A Brief Guide to Competency Assessment and Its Benefits for Your Business

skills tracking software

In layman’s terms, competency assessment is a process of taking stock of the cumulative skills of the employees in your company. It closely looks at employee competencies and compares the same to skills required to get a job done. It is guided by competency models that assess the skills and abilities required to fulfill any given professional role.

The process has many benefits for businesses with the use of effective skills tracking software. With its importance to human resources management in mind, let’s take a look at the benefits of competency assessment for business, the process, and the ideal software requirements for effective skills tracking and assessment.

How to Carry Out Competency Assessment Processes? 

This process’ requirements are defined by two integral elements that are indispensable for skills tracking. To complete a successful behavioural assessment the elements required are as follows:

  • Role based competency models on which to base employee assessments
  • A competency-based assessment tool to collect and assess competency data and analytics

Traditionally used tools for capability assessment, such as spreadsheets lack both the privacy and the data safety associated with skills tracking software. As such, skills assessment tools are widely favored over old-school spreadsheets.

Moreover, skills assessment software allows unhindered access to competency data and analytics to authorized personnel while spreadsheets need to be proactively passed around. The importance of such tools in the skills tracking processes lies in the fact that, the said software is an efficient system for data creation and analysis with minimal manual effort.

Moreover, these tools provide the frameworks for assessment processes, aiding human resource departments in taking stock of employee skills, training and qualifications. With this knowledge let’s look at the benefits of this process.

Benefits for Companies and Organizations 

Competency assessment comes with multiple benefits and advantages for companies and organizations. While automation is a primary benefit, the other ones are as follows:

  • With competency models setting the frameworks for skills and capabilities required to fill any unique professional role; skills assessment against said models help employers recognize skills gaps within a company or organization and make hiring decisions that effectively fill the talent gap
  • Skills assessments set the tone for employee learning and development by revealing key insights into skills needed for businesses operations and expansion, and skills within a company or an organization
  • By providing insights into employee skills and abilities; skills assessment is often an effective tool for succession and promotion planning
  • Such an assessment can also prove to be revelatory, exposing areas wherein organizational change is required to boost growth and expansion


Q: What purpose do competency assessments serve? 

A: Competency assessment helps to take stock of the cumulative skills within a company; they shed light on skill needs for the growth and expansion of a company. It also gives employers insights into the course for learning and development to maximize employee productivity. The assessment also sets the frameworks for calculated recruitment to fill talent gaps within an organization or a business.


Q: What is the cost of this software? 

A: Competency based assessment tools costs can vary. As such, this question is best answered by representatives from a leading skills assessment software development firm.

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