Competency vs Capability: What’s the Difference and Why Does it Matter?

Competency vs Capability: What’s the Difference and Why Does it Matter?

When it comes to defining the qualities that make for an effective employee, there are a lot of different terms that get thrown around. Two of the most common are “competency” and “capability.” While both of these words refer to an individual’s skills and abilities, there are some key differences between them.

Competencies are the specific knowledge, skills, and abilities that a person needs to perform a particular job function. For example, someone who works in marketing might need to have competencies in developing marketing campaigns, analyzing data, and using marketing software. Competencies are often very specific and measurable, and they’re often tied to particular job roles or industries.

Capabilities refer to a broader set of skills and abilities that go beyond specific job functions. Capabilities are often described as meta-competencies, since they encompass a range of different skills and abilities that can be applied in many different contexts. For example, someone with strong capabilities in communication, problem-solving, and leadership might be able to apply those skills across a range of different job roles or industries.

It’s important to distinguish between competencies and capabilities because they can play different roles in employee development and hiring. Competencies are often used as a way to assess whether a candidate has the specific skills and abilities needed for a particular job role. In contrast, capabilities are often used as a way to assess an individual’s potential for growth and development. By identifying an employee’s capabilities, employers can work on developing those meta-competencies that will allow them to take on new and more challenging roles over time.

One of the key benefits of focusing on capabilities rather than just competencies is that it allows employers to build more agile and adaptable teams. In today’s fast-paced business environment, it’s not enough to simply have employees who can perform a set of specific tasks competently. Instead, organizations need to be able to pivot quickly in response to changing business needs and market conditions. By identifying employees with strong capabilities, employers can build teams that are able to adapt to new situations and take on new challenges.

Another benefit of focusing on capabilities is that it can help organizations to identify potential leaders and high performers. Many of the capabilities that are associated with leadership, such as communication and strategic thinking, are meta-competencies that can be applied across a range of different job roles. By identifying employees with strong capabilities in these areas, employers can start to groom them for more senior positions or other key roles within the organization.

In summary, while both competencies and capabilities are important for employee development and hiring, there are some key differences between them. Competencies are specific skills and abilities that are tied to particular job roles or industries, while capabilities are broader meta-competencies that can be applied across a range of different contexts. By focusing on capabilities, employers can build more agile and adaptable teams, identify potential leaders and high performers, and enable employees to take on new and more challenging roles over time.

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