency model supports employees in their internal development, helping them to build new competencies or identify roles for which they can position themselves.
Recruiting suitable profiles: The competency model makes it easier to assess candidates and define requirement profiles more precisely in recruiting.
Good to know: Competency models are a key tool in talent management.
Example of a competency model
Below is an example from our own competency model:
| Competency type | Competency | Level 1 | Level 2 | Level 3 | Level 4 |
|---|---|---|---|---|---|
| Languages | English – Understanding, writing, and speaking English in a professional context | Discovering the language. Understanding and using short sentences and everyday expressions. Able to introduce oneself or others and exchange simple information on familiar topics.CEFR: A1 or A2 | Understanding and participating in conversations using clear, standardized language. Can communicate independently with English speakers. Understands the main points of more complex texts.CEFR: B1 or B2 | Communicates spontaneously and fluently without having to search for words. Expresses themselves clearly and coherently on complex topics. Also understands implicit content and nuances.CEFR: C1 or C2 | Is bilingual. |
| Behavior | Adaptability – respond constructively to the unexpected and adapt your own behavior to different situations and conversation partners. | Needs support to calmly cope with unforeseen situations. Recognizes different contexts, but rarely adapts their own behavior independently. | Copes with minor unpredictabilities independently, but sometimes needs support with larger challenges. Adapts behavior independently in most situations. | Deals constructively with a wide variety of unforeseen situations and adapts behavior independently. | Anticipates unforeseen situations, moves confidently in very different contexts, and adapts naturally to different conversation partners. Passes on this skill internally. |
| … | … | … | … | … | - |
| Skills | Project management – successfully implement projects, clearly define goals, and plan resources, budget, time frame, and possible constraints in advance. | Knows the basics of project management. Supports projects in a team according to specifications and learns how to use project management tools. | Actively participates in simple projects: goal definition, resource planning, risk assessment, and implementation. Can present a project. | Leads simple projects independently and actively participates in more complex projects. Proactively anticipates resources and risks, coordinates teams, and handles unforeseen events. Presents and represents projects convincingly. | Recognized internally as an expert for complex, strategic large-scale projects. Confidently coordinates cross-functional stakeholders, imparts know-how, and convinces others beyond their own team. |
| … | … | … | … | … | - |
| … | … | … | … | … | … |
Competency models differ depending on the professional field and industry. For example:
A competency model for sales activities includes skills such as negotiation skills, customer focus, and the ability to use CRM tools.
A competency model for customer support activities includes competencies such as conflict management and empathy.
Competency models are flexible and continue to evolve. New competencies can be added and existing requirements adapted to respond to changes in the market and in activities.
A competency model thus plays a central role in the competitiveness of companies. It structures careers, supports continuing education planning, and contributes to the further development of individual and collective performance.
But the work doesn't stop there: once the competency model has been created, it becomes a living document. It must be regularly updated to integrate new competencies, reflect changes in professional practices, and anticipate tomorrow's needs at an early stage. This approach ensures that the company remains agile and able to respond to rapid changes in its environment.
Use regular employee appraisals as a starting point for skills development and internal mobility.
