Page 1

Table of Contents
Introduction Page 3

Chapter 1 The Importance of Competency-Based Learning Page 4

in Employee Skills Development

Chapter 2 5 Ways Competency-Based Learning Can Page 6

Accelerate Business Growth

Chapter 3 6 Reasons Competency-Based Learning Helps Page 10

in Bridging Your Employee Skills Gap

Chapter 4 3 Types of Competency-Based Learning Examples Page 14

to Meet Your Corporation’s Training Needs

Chapter 5 Dos and Don’ts When Designing Competency- Page 19

Based Learning Programs

Chapter 6 Employee Skills Assessment Testing for Effective Page 23

Skills Training Programs

Chapter 7 Measuring Your Competency-Based Training Page 28

Framework for Better ROI

Chapter 8 Competency-Based Learning: 5 Steps to Assess Page 31

Employee Skills Development

Page 2
 Introduction
Competency-based learning (CBL) is a highly strategic approach to employee skills development
that, if implemented properly, can lead to organizational transformation. CBL programs examine
the competencies of top performers and draft competency maps based on the demonstrated skills
and abilities of those individuals and the determined business needs of the organization. The
competency maps provide a transparent framework for hiring, training, and advancement that
encourages employee self-assessment, honing of acquired skills and acquisition of new ones, and
active participation in the overall learning journey.

In this eBook we provide case studies, useful tips, and concrete strategies that you can apply to
create the CBL program that is right for your organization. Chapter 1 explains why competency-
based learning is crucial for employee skills development. Chapter 2 looks at CBL from the business
angle, discussing how this type of learning can accelerate business growth. Chapter 3 examines the
ways in which CBL can help bridge employee skills gaps, and Chapter 4 provides concrete examples
of CBL adapted to meet the specific needs of different types of organizations. Chapter 5 is your
competency-based learning primer, providing you with a list of dos and don’ts when designing CBL
programs. Chapter 6 moves to the question of evaluation in CBL environments and highlights the
kinds of assessments that characterize effective skills training programs. Chapter 7 looks at the
business argument for CBL and provides a framework for measuring competency-based training in
terms of ROI. Finally, Chapter 8 loops back to assessment with a step-by-step road map on how to
assess employee skills development in the context of CBL.

Over the past 20 years, Obsidian Learning has helped many organizations navigate the transition to
competency-based learning, ranging from competency map development, competency-based
learning audits, adapting existing learning programs to CBL programs, and creating entirely new CBL
frameworks. In this eBook, we share our experience in competency-based learning, explaining both
the benefits and potential pitfalls of this approach.

Page 3
 Chapter 1

The Importance of Competency-Based

Learning in Employee Skills Development
The term “competency” was first defined in 1973 by the American psychologist David McClelland to
indicate the human factors which define “competence.” A “competency” is “each personal
characteristic which (usually combined with others) allows the effective execution of a task in a
given organization.”1 According to McClelland, competencies are “task and organization specific,”
hence they exist only in reference to a specific work-related task carried out in a specific
organization. For example, fluency in a certain foreign language is a competency only if it is
essential to effectively performing a certain role in a certain organization. Based on this idea, each
organization (business) must identify its own very specific and distinctive group of competencies.
This constitutes a “competency model.”

Boyatzis examined the competencies identified by all of the previously established competency
models and defined a competency as “an underlying characteristic of an individual, which is causally
related to effective or superior performance in a job, which could be a motive, trait, skill, aspect of
one’s self-image or social role, or a body of knowledge which he or she uses.”2 Simultaneously,
Boyatzis identified a basis of transferable competencies which all effective managers, regardless of
their line of work, tend to possess. Boyatzis’ definition of competency preserves the attribute of
“task and organization specific” but is significantly broader. This allows for the current concept
whereby competency is defined as “each personal characteristic which (usually combined with
others) can lead to good general work performance,”3 or even simpler, “an important skill that is
needed to do a job.”4

The evolution of the definition of competency paved the way for the understanding that competencies
are central to employee success. Thus, analyzing high achievers and top performers helps identify
the competencies (knowledge, behaviors, attitudes, skills) that produce distinguished results.

What, then, is competency-based learning?

It is an approach to education that focuses on the learner demonstrating the desired learning
outcome at every step of the program. A competency-based learning program doesn’t concern
itself with the learning journey but pursues the final outcome. Hence, the learning outcome must
be clearly stated from the beginning. Adult learners tend to find this type of learning program more
attractive, since they can see the goal and the benefits from the outset. Competency-based learning
programs typically include asynchronous, self-paced activities, because they put the responsibility
on the learner and promote individual ownership of education. Learners in these environments
must be independent learners, and as they must demonstrate acquisition of the specific
competency, they cannot be passive receivers of information.

Bringing all the pieces together, we can see that an organization’s first aim must be the development
of specific functional role competencies in a manner that aligns and supports the organization’s
goals. The collection of an organization’s competencies represents a competency map.

Page 4
Competency maps define the capabilities of successful performers as well as the ways these
abilities and traits can be measured. Reviewing competency maps in relation to the existing talent’s
competencies makes it easier to identify the gaps in work outputs, and being aware of these gaps is
the first step in ensuring your organization reaches a level of competency which represents
competitive advantage.

So why is competency-based learning important?

Competency-based learning helps prioritize the training budget and achieves results. It allows you
match your employees’ individual competencies with the job’s competencies so you can place
talent in the positions that will ensure their growth and best performance.

