Discover the differences between skills and competences to enhance them in your team 

In the HR world it is essential to have a clear understanding of the terms skills, competencies and capabilities. These concepts are often used interchangeably, but acknowledging their differences can be the difference between finding or not finding the perfect candidate for each job.

That is why in this article we clarify all your doubts related to these three terms, and explore the importance of distinguishing between them to help your HR professionals build truly successful teams.

What are skills and competencies?

Skills and competencies are all those characteristics that allow us to understand if a candidate is suitable to carry out the required tasks of a role. Although the difference between these two terms is very subtle, it is very important to recognize it in order to adequately respond to the needs of an organization before hiring a new employee.

• Skills: This term refers to a person’s ability to do something correctly and with ease. Skills can be developed through education, vocational training or work experience and can be technical, such as knowing how to handle specialized software, or transferable, such as teamwork.
• Competencies: Competencies, on the other hand, refer to the traits and characteristics of an individual, such as their values or motivations, that allow them to perform effectively in a job. Competency is made up of a combination of technical and socio-emotional skills, as well as theoretical knowledge necessary to fulfill a role.

Differences between skills, abilities and competencies

As you may have seen, skills are more focused on a person’s practical capabilities, while competency encompasses a broader set of knowledge, skills, and behaviors. However, let’s dig deeper into their differences:

Capabilities vs. competencies and skills

When a person is able to perform a task, it means that he has the competence or skill. When they are not yet capable of this, but have the potential to be, it is a capability.

Skills vs. competencies

As we said before, the distinction between these two concepts is more subtle. A person with skills is capable of performing a task. While a person who is competent not only performs it but does so considering the importance of the task and finding the most optimal way to achieve it.

Why is it important to know the difference between HR skills and competencies?

Being able to distinguish between skills and competency is very useful for HR departments, especially when selecting talent. This allows them to look for candidates who, in addition to fitting the job, have the ability or potential to learn everything that is needed to perform successfully within the company. And what else can it help us with?

• To set growth plans and boost internal mobility

This distinction can help us to favor the movement of employees between jobs as part of their professional development. In other words, a candidate with the ability to learn what it takes to fill a job is a very valuable asset for any organization.

• To set realistic goals for a more effective recruitment process

By understanding the difference between skills and competency, a company can more precisely define the requirements needed for a specific job. They can also evaluate candidates more effectively and set realistic development objectives, which contribute to building solid teams capable of achieving the strategic objectives of the organization.

• To determine the employability of the candidate

In other words, the potential that each person has to access a job, develop and continue growing professionally. By assessing both the technical skills and socio-emotional competency of professionals, the HR department can get a much more complete picture of a candidate’s suitability for a specific position and their ability to adapt and succeed in the work environment.

Practical examples for differentiating skills, competences and capabilities

To better understand the differences between skills, competencies and capabilities, let’s take a look at an example that covers all three concepts:

• Skill: An employee in the L&D department has the ability to design an e-learning course using a specific tool such as isEazy Author. She knows how to create interactive modules, add exercises and design the structure of the courses.
• Competency: The same L&D employee not only knows how to use isEazy Author, but can also design highly effective e-learning courses that significantly improve knowledge retention and engagement rates within the workforce. This employee consistently performs training needs analysis, integrates strategies to improve engagement, and uses feedback in the form of data to continually improve courses. Additionally, she engages with and utilizes advanced pedagogical approaches to ensure that content remains relevant and engaging.
• Capacity: An L&D employee demonstrates an innate ability to understand and adopt new technologies and learning methodologies. Although initially, she has no experience with using emerging tools such as augmented reality or artificial intelligence in training, she has a high potential to learn. As a result, she quickly works out how to apply these technologies in the design of innovative learning programs. This employee understands how to integrate new trends and technologies into the company’s existing training programs, helping to position it at the forefront of corporate training.

Can you see the difference? A skill is the specific ability to do a thing; competence involves not only technical ability, but also effective application and continuous improvement; and capability is the innate potential to adapt and learn quickly, enabling constant innovation.

CASE STUDY

We helped AKRON Group to boost the skills development of its team

See case study

How to identify your team’s skills and competencies

Now that you know the difference between skills and competencies, as well as the value of defining them, you may be wondering exactly how to identify them. Below, we share our tips for success:

Perform regular evaluations

Through periodic evaluations, it becomes possible to maintain an up-to-date record of your whole team’s skills and competencies. As part of your strategy, you can integrate:

• Performance evaluations: These types of evaluation are ideal for observing and recording each employee’s skills and competencies. They must be detailed, and specific in their observations, if you want to form a clear vision of your team’s strengths and weaknesses.
• Feedback: Additionally, implementing a consistent feedback system will help here. You can seek detailed written or spoken feedback from supervisors and peers, as well as instant feedback through the exercises and games included in your training. All of this information will give you insights into an employee’s daily performance.

Integrate evaluation tools and methods

Today, there are various assessment tools and methods available that can help you to identify your team’s skills and professional competencies effectively:

• Interviews and focus meetings: Regularly conduct one-on-one interviews, as well as focus meetings with supervisors, managers, and employees to discuss current and future skills. This will also help you to identify any discrepancies between existing and desired competencies.
• Skills maps: Create skills maps that will allow you to visualize the skills and competencies present within your team. With a skills mapping strategy, it becomes easy to quickly identify any areas where skills gaps exist.
• Competency assessments: Use standardized competency assessments across your team to measure each employee’s level of competence in key areas. These evaluations can be both qualitative and quantitative. Using both parameters will help you to build a clearer picture.

Make use of technology

Technology can be a powerful ally in identifying skills and competencies:

• Training platforms: Implement online training platforms that not only allow you to manage and distribute learning content, but also to analyze and evaluate the training activities your employees carry out. These platforms can feature games, exercises and other interactive elements that provide immediate feedback, as well as offer final assessments. These will help you to identify any gaps in learning and undertake more effective development planning.

Provide open communication channels

Fostering an environment of open communication is essential, as it will help employees to feel comfortable sharing their strengths and weaknesses more openly. Aim to implement:

• Surveys and continuous feedback: Set up regular surveys and continuous feedback sessions, to give employees a chance to share their opinions and experiences.
• Coaching and mentoring sessions: Put in place coaching and mentoring programs where employees can openly discuss their career aspirations, as well as receive guidance on how to improve their skills.

How to boost skills and competences in your team with isEazy Skills?

Now that you know the concepts and differences between these terms, it’s time to think about how to develop competencies and skills within your organization to achieve long-term success. Not only will this allow you to increase productivity and improve performance, but at the same time reduce employee turnover, as training and continuous development are invaluable tools for talent retention.

To train your team, a customized, modern and innovative solution is required. isEazy Skills offers you a complete catalog of courses for team training, with interactive and dynamic e-learning content adapted to new digital learning trends. Ready to boost your team’s talent?