Competency vs. skill: Key differences and why they matter

While skills and competencies are related, they’re not the same. Skills are specific abilities, while competencies are broader capabilities that include skills, knowledge, and behaviors. Understanding the difference can make all the difference in hiring, career development, and remote work success.

In this article, we’ll break down the key distinctions between competencies and skills, and show how companies and professionals can use them effectively.

What is a skill?

A skill is a specific ability that can be learned and measured. It refers to an individual’s capacity to perform a particular task effectively. Skills can be developed through education, training, or practice and are often categorized into two types:

• Hard skills: Technical or job-specific abilities (e.g., programming, graphic design, data analysis, foreign language proficiency).

• Soft skills: Interpersonal or non-technical abilities (e.g., communication, time management, adaptability, teamwork).

Examples of skills in the workplace

• Writing compelling marketing copy (hard skill)

• Using project management software like Asana or Jira (hard skill)

• Effectively resolving conflicts within a team (soft skill)

• Delivering engaging presentations to stakeholders (soft skill)

Skills are important, but they’re just one part of what makes someone effective in a job. That’s where competencies come in.

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What is a competency?

A competency is a broader concept that includes a combination of skills, knowledge, behaviors, and attitudes needed to perform effectively in a job or situation. Competencies go beyond isolated skills‌ — ‌they reflect a person’s ability to apply those skills in real-world situations.

Key characteristics of competencies 

• Multidimensional: They include technical know-how, behavioral traits, and problem-solving abilities.

• Experience-based: Competencies develop over time through practical application.

• Context-specific: They vary by role, industry, and workplace dynamics.

Examples of competencies in the workplace

• Leadership: Requires skills in decision-making, communication, and conflict resolution.

• Critical thinking: Involves problem-solving skills, analytical ability, and adaptability.

• Collaboration: Requires teamwork, emotional intelligence, and communication.

• Innovation: Combines creativity, risk assessment, and strategic thinking.

Employers don’t just want employees who have skills‌ — ‌they want people who know how to use those skills effectively in different situations. That’s why competencies are often the deciding factor in hiring and career growth.

Why competencies matter more in remote work

When hiring remotely, employers can’t just rely on technical skills—they need to find candidates with strong competencies in areas like self-management, communication, and problem-solving.

While technical skills are undoubtedly important, they are not enough to guarantee success in a remote role. Competencies, which encompass a broader range of skills and behaviors, are what differentiate high-performing remote employees from those who struggle.

Top competencies for remote work

Here are the top competencies to look for when hiring for remote roles:

• Self-discipline: The ability to stay motivated and productive without direct supervision.

• Adaptability: The ability to work across time zones, collaborate with diverse teams, and remain calm despite changes.

• Accountability: Able to meet deadlines and deliver quality work consistently, taking ownership of tasks and follows through.

• Strong emotional intelligence: Shows empathy and can build relationships remotely, awareness of team dynamics and remote work challenges.

By prioritizing competencies in the hiring process, you can build a remote team that is more productive, engaged, and resilient.

How to assess competencies when hiring

When companies hire, they tend to focus too much on technical skills but checking for the right competencies can support long-term success.

Here's how to assess competencies in hiring:

• Behavioral interviews: These interviews delve into a candidate's past experiences to uncover how they have demonstrated specific competencies. Questions often start with "Tell me about a time when..."

• Situational judgment tests: These tests present candidates with hypothetical scenarios to assess their decision-making skills and problem-solving abilities.

• Competency-based assessments: These assessments use a combination of methods, such as interviews, simulations, and psychometric tests, to measure specific competencies.

Building a competency-based hiring process requires a comprehensive approach. Start by focusing on competencies in addition to technical skills to identify top candidates who fit your culture.

Finding the right skills and competencies

Skills refer to the specific learned abilities and techniques that an individual possesses. These can range from technical skills, such as coding or data analysis, to soft skills, such as communication and problem-solving.

Competencies, on the other hand, encompass a broader set of capabilities that include skills, knowledge, behaviors, and attitudes. They reflect an individual's ability to integrate and apply their skills in various situations to achieve desired outcomes.

For global hiring, where direct supervision and immediate feedback may be limited, competencies become even more critical. While skills are important, competencies determine how well those skills are applied in the workplace‌.

That's why Remote Talent matches you with top global talent who possess the skills and competencies to achieve your unique business goals. Remote gives you the data and insights you need to make competitive offers to the candidates you are looking for, regardless of their location.

To match with the person with the skills and competencies you need, sign up for Remote Talent today.