Competency-based learning promotes individualized learning. This type of learning program

accommodates multiple learning styles and levels of engagement. Since competency-based learning
is outcome-based, assessment design and implementation are critical. Self-paced learning can be
very individualized and allows for the learner to decide the time they want to invest in the learning,
perhaps even skipping straight to the assessment. This puts a great deal of responsibility on
assessment designers, because the assessment must be an accurate, consistent, measurable means
of demonstrating the given skill.

Competency-based learning promotes competitive advantage. Knowing the competencies that

drive the best performance places organizations in the position to properly select, develop, and
promote the successful performers. In today’s business environment, competencies also offer a
competitive advantage for succession planning. In his Essays on the Intellectual Powers of Man,
Thomas Reid wrote, “a chain is no stronger than its weakest link.”5 Similarly, an organization is only
as strong as its weakest talent, so it is crucial to ensure that everyone is positioned for success.

Competency-based learning lives longer than job descriptions. Since competencies are defined
from the abilities and traits of highly successful people, they can be used by organizations to train
and evaluate talent over the long term; competencies outlive the job descriptions. They can be
modified and developed, but at their core they remain unchanged.

At Obsidian Learning, we design and develop competency-based learning programs. Throughout

this book, you will learn more about the process, models, and tools we employ to create successful
training outcomes.

1
McClelland, D.C., “Testing for Competence Rather than Intelligence,” American Psychologist, No. 28 (1), pp. 1-14
(1973).
2
Boyatzis, R., The Competent Manager: A Model for Effective Performance, John Wiley, Chichester (1982).
3
Evangelista, L., “The Quest for Competence,” Orientamento.it, 10 October 2008, accessed 24 January 2020,
https://www.orientamento.it/orientamento/8d.htm.
4
Cambridge Dictionary, accessed 24 January 2020,
https://dictionary.cambridge.org/us/dictionary/english/competency.
5
Reid, T., Essays on the Intellectual Powers of Man (Cambridge Library Collection - Philosophy), Cambridge:
Cambridge University Press (2011). doi:10.1017/CBO9780511997150.

Page 5
 Chapter 2

5 Ways Competency-Based Learning

Can Accelerate Business Growth
We explored what competency-based learning is in Chapter 1. To recap, it is a structured approach
to learning and assessment that is targeted at achieving specific outcomes aligned with the
organization’s success.

Organizations first develop a competency map, lists of competencies (based on the behavior of top
performers) that define what is required for the organization to be successful.

1. Creating competencies in the first place

is a step in the right direction.

Imagine you are building a house. Your first step is to create a blueprint indicating all the features
you want in your home. In and of itself, this is a very useful and powerful process. You clearly
identify your needs and wants, you get it written down, and arranged in a way that will meet your
requirements. Yes, it takes some time, but the payoff is obvious. It is much easier to build the house
you want with a blueprint than without one.

Creating the competency map is a powerful exercise in defining what is required for the
organization to be successful by documenting the behaviors, abilities, and even attitudes of those
most successful performers. The time and effort required to complete the exercise demonstrate the
organization’s commitment to learning and development, and now your employees and your HR
team have a blueprint to follow!

Page 6
 2. Competencies should be mapped to business goals.

The map is not just an arbitrary list of skills and abilities. They are mapped to the current and
future goals of the business. That means people who have those competencies are more
productive, efficient, successful and therefore likely more satisfied with their jobs. Learning and
development based on those competencies can help newer or less effective personnel bridge
the performance gap, now that it is clearly defined. Which brings us to the third way we can
accelerate business growth…

3. Competency maps provide coherent goals for your HR team.

An accurate competency map is especially helpful for your HR team. It gives the team a go-by for
who to recruit and onboard, what competencies to train and develop, how to reward high
performers, and even supports promotion and retention planning. One of the biggest costs in most
organizations is the HR function. A competency map and subsequent competency-based learning
makes your HR organization efficient and effective.

Page 7
 4. CBL reduces liabilities and errors, increases fairness.

A more subtle way that competency-based learning can accelerate business growth is by reducing
liability that the company might face as a result of unfair HR practices or mistakes or errors made by
employees. A competency-based learning model sets clear, unbiased performance expectations
that reduces employee dissatisfaction and the risk of subjective performance evaluations. This
increases fairness in hiring, evaluation, compensation, and development.

This type of development closes the gap between the lower and the top performers, increasing
accuracy and efficiency, reducing errors and therefore increasing customer satisfaction.

5. CBL supports promotion and personnel development.

Competency-based learning is supported by a clear curriculum for employee development. Most

models support a progression of competency development from awareness to application to
mastery. Having clear performance expectations that are transparently tied to business objectives
help employees feel valued and be proactive in terms of their own development. Training and
development can be customized to individual needs. This increases employee satisfaction, thereby
reducing training costs and turnover. Any organization can tell you how much more cost effective it
is to retain happy, high-performing employees than to continuously need to hire and train new
recruits.

Page 8
To summarize, how can competency-based really help boost your business results?

• Creating the competency map is by itself a valuable, clarifying exercise.

• Competencies are aligned with specific business goals.
• Allows all to identify specific training gaps and create targeted, individual training plans.
• Supports efficient and effective hiring, training, and career planning.
• Makes hiring, transfer, and promotion decisions easier and more equitable.
• Clear development plans and career paths help your organization better prepare for future
needs.

Like following a blueprint when you build your dream home, competency-based learning helps your
organization begin with the end in mind—to be clear about what behaviors and performance levels
will make your organization successful and able to grow. Though it can be a challenging process, the
payoff is tremendous.

