It is more important than ever to ensure that employees continue to develop themselves continuously. Only in this way can an organization stay ahead in a tight labour market. But how do you make sure that the development you create does not become non-committal or fragmented? The answer is: a competency handbook. With a competency handbook, you can more easily provide direction for growth and support both employees and managers in targeted development. We explain what a competency handbook is, how to continue developing skills effectively, and which do’s and don’ts apply to developing competencies.
What is a competency handbook and why do you need it?
A competency handbook is a structured document in which the most important competencies and skills within an organization are defined. It describes what employees need to be able to do and know in order to perform their roles effectively and to grow into other positions within the organization. These may include job-specific competencies as well as behavioural indicators that correspond to a particular job level. The process of documenting competency development in a handbook is so important because, without clear frameworks, development quickly becomes very abstract. Employees then do not know exactly what is expected of them, and managers tend to manage primarily based on intuition. A competency handbook, by contrast, provides structure and transparency. It also creates a strong foundation for performance management, career planning, and workforce planning. A good competency development handbook generally includes:
- An overview of the organization’s core competencies
- Role-specific competencies and skills
- Concrete behavioural examples for each competency
- Level descriptions (for example junior, medior, senior)
- The relationship with learning, development, and performance evaluation
How can you develop skills?
Developing competencies is more than “just taking a training course.” You only develop a competency effectively through a combination of learning, applying, and reflecting. To ensure this combination, the 70-20-10 model is often used: 70% learning on the job, 20% through feedback and coaching, and 10% via formal education. Other practical ways to develop competencies include:
- Learning on the job: Taking on new tasks, shadowing colleagues, or participating in projects outside your own comfort zone.
- Coaching and mentoring: Learning from experienced colleagues through targeted feedback and guidance.
- Training and e-learning: Focusing on specific competencies, linked to concrete learning objectives.
- Reflection and evaluation: Regularly reflecting on what is going well and what could be improved, for example through progress meetings.
Regardless of which methods you use, it is always essential to link skills to clear goals. By making both the method and the objective concrete, the likelihood of successfully applying the skills in practice increases.
Competency guide or competency book: what works best?
The terms competency guide and competency book are often used interchangeably, but there are clear differences. A competency guide is usually more concise and intended as a directional document, outlining an overview of competencies with brief explanations. It is therefore mainly used as a reference. A competency book, on the other hand, goes a step further. It includes level descriptions, behavioural indicators, and often a direct link to HR processes. This allows the competency handbook to be used for performance reviews, development, and career progression. Whether a competency guide or a competency book is the better choice depends on your organization. Small organizations and startups often opt for a guide because of its simplicity and flexibility. Medium-sized and large organizations, however, tend to benefit more from a comprehensive competency handbook that offers consistency and scalability.
How does software help with developing competencies?
Modern learning platforms make development far more transparent and dynamic than the static documents that used to make up competency handbooks in the past. Developing a competency with the right software makes it possible to link that competency to goals, feedback, and learning activities. This gives employees more ownership over their own growth, while managers can easily access up-to-date data on development progress. Software for competency development can, among other things:
- Centrally document competencies and skills
- Digitally map out development plans
- Provide insight into skill gaps within a team
- Create a connection between learning and performance evaluation
- Encourage continuous learning through reminders and dashboards
Common mistakes in competency development and how to avoid them
Competency development does not always go smoothly. In practice, several pitfalls are often overlooked. For example, organizations sometimes use overly generic competencies without concrete explanations that can be translated into observable behaviour. A lack of follow-up on development agreements is also common. This is a missed opportunity, as it can easily be addressed by scheduling fixed moments for progress reviews and adjustments. Another issue is a lack of alignment with daily practice: learning goals may be disconnected from day-to-day work and are therefore quickly forgotten. By linking learning to real-life situations, the learning process is better embedded in the workplace. Finally, a top-down approach is still used too often, even though development is far more effective when employees themselves are involved in formulating goals. By recognizing and avoiding these pitfalls, you significantly increase the impact of your competency policy.
Questions about the role of EZ-GO in competencies? Get in touch with us!
Do you want to get started with a competency handbook, or are you looking for a smart way to support competencies digitally? EZ-GO helps organizations make skills and competencies transparent, develop them, and embed them sustainably. Feel free to contact us to discuss how we can support your organization in competency development. We would be happy to explore the possibilities with you.