Blog

Why is a Skills Framework Important?

Written by Salary.com Staff

April 28, 2023

Why is a Skills Framework Important Hero

In today’s world, it is critical for organizations to be aware of the skills and competencies required for certain roles. Building a skills framework helps outline what you need to be successful. But what is a skills framework? What kinds of skills are there? And why is it important to have a skills framework?

Price-a-Job-CTA

This article will answer these questions. As well as this, it will leave you with a comprehensive understanding of why a skills framework is important. Let us begin by diving into what a skills framework is.

What is a Skills Framework?

Ask yourself the question:

Does your organization know what skills and competencies its team needs to do their jobs better?

A skills framework defines the skills and competencies your organization requires for specific roles. It highlights the abilities that are necessary for success, from leadership acumen to problem-solving abilities. An effective skills framework can help you bridge the gap between knowledge, skills, and abilities required for current and future roles.

When looking at a skills framework, you can break down skills into five core skill categories:

  1. Cognitive Ability
  2. Technical Skill and Expertise
  3. Business Acumen
  4. Communication Proficiency
  5. Problem-Solving Abilities

Each category is composed of multiple skills which give employees a comprehensive understanding of their roles within an organization. It also allows employees to know how they can develop. So, what types of skills and competencies are there?

The Types of Skills and Competencies in a Skills Framework

Having a skills framework in place can benefit your organization. When talking about a skills framework, we can look at the main types of skills and competencies. These are:

  • Technical Skills
  • Also known as hard skills, these skills involve specific knowledge or ability to perform a task or use equipment. For example, being able to use machinery in a factory or being skilled in Microsoft Excel are examples of technical skills.

  • Interpersonal Skills
  • Interpersonal skills involve interacting with people through talking, listening, and responding. This includes communication or negotiation skills.

  • Intellectual Skills
  • This involves using logic and analysis to help solve problems. For example, having strong decision-making or analytical skills are examples of intellectual skills.

  • Adaptability Skills
  • Adaptability skills involve learning new skills quickly and adjusting easily to any changes that may occur. Signs of adaptability skills include being self-motivated or having a problem-solving mindset.

    Free-Trial-CTA

    These categories cover a wide range of skills and competencies that your organization needs to implement in its skills framework. Using this, you can also begin identifying gaps where training is needed. Doing this successfully allows your employees to have the necessary skills and competencies needed for their jobs.

    How Having a Skills Framework Helps Organizations

    There are several ways that having a skills framework helps your organization. It is not only beneficial for employers, but also for employees. Here are some of the ways in which having a skills framework helps organizations:

  • Allows Organizations to Evaluate Job Performance
  • A skills framework enables managers to easily measure and assess employee performance. This is due to the skills framework providing the chance to use metrics to gauge individual achievement levels. Managers can then compare employees’ level of experience to identify and determine which candidates best suit other roles within an organization.

  • Facilitates Career Planning
  • Organizations can develop career paths for employees by identifying their competencies and skills in a skills framework. A skills framework can give employees a better understanding of their capabilities and which areas they can progress in. A skills framework is the foundation for measurable goals that help further their career.

  • Improved Organizational Performance
  • A skills framework can help improve organizational performance as gaps in skills and competencies can be identified. When this occurs, management can implement training objectives that benefit the whole organization. A skills framework ensures growth and development opportunities for employees.

  • Developing Competence and Confidence in Employees
  • A skills framework can also help to develop competence and confidence in employees. By providing clearly defined objectives that employees can measure their progress against, employees can know which direction to go in. Doing this effectively can help build trust between employees and managers, which leads to an increase in job satisfaction and an improvement in morale.

    By implementing a well-defined skills framework, employers and employees can be more successful. Organizations can nurture talent while effectively measuring employee performance and providing incentives for improvement. This demonstrates that everyone understands what their individual roles are within the big picture of an organization.

    Request-Demo-CTA

    Conclusion

    A skills framework is an invaluable tool for an organization when they want to develop their team. It is also useful for employees to improve their skills and further their careers. By identifying the skills and competencies needed for distinct roles, your organization can benefit in both the short and long term.

    Link to this article
    sidebar
    Download Our Resource
    Embracing Fair Pay in the War for Talent

    Download our white paper to further understand how organizations across the country are using market data, internal analytics, and strategic communication to establish an equitable pay structure.

    Insights You Need to Get It Right

    The latest research, expert advice, and compensation best practices all in one place.
    Ask This Question Before Transitioning Your Team to Long-Term Remote Work
    Ask This Question Before Transitioning Your Team to Long-Term Remote Work Blog
    As companies plan their return, some find there may be benefits to maintaining WFH.

    Read More

    2021 Trends: Compensation & Workforce Transformation
    2021 Trends: Compensation & Workforce Transformation Guide
    We're seeing a renewed sense of optimism and workforce innovation in 2021.

    Read More

    DE&I Panel Discussion: Moving the Conversation Forward
    DE&I Panel Discussion: Moving the Conversation Forward Webinar
    In this panel discussion we will cover what the issue is when improving DE&I.

    Read More

    Differences Between HR-Reported and Crowd-Sourced Compensation Data
    Differences Between HR-Reported and Crowd-Sourced Compensation Data White paper
    To make decisions about the value of a job, you need data from a range of sources.

    Read More

    CompAnalyst Market Data: Smart Matches, Fast Prices, and New Insights
    CompAnalyst Market Data: Smart Matches, Fast Prices, and New Insights Product Sheet
    The CompAnalyst Market Data platform is easier to use than ever before.

    Read More

    It's Easy to Get Started

    Transform compensation at your organization and get pay right — see how with a personalized demo.