Page 9
 Chapter 3

6 Reasons Competency-Based
Learning Helps in Bridging Your
Employee Skills Gap
Independent of profession or industry, most employees have an innate desire to perform their jobs
to the best of their ability, to hone their skills, and to achieve career advancement accordingly. The
path to those goals, however, is all too often not straightforward. Traditional corporate training
tends to introduce unsuspecting roadblocks. “Employee development programs” often don’t live up
to their name, and can be characterized by redundancy, inefficiency, and rigidity. Under these
circumstances, it can be difficult to hone existing skills and acquire new ones. Companies seeking to
invest in meaningful employee development have turned to competency-based learning as a means
of maximizing the full potential of their workers. In this chapter, we’ll examine 6 reasons why
competency-based learning is an effective means of bridging employee skills gaps.

1. Understanding the company

The first step in a competency-based learning program is the development of a competency

map. Associating jobs and roles with specific competencies organizes the game plan for
professional development. Properly constructed, this map allows employees to visualize and
understand where they fit in the bigger picture. Such clarity is empowering, as it removes any
doubts about what it takes to be successful and the steps necessary to achieve career
advancement. Each employee is fully informed about their strengths as well as the skills and
competencies that remain to be acquired.

Page 10
 2. Relevancy

Once the bird’s-eye view competency map has been developed, it’s easier to narrow down the
most efficient and relevant path for specific employees. All positions do not require the same
competencies, so it makes sense that all employees would not need the exact same training.
Keeping the training relevant to each job role and targeting the necessary competencies will
draw emphasis to the right skills, reduce redundancy, and improve engagement.

3. Accurate assessment of effectiveness

Competency-based training requires establishing identifiable standards. These allow employees to

be accurately assessed as to whether they have mastered the skills required for their job.
Traditional corporate training relies on summative testing to determine skills mastery, a method
not always considered reliable. A passing grade is not necessarily an indicator of mastery of the
broad range of content, and provides no real insight into what skills are lacking. In comparison,
competency-based training requires mastery over all individual learning objectives. Testing based
on granular objectives ensures that crucial skills are not overlooked and the learner does not
continue to progress without sufficient knowledge of required material needed to be successful as
the learning progresses. At a higher level, this type of assessment information can really target
where the gaps in training lie and better facilitate organizational efforts to bridge those skill gaps.

Page 11
 4. Efficient progress

One of the more tangible benefits of competency-based learning is the acknowledgment of

previous learning and already acquired competencies. Demonstrated proficiency allows a learner to
more quickly progress through training rather than being required to spend time ticking boxes on
skills they’ve already acquired. Free from this constraint, learners can devote that precious time and
attention toward developing the skills they actually lack. The learner is therefore more likely to be
engaged with fresh, relevant content rather than bored and frustrated at a perceived waste of time.
This approach emphasizes bridging skill gaps and providing the learner with opportunities to use
slices of time efficiently on areas of potential growth.

5. Flexibility

Defining learning objectives through the lens of competency provides learners with a certain agility
in terms of career path management. Having a benchmark against which to explicitly measure and
transfer each competency allows learners to avoid redundancy when making a professional shift.
Competencies that have already been acquired are taken into account, and additional training can
be applied where necessary. Career pivots are a less daunting exercise because employees are
informed and aware of the competencies they need to acquire.

Page 12
 6. Speed

Tackling new skills is at the forefront of competency-based learning. Learners spend less time on
information they already know and can focus on the next unlearned skill. Rather than being
constrained by a set learning program and the progress of peers, competency-based learning is
characterized by self-pacing, allowing those that can move through the content more quickly the
freedom to do so. Each competency-based milestone is a clearly attainable goal. Once a goal is
reached, the associated sense of accomplishment functions like a springboard towards the next
achievement. The increased momentum and internal motivation propel learners to the next skill on
the competency map.

If career paths were physically walked, competency-based learning would be the element making
the journey toward each new skill shorter. The route remains interesting and the pace is
determined by the employee explorer rather than a tour guide who necessarily caters to a wider
group. Learners are empowered to fill their travel packs with the skills that correspond to their
professional journey, and thus have a much greater likelihood of reaching their full potential.

Page 13
 Chapter 4

3 Types of Competency-Based
Learning Examples to Meet Your
Corporation’s Training Needs
The classic approach to organizational learning and development is often reactionary. Someone
gets hurt—we need safety training. A new law was passed—we need to create and distribute a
quick reference card. A new software rollout—we need new eLearning training modules. There is
nothing inherently wrong with such an approach, but if pure reactive learning is the basis for all
learning in the organization, over time employees will have difficulty distinguishing the old from the
new and the out of date from the most up to date.

Competency-based learning moves away from that model and instead is based on a carefully
thought out analysis of the competencies required from employees to achieve organizational
success. Creating a competency-based program requires both planning and collaboration.

Careful planning is necessary because competency-based learning is not a function of HR alone but
should involve the strategic functions of an entire organization or team. It follows that collaboration
is essential, as all parties must be clear about the company’s vision, plans, and potential business
scenarios in order to develop a viable competency-based learning program.

The first step in the process, competency mapping, is the basis for all of the competency-based
activities that will be linked to the overall competency-based program. Though not an exhaustive
list, these might include:

• Recruitment
• Performance appraisal
• Training
• Development
• Remuneration

If your organization has a desire to explore competency-based learning, and you’ve been tasked
with developing learning assets within that framework, you can see that the exercise will require
some effort.

But never fear, Obsidian Learning is here to help. Over the years we’ve successfully advised our
clients on how to integrate competency-based learning into their learning and development
programs, scaling to the specific needs of each organization. In the following examples, you’ll see
how competency-based learning can be adapted to fit a variety of learning needs, and the
strategies and deliverables that we employ to meet established learning objectives.

Page 14
 Example #1:
Comprehensive competency-based learning program

Ideal for: Small- to medium-sized organizations, start-ups, organizational restructuring/

reorganizations.

