Competency Training TLDR Summary
Competency-based training is a structured approach to developing the skills, behaviours, and knowledge employees need to perform tasks to a specified standard under real-world conditions. It differs from traditional classroom methods and skill-based learning by taking a holistic approach. It combines practical ability with judgement and adaptability, rather than focusing on content delivery or single-task mastery. Key components include a competency framework, customised learning paths, continuous assessment, and practical application.
For workplace training professionals, this approach offers a targeted, measurable alternative to one-size-fits-all learning. It directly links employee development to role performance and organisational goals.
Traditional training sometimes feels like throwing things at the wall and hoping that one of them sticks. It is capital-intensive and surface-level. It also fails to provide a foolproof means of verifying that the employee has mastered a specific skill.
Competency-based training and assessment is a better approach to improving employee performance. It is targeted and allows you to focus on addressing gaps that have a measurable impact on your business.
In this article, we look at:
- What competency-based training is
- How it compares to traditional and skill-based training methods
- Benefits of training competence
- Components of competency-based training
- Steps for implementing the approach effectively
- How to measure competency training results
- Challenges you may encounter during the process
What is Competency-Based Training?
Competency training is the process of developing skills, behaviours and knowledge that prepare participants for handling versatile scenarios. It ensures that participants can perform tasks at a high standard and respond to challenges with confidence.
The Australian National Skills Commission defines competency-based training as “a structured approach to training and assessment that is directed toward achieving specific outcomes. It is about assisting individuals to acquire skills and knowledge, so they are able to perform a task to a specified standard under certain conditions.”
One of the foundations for this type of training is competency-based assessment. This helps instructors and companies evaluate how much learners understand. It also showcases how well they can apply skills and knowledge to solve workplace challenges.
How Does Competency-Based Training Compare to Traditional and Skill-Based Learning?
It’s clear that competencies training differs significantly from traditional, classroom-based methods. However, it’s often confused with skill-based learning. While skills, capabilities and competencies may sound similar, they are unique concepts. Learning skills is almost as different from competency-based training as traditional methods. The differences between the three techniques can be broken into five distinct areas.
Approach
Traditional training usually follows a set curriculum with a one-size-fits-all style. It’s often classroom-based and focuses on delivering information from trainer to learner. The emphasis is on teaching content rather than tailoring learning to individual needs.
Skill-based learning takes a more practical approach by focusing on developing specific abilities. It zeroes in on tasks that learners need to perform in their jobs. The learning is more hands-on and directly linked to workplace activities.
Competency training takes a broader, holistic approach. It combines skills with knowledge, behaviours, and attitudes needed to perform effectively in a role. The focus is on overall capability, not just individual tasks.
Goals
Traditional training aims to pass on knowledge through theories. The main objective is to ensure participants understand and retain information. It’s not concerned with how that information is then applied in real-world scenarios.
Skill-based learning is designed to help learners master a particular task or ability. The goal is to identify skill gaps and address them. This ensures employees can perform specific tasks accurately and consistently. It’s about becoming proficient at doing one thing well.
Training and competency prepare employees for a variety of situations in their roles. The goal is not just performing tasks. It focuses on effectiveness and efficiency under versatile conditions. Competent employees are adaptable and consistently meet high performance standards.
Methods
Traditional learning often relies on lectures, manuals and classroom instruction. The learning experience is top-down. Knowledge is passed down from an educator or a suitably qualified and experienced person. Learners and employees receive this information without actively engaging with it.
Both skill-based and competency-based training take an active approach. Training is conducted at the learner’s own pace and is often collaborative. Learners can request further training or specific course enrolments. This ensures they feel comfortable and confident performing tasks.
However, skill-based learning uses demonstrations and hands-on practice. Training for competency requires simulations and role-playing. These provide participants with experience applying skills and knowledge in realistic situations. It bridges the gap between theory and practice.
Measurement
In traditional training, knowledge is measured through summative assessments like tests and quizzes. Success means high scores and completion rates.
