The values and behaviors necessary for employees to succeed in their roles are best defined through performance review competencies. Competency-based performance reviews are a powerful method for evaluating how effectively someone performs over a given period—and more importantly, how they can grow.
To make this process even more valuable, many organizations are now integrating competency training and using competency-based learning platforms to support ongoing employee development.
Performance Reviews: Time to Do Them Right
Performance review competencies give you the tools to write timely, accurate, and meaningful reviews. But what exactly goes into them?
What Are Performance Review Competencies?
Performance competencies refer to the skills, behaviors, and values that enable an employee to perform a job successfully. A competency model provides a practical framework that outlines what’s expected for a given role—defining what “good” looks like.
By incorporating competencies into performance reviews, organizations can make evaluations more objective, consistent, and fair. A well-structured competency assessment tool like SkillsDB helps measure employee capabilities across key dimensions, making the review process less subjective and more actionable.
Defining Competencies for Your Organization
Typically, organizations define four types of performance review competencies:
- Core Competencies – Essential behaviors and values expected from all employees.
- Leadership Competencies – Skills necessary for individuals in leadership or managerial roles.
- Technical Competencies – Job-specific knowledge and technical skills.
- General Competencies – Soft skills like communication, collaboration, or adaptability.
These competencies guide employees in understanding how to fulfill their roles effectively.
Using Competencies in Performance Reviews
Once you’ve aligned each job role with relevant competencies, they become powerful benchmarks for performance reviews. Instead of vague or subjective assessments, you’re evaluating employees based on clearly defined expectations.
This approach fosters clarity, accountability, and growth—for both the employee and the organization.
Why Competency-Based Reviews Work
Competency-based evaluations offer several key benefits:
- Better hiring decisions: Core competencies help you identify candidates who align with your company’s values.
- Clear expectations: Employees understand what is expected and how to succeed in their roles.
- Objective feedback: Reviews are based on observable behaviors and outcomes—not opinions.
- Stronger development plans: Gaps in competencies highlight specific areas for improvement and growth.
- Increased engagement and productivity: When employees know how to win, they’re more likely to stay engaged and perform at a high level.
Final Thoughts
A competency-driven review process shows your commitment to employee success. It provides a clear path for development, aligns performance with company goals, and ensures fairness across the board.