Why Behavioural Competencies Matter for Organisational Success

Did you know that businesses with high employee engagement, driven by strong behavioural competencies, outperform their competitors by 147% in earnings per share? In today’s fast-paced business environment, companies are under increasing pressure to adapt and thrive. Whether you’re in a startup or a large corporation, the key to success lies in your people. But what sets high-performing companies apart? It’s the alignment of the right behaviours with strategic goals. Behavioural competencies are the backbone of this alignment, acting as the driver of both individual and collective performance. Without a clear framework to identify and foster these competencies, organisations risk missing out on their full potential.

By Jon Windust

Posted 28 February 2025

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What Are Behavioural Competencies?

At their core, behavioural competencies are skills, traits, and abilities that enable individuals to perform effectively within a specific organisational context. They go beyond technical know-how or job-specific knowledge; they focus on how employees approach tasks, interact with others, and align with organisational values. These competencies can be seen in everyday behaviours—demonstrating resilience in the face of setbacks, collaborating effectively in a team, or showing adaptability to changing conditions.

Building a behavioural competency framework means identifying these behaviours across various roles within your organisation and ensuring they’re actively nurtured. If you’re interested in learning how to track and manage these competencies, consider using Competency Management Software to streamline your process.

Behavioural Competency Indicators: What to Look For

Understanding and identifying behavioural competencies is a valuable skill, but how can you practically evaluate them? Here’s a closer look at some key behavioural competency indicators:

Relationship Management

Relationship management is the ability to build and maintain positive working relationships. Strong interpersonal skills are a hallmark of this competency. For example, a manager who nurtures a supportive environment, resolves conflicts between team members, and fosters collaboration across departments is demonstrating excellent relationship management.

Communication

Effective communication involves clarity, empathy, and active listening. Take the case of a team lead who holds regular feedback sessions with their team, listens to concerns, and provides clear, actionable guidance. Such behaviours ensure that information flows efficiently and misunderstandings are minimised, boosting overall productivity.

Adaptability

Adaptability is how well employees can adjust to new situations or changes in their environment. An employee who embraces changes to project scope, team structure, or market demands is exhibiting high adaptability. For instance, during the COVID-19 pandemic, employees who transitioned to remote work without a dip in performance showed their ability to thrive in new circumstances.

Teamwork

Teamwork is the ability to collaborate effectively with others, contribute to collective goals, and support team members. An example could be a group of software developers working together to solve a complex coding problem. Each member brings their expertise, listens to suggestions, and adjusts their approach to integrate others’ ideas, leading to a well-rounded solution.

Business Acumen

Business acumen is the ability to understand and apply business principles in decision-making. An example could be a project manager who evaluates project risks not only in terms of timeline, but also considering how decisions will impact the company’s bottom line. They effectively balance operational needs with long-term strategic objectives.

Cultural Competency

Cultural competency is the ability to work effectively with people from diverse backgrounds. An employee who demonstrates respect for different viewpoints, communicates in a culturally sensitive manner, and creates an inclusive environment is actively contributing to the organisation’s cultural competency.

Resilience

Resilience is the ability to bounce back from setbacks. Consider an employee who faces multiple project delays and client rejections but maintains a positive attitude and drives their team to keep moving forward. Their ability to stay focused and proactive during tough times is a key indicator of resilience.

Analytical Thinking

Analytical thinking involves the ability to assess information, identify patterns, and make data-driven decisions. An example of this could be a marketing manager using data analysis tools to identify consumer trends and adjust campaign strategies accordingly. Their ability to turn raw data into actionable insights drives better outcomes for the business.

Using Behavioural Competency Assessments to Improve Performance

Assessing behavioural competencies is key in identifying strengths and areas for improvement within your organisation. Through a structured behavioural competency assessment, companies can pinpoint specific behavioural traits that need further development. These assessments can be done through surveys, peer reviews, and one-on-one evaluations, and provide valuable insights into how employees are meeting (or falling short of) organisational expectations.

For example, an employee might demonstrate strong communication skills, but their adaptability could be lacking. A competency assessment would highlight this gap and present an opportunity for targeted training. Regularly assessing behavioural competencies helps uncover emerging strengths and weaknesses, allowing your organisation to cultivate a workforce that is both capable and adaptable.

Performance Management Software can effectively manage and track performance, helping to simplify the process and help create a clear performance development plan for every employee.

Building a Behavioural Competency Framework for Your Organisation

A well-defined behavioural competency framework helps create synergy between your employees and your organisation’s strategic ambitions. Here’s a roadmap to help you get started:

Begin by identifying key competencies that align with your organisation’s values and mission. This could include leadership, problem-solving, and innovation.
Establish different levels of proficiency for each competency. This allows for clear expectations and progression pathways.
Make the competencies part of regular performance reviews. Feedback should be tied to both the demonstration of competencies and measurable outcomes.
Once competencies are identified, offer targeted training programs to address gaps in behaviours.
Implement tools such as Skills Matrix Software to assess and map employee competencies across different roles. This ensures that employees are consistently developing the competencies needed for success.

Why Behavioural Competencies Are Key to Organisational Success

Behavioural competencies contribute to an organisation’s success in several ways. First, they help shape company culture by reinforcing the values and behaviours that are most important to the organisation. When employees demonstrate the competencies that align with company values, it creates a more cohesive and motivated workforce.

Second, competency alignment directly impacts employee engagement. Employees who understand the competencies expected of them are more likely to feel confident in their roles and motivated to perform well. And when these competencies are assessed and developed, employees feel supported and empowered to grow.

Finally, there’s a direct connection between behavioural competencies and business performance. When employees consistently exhibit competencies such as analytical thinking, business acumen, and teamwork, it translates into more efficient processes, better decision-making, and higher productivity—all of which drive business success.

Take Action: Start Building a Competency-Driven Organisation Today!

Ready to make your organisation more successful through a competency-driven approach? Start by defining the behavioural competencies that matter most for your business and begin integrating them into your hiring, training, and employee development processes. By creating a clear competency framework and aligning your team around these key behaviours, you’ll be setting your organisation up for sustained success.

To get started, explore our Competency Management Tools or Contact Us to discover how we can help you develop a behavioural competency framework that drives meaningful change.

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