Blog
Get Pay Right on ADP Workforce Now® Next Gen™
Bringing trusted compensation intelligence and seamless planning to even more ADP users.
Written by Salary.com Staff
October 10, 2023
Some people use the terms skill and competency interchangeably. But there are distinct variations between them. Skills refer to the ability to execute a task which a person develops through practice. Competencies comprise skills including the knowledge, behaviors, and traits required to perform a role to a set standard.
While skills are useful, competencies drive results and success. Knowing the difference between skills and competencies is vital to a person’s career and professional growth.
Recognizing one’s skills is a good start. Growing competencies to use those skills effectively is what will set a person apart.
This article explores the key distinctions between skills and competencies. It reveals how these two traits relate to a person’s growth and success.
Skills refer to the abilities and expertise that a person develops through training or experience. It enables a person to perform specific tasks well. A person can possess and develop soft and hard skills.
Soft skills are relational and largely applicable. It includes critical thinking, communication, and problem-solving. A person uses these skills across various jobs and careers. Hard skills are technical and specific to a job role. Examples include equipment operation, programming, or bookkeeping.
Developing skills requires practice and experience. Some people may have natural talents, but the true mastery of a skill takes effort and continuity. Staying up to date with new tools, practices and knowledge is the key for boosting and growing one’s skills.
Soft and hard skills serve as a strong hold for competency and expertise. This requires regular use and continuous improvement. Skills can evolve into sustainable competitive advantages in the workplace. The key is choosing skills that align with a person’s interests and priorities, then dedicating the time needed to hone them.
Competencies refer to the skills, knowledge, and abilities that allows a person to act effectively in a job or role. While skills focus on specific tasks, competencies constitute higher-order abilities. These competencies shape how a person applies those skills.
Key Characteristics of Competencies
Competencies:
Competencies represent the marriage of skills and knowledge with the judgment to know how and when to apply them. They shape how people think, interact, and operate to complete work objectives. Knowing the difference between skills and competencies is the key to growing and managing talent in the workplace.
Skills refer to the abilities and talents a person developed through training or experience. Competencies refer to a person’s capability to apply their skills and knowledge to successfully perform in a role. Here are key distinctions between skills and competencies.
Key differences
Key skills and competencies slightly differ from each other. But they are interdependent. Competencies are built on skills. A person fortifies skills through the development of competencies. Reaching competency in a role requires spotting the key skills for that position. After which, the person practices them extensively through real-world experiences.
Skills provide the foundation, but competencies are what make a person truly capable and effective. Developing the right competencies leads to mastery and success in any field. A person needs to harness and improve both skills and competencies to be successful.
Skills and competencies have a lot in common. In the workplace, employees often use them interchangeably. Here are a few similarities of key skills and competencies to understand.
Both Are Learned
A person develops key skills and competencies over time through education, training, and experience. Whether technical or soft skills, they are not innate abilities but rather learned proficiencies that a person acquires and improves over time.
Help With Task Completion
The purpose of both key skills and competencies is to help people complete work tasks and achieve goals. Skills provide the ability and expertise to execute specific actions, while competencies indicate the capability to apply knowledge and skills in a broader role or situation. Both skills and competencies are essential in getting this done effectively.
Transferable Between Jobs
Skills and competencies are transportable between jobs and careers. As employees change positions or take on new responsibilities, their key skills and competencies go with them and continue to be useful. This is why ongoing learning and development are vital.
Can Be Measured and Assessed
Skills and competencies are evaluated to determine someone’s level of ability. Companies do this through reviews, evaluations, certifications, and demonstrations. By measuring key skills and competencies, employers identify gaps and areas for improvement.
While similar in many ways, it is critical to know the nuanced differences between key skills and competencies. Doing so results in a more capable, competitive, and productive workforce.
Skills and competencies are essential for success. While skills and competencies are closely related, there are some key contrasts between these two traits.
Skills allow employees to fulfill the obligations of their job. Competencies empower them to achieve objectives and advance in their careers. For companies, a combination of key skills and competencies among employees leads to a highly productive, innovative, and motivated team.
Key skills and competencies significantly add to employee and company success. Hiring managers must evaluate candidates for both their practical skills and behavioral traits and mindsets. Continuously improving and strengthening a mix of key skills and competencies makes employees invaluable members of any team. Focusing on growing key skills and competencies leads to greater chances of career growth.
Skills and competencies may differ, but together, they are a powerful combination. An ideal employee possesses both the abilities to perform their job as well as the behaviors and mindsets to thrive in their role. Successful companies foster both skills and competencies in their employees.
Key skills and competencies are both important to success. Having competency without the skill is meaningless, just as having a skill without the competency results in poor outcomes.
The latest research, expert advice, and compensation best practices all in one place.
Blog
Bringing trusted compensation intelligence and seamless planning to even more ADP users.
Blog
Learn how to train managers for effective pay conversations and build trust.
Blog
Total rewards package flexibility lets employees choose what matters - pay, perks, and benefits tailored to their needs.