In skill-based learning, success means being able to perform specific tasks. Skill assessments could include demonstrating abilities to a trainer or assessor. Many companies also use performance reviews and skills matrices to track development.
Determining competency often involves holistic assessment examples. These measure more than just task performance. They may include 360 Performance Reviews in collaboration with colleagues, managers and direct reports.
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Traditional training produces learners who know the material but may struggle to apply it in new situations. It builds a foundation of knowledge but doesn’t always prepare people with practical skills. It’s about understanding, not performance.
Skill-based learning produces employees who can carry out specific tasks confidently and accurately. This improves performance and efficiency. However, it may not prepare participants for roles that require flexibility beyond those tasks.
Competency-based training develops employees who are adaptable and effective across different situations. The outcome is well-rounded capability that includes skills, behaviours, and judgement. This professional development makes learners more resilient and valuable in dynamic workplaces.
| Competency Training | Traditional Training | Skill-Based Training | |
|---|---|---|---|
| Approach | Holistic approach | Classroom-based approach | Classroom-based approach |
| Goals | Improve effectiveness and efficiency in versatile environments | Pass on knowledge | Mastery of specific tasks |
| Methods | Hands-on activities, simulations and role-playing | Lectures, manuals and classroom instruction | Demonstrations and hands-on practice at learner’s own pace |
| Measurement | Competency matrices and holistic assessments | Tests and quizzes | Skill assessments and skill matrices |
| Outcomes | Adaptive employees who are effective in various situations | Employees who know material, but may struggle to apply it | Employees who can carry out specific tasks accurately |
Why Should Organisations Focus on Training Competency?
Reduced Training Costs
Employee training can be a costly undertaking. It takes resources, including time for developing materials, delivering lessons, and assessing results. Traditional in-person training in a classroom environment can also mean hiring a space. You then need to transport employees to and from training sessions, and print materials. When all employees are involved, the costs involved increase, and the impact of training can be difficult to measure.
Competency-based training is often more focused than traditional learning methods. It equips employees with abilities specific to their job roles, rather than building generic knowledge. It often involves on-the-job training, which incurs fewer costs. Companies can also recognise gaps and create targeted employee training plans to address them. This benefit sees them allocating their L&D budgets more effectively. It also ensures that training delivers meaningful results for employees and the business.
Objective Employee Assessments
Another benefit of competency-based training is that it levels the playing field for employees. The focus isn’t on general criteria or knowledge retention. Traditional training is one-size-fits-all. It doesn’t account for prior experience, learning preferences or proficiency levels. But developing competency is specific to each employee. Assessment measures improvements that directly relate to each individual’s abilities.
For example, an employee who has great reasoning skills may need to improve their communication. Another employee may have great communication skills, but struggle with data analysis. If you provide training by enrolling both in the same training courses, their levels of improvement would vary. However, tailored training and competency-based methods would boost proficiency. This would directly increase productivity and effectiveness in their jobs.
Increased Employee Efficiency
Competent employees are able to complete work tasks quickly. They’re confident in their abilities and apply their skills and knowledge in versatile situations. This makes them more efficient than employees whose training has focused on general skills and knowledge.
This efficiency isn’t limited to employees’ roles. Companies that focus on building competency can leverage abilities across their workforce. For example, an employee who is competent in inventory management isn’t only valuable in your warehousing department. Their skills, behaviours and knowledge could also benefit your sales team in selling specific products. Or they could help your operations team improve demand forecasting and resource planning.
Improved Employee Retention
Employees want to work for companies that support professional development. When they are able to learn and grow, their job satisfaction increases. This helps them perform better in their roles, while also improving employee engagement. They feel connected to the work they do and invested in the company’s success. This also makes them less likely to look for job opportunities elsewhere.
Training improves employee retention in general, and competency-based training is especially effective. This is because the efforts are directly linked to employees’ roles and abilities. It improves their confidence and supports career progression.
More Adaptable to Future Needs
Business needs can change quickly as industries evolve, technology advances, and new regulations emerge. Competency-based training gives employees the skills and confidence to adapt when these changes occur.