Rationale: Competency-based learning is intimately intertwined with competency mapping, which

in turn is only effective when aligned with the business goals and specific objectives of individual
departments or teams. The “reset” that often follow major reorganization or change to
organizational structure such as downsizing or mergers can be the ideal moment to integrate a
competency-based learning approach to existing or planned learning deliverables.

Comprehensive competency-based learning programs require an organizational commitment and

resources beyond those required for the reactive learning approach. This initial cost outlay will
eventually find its way back to the organization in the form of increased ROI; competency-based
learning content is inherently more stable over the long term.

Advantages: Clean slate to do things right from the beginning. No need for change management or
communication initiatives. Little to no resistance from employees.

Disadvantages: Relatively costly (though ROI is huge). May take time to fully execute (though
strategic learning design with prioritization can partially mitigate the need for developing
completely new learning assets).

Case study

In 2011 Obsidian Learning was approached by a small oil-and-gas service start-up. After initial
talks, they were convinced that competency-based learning was the way to go. They granted
our learning strategist access to top management and, equally importantly, to their VP of
operations and senior operations management. As our combined teams worked to draft a
competency map, the involvement of management was a critical factor both in terms of
speed and in nailing down the substantive competencies.
A competency map for the entire organization was crafted within roughly 30 hours.
The organization’s structure (operations were conducted in relatively small teams of
3-4 individuals with a more experienced team lead, two specialized technicians, and
potentially a newbie who would be trained on the job with the fully functioning team) allowed
for scalability of not only the learning approach but also supported organic growth of the
company.
An in-depth design of the key learning programs and associated assets and deliverables was
ready for review after about an additional 10 hours of work.
Development and implementation of the learning deliverables was the lengthiest part the
process, being fully executed 9 months after the initial interviews with top management.
Obsidian created a set of beautiful, highly visual, multi-functional deliverables that are still
being used to this day.

Page 15
 Example #2:
Isolated competency-based learning program

Ideal for: New departments/teams, departments/teams undergoing reorganization/restructuring.

Rationale: A substantial number of our past, current, and potential clients have not established
their learning and development initiatives around competencies but have existing libraries of
learning assets. These include eLearning modules, learning videos, workshops, and instructor-led
trainings that might or might not align with desired competencies. Attempting to shift the entire
learning structure of an organization toward a competency-based program might be cost
prohibitive, time consuming, or a combination of both. The opportunity usually presents itself
during a period of change. This could be something along the lines of the creation of a new
department or a significant reorganization of an existing structure such as a steering team or any
team with a reoccurring objective. Managerial motivation to “do it right” often stems from this type
of novelty.

Advantages: The initiative is confined to a fragment of the organization, reducing the associated
fear that accompanies most change. Can be accomplished within a reasonable budget. Great
potential to reuse, recycle, or upcycle existing learning assets.

Disadvantages: Resistance from departments that oversee the new organizational structure.
Instinct for consistency in maintaining established learning philosophy from a department or an
individual overseeing the new team (both reservations can be successfully addressed by clear
understanding of the benefits of competency-based learning).

Case study

A Fortune 5 multinational company—one of our loyal clients—decided to create a new

onboarding initiative focused on its top recruited talent. The need for accelerated growth of
these highly talented engineers and managers made all the sense in the world. Since the
target audience was based on the ideal employee, creating the competency map which
helped pinpoint the most appropriate learning assets was no great challenge.
The design and development of the competency-based onboarding program took less than
2 months. We were able to leverage roughly 60% of the content from existing materials
created for the general onboarding process and created new assets such as videos,
animation, and interactive online games to compensate for the unique nature of the target
audience. After a successful rollout, Obsidian Learning was also tasked with creating an online
application housing this program, making it 100% digital (prior to this change, many
onboarding activities for top talent took place during costly, in-person workshops).
This program is also currently still in use.

Page 16
 The Horizons learning hub houses all learning assets based
on a competency-based learning approach.

Example #3:
Competency-based learning audit and learning asset review

Ideal for: Organizations that sense that the learning department could be achieving better results
but are understandably wary of major, dramatic change.

Rationale: Though many organizations have only the best intentions for their employees/learners in
mind, the reality of a day-to-day business environment can impact how learning is conducted. Though
the HR team and management might be on board to overhaul the learning program, they could be
constrained by having to work within the existing environment and delivering results here and now.

Obsidian loves working with professionals pulling off this balancing act. A competency-based learning
audit is a relatively short and simple exercise that usually involves the head of a department or team
and an HR representative with a conceptual knowledge of the employees who are part of this team.

We review and ultimately cross-reference:

• The objectives and expectations from the team in question.

• The job descriptions and composition of the team.
• Existing learning assets and deliverables.

Based on our findings we propose the ideal competency-based learning program and identify the
learning assets that:

• Can be used in their current state.

• Could be improved (with a focus on small, cosmetic changes).
• Should be redeveloped or will require major overhaul.
• Should be created from scratch.

Page 17
We also create an action plan with proposed priorities and timelines. This type of collaboration with
clients who choose this approach starts slow but tends to remain steady and often develops into a
comfortable, long-term partnership.

Advantages: This carefully crafted, cautious approach had become very popular with many of our
clients. The initial deliverable is an audit which doesn’t break the bank or the clock. Because it
focuses on careful analysis of the status quo based upon which we develop our recommendations,
it can be executed over a longer period. It can also be paused or even stopped at the will of the
client. If the client is so inclined, they can create or update the recommended deliverables in house
or even hire a different vendor.

