Skills vs Competency
Definition
Skills and competencies are closely related concepts, but they are not the same.
A skill is a specific learned ability used to perform a task or activity.
A competency is the ability to apply knowledge, skills, behaviours and judgement effectively within a defined role, responsibility or work context.
Skills often form part of a competency, but competency is generally broader than skills alone.
Part of the Workforce Capability Knowledge Index: Explore related workforce capability, competency and readiness concepts.
Why the Difference Matters
Many organisations use the terms skills and competency interchangeably. While the concepts are related, treating them as the same thing can create confusion when defining workforce requirements, assessing performance and evaluating workforce readiness.
Understanding the distinction helps organisations answer questions such as:
- What specific skills are required?
- Which competencies are important for success in a role?
- How should workforce capability be assessed?
- What information supports workforce readiness decisions?
- How can capability gaps be identified and addressed?
What Is a Skill?
A skill is a specific ability that can be learned, practised and improved.
Skills are often task-focused and describe what an individual can do. Examples include:
- Operating a forklift
- Using a software application
- Performing a welding procedure
- Creating a spreadsheet
- Administering an injection
- Conducting a safety inspection
Skills may be technical, operational, administrative, interpersonal or professional in nature.
What Is a Competency?
A competency reflects the ability to apply knowledge, skills, behaviours and judgement effectively within a particular context.
Competencies focus on successful performance rather than individual tasks.
Examples include:
- Clinical Assessment
- Problem Solving
- Project Management
- Team Leadership
- Customer Service
- Risk Management
A competency may incorporate multiple skills together with knowledge, experience, behaviours and professional judgement.
Key Differences
Skills
- Specific abilities or tasks
- Usually task-focused
- Describe what a person can do
- Often learned individually
- May be assessed separately
- Form part of competency
Competencies
- Broader capability applied in context
- Usually performance-focused
- Describe how a person performs
- Often demonstrated through performance
- Usually assessed within a work context
- May include multiple skills, knowledge and behaviours
How Skills and Competencies Work Together
Skills and competencies are complementary rather than competing concepts.
Skills often contribute to competency achievement. For example:
Competency: Clinical Assessment
Supporting skills may include:
- Patient interviewing
- Vital signs measurement
- Documentation
- Clinical observation
The competency reflects the ability to combine these skills with knowledge, judgement and professional practice to perform effectively.
Competency: Project Management
Supporting skills may include:
- Project planning
- Scheduling
- Risk analysis
- Stakeholder communication
The competency reflects the ability to apply these skills successfully within a project environment.
Skills, Training and Qualifications
Skills may be developed through training, qualifications, experience and workplace practice. However, the completion of training or attainment of a qualification does not necessarily demonstrate that a job-relevant skill can be performed to the required standard in the workplace.
Many organisations therefore assess important skills directly, particularly where performance, safety, quality or regulatory requirements are involved.
Demonstrating a skill in practice is often an important contributor to competency assessment and workforce readiness decisions.
Relationship to Capability Requirements
Capability requirements may include both skills and competencies depending on organisational needs.
Some roles require specific skills, while others require broader competencies that combine skills, knowledge and behaviours.
Relationship to Competency Assessment
Competency assessments evaluate whether individuals can demonstrate competency within a defined work context.
Assessment may consider individual skills, but competency assessment typically focuses on broader performance and application.
Relationship to Workforce Readiness
Workforce readiness decisions often consider both skills and competencies.
Possessing a skill does not necessarily indicate readiness. Readiness may also require demonstrated competency, qualifications, certifications, experience and authorisations.
Relationship to Workforce Capability Infrastructure
Workforce capability infrastructure helps organisations define, assess and manage both skills and competencies as part of a broader workforce capability framework.
This provides greater visibility of workforce capability and workforce readiness.
What Skills and Competencies Are Not
Skills Are Not Competencies
Skills are important building blocks of performance, but competency generally incorporates additional elements such as knowledge, behaviours, judgement and context.
Competencies Are Not Individual Tasks
Competencies focus on successful performance and application rather than isolated activities.
Skills Alone Do Not Determine Readiness
Skills may contribute to readiness, but workforce readiness typically depends on a broader combination of capability requirements and demonstrated competency.
Related Concepts
FAQs
What is the difference between a skill and a competency?
A skill is a specific learned ability used to perform a task or activity. A competency is the ability to apply knowledge, skills, behaviours and judgement effectively within a defined work context.
Can someone have a skill without being competent?
Yes. An individual may possess a specific skill but may not yet demonstrate the broader knowledge, judgement, behaviours or experience required for competency.
Are skills part of competencies?
In many competency models, skills are one component of competency alongside knowledge, behaviours, experience and professional judgement.
Why do organisations distinguish between skills and competencies?
The distinction helps organisations define workforce requirements more clearly, assess workforce capability more effectively and support workforce readiness decisions.
Which is more important, skills or competencies?
Neither is inherently more important. Skills and competencies serve different purposes and are often used together to define, assess and develop workforce capability.