HomeQuick ReadsCompetency: Definition, Benefits, and How to Develop It

Competency: Definition, Benefits, and How to Develop It

In the world of work, we will often listen to the word competence. That’s something we need in the world of work. Companies need high employee competence to achieve their goals. Meanwhile, an employee must have this to develop his career in the world of work. For this reason, it makes the importance of competency for each individual.

This time we will discuss the understanding of competence and how it affects the work environment. Let’s look at the following article for more details.

Table of Content

Understanding Competency 

Here are some insights about competency according to experts:

Robert A. Roe

According to Robert A. Roe, competence is a picture of the ability to carry out any task or role. It starts from integrating knowledge, skills, attitudes, and personal values to building knowledge and skills based on experience and learning.

Stephen Robin

Stephen explained that competence is a skill or capacity of everyone to perform tasks in a job, where the ability is based on physical and intellectual factors.

Drs. Budiman Sanusi

Drs Budiman explained that understanding competence consists of knowledge, skills, behaviour, and attitudes shown by people who succeed in doing tasks with optimal results.


Meanwhile, Sedarmayanti writes that the notion of competence is a character that makes a person interconnected with the effectiveness of individual performance in doing his work.
Law No. 13 of 2003

Related article : What is Competency Management and Why does Company Need It?

Benefits of Competency

Further, Competence plays an essential role for everyone. The effectiveness of each job will be significantly influenced by competency. Here are some of the benefits of competence as crucial job criteria:

  • Clarify the standards of work and expectations that the company wants to achieve.
  • Individual competence can be used as a potential labor selection tool.
  • Labor skills will maximize the productivity of the company.
  • The skills or competencies of the workforce can be used as a basis in developing a remuneration system.
  • Competence can help companies to be able to adapt to changes that occur.
  • Competence can make it easier for companies to align work behavior with organizational values.

Types of Competencies

In addition to understanding, some experts also explain that there are several types of competencies. Here are some types of competencies according to experts:

Dean Lyle Spencer and Matthew Lyle Spencer

In his book, Surya Dharma published in 2003, Matthew Lyle Spencer and Dean Lyle Spencer divide competence into two types:

Threshold Competency

The main characteristics that a person must have, to perform tasks in his work. Such as the ability to write, read, and so on.

Differentiating Competency

Secondly, This competency is various factors that distinguish individuals who have a low performance from individuals who have high or good performance.

Charles E. Jhonson

Charles E. Jhonson, in his book Vienna Sanjaya (2005: 34), explained that competence is divided into three types:

Personal competency

Firstly, personal competency is the ability of individuals in various things directly related to the development of a person’s personality.

Professional competency

Secondly, professional competency is the ability of individuals in various matters directly related to the implementation and completion of specific tasks at their work.

Social competency

Finally, social competency is the ability of individuals in various matters directly related to life and social interests.


Kunandar also explained in his book published in 2007. He explained that there are five types of competencies, namely:


Firstly, it is the knowledge that exists in a person that they need to do their job.


Secondly, physical competency depends on a person’s physical abilities needed to carry out tasks at his job.


It is a behavioural device directly related to an individual’s ability to understand self, self-identity, manifest self, and self-transformation.


Finally, this type is a particular behaviour device on which it becomes the basis of self-understanding as part of a social environment.


Finally, there is spiritual, the ability of individuals to understand, live, and practice religious rules.

Read related article: What is assessment? Definition, Function, Type, and Purpose

The Impact of Competency on the Work Environment

We need to know that competence is very influential on the work environment. Every company indeed expects prospective workers with high competency. It happens because first, it can help the company to know how far employees can contribute, especially on the vision and mission that the company has determined. Second, the development of a company goes hand in hand with competency. The higher the competency in a work environment, the faster the company’s growth in achieving the vision and mission that the company has set earlier.

How to Improve Work Competency

Both companies and employees, of course, have relationships that affect each other. Therefore, the company must help its employees develop their competencies, as we discussed earlier. That from this, the workers will make the company also grow in achieving its goals. Here’s what we can do to develop job competency.

Professional skill training

Moreover, one of the essential agendas that companies often do to develop and improve employee competence is to create a training program. It helps enhance the individual competency of its employees. In addition, training programs that we do professionally are useful to maintain the productivity and performance of the company. 

Job enrichment to improve competency

Furthermore, there is job enrichment, which is a given job desk and greater responsibility to employees. The usual addition of the company provides the complexity of the system and the quantity of the job desk itself. By doing this, employees who are given new tasks and responsibilities will feel the challenge to carry them out so that their level of competence will increase. 

Building teamwork

Firstly, by building teamwork, it will facilitate and accelerate the realization of company goals. Of course, a company has employees with a variety of different individuals and backgrounds. From that, a team consisting of various thoughts but with good cooperation will give birth to new and creative solutions in implementing the company’s problem-solving so that the competence of individuals can also increase.


In doing job promotion, the company expects the employees they promote to be more developed in the future. The rise of the position itself is usually a change in employee duties from one position or position to another higher position. Good income, allowances. Job desc and the responsibility that the company provides is even greater.

Rotation of work to improve your competency

Employees are easily bored and can decrease their productivity if they have a monotonous work routine by placing employees in other branches/places with job desk scope and divisions that are still similar to before. Rotation of work, the company does to increase the productivity of its employees again. 

Create a fun work environment

In addition, adequate and pleasant facilities make employees more focused on work. Of course, a harmonious atmosphere between employees can make employees feel at home so that productivity in working in the office is increasing.

Personal development to improve your competency

Last but not least, HR in a company can create an activity in the office that builds an excellent individual personality. Further, Good personal character makes the relationship between employees more compact. So that in the end, the productivity will increase, and the company will grow faster.

Related article : The Importance of Team Collaboration in the Workplace


To sum up, after reading the article we know how important it is to develop competence in each individual. If we look at it from an employee’s perspective, it is necessary to build our career in the future. Meanwhile, from the company’s point of view, it is also imperative that the goals they want to achieve become faster and more efficient.

If the company you are working for is having an interest in using ERP Software products, please do not hesitate to contact us. Hashmicro has software that can process company resources. Which if the processing of resources is good then the competence of the workers in the company will also increase. Click here to register and cooperate with us.

Interest in getting savvy tips for improving your business efficiency?

Afkar Azhfar
Full-Time Internship Content Writer at HashMicro. Always explore new things to develop content writing skills.


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