Disadvantages: In our experience, clients sometimes focus only on the most critical
recommendations as opposed to taking into account the wider scope of our analysis. Ultimately this
can affect the effectiveness of the learning, as over the long term a holistic competency-based
learning program will provide a stronger foundation for the work of a department, team, or entire
organization.

As these examples demonstrate, competency-based learning can be adapted to fit a variety of

organizations and a variety of learning needs. At Obsidian Learning we recognize the value in scaling
competency-based learning to fit the needs of our clients, and working with them to find the best
competency-based learning solutions for their organizations.

Page 18
 Chapter 5

Dos and Don'ts When Designing

Competency-Based Learning Programs
In competency-based learning programs, employee development is targeted to achieve role-specific
performance outcomes or competencies. Here are some dos and don’ts to consider when designing
your competency-based learning (CBL).

Dos

1. Invest time up front in competency mapping.

In order for a program to be successful, competencies must be clearly defined and mapped to the
roles in the organization. Each organization will have its own unique set of roles and associated
competencies. Traditionally, these maps are created when top performers are observed and
interviewed so that their performance can be captured as a list of core competencies (skills +
knowledge + abilities).

The entire learning program will be geared toward achieving these performance objectives, so take
the time to map them correctly.

Consider starting small with just one department or set of roles to make the process more
manageable, and be prepared to revisit your competency maps periodically to be sure they still
reflect your top performance goals.

Page 19
 2. Align competency maps with latest business goals.

Imagine that you are implementing a competency-based learning program for the customer service
department of a large organization. Based on the latest analytics, the organization has decided to
change their service strategy from a central and general approach to a regional, product-specific
one. Can you adapt your learning program nimbly to accommodate the change in focus? Are your
competency maps in alignment with the newest approach?

Be sure the learning and development team is knowledgeable about all decisions that may impact
the competency maps and therefore the learning program. In addition to making the learning more
effective, it’s easier for the learning team to demonstrate value when they can show the direct link
between the competencies being mastered and the latest vision of the organization. It’s also
reassuring for learners to know that their learning program is relevant and up to date, designed to
support employees in achieving the latest business targets.

3. Take a blended approach to the learning program.

Competency-based learning programs should contain mixed media learning offerings. One of the
many advantages of a clear competency map is that the next step on the learning journey is clearly
spelled out. Having some online and self-paced resources allows your learners to take the initiative
in their personal development and advance the skills they need for their current role or perhaps
even prepare for the next one.

Why not have all the learning assets online only? Remember that competencies are not just pieces
of knowledge or single skills that might be more easily acquired in an online format. Instead they
are the application of skills, knowledge, and abilities to master a job/role responsibility. For
competency-based learning to be effective, the learners must demonstrate that competency.
Depending on the behavior in question, this likely involves a face-to-face component—whether
formal instructor-led training or a skills demonstration with a supervisor present.
Page 20
 Don’ts

1. Focus only on skills.

A common mistake when designing a competency-based learning program is to focus just on the
skills required to do the job. Remember when constructing your map and developing your learning
assets to consider the knowledge and the abilities. Describe behaviors and their desired outcomes
within the context of the business goal. For example, it is not enough to say the learner will be able
to use the pivot table function in Excel. Instead explain that the learner will make recommendations
to operations based on pivot table analysis of trends in shipping costs by product.

Not only should your learning assets include all the elements of the competency, but so must your
assessment. If you’re teaching an advanced competency, it’s unlikely a multiple-choice online quiz
can adequately assess your learners. In addition to such an assessment of knowledge, you will need
to create opportunities for learners to demonstrate competency in a safe environment.

2. Let it stagnate just because it’s hard.

In some large organizations with complex job structures, simply documenting competencies can be
a Herculean task. By the time they’re all documented, they already need to be updated. Work to
keep your map, and therefore your learning program, as simple as possible. Consider having 30 or
fewer competencies per role.

Depending on the size and scope of your organization, plan for annual reviews of business goals,
jobs/roles, competencies, and learning elements and assessments. It doesn’t take long for the
whole program to stagnate under its own weight if it’s too complicated.
Page 21
 3. Assess only one time.

Mastery doesn’t happen after one learning engagement. It’s helpful to have gradations of
competency to help learners progress. At Obsidian Learning, we most often use a scale from
awareness (learner has been exposed to the new knowledge/skill) to application (learner can apply
the new knowledge/skill) to mastery (learner can apply the new knowledge/skills in advanced or
challenging circumstances and even teach others). Having a scale allows learners, even beginners,
to stay motivated in their personal development. It also helps manage expectations for role change
or career advancement.

As we’ll discuss in Chapter 6, assessors should have a clear set of guidelines for evaluating the
performance to help improve consistency and fairness in evaluation.

Designing a competency-based learning program is definitely a challenge. Not many organizations

do it well. These dos and don’ts, though not a comprehensive list, will certainly help a program
designer hit the mark.

Page 22
 Chapter 6

Employee Skills Assessment Testing

for Effective Skills Training Programs
Let’s take a moment to clarify the relationship between a competency and a skill. A skill is tactical or
task-related. A competency is a collection of skills plus knowledge plus ability/aptitude, and the
integration of all these into observable behaviors.

Example:
Competency: Driving a vehicle
Skill: Physically operating the vehicle
Knowledge: Traffic laws
Ability/Aptitude: Calm, ability to focus

Skills are learned more quickly than competencies, because competencies require using multiple
skills together. Competencies are assessed by level, from beginner to mastery. Anyone who has
tried to learn—or teach someone—to drive a car can attest to the marked difference between a
beginner and an experienced, expert driver. Moreover, driving a typical four-door car is very
different from driving a limousine or an eighteen-wheeler. The competency of driving a vehicle has
levels, depending on the business needs the competency supports.

