Competency Showdown: Prove It or Lose It

Ever wondered what are the fruits of hiring impulsively? Mismatched hires who struggle to perform, promotions that reward tenure instead of talent, and layoffs that cut the wrong people. Without a solid competency assessment in place, businesses risk inefficiency and missed potential.

It’s time to challenge outdated approaches—let’s explore why proving competencies is the key to smarter workforce decisions!

Listen to the full recipe on competency assessment by Vivek Mehrotra, Leadership & Talent Development Specialist, AssessPro on our free HR podcast on Spotify.

Let’s get started!

Competency vs. Performance: What’s the Smarter Bet?

Would you buy a car just because it looks fast, or would you floor the gas and see if it actually moves?

That’s the deal with hiring—competency assessments help you pick candidates who should perform well, but real impact? That’s proven on the job. Some “perfect fits” turn into workplace disasters, while underdogs rise with the right push.

All other traditional performance management basically considers only the outcomes; the results. But here competency assessment measures are the behaviors as well as the skill that are responsible for producing those results.

Vivek Mehrotra

The winning formula? Hire for competency, track performance like a hawk, and sharpen skills nonstop. Because a flashy resume means nothing if the engine can’t run!

Find more insights on competency vs. Performance showdown on our HR podcast, The CHRO Mindset by Vivek Mehrotra.

Competencies vs. Experience: What Packs More Punch?

Competencies are the skills, behaviors, and knowledge that make someone effective in a role—think problem-solving, leadership, or tech expertise. Experience, on the other hand, is about how long someone has been in the game.

If it is a front-end role; if it is a technical role; probably competency will weigh more. But when it comes to leadership; probably the experience required more because an experienced person knows the background.

Vivek Mehrotra

Here’s the kicker- A 10-year driver who never learned parallel parking isn’t better than a 3-year pro who aces every turn. In technical roles, competencies matter more—either you can code, or you can’t.

So, what to do? See, in leadership, experience adds value, but without key competencies like decision-making or emotional intelligence, even veterans can flop. The real power move?

So? Keep a balance but never let “years of experience” blind you to actual ability.

How to Build a Competency Framework or Blueprint for Success?

Creating a competency framework isn’t just about listing skills am employe should have in their pockets but how do those skills touch the points of high performance int your company. That’s what makes it workable.

So, how do you get started with this? For detailed learnings, listen to the full-length HR podcast by Vivek on The CHRO Podcast.

First, understand your business goals. For example, ask yourself, “what does success look like to you?”

The next step is to study JDs, KRAs, and KPIs to identify must-have competencies in the candidate for that particular goal.

After that, you divide them into 2.

• Core competencies- the ones a candidate must have in specific skills to ace their duties.
• Job-Specific Competencies- the ones a candidate must have to nail skill-related jobs.

And here you have a well-tailored competency framework that actually works for both employees and business success!

Can You Rely on Competency Assessment Leading the Way?

Of course!

Competency assessments can help you hire smart, promote right, carry lay off fair. In fact, such assessments are strategic, fair, and future proof!

So, if you are thinking for what you can make competency assessments a go-to thumb rule, think of any, and here it fit in any requirement, if you follow the structure.

1. In Workforce Planning? Yes, Why Not?

Workforce planning without competency assessment is like playing chess blindfolded—you don’t know which pieces (employees) can move the business forward which doubles the catastrophe (not literally, though!). A well-structured competency assessment helps organizations map existing skills, identify gaps, and plan future talent needs.

We found that somehow some people are having a potential or a particular skill for which they were never hired.

Vivek Mehrotra

Isn’t it disturbing to know? People have talent! It’s the system that is brilliant in mismatching!

So, how to hire smart people without fail or loaded regrets? Keep a tab on free HR podcasts on Spotify.

For now, here’s what you have got to do!

• First step—align competencies with business goals. Just ask, “what skills do you need today, and what will be critical tomorrow?” This way, you’ll hire with a purpose.
• Next, assess employees against core and job-specific competencies.
• Now, upskill or reskill. If you can accommodate the talent without hiring, well and good. If you can’t–hire! Isn’t that strategic yet simple?

A simple competency assessment will prevent you from overstaffing, manage skill shortages effectively, turn guesswork into a precise, and follow a data-driven strategy—ensuring businesses stay agile and future-ready.

2. In Succession Planning? Never Underestimate!

When it comes to a competency-based assessment in succession planning; what it does is it helps not only in spotting the right candidate; but it also helps him develop..

Vivek Mehrotra

Competency assessment helps companies identify high potential (HIPO) employees who have both the technical and behavioral skills to step into leadership roles.

But what are the key competencies you should be taking notes on? Okay, evaluate employees on,

• Decision-making ability,
• Strategic and smart thinking, and
• Adaptability, instead of experience.

This makes sure the employee in the spotlight undergoes a structured leadership development plan and no favoritism plays are tuned in!

Let’s dive into a real-world example:

Companies like Reliance Retail use extensive training modules to shape future leaders, while others adopt the Army’s Two-in-Command (2IC) model, where leaders secretly groom their successors.

This ensures leadership transitions happen smoothly, unlike delayed hiring when leadership is vacant, and things don’t bloom as expected.

A strong competency-based succession plan prevents last-minute scrambles and keeps businesses resilient and future-proof.

3. In Layoff Decisions, Also? You Bet, Why Not?

If you think layoffs are bad news for employees only, you are wrong!

A layoff bazooka launched without a competency assessment is equally bad for companies. Most often organizations regret laying off their best employees because they did an assessment that was superficial and not competency based. Companies that cut without evaluating competencies often lose high-value employees while keeping underperformers.

When companies downsize due to overstaffing (like Meta, Twitter) or financial pressure (like Byju’s, Amazon, Microsoft), they must ensure they retain employees with critical competencies.

People who are having those competencies which are essential for running the business; they must be retained at any cost whatever will be the CTC because they are essential; they are required to run the business.

Vivek Mehrotra

The organizations today are rigorously working towards redefining their recruitment process to achieve a successful hiring. Proper analysis of data improves your decision making, reducing the cost and increasing the turnover.

So, how to assess employee skills and competencies? Identify which employee to keep and who to let go?

• ️Find relevance – See if the employee’s skill set align with business needs?
• Monitor performance – Has the employee consistently met expectations?
• Growth potential – Can the employee adapt or upskill for future roles?

A competency assessment helps companies separate essential talent from expendable roles, making layoffs fair and strategic rather than impulsive. It also prevents biased decisions, where personal opinions override business needs.

The smartest organizations use data-driven assessments to decide who stays and who goes—ensuring they don’t just survive tough times, but emerge leaner, stronger, and more competitive.

Some Hidden Insights, Only for You from HR & Workplace Podcast- The CHRO Mindset Podcast