Competency Dictionary – The core tool to transform human resources into competitive advantage

What is a competency dictionary?

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| Updated: 05/11/2025

In modern human resource management, Competency framework It is no longer an abstract concept but a concrete measure of human value to the organization.

However, to manage and develop competencies consistently, businesses need a tool that can standardize, measure, and clearly define them — that is the competency dictionary.

1. What is a competency dictionary?

Competency dictionary is a set of definitions, behavioral descriptions, and levels of performance of each competency required in an organization.

This is the “common language” between the business and the HR team — helping everyone understand which competencies are important, how they are assessed and how they are developed.

A complete competency dictionary typically includes:

  • List of competency groups (core, leadership, professional, supporting).

  • Clear definition for each competency.

  • Many behavioral indicators describes how the competency is demonstrated.

  • System proficiency level from basic to advanced

What is a competency dictionary?

2. Structure of the competency dictionary

According to international standards (SHRM, CIPD, Korn Ferry) and Vietnamese business practices, an effective competency dictionary should be designed according to 4 main groups:

Competency group Characteristics Scope of application
1. Core competencies Reflects the core values, culture, and behaviors of the business. All employees.
2. Leadership/management capacity Ability to direct, lead, coach and inspire. Management level.
3. Professional competence Knowledge, professional and technical skills of each position. By specific department/occupation.
4. Complementary competencies / work context Ability to adapt, improvise and handle specific situations in a changing environment. Depending on the context of the role, market, and customer.

Each competency is described in the following structure:

  1. Definition of capacity – briefly describe the nature of the ability.

  2. Observable behavior – describe specific actions that demonstrate ability.

  3. Proficiency level – indicates the level of achievement of the competency.

Illustration:

Ability name Define Behavioral level
Spirit of cooperation Ability to work with others to achieve common goals. 1: Join the team → 3: Support teammates → 5: Lead a collaborative culture.
How to build a detailed competency dictionary

3. How to build a competency dictionary

Businesses can choose between using different sets of available competency dictionary and adjust according to the specific characteristics of the business or self-built through internal data with experts.

Reality, no set is “absolutely perfect”, but there is Several sets of internationally recognized standards that can be customized for your business.

Here are some frameworks worth considering:

Framework / Organization Outstanding characteristics Suitable for who
SHRM Competency Model (USA) 9 core human resource competency groups, designed by behavior. The company has a professional HR system.
CIPD Profession Map (UK) Focus on human resources professional competencies, can be extended to other industries. European enterprises, FDI or educational institutions.
Korn Ferry Leadership Architect / Lominger Deep behavioral competency system, with 38 standardized competencies and 4 levels. Large scale, leadership oriented enterprise.
Mercer Competency Framework Directly linked to 3P salary and performance review. SME and FDI in Asia, easy to apply and customize.
OECD Core Competency Framework Public service behavioral competency framework – logical, adaptable. Service businesses, non-profit organizations.

Expert perspective: Which way should SMEs choose?

For SMEs, the Building your own dictionary from scratch is unnecessary and expensive.. The most practical approach is:

  1. Select a suitable international sample set.

  2. Recalibrate 20–30 key competencies, eliminating capabilities that do not fit the culture or size of the business.

4. Example of a detailed competency dictionary

1

Core competency groups

Applicable to all employees – reflects core values, culture and behaviors.

Ability name

Define

Illustrative behavior

Proficiency level

Spirit of cooperation

Willing to share information, support colleagues and coordinate effectively to achieve common goals.

Listen, respond positively, do not blame, proactively share experiences.

1: Join a team → 5: Lead a collaborative culture.

Integrity

Act honestly, comply with commitments, respect rules and professional ethics.

Keep your promises, keep information confidential, speak frankly and truthfully.

1: Compliance → 5: Be a role model of integrity.

Innovative thinking

Always looking for new, more efficient ways of doing things and processes.

Propose solutions, measure improvement results, and apply continuous learning.

1: Make small improvements → 5: Lead innovation.

Customer orientation

Understand and meet internal/external customer expectations in a professional manner.

