Competency mapping drives employee development and business growth. Here’s how

A competency is a “combination of observable and measurable knowledge, skills, abilities, and personal attributes that contribute to enhanced employee performance and ultimately result in organisational success”.

This definition by the University of Nebraska-Lincoln not only emphasises the importance of competencies in the workplace but also captures the motivation behind organisational investment in employee development – which is, the belief that it will ultimately lead to the growth and success of the business. It is no wonder then that 60% of HR professionals surveyed by Gartner in 2021 said that building critical skills and competencies was their number one priority.

However, simply possessing a workforce with the desired competencies does not guarantee long-term business success. For an organisation to earn abiding and durable success, it needs a solid foundation. Competency mapping is the tool that can provide that foundation, serving as a guide to identifying, acquiring, developing, deploying, and managing critical competencies in an effective and timely manner. This is the reason why organisations are increasingly turning to competency mapping to identify critical competency gaps and address those gaps through relevant and personalised employee development plans, all of which also perfectly align with the organisation’s goals.

In this article, we explain how competency mapping can enhance workforce planning and talent management by driving actionable outcomes that translate into broader enterprise triumph. Several real-world success stories are included. But first, let’s cover the basics with a detailed competency mapping definition.

Competency mapping definition

Competency mapping is the process of identifying and evaluating the exact skills, knowledge, abilities, and behaviours required to perform effectively in a specific role. It helps organisations understand what makes someone successful in a particular role and ensures that people are placed, trained, and developed in alignment with those requirements.

This process requires the creation of a competency map that offers a detailed overview of the competencies needed for a position, a team, or the organisation as a whole. It must be noted that a competency map is not just an arbitrary list of skills, knowledge, abilities, and behaviours. It is essential that these competencies are directly linked to the vision and goals of the organisation now and in the future. Competency mapping, therefore, defines the key competencies that are instrumental in achieving specific business objectives. Moreover, a competency map is not a static list but must be reviewed and refreshed regularly to keep pace with changing industry conditions.

For a step-by-step guide to the competency mapping process, read our article ‘What is competency mapping and how can organisations implement it?’.

What competency mapping achieves

First and foremost, competency mapping helps HR leaders and managers:

• Assess each employee’s suitability for a role or position
• Identify abilities and attributes to improve an employee’s productivity
• Identify strengths and areas of improvement in each individual

But competency mapping does more than improve performance management.    Deploying a good model – such as the MuchSkills skills management software – can help business leaders elevate their strategy on recruitment, training and development, career advancement, appraisals, succession planning, and more. One HR function that stands to gain significantly from competency mapping is recruitment. A competency map empowers HR leaders to identify the exact competencies required for each role, screen candidates accurately based on these competencies, and make better hires. An effective recruitment process is key to improving employee retention as 80% of turnover is attributed to bad hires.

To know more about how competency mapping enhances HR practices, read our article ‘How HR can use competency mapping for performance management, L&D, and more’.

Competency mapping leads to relevant, targeted interventions

It's a given that competency mapping helps organisations identify competency gaps that threaten productivity. But the exercise loses all meaning if it doesn’t lead to practical solutions that not only deliver but also contribute to business growth.

For example, competency mapping, if done right, can help an organisation develop personalised learning interventions that suit each employee’s unique needs. When every last person in the workforce gets the support to develop the competencies they need the most and be a top performer, the company will naturally also start performing at a higher level. Employees who learn competencies and skills on the job also tend to stay longer, with LinkedIn’s Global Talents Trend 2024 reporting a 7% higher retention rate at the three-year mark.

Apart from targeted training, competency mapping can drive actionable outcomes in other areas – such as tailored employee development initiatives that enhance the company’s succession planning strategy, or disciplined resource allocation through the identification of the business’ most pressing gaps.

Case studies: Competency mapping in action through targeted training

• WHO: A real-world example of competency-based targeted training is the World Health Organisation’s (WHO) initiative to build the capacity of its public health workers through competency-based education. In its Global Competency and Outcomes Framework for Universal Health Coverage released in 2022, WHO identifies six key competencies for its workforce – people-centeredness, decision-making, communication, collaboration, evidence-informed practice, and personal conduct. It also lays the framework for these competencies to be integrated into curricula for its huge population of health workers. Through this training module, WHO aims to provide a better learner experience, facilitate a smoother transition into actual practice, and create a high quality workforce.
• Novartis: Pharma major Novartis is hailed for its skills-based transformation, which has seen it make the ranks of The Josh Bersin Company’s Dynamic Organisations. Dynamic organisations, as described by the company on its website, are companies that “align people and skills to opportunities and improving productivity and business competitiveness in tandem”. Novartis offers numerous personalised learning and career development opportunities. Among them are soft skills courses that require participants to prepare themselves via self-study before attending virtual or in-person workshops where they are divided into teams so that they can practise what they have learnt. This approach to education means that Novartis employees learn new skills and competencies, put them to practice, and receive real-world feedback, leading to a holistic and practical training experience.

