Competency v/s Capability: Which Matters More at Work?
Today, companies are constantly seeking the right talent to drive success. But what to prioritize: competency or capability?
Competency refers to the specific skills and knowledge needed for a job. On the other hand, capability is the overall potential to apply those competencies in numerous situations. So, which one holds more weight in the workplace? Well, here’s all about competency v/s capability: which matters more!
What Is Competency?
Competency refers to an individual’s specific skills, knowledge, and abilities to perform a job effectively. It encompasses the technical expertise and proficiency required to carry out tasks and responsibilities associated with a specific role.
In addition, the difference between competency v/s capability is vital for businesses to optimize their workforce and attain organizational goals. Competency is a term that demonstrates specific skills, knowledge, and abilities an individual possesses to perform their job effectively. It is basically the foundation upon which an employee’s performance is built and it directly impacts their ability to contribute to the organization’s success. Well, one can acquire competencies through education, training, and hands-on experience in a specific role/ field.
Types Of Competencies
Competencies are further categorized into two types: functional and behavioral. Let’s discuss them in detail.
Behavioral Competency
Behavioral competencies lay emphasis on soft skills and personal attributes, which enable an individual to interact effectively with others and navigate the workplace. A few examples of behavioral competencies include:
- Interpersonal Skills
It is the ability to build and maintain positive relationships with colleagues, clients, and stakeholders.
- Leadership Qualities
It is the capacity to guide, encourage, and inspire others to achieve common goals.
- Adaptability
Adaptability is the flexibility to adjust to changing circumstances and embrace new ideas or approaches.
Developing strong behavioral competencies is vital for success in any role, as they contribute to a positive work environment and facilitate effective collaboration.
Functional Competencies
Functional competencies are directly associated with the particular tasks and responsibilities of the job. They encompass the technical skills and knowledge required to perform the role effectively. The examples include:
- Job-Specific Skills
It is the expertise required to carry out the core functions of the role, like financial analysis or coding.
- Industry Knowledge
Industry knowledge includes having a deep understanding of the trends, best practices, and difficulties within a specific industry.
- Proficiency In Using Specific Tools
It is the ability to effectively utilize the technologies and platforms relevant to a specific industry/ job.
Developing the right mix of behavioral and functional competencies is vital for individual success and organizational performance. By understanding the competencies required for every role, businesses can make informed decisions regarding talent management, recruiting, and training.
What Is Capability?
Capability is a part of what is corporate training programs. It is an individual’s overall potential to apply their competencies effectively in numerous situations and contexts.
It includes the capacity to adapt, learn, and grow individuals to take on new challenges and responsibilities beyond their present roles. In addition, understanding the difference between competency vs. capability is vital for organizations to recognize and develop their employees’ full potential.
While competency focuses on the specific skills and knowledge required to perform a specific role, capability takes on a broader role. It encompasses an individual’s overall potential to apply their competencies in different situations and adapt to new challenges.
Key Differences Between Competency and Capability
While competency and capability are closely related, there are some key differences between the two.
- Specific Skills v/s Overall Potential
Competency is a specific role or set of tasks. It involves demonstrating the necessary skills and knowledge to perform the tasks effectively.
On the other hand, capability is an individual’s overall potential to apply their competencies in numerous contexts and adapt to new challenges.
- Role-Specific v/s Transferability Across Roles
Competencies are often specific to a certain industry or role and might not be directly transferable to other roles.
On the contrary, capabilities are broadly applicable and can be leveraged across different positions and industries. For instance, strong communication skills and problem-solving abilities are valuable capabilities that one can apply in many different contexts.
- Training and Experience v/s Adaptability and Growth
Competencies are developed explicitly through targeted training, education, and on-the-job experience. They can be assessed and measured against established benchmarks/ standards.
On the other hand, capabilities are an individual’s inherent potential and ability to learn and grow. They involve a willingness to take on new challenges, adapt to change, and consistently develop new skills and knowledge.
Benefits Of Competency and Capabilities
Apart from the competency vs. capabilities difference, there are certain benefits to both. Let’s take a look!
- Job-Specific Expertise
Competency-based hiring practices include identifying the specific skills, knowledge, and abilities required for the success of the job. By focusing on these competencies during the recruitment process, companies can ensure that new hires possess the necessary expertise in order to perform their jobs effectively from day one.
- Performance Management
Competencies provide a clear framework for evaluating employee performance and recognizing areas of improvement. By establishing well-defined competencies for every role, managers can assess an individual’s proficiency level against objective criteria instead of relying on subjective opinions or vague metrics.
The competency-based approach to performance management enables targeted skill development and training. When managers can pinpoint specific areas where an employee needs to improve, they can provide focused guidance and resources to help bridge those competency gaps. This not only benefits the individual employee but also contributes to the overall strength and capability of the team.
- Employee Growth and Development
Nurturing capability in the workplace is a powerful way to support employee growth and development. By encouraging continuous learning and skill acquisition, companies create an environment/ surrounding where employees feel valued and motivated to improve their abilities. This approach benefits employees and prepares them for future roles and responsibilities.
- Aligns With Long-Term Strategic Goals
Nurturing capability in the workplace aligns with a company’s long-term goals. By developing a highly skilled and flexible workforce, companies can better execute their strategies and achieve their objectives. This alignment ensures that capability development efforts aren’t viewed as isolated initiatives but rather as integral components of the organization’s overall success.
Conclusion
Competency and capability are both vital aspects of personal and professional growth. Competency refers to particular skills, knowledge, and abilities that one possesses, enabling effective performance in various tasks.
On the other hand, capability encompasses one’s potential to develop and adapt to new challenges and roles, thus reflecting broader attributes like creativity, resilience, problem-solving, etc. While competency ensures proficiency in present responsibilities, capability signifies the potential for future growth and innovation. Balancing both is crucial for success, as competency offers a solid foundation, while capability drives continuous improvement and adaptability in an ever-evolving environment.
If you are struggling to balance both competency and capabilities in your company, make sure you reach out to us at RILCA – your one-stop destination for everything. Ranging from corporate training to student counseling – we have got it all! Contact us today and one of our top counselors and trainers will be there to help you!