Competency-based learning means teaching to competencies, not just individual skills. Optimally,
training includes practicing integrating and applying skills and knowledge to demonstrate mastery.
Assessing skills is one particular part of assessing competency.

Competency-based learning design is role-centered instead of content-oriented. The skill learning

objectives for a course in turn map to a competency that is mapped to one or more roles.

Page 23
For example, when a new software system is implemented, training will be mapped to employee
roles to address the competencies each role requires. A sales clerk will learn how to process sales
orders. A manager will learn how to run reports to analyze expenditures. (In contrast, if training
were organized around the software, all employees might sit through training on the functionality
of the entire system, including the parts they will never use—a waste of employee time, and a quick
way to reduce both motivation and retention.)

Just like content, the most useful assessments are tailored to job requirements and learning
objectives matched to the learner’s role.

What kind of objective are you testing?

Competencies encompass skills, knowledge, aptitudes, and their integration. To get useful,
accurate, reliable test results, you have to use the right kind of test for each. A common assessment
mistake is using a knowledge test method for a skill objective.

Learning objective type Typical verb Content examples

Knowledge Remember, list, discuss, Facts, theories, other

select, explain conceptual knowledge

Skill Make (create, assemble, Job task, procedure, process,

build, construct), perform, scenario
apply, analyze, troubleshoot

Knowledge objective examples:

• List the components of a motor.

• Explain two common challenges of treaty law in international waters.

Skill objective examples:

• Apply good communication principles to understand a sales prospect’s needs.

• Perform a lock down/tag out procedure.
• Locate and troubleshoot a leak in a drainage system.
• Analyze information to recommend a course of action.

True/false, multiple choice, and matching questions can be good choices for knowledge testing.
They are easy to program in online training, and easy for a live instructor to grade. That also makes
them tempting to overuse. When the objective is to demonstrate ability to perform a task, even the
best multiple-choice questions are inadequate if deployed alone.

Page 24
 Assessing aptitudes

An aptitude is a natural ability to do something. Examples include verbal and mechanical reasoning,
spatial awareness, and error checking. Whereas a resume conveys past achievements, aptitudes can
be seen as areas of greatest potential, even if they have not yet been fully developed. Aptitudes can
be honed, but not created out of nothing. A person with no head for numbers will have a long row
to hoe as a bookkeeper. A lawyer with good spatial awareness will have an advantage in patent law
for three-dimensional objects.

These kinds of aptitudes are often measured with standardized tests as part of the hiring process.
Examples include:

• Differential Aptitude Test (DAT)

• OASIS-3 Aptitude Survey
• Bennett Mechanical Comprehension Test (BMCT)

For more information on any tests you are considering using, Buros Center for Testing is an
independent non-profit that provides detailed information and critique of commercially available
tests.

Companies like SHL, Kenexa, Cubiks, TalentQ, and Capp provide such testing services so you don’t
have to reinvent the wheel.

However, standard aptitude tests may not address all the aptitude requirements for a competency,
especially affective ability requirements like staying calm under pressure or ability to focus.
Affective performance is commonly evaluated in task-based tests, as are skills.

Assessing skill objectives with task-based tests

In a task-based test, employees actually perform a real job task in a real work environment or a
realistic simulation of it. Task-based testing is a form of scenario-based learning. In full scenario-
based learning, employees get to choose their actions, observe the consequences, and learn from
mistakes in a safe, constructive environment that relates directly to their work environment. This
allows for deeper, more memorable learning that they can apply directly back on the job. You can
use scenario-based testing at both the skill level and competency level, as well as for affective
requirements.

For cognitive skills such as analyzing information and formulating recommendations, provide
learners the same type of source information and briefing they would receive on the job. You can
assess their skill with a written exam. Better, have them submit their analysis or recommendations
in the same form they would on the job—as a presentation or report. A supervisor, more
experienced peer, or instructor can evaluate and provide feedback.

Scenario-based learning is especially useful for complex skills like customer service, problem
solving, and complex analysis where it’s hard to isolate a single skill from related and supporting
skills, knowledge, and aptitudes/abilities.

Page 25
 Pro tip

In a scenario-based eLearning simulation, the assessment and feedback will likely be coded as
part of the module and recorded automatically in an LMS. In real life simulations, a supervisor
or knowledgeable peer usually evaluates the learner’s performance. To keep evaluations
objective, consistent, and fair across locations and evaluators, it’s critical that all evaluators
(and learners) know the criteria for successful performance. Support for evaluators and
learners includes clear descriptions of the task, checklists, and/or some form of rating scale
that quantifies the skill level demonstrated.

Self-assessments help learners help themselves

Assessments are useful not just for trainers and managers. Giving learners the chance to self-assess
as they go through training can increase engagement, allow them to pause and address whatever
gaps they find, and get a fuller, sounder mastery of the course.

Pro tip

Self-assessments are much more useful to learners if you offer resources to immediately
address any gaps they discover. Microlearning, articles, videos, websites, forums, mentoring,
and other online training courses are all good candidates for targeted learning to shore up
skills gaps when they are high on the learner’s mind and priority list.

Real world context is key

To test skills in the most useful and valid manner, assessments must mimic real job environments.
That means not just making the content familiar and relevant to the learner’s job role. (A salesperson
should demonstrate interview skills by interviewing a prospective customer, not a prospective new
hire.) It also means providing:

• The same resources as on the job. Give them access to the same equipment, tools, and
reference materials they would normally have to help them complete the task. Finding the
correct instructions might be one of the skills you’re testing, as well as whether they can
complete the main task successfully with that support.

• The same challenges as on the job. If they would normally have to complete a repair task on a
boat deck in heavy weather, then testing their skill in a well-lit onshore warehouse is a good
start, but it’s not a full test.

