Skills vs. Competencies: Understanding the Difference

Are you familiar with the phrase “hire for skills, not for experience”? Skills and competencies are at the today. With the ongoing labor shortage and rapid shifts in the way we work, our attitude towards these attributes is changing. Employers and employees alike agree that skills development is one of the most important practices in a workplace.

Though often used interchangeably, they are different. Skills are the specific abilities and proficiencies that someone has that allow them to perform certain tasks. Competencies, on the other hand, are the behaviors and mindsets that enable that person to grow in their role. In other words – skills can get someone through the door, but competencies are the way to thrive.

In this article, we’ll define skills and competencies, note the key differences, and discuss their application.

Defining Skills & Competencies

As mentioned, there is a difference between skills and competencies. The main distinction is the purpose they each serve. Let’s define skills and competencies.

A skill is someone’s ability to perform a task or activity. Typically, they are proficiencies that someone learns and practices. They are often task-specific and technical or mechanical in nature. Employees apply skills in their specific roles or activities to complete objectives. For example:

• Typing
• Software proficiency
• Operating machinery
• Foreign language fluency
• Data analysis

Competencies are the soft skills, behaviors, and knowledge someone applies in a specific role. Competency is the ability to apply a set of related skills in a certain context to achieve the desired results. They determine work ethic and workplace interactions.  Examples include:

• Communication
• Leadership
• Critical thinking
• Problem-solving
• Adaptability

Key Differences Between Skills & Competencies

There are key differences between skills and competencies. It’s important not only to be able to define skills and competencies but also to distinguish between the two.

Skills are the abilities someone has learned through training and experience. They’re usually measurable and improve with practice. On the other hand, competencies refer to behaviors or attitudes that enable these skills. They represent thought patterns and how someone acts.

While skills will open the door to opportunities, competencies determine how successful someone is. Certain skills could land you an interview but your competencies will get you the job. Employers don’t just want technical capabilities anymore – soft skills are becoming increasingly important.

Applications of Skills & Competencies

It’s helpful to understand when someone needs to apply skills, competencies, or both. This will depend on the task or situation. Employers should consider this when hiring for a job vacancy and promotional opportunities. Employees also need to be mindful of this for their personal and professional growth.

Here are some things to consider:

• Nature of the work – For entry-level roles or everyday tasks, specific skills are important. This could include tasks such as equipment operation, programming, or customer service. Examples of such skills could be Microsoft Excel, fluency in Chinese, or dexterity in woodwork.

• Level of judgment – If a job requires strategic thinking or complex problem-solving, competencies are more important than skills. They are superior abilities, behaviors, and traits. A role that holds responsibilities such as coaching or conflict management relies on competencies.

• Time period – Skills tend to be short-lived and require continuous training and development to maintain. In contrast, competencies take a long time to build but remain relevant for years. For roles that are constantly shifting, focus on skills. Prioritize competencies for stable, long-term needs.

• Measurement – Because skills are often specific and tangible acts, employers can observe and measure them. Competencies are harder to evaluate. They represent thought and behavioral patterns. Measurement methods could include skills testing, competency assessments, or performance reviews.

Developing Skills & Competencies

The ideal employee will have a mix of skills and competencies. A well-rounded team makes all the difference. It’s important to continuously work on and develop these skills and competencies.

Developing skills involves education, training, and practice. Acquisition of skills comes from degrees, certificates, online courses, and other training. Employers should be offering frequent development opportunities to ensure that their employees are constantly growing. To keep up with market shifts, it’s vital to have a flexible and adaptable workforce.

Developing competencies is a little different. It’s unlikely that an introvert is going to suddenly become an extrovert with some training. You can’t force leadership on someone who struggles with public speaking. That being said, it’s not impossible to mould behaviors and attributes to improve someone’s competencies. Employers can provide mentors and use professional resources to work on progressive soft skill development.

Take Home Message

If you’re not already prioritizing skills and competencies, you should reconsider. Harvard Business Review “In evaluating job applicants, employers are suspending the use of degree completion as a proxy and instead now favor hiring on the basis of demonstrated skills and competencies.”

Employers and employees alike should be able to define skills and competencies, distinguish between their differences, and understand their application. A winning combination of both can optimize workplace success and individual opportunities.