How to use a competency proficiency scale

Want to learn how to rate employee competencies, then use them to build a skills matrix? Our latest article covers the essentials of competency proficiency scales, how to define skill levels, and the benefits of using them with AG5’s skills management software.

In this past, we’ve written about the importance of skills matrices in developing and maintaining an effective skills management strategy.

To fill in a skills matrix, however, you’ll need a method of determining just how skilled your employees are. The importance of such a method is underscored by a Boston Consulting Group study, which found that 1.3 billion people globally have competencies that either “either exceed or are insufficient for the activities they perform” [1].

This method – achieved with a tool called a competency proficiency scale – should be standardized and structured, so you will have consistent data across your teams, departments, or sites.

In this article, we’ll dive in, providing you with the definition of a competency proficiency scale, how to create and use them, how to integrate them into your overall skills management strategy – as well as how AG5 can simplify the process.

What is a competency proficiency scale? Copied

A competency proficiency scale is a standardized and structured framework you can use to measure and compare your employees’ skill levels.

Competency proficiency scales help you assess proficiency and competency in specific areas – supply chain optimization, for example – providing you with transparency into your employees’ ability to perform certain roles, tasks, or functions. You can also scale up, by looking at the proficiency of a team, or even an entire department.

How to determine the levels in a competency proficiency scale  Copied

Competency proficiency scales typically include defined levels or ratings, such as:

  • Apprentice – Basic knowledge with no practical experience
  • Beginner  – Basic knowledge with limited practical experience
  • Intermediate – Working knowledge with some practical experience
  • Advanced – Strong proficiency with the ability to perform tasks independently
  • Expert – Deep expertise and ability to mentor others

You often also see competency proficiency scales using numbered levels, with 1-5 corresponding to the levels laid out above. What you use is up to you, as what really matters is that the levels on your competency proficiency scale are clear. 

Using competency proficiency scales in your organization Copied

To design and fill in a competency proficiency scale, you will need to think about and clearly lay out your organization’s goals, as well as any industry-specific operational requirements. You can follow these general steps.

  • Identify key skills and competencies. What are the essential skills and competencies needed in each site, department, or team. Remember to think about both hard and soft skills.  Be thorough here, as this will go a long way in helping you close skill gaps – a challenge faced by 87% of executives [2]
  • Define proficiency levels. Establish clear descriptions for each level in your competency proficiency scale. Be sure to clearly outline the expected knowledge, skills, and behaviors for these levels, so you have something concrete to refer back to
  • Use measurable criteria. Set objective benchmarks to assess competency, such as performance metrics or certifications. This is especially important for soft skills like leadership, which may otherwise be very difficult to determine
  • Align with training and certification programs. Take a look at the training and certification programs in which your employees are currently – or will soon – take part. All of these programs should, either directly or indirectly, be helping them progress in some area of your competency proficiency scale

Competency proficiency scales in skills management Copied

Research from Deloitte shows that 73% of business executives expect to experience talent shortages over the next three years [3]. This means you’ll need an effective skills management strategy – and as you’ve read in this article, you’ll need a competency proficiency scale to develop one. 

This is because a competency proficiency scale doesn’t just integrate with your skills management strategy, it acts as its heart – and can therefore be used in multiple ways, all of which inform one another.

Let’s take a look at the benefits your competency proficiency scale can bring to your skills management strategy.

  • Improved (and tailored) training initiatives. You can fine-tune training and certification programs, as well as any other skills development initiatives, to both organizational and employee needs.
  • Objective performance evaluations. Because you are using measurable criteria in your competency proficiency scale, you’ll be better positioned to take a fair and structured approach to assessing employee performance
  • Succession planning and career development. You can use the levels or ratings assigned to employees in your competency proficiency scale to quickly identify individuals with high potential for leadership or highly technical roles
  • Optimized workforce planning. By identifying employees with skill levels suited to specific projects and roles, you can set up highly functional and adaptable teams and departments

You can also use competency proficiency scales with AG5’s skills management software.

With AG5, you can:

  • Assign levels and ratings to skills and competencies
  • Track skill development and certification progress
  • Identify and close skill gaps
  • Make data-driven decisions about training and recruitment
  • And much more

Want an up-close look at how AG5 can help you create competency proficiency scales that drive easy and effective skills management? Sign up for a free, live, 15-minute demo for a customized look.

Sources Copied

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# Source title Description Publication Retrieved Source URL
1Fixing the Global Skills MismatchBCGJanuary 15, 2020February 25, 2025https://www.bcg.com/publicatio..
2Taking a skills-based approach to building the future workforceMcKinseyNovember 15, 2022February 25, 2025https://www.mckinsey.com/capab..
3The skills-based organization: A new operating model for work and the workforceDeloitteSeptember 8, 2022February 25, 2025https://www2.deloitte.com/us/e..

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Original version | February 28, 2025

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