Page 26
 Key takeaways

Skills assessment boils down to evaluating how an employee actually performs the skill, which can
look like:

• Real world performance, evaluated by a live instructor

• Scenario-based performance, evaluated by a computer system or live instructor

These are expanded by options such as:

• Interviews
• Role playing
• Written tests
• Self-assessments
• Live face-to-face scenarios (e.g., war games)
• Interactive online scenarios, including online team games

Assessments are most useful, valid, and reliable when they are mapped to job roles and mimic the
work environment.

Page 27
 Chapter 7

Measuring Your Competency-Based

Training Framework for Better ROI
Competency-based training, as all other learning models, must prove its worth. To realize a return
on investment (ROI) organizations need to know how to measure competency and how an
employees’ competencies affect the bottom line.

As we described in Chapter 1, a competency represents the ability to apply, transfer, and combine
knowledge and skills in different situations and work environments to carry out the activities
required at the workplace at the quality level specified by the organization. The assessment of
professional competencies is the process of collecting the information necessary to demonstrate
the requirements of the organization’s standards. Measuring the results of competency-based
learning programs requires first the assessment of current performance at the time the project is
started, followed by multiple assessments after the training is finished and the employee has had
the opportunity to demonstrate how their performance has changed.

By building measurements into the project from the start, the program can be designed to facilitate
the collection of performance data, and it can be easier to demonstrate ROI.

The evaluation of competency-based training is straightforward, but requires commitment and

collaboration from multiple teams, including leadership and operations.

1. Review the competency model and ensure the competency-based program aligns with all
strategic business objectives. Competencies should be clearly defined and measurable. Many
companies have an overabundance of “common sense” competencies in their competency
models. For example, while “relationship building” is an important skill, its contribution to the
bottom line is not measurable, and this skill should therefore not be the focus of a competency-
based learning program.

2. Choose the “must-have competencies” from the competency model and focus the program on
those. Attempting to cover too many competencies with one program is not effective.

Page 28
3. Define the metrics you will use to measure ROI. The learning program must always be designed
with the end goal in mind. Examples of the most common metrics used to evaluate
competency-based training include:

• Change in performance ratings over time

• Promotion percentage
• Employee turnover/retention rates (job-specific)
• Productivity rate trends over time
• Error trends over time (better performance will be reflected in lower error rates)
• Customer satisfaction trends over time
• Overall revenue increase with specific increases in sales (used for sales teams)

4. Design the assessment. Design and implement the assessment approach that will give you the
best understanding of the program’s effectiveness. For competency-based learning, it’s critical
that the evaluation approaches include all of the following:

• Objectively scored assessments – The most common type of evaluation, where a test
including multiple-choice, open-ended, and matching questions is administered at the end of
a learning module.

• Performance-based assessments – These are time consuming, but also more efficient in
demonstrating ROI. They include essays or reports, project work (individual or group), and
simulated environments.

• Real-world observations – Conducted at the workplace, usually by the supervisor and

manager, these types of assessments are spaced out over time after the learner has
completed the training.

5. Conduct a pre- and post-assessment. Before the training program begins, you should have a
baseline to measure against. Along the same lines as the post-assessment, and using the same
metrics, conduct a pre-assessment of your learners’ competencies. After the training is
concluded, the post-assessment is conducted with the components listed above.

6. Gather 360-degree feedback. This takes the pre- and post-assessments a step further. This type
of feedback provides insight from supervisors and peers and helps determine what behaviors
have changed and how new behaviors are being applied to impact the company’s bottom line.

7. Measure ROI and adjust the program to boost it. While the formula for ROI is well known,
performing the actual calculation involves several steps. Applying the following tips will enhance
the reliability of your calculated ROI:

• Isolate the effects of the training. The impact of external factors can be misleading, and
should be discarded when calculating the ROI of competency-based learning. For example, if
you use employee retention as a metric, the unemployment rate in certain regions can affect
the measurable effects of training.
• Gauge training effectiveness and job impacts. This critical measure directly calculates the
percent performance improvement resulting from the training.

Page 29
 • Measure business results. Post-training, did you see increased sales? If in manufacturing,
increased productivity? Did your top negotiators close an appreciably greater number of
contracts?
• Calculate the cost. Training-related costs are not only the cost of program development, but
also the cost of seat time, lost productivity, etc.
• Calculate the ROI. Don’t be discouraged by low ROI results, just keep striving to improve
through good design and strategy.

While consistently demonstrating the ROI of learning can be a challenging exercise, we believe that
it’s imperative to show a clear and strong relationship between competencies and organizational
profitability. Contrary to popular belief, the appropriate level of assessment is generally achievable
within the allotted development budget. As learning and development professionals, our job is to
build in the accountability of measuring success, reporting the results, and proactively adjusting
learning programs as necessary.

Page 30
 Chapter 8

Competency-Based Learning: 5 Steps to

Assess Employee Skills Development
As you’ve heard throughout this eBook, one of the most useful aspects of competency-based
learning is that there are defined criteria against which to measure employee performance. But
how do you actually go about assessing employee skills development? And why should you bother?
In this chapter, we’ll provide you with a road map to effectively gauge your employees’ professional
growth and discuss the most effective means of doing so. Think of these steps as an employee skills
development competency map. And speaking of competency maps…

Step 1: Create a competency map

Everything has a starting point, and in order to assess your employees’ skills development you have
to know what skills and abilities they should have for their job roles, and those they need to
cultivate if they seek advancement. We’ve discussed competency mapping at length in this eBook,
so we won’t belabor the point, but this is the essential—and arguably the most challenging—step in
the process. You can’t assess development of skills and abilities that haven’t been clearly defined.

