Understanding Skill vs. Competency: How Do You Assess Them in Your Workplace?

Hi all,

What is the difference between skill and competency? How can we assess the skills and competencies of our workmen in our organization? Please share your detailed views on it.

Regards,
Awdhesh Kumar

In simple words, a skill is something that has been learned and can be seen most of the time in work. For example, a vehicle mechanic has the skill to understand and fix vehicle problems; that's apparent.

Competency Explained

Competency is a mix of skills, attitude, knowledge, and behavior. Now, if the same vehicle mechanic goes one step ahead and does something extra with the vehicle which delights the customer, that is competency.

The Iceberg Model

It's like an iceberg model. What you see on the top is basic skills, IQ, and knowledge. What is beneath the surface is a mixture of knowledge, EQ, skills, and behaviors, i.e., competence.

Measuring Competency

To measure competency, there are several ways. A simple task—as HR, you have to identify the competencies which the profile (the workman's profile) needs to complete the task in a manner, and then you have to assess whether the person sitting in that profile exhibits the competency to what degree.

There are several articles on the net on competency and simple ways to measure them. I would also invite you to visit our portal: Home | Mindshare HR Knowledge Portal which will give you varied information and knowledge.

Regards

Let's make it simple... It was your skill to use this app and post this question, and it is up to the competency of people to understand and answer it. Also, skill is what you have and it can be increased, while competency is the maximum you can reach.

Understanding the Difference Between Skill and Competency

To clarify in simple terms: I saw a video/report of a boy, only 7 years old, driving a car with ease on a busy road, sitting in the driver's seat with someone simply sitting next to him. The boy possesses the skill, ability, courage, IQ, etc., to drive the car. However, he does not have a license to drive a car as he is underage according to the Motor Vehicles Act. In other words, he lacks the competency to drive a car, as an authenticated Driving Licence issued by a Competent Authority (RTO being the only authority competent to issue a driving license) is required.

Similarly, a Senior Officer of a firm prepares an investment plan involving Rs. 500 crores and forwards it to his Managing Director for approval. The MD reviews the report and approves it when deemed acceptable. The Senior Officer is knowledgeable about the project but lacks the authority to approve it, whereas the MD may not know much about the project but understands the skills and capabilities of the Senior Officer who proposed the project. The MD possesses the competency to approve the Rs. 500 crore investment and approves it when satisfied.

I hope you have the skills to differentiate between the distinctions.

In short, skill denotes the required level of efficiency to perform a task assigned. Competency, on the other hand, is the quality needed to accomplish the same task effectively.