Competency mapping aligns individual capabilities with business goals

All these training and development programmes won’t count for much if they don’t align with organisational goals. However, with competency mapping, business leaders can make sure that individual competencies and goals are always in line with the company’s objectives and intentions.

The primary objective of competency mapping is to identify core competencies, so that the business has the capabilities it needs to meet its short-term and long-term goals. Furthermore, competency mapping improves employee performance and engagement and reduces turnover. It trains individuals and companies to become more agile and adaptive in the face of change. All these factors contribute to strengthening the organisation, ensuring that it meets its long-term goals and earns profits.

Case studies: Competency mapping to align talent with business strategy

• IBM: The tech giant has a four-year earn-and-learn apprentice programme that focuses on skills and competencies over college degrees. The programme is open to professionals who have knowledge but lack a traditional degree in their field of choice. During the apprenticeship, participants undergo coursework and on-the-job training and are mentored by IBM leaders across 35 roles including cybersecurity, data science, and software development. At the end of the programme, they receive digital credentials. At the individual level, the programme gives each employee a significant boost in their technical and professional development. At the organisational level, it helps IBM bridge critical skill and competency gaps and develop the competencies it needs now and in the future.
• Siemens: Yet another tech conglomerate, Siemens, offers engineering apprenticeships to develop competencies that are directly linked to its business needs. Paid training programmes, such as apprenticeships, are an effective way to tie employee growth to organisational success. According to a 2018 UK government report on apprenticeships, 78% of businesses with established apprentice schemes reported an increase in productivity while 74% said apprentices helped improve product and service quality. Furthermore, lowered hiring costs and salaries added to significant savings.
• Novartis: Having identified leadership and culture as core competencies, pharmaceutical firm Novartis has managed to completely overhaul its culture by embracing ‘unconscious unbossing’. Unbossing redefines leadership by favouring a flatter organisational structure over traditional hierarchies – a growing trend. An unbossed culture empowers employees to prioritise more meaningful roles that align with their skill sets, values, and interests. It lays the foundation for an internal talent marketplace that allows employees to explore different areas of the organisation and take ownership of their professional growth. This competency-based intervention has not only given Novartis self-aware, adaptive leaders but also helped it achieve many more goals. For one, innovation and engagement are up. “Teams of unbossed leaders aren’t less productive – indeed, they’re more engaged and motivated because they have greater purpose and impact,” Steven Baert, former chief people and organisation officer at Novartis, is quoted as saying in this Forbes article. Speaking of the success of the talent marketplace, Novartis global head of talent Markus Graf says, “When we looked into people who had a successful assignment through our talent marketplace, we found that they had a 132% higher likelihood of moving into another part of the organisation permanently.”

Competency mapping with MuchSkills 

Effective competency mapping starts with the right skills intelligence tools and skills management platform MuchSkills is one such tool. It is built to provide organisations with deep insights into their workforce capabilities. MuchSkills enables organisations to move beyond traditional competency mapping by offering a comprehensive, data-driven, and visually intuitive approach. Here are four ways how competency mapping through MuchSkills can help you optimise, and develop skills strategically:

1. Skill and competency mapping:  MuchSkills’ skills mapping and competency mapping tools make it possible to create an extensive inventory of all the hard skills and soft skills and competencies in an organisation, expertly visualised for convenient reading and analysis. Rather than just a simple catalogue of skills, our skills mapping and competency mapping tools help create a detailed list including proficiency levels for each skill, knowledge and preferences of employees, certifications they possess, and so on. These skills matrices are highly customisable to meet each organisation’s unique needs. It also allows you to monitor certifications in real-time to ensure compliance and maintain expertise across your workforce.

2. Skills gap analysis: MuchSkills allows you to conduct a skills gap analysis that offers deep insights into individual, team, and organisational capabilities. This enables:

• Real-time competency tracking – Identify current skills and missing competencies across teams.
• Data-driven decision-making – Use skills intelligence analytics to shape hiring, training, and workforce strategies.
• Proactive workforce development – Bridge skill and competency gaps with targeted interventions.

3. Internal talent marketplace: MuchSkills helps organisations unlock internal talent by matching employees with opportunities based on their skills and competencies, proficiencies, aspirations, and career goals. This enables:

• Internal role fit matching – Easily identify the right individuals for projects, roles, and mentorship opportunities.
• Career mobility and employee retention – Support internal career growth, reducing turnover and hiring costs.
• Strategic workforce planning – Proactively identify skill gaps and future leaders to ensure business continuity.