What is competency analysis and how is it done? Comprehensive guide on modern competency assessment systems, matrix creation and gap analysis.
The success of organizations is measured not only by today's performance but also by their ability to develop the right leaders for the future. Therefore, the most critical need for companies is to accurately analyze their employees' competencies. Traditional observation-based methods are both subjective and incomplete.
In the modern age, digital competency analysis platforms are becoming indispensable for organizations. Comprehensive competency libraries and advanced analysis tools support companies' strategic HR decisions.
Competency is the combination of knowledge, skills, attitudes, and behaviors required to successfully perform a job. According to Harvard Business Review research, companies using competency-based management systems show 32% higher performance than their competitors.
"Competencies are the DNA of corporate success. Identifying and developing the right competencies is the key to sustainable competition."
Digital competency analysis platforms offer comprehensive competency libraries prepared according to world standards. These libraries, based on models such as Spencer & Spencer, Lominger and ICF, can be adapted to different business cultures.
Modern assessment systems typically measure competencies at 5 different proficiency levels. This model clearly reveals employees' current status and development potential.
Basic awareness exists, continuous guidance required
Can perform basic applications, occasionally receives support
Can work independently, manages standard situations
Manages complex situations, coaches others
Develops strategy, sets organizational standards
Competency matrices show the required competencies for each position and their importance levels. Here's an example matrix for a sales manager position:
Competency assessment should be done from different angles and methods. Modern systems use various methodologies:
1. Online Competency Tests: Measures knowledge and application level
2. 360 Degree Assessment: Collects multi-directional feedback
3. Behavioral Interview Questions: Analyzes experiences with STAR method
4. Assessment Center: Observes through simulation and role-playing
5. Project-Based Assessment: Examines real business results
6. AI-Powered Video Analysis: Evaluates presentation and communication skills
Digital systems automatically calculate the difference between current competency levels and targeted levels:
Modern platforms can create competency maps at department and organization levels beyond individual analyses. Heat map visualizations show at a glance which departments are strong or weak in which competencies.
Which competencies have organizational gaps?
Competency sharing opportunities across departments
Visualizing talent pool
Overall competency level calculation
Competency analysis not only identifies the current situation but also provides critical data for planning the future. Competency analysis systems:
Competency platforms offer the opportunity to compare organizations' competency profiles with industry averages and best practices. Benchmark reports prepared with anonymized data help identify competencies that will create competitive advantage.
Modern systems can also track future trends and emerging competencies. They enable you to plan today for critical competencies of the future such as digital competencies, agile working skills, and data literacy.
AI-powered systems can predict employees' future development potential based on their current competencies. These systems can provide personalized development recommendations by analyzing career paths of employees with similar profiles.
💡 Tip: Repeat competency analysis at least twice a year. In a dynamic business environment, competency needs constantly change.
Corporate competency analysis is a process that systematically measures employees' knowledge, skills, attitudes, and behaviors to identify the gap between their current status and target levels. According to Harvard Business Review, companies using competency-based management systems show 32% higher performance. Competency assessment tools facilitate this analysis.
Technical competencies cover job-specific abilities such as professional knowledge and software skills, behavioral competencies cover interpersonal skills such as communication and teamwork, and leadership competencies cover managerial abilities such as strategic thinking and vision creation. Leadership assessment systems make this distinction clearly.
A competency matrix is a table showing the required competencies, criticality levels, target levels, and assessment methods for each position. Modern platforms offer ready matrices for 150+ positions and allow company-specific customization. Talent management tools automate matrix creation.
Gap analysis calculates and prioritizes the difference between current competency levels and target levels. The process consists of 6 steps: current status assessment, target setting, gap calculation, prioritization, development recommendations and monitoring. Employee development analytics automates this process.
360 degree assessment is a methodology that observes an employee's competencies from multiple perspectives. Feedback is collected from the employee, manager, peers, and subordinates. This multi-source approach provides an objective assessment and clearly reveals development areas. Data-driven promotion processes use 360 degree results.
It is recommended to repeat competency analysis at least twice a year. In a dynamic business environment, competency needs constantly change and periodic measurement allows you to track development. Digital platforms facilitate this process with continuous monitoring and instant reporting. Optimize your competency management with TestEd's solutions.
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