The focus is on developing practical abilities rather than just theoretical knowledge. This makes it easier for employees to transfer and apply what they’ve learned to new situations. This benefit makes it easier for companies to respond to shifting priorities and adopt new technologies. They can also expand into different markets without needing to start training from scratch each time.
What Are The Key Components of Competency-Based Training?
Competency Framework
There are many different ways of analysing competency within your workforce. A set framework that you can refer to will help you standardise your processes. This framework will serve as the foundation for all of your competency-based training programs in the short and long term.
Many companies already have a skills framework for defining and assessing specific skills. However, a competency framework also incorporates behaviours and knowledge required for job performance. Both frameworks play a crucial role in workforce development. But they serve distinct purposes in shaping employee growth and training programs.
Customised Learning Paths
Traditional methods often see all employees enrolled in the same courses and training sessions. However, employee competency-based training should address each individual’s specific needs. This is where customised learning paths can be invaluable. They help companies tailor competency-based training programs to employees’ existing abilities and proficiencies.
For example, two employees might complete the same assessment. Based on their results, one employee may receive communications training recommendations. The other might focus on developing analytical skills. This ensures their time is spent developing abilities that add the most value to their roles and the organisation as a whole.
Continuous Assessment
Competencies evolve and develop over time. This is why it’s critical to develop training programs that are focused on continuous improvement. Conducting regular competency-based training and continuous assessment helps companies recognise and address gaps. This promotes a company culture of growth and learning, where teams are consistently honing their abilities. It improves confidence, even in changing environments.
Practical Applications of Training
Knowledge and theory have their values, but you want to ensure that your workforce can put their knowledge into action as well. This is where on-the-job training, apprenticeships and other practical applications can be critical. Providing theoretical and practical training will help employees demonstrate competencies in real-world environments. This will also make the training more memorable and effective.
How to Implement a Competency Training Program Effectively
1. Set Your Goals and Standards
No two competency-based training programs should be the same. Each company’s goals are going to differ, and so are its training needs. This is why the first step for developing any training program, competency or otherwise, should be setting goals. When it comes to competence training management, it’s also important to consider the standards that will be used. This ensures consistent measurement.
- Set clear goals. Make them specific, measurable, achievable, relevant and time-bound.
- Identify required competencies. Determine the skills, knowledge and behaviours needed to reach each goal.
- Determine role requirements. While aligning competencies with organisational goals is important, role-based alignment is also crucial. This ensures that the right people are competent in areas that directly impact their work.
- Set Measurement Criteria. These are the standards that need to be met for each level of proficiency. It may include specific abilities, courses, grades, or performance requirements.
- Decide on Measurement Techniques. This may include competency assessment examples, evidence portfolios, performance reviews and training feedback. It’s also important to consider where assessments will take place, who will assess competencies, and the time frame involved.
2. Conduct a Competency Gap Analysis
With your goals in mind, it’s time to understand existing competencies and where any gaps may lie. This involves thorough competency-based assessments. Quizzes and essays are unlikely to demonstrate the practical abilities your organisation requires. You’ll need to adopt various types of assessment to get a clear picture of employees’ strengths and weaknesses. These may include:
- Developing practical assessment scenarios. This could involve an accident response drill, a role-playing fire scenario, or first aid demonstrations. The goal is to measure real-world proficiency.
- Encouraging Self-Assessment. Ask employees to measure their own abilities. Employee self-assessments often indicate confidence levels, which are key to competency. Low confidence can lead to hesitation, overanalysis, and slower processes.
3. Create a Competency Matrix
Next, it’s time to compile the results of your assessment. A competency matrix is a great visual framework for measuring competency across your workforce. It tracks abilities, behaviours and proficiency levels for individuals and teams. These matrices are often colour-coded to help you recognise strengths and weaknesses at a glance. This helps companies develop comprehensive training programs that address specific needs.
