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Create Functional Competencies

Strategically invest resources in developing functional competencies for the greatest impact.

  • Many organizations fail to identify the underlying need for functional competencies, risking significant resource investment with minimal return on investment.
  • On average, 59% of HR departments believe competency frameworks are highly important to achieving organizational and HR goals, while only 18% report their organization’s competency framework is highly effective (McLean & Company HR Organizational Alignment Diagnostic Survey Database 2020-2023; N=34).
  • Developing functional competencies without a need in mind risks over-complicating an existing competency framework. The development of functional competencies is a time-intensive project and requires active engagement from functional incumbents to assist in the development and integration of functional competencies into relevant HR program areas (e.g. performance management, learning & development).

Executive Summary

Critical Insight

Not all organizations have a need for functional competencies as part of their competency framework. Functional competency development provides the greatest return when targeting function-specific needs aligned with organizational priorities in order to justify the time and energy required.

Impact & Result

  • Be intentional when developing functional competencies by identifying the underlying need and engaging functional leaders from the beginning to support buy-in.
  • Prioritize functions with the greatest need and capacity to support competency development and identify alternative solutions, where applicable.
Align functional competencies with HR program areas, create intentional communications, and evaluate the success based on identified goals and metrics.

Research & Tools

1. Identify the need for functional competencies.

Shortlist functions under consideration and conduct a needs analysis to prioritize functional competency development.

2. Define functional competencies.

Draft competencies and behavior-based proficiency statements and assign proficiency level based on role or group of roles.

3. Integrate and communicate functional competencies.

Create a plan for functional competency integration and communication across HR program areas and plan to sustain and update functional competencies over time.

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