Step 2: Create opportunities for learners

to demonstrate competency

Page 31
Employers should be on the lookout for ways to weave skill demonstration into existing processes.
Opportunities might include:

• Hiring. Candidates should be evaluated not only based on interviews and past experience, but
should also be provided the opportunity to demonstrate skills necessary for the job role. This gets
your employees started off right, as they’ve provided evidence of competency from the outset.

• Development planning/performance reviews. Employees should know what resources are

available to them in terms of ongoing training and personal development. Remember, your
competency map is in place, so managers and employees know what competencies are
required to excel and advance. A good manager will encourage the acquisition of new
competencies rather than dismissing ongoing training as a waste of time. The more employees
remain engaged, the longer they’ll stick around, and the better they’ll get at their jobs.

• Mentorship. Having achieved mastery of their required skill set such that they are capable of
coaching others, mentors model what competency looks like for more junior staff. Mentees
reap the benefits of working closely with top performers willing to share their experience. “Tell
me, show me, let me” is an excellent means of integrating competency demonstration into this
type of professional relationship.

• Daily business operations. If an employee has been hired based on competency mapping
criteria, chances are they have the basic knowledge and skills required to perform their day-to-
day work. But there is always a learning curve for new hires, and providing opportunities to
demonstrate competency might look much like the pattern we discussed for mentorship. A
junior technician, for example, might first observe an equipment test conducted by a senior
technician. The next time the task is performed, the junior technician assists, and the next time,
performs the task independently while the senior technician observes.

Step 3: Design meaningful, measurable assessments

In competency-based assessments employees must demonstrate “what they know as well as what
they can do.”1 Though online training events should be an element of your training arsenal, it’s better
suited to demonstrating mastery of knowledge than mastery of a competency and associated skills.

Thanks to your competency map, the “measurable” aspect of your assessments is inherent: the
skills and abilities are clearly defined, and your employee either demonstrates them, does not, or
requires improvement. Whichever the case, the competency map provides you with a framework
against which to measure, which simplifies the task of designing assessment rubrics.
Page 32
While measurement is simplified, authenticity can be a challenge. Assessment in competency-based
environments must be as authentic as possible. If a job role requires negotiation skills, for example,
an employee should be able to demonstrate such skills in as true to life a situation as possible,
perhaps going so far as to be in an actual negotiating environment with a supervisor assisting in an
observation role.

Step 4: Use a variety of assessment methodologies2

The most effective skills development assessments will include a variety of assessment
methodologies, taking the best elements of each to paint a clearer picture of skills acquired and
those that need improvement.

• Self-assessment. Competency-based learning, more than any other type of learning, relies
heavily on self-assessment as a means of gauging skills development. An employee who is
serious about their career will more often than not honestly evaluate their performance and
target areas for improvement.

• Hierarchical assessment. Manager/supervisor assessment is also necessary, and should examine

knowledge as well as skills to determine if there are any gaps between current performance and
desired level. This can help identify whether the learner needs foundational knowledge or
simply additional practice to achieve competency.

• 360º feedback. Co-workers, subordinates, superiors, and sometimes customers and vendors
provide input on an employee’s performance. Such feedback can provide a more holistic view of
employee performance, as the multiple viewpoints tend to hone in on areas that require
development with greater prescience than a simple top-down evaluation.

• Skill gap analysis. This type of analysis is used to determine if there are gaps between an
employee’s existing skills and those required to meet the business needs of the organization.
They can be conducted on both an individual and organization-wide basis to determine if such
gaps can be filled by additional training or if they require new hires.

• Performance/psychometric tests. Performance tests gauge an employee’s suitability to fulfill a

role based on how they perform certain specific job-related tasks. Psychometric tests, on the
other hand, are used to discern attitudes and behaviors that may be difficult to fully apprehend
during a job interview.

Page 33
 Step 5: Make it a continuous improvement loop

As you might have guessed, this is not a one-and-done exercise. When an organization redefines its
business goals or shifts focus it should also review its competency maps to make sure they align. If
new competencies are required, new assessments will be as well. You get the picture. Though it might
sound daunting, this exercise is crucial to your organization’s—and your employees’—continued
success. When undertaken regularly, the process is much less arduous. If your company is not
experiencing any dramatic shifts, an annual review is entirely reasonable. A five-year review?
Not so much.

You’ve got your road map. Why do you need it?

Throughout this eBook, we’ve discussed the benefits of competency-based learning. The benefits of
competency-based assessment3 are equally desirable, for both employers and their work force:

• Improved clarity and transparency

• More seamless personalization of learning
• Encourages the shift toward a culture of assessment
• Better individual understanding of learning profiles

If your organization is serious both about achieving its business goals and helping employees
achieve their full potential, don’t neglect to apply these five steps to assess employee skills
development.

1
Thoeming, Barbra, “New to Competency-Based Learning? Here’re Five Ways to Assess It,” EdSurge, May 22, 2017,
accessed January 20, 2020, https://www.edsurge.com/news/2017-05-22-new-to-competency-based-learning-
here-re-five-ways-to-assess-it.
2
Chitnis, Liliana, “Competency-Based Assessments: Benefits and Types That You Must Know,” Training Journal,
October 11, 2019, accessed January 20, 2020, https://www.trainingjournal.com/articles/features/competency-
based-assessments-benefits-and-types-you-must-know
3
TeachThought Staff, The Benefits of Competency-Based Assessment,” TeachThought, January 7, 2020, accessed
January 20, 2020, https://www.teachthought.com/learning/the-benefits-of-competency-based-assessment/.

Page 34