Competency

What is a Competency in Zoho People?

Competencies are the behavioural and skill requirements of a role, separate from the functional goals and KPIs. While a KPI measures what an employee achieved (e.g., hit 120% of revenue target), a competency evaluates how they achieved it — did they communicate clearly, collaborate effectively, demonstrate leadership, and solve problems creatively?

Types of competencies

• Core competencies: Required of all employees regardless of role — integrity, teamwork, communication.
• Functional competencies: Role-specific technical skills — a software engineer needs coding proficiency; an accountant needs financial reporting skills.
• Leadership competencies: Required of managers and senior leaders — strategic thinking, people development, change management.

Competency levels

Each competency is defined across multiple proficiency levels (e.g., 1 to 5, or Beginner to Expert). The appraisal asks the manager and employee to assess which level the employee is currently at and what level is expected for their role and grade. The gap between current and expected level informs development plans.