The main elements of a competency matrix are:
- Employee names
- Required competencies
- Proficiency levels
| Name | PPE Usage | Injury Identification | Tool Testing | Forklift Operation |
|---|---|---|---|---|
| John Doe | Novice | Advanced | Sufficient | Novice |
| Jane Smith | Sufficient | Expert | Intermediate | Sufficient |
| Joe Bloggs | Intermediate | Novice | Advanced | Novice |
Based on this matrix, a manager might want to prioritise PPE training for John Doe and Injury Identification for Joe Boggs. It also indicates that Forklift Operation training would be valuable across the team.
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Our free customisable template can help.4. Use Versatile Methods For Employee Competency Training
You understand your goals, the competencies required, and existing abilities within your workforce. Now, it’s time to start your employee competency training. Practical training is essential for building competency, but it’s also important to vary employee training methods. Some will suit specific abilities, while others may accommodate different learning styles. Taking a holistic approach will help you develop competency-based training examples that are effective and memorable. Some techniques you could use include:
- Competency workshops. These group sessions focus on building specific competencies. They often involve interactive activities, discussions, and problem-solving exercises.
- Self-paced competency training courses. Online courses that employees can access at their own pace help them fit learning around schedules and commitments. They also reinforce key skills and knowledge.
- Refresher microlearning courses. These short, focused training modules are designed to reinforce key concepts. They help employees retain knowledge over time without disrupting their regular workflow.
- Instructor-led training sessions. Led by experienced trainers, these sessions provide structured learning. They also offer opportunities for real-time feedback, questions, and practical demonstrations.
- One-on-One mentoring. Employees receive personalised guidance from a mentor who helps them develop specific competencies. It involves tailored support and the sharing of real-world insights.
- Collaborative competency training examples. Team-based training activities encourage employees to work together. They can apply their skills to group projects and learn from each other’s strengths and perspectives.
5. Measuring the Effectiveness of Training Competency
There are three common methods that businesses use to measure the effectiveness of their competency-based training initiatives:
- Pre- and Post-Training Assessments. Conducting short assessments before and after training will help you to see its immediate impact. It’s also important to conduct post-training assessments in the weeks and months that follow the training. This will ensure that the competencies that have been developed are long-lasting.
- Key Performance Indicators. Compare key performance and training metrics before and after training. This ensures measurable results that align with role-based and organisational goals.
- Feedback from Multiple Sources. It’s important to get a 360-degree view of employee competencies and how they improve after training. Collect performance feedback from employees themselves, peers, managers and direct reports.
Common Competency-Based Training Challenges and Their Solutions
Identifying Relevant Competencies
Understanding the precise competencies job roles require can be complex and time-consuming.
Solution: Turn to experts. They can help you put together a competency and skills ontology. This provides details on necessary skills, knowledge, and behaviours.
Finding the Time for Training
Without the right tools by your side, it can be difficult for businesses and their employees to dedicate time to training.
Solution: The right Learning Management System is essential. Look for solutions that will help you track training across on-the-job and blended learning efforts.
Effective Change Management
People don’t like change. If you haven’t focused on competency-based training in the past, you’re likely to encounter resistance at first.
Solution: Communication is key for effective change management. Show your teams that competency-based training is a positive change. Explain how it supports their professional development and benefits your business.
Free Competency Training Courses
Implementing competency-based training doesn’t always have to be costly. There are plenty of free courses and resources available to help your teams start developing the abilities they need. In fact, we’ve put together a course library that’s filled with skill-based courses across numerous industries. For example:
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We’ve got a content library full of them!Use Training & Competency Management Software to Scale Your Training Process
In small organisations, it is easy to track and implement competency-based training manually. However, as your business scales, manual processes break. You may spend more time fixing them than administering effective training. This can impact employee performance. At this point, it’s best to invest in competency management software.
Cloud Assess empowers organisations to manage the end-to-end process of competence training. They provide comprehensive training features that help companies develop, deliver, and track learning. They also offer an online skills matrix. This can be used to track and develop practical skills and competencies across individuals and teams. Versatile and AI-powered assessment tools also help you measure the success of your competency-based training programs.
But don’t take our word for it. Explore Pricing or book a demo today to see the difference for yourself.