Put yourself in the customer's shoes and proactively solve the problem.

1: Understand the needs → 5: Create excellent customer experiences.

Responsibility for results

Take responsibility for personal actions, results and commitments.

Always get the job done, don't make excuses, learn from mistakes.

1: Complete the task → 5: Create a performance benchmark for the organization.

2

Leadership/Management Competency Group

Applicable to leaders, managers, department heads.

Ability name Define Illustrative behavior Proficiency level
Strategic thinking Determine long-term direction, analyze trends and make decisions in line with business strategy. Analyze the market, set goals and plan accordingly. 1: Understand strategy → 5: Form and lead strategy.
Make a decision Make informed decisions based on data, experience, and risk analysis. Gather information, consider impact, act promptly. 1: Decision support → 5: Strategic decision making.
Training and team development Ability to guide, feedback, and encourage employees to develop personal capacity. Ask open-ended questions and develop employee development plans. 1: Support colleagues → 5: Build a succession team.
Change management Lead teams to adapt to changes in the organization or market. Communicate the reasons clearly, helping employees overcome resistance. 1: Embrace change → 5: Lead organization-wide change.
Influence and inspire Create positive influence, guide the behavior and attitudes of others. Communicate a clear vision, encourage commitment and engagement. 1: Communicate effectively → 5: Inspire the organization.

3

Complementary Competency Group / Context

Reflects the ability to adapt, interact and create value in specific environments.

This group is the "catalyst" that creates performance differences between people in the same position.

Ability name

Define

Behavioral examples

Application

Multicultural understanding

Ability to work effectively with people from other cultures.

Respect differences, adjust communication style.

For personnel in charge of FDI customers/partners.

Specific customer mindset

Understand and respond appropriately to the characteristics of specific customer groups (e.g., female entrepreneurs, high-end customers, SMEs…).

Understanding behavior, being tactful in communication, adjusting service style.

For Sales, Customer Service, Marketing.

Respond and handle situations

Respond quickly, flexibly and effectively to unexpected situations.

Keep calm, make quick decisions, balance risks.

For frontline staff, operations managers.

Informal influence

Make a positive impact without formal power.

Create trust, encourage team spirit, spread positive attitudes.

For key employees, internal mentors.

Adaptive innovation

Apply new ideas to reality, constantly improve according to market feedback.

Experiment, learn fast, adapt flexibly.

For Marketing, Product, R&D teams.

4

Professional competency group

Applicable to specific departments and career roles.

Here is an example of a generic framework that can be customized for each function:

Ability name

Typical departments

Define

Proficiency Level (1–5)

Data analysis & reporting

Accounting, finance, human resources.

Collect, process, and interpret data to support decision making.

1: Understand the data → 5: Analyze the strategy.

Legal understanding and compliance

Accounting, human resources, legal.

Understand and comply with legal regulations and industry standards.

1: Know the rules → 5: Manage compliance risks.

Professional customer service

Business, customer care.

Meet and exceed customer expectations through professional service.

1: Resolve request → 5: High value consulting.

Manage projects

IT, Marketing, Operations.

Plan, coordinate resources, control progress and results.

1: Project participation → 5: Complex project leadership.

Technology applications

Enterprise-wide.

Proficient in using technology and software for work.

1: Know how to use → 5: Optimize and innovate with technology.

5 levels of proficiency in competency

5. Level system in the competency framework

Level Explain The rank usually applies
1 – Basic (Join) Understand the concept and implement it with guidance. Trainee, new.
2 – Proficient (Independent) Perform routine tasks independently. Standard.
3 – Understanding (Support) Proficient in most situations, supporting others. Team leader.
4 – In-depth (Forming) Handle complex situations, optimize processes. Head of department, head of section.
5 – Expert (Leader) Build standards, train and guide strategy. Senior leadership.

Conclusion

A competency dictionary is more than just a set of HR documents – it is strategic language help businesses transform people into sustainable competitive advantages. When every decision from recruitment, training, assessment to salary revolves around a unified system of standards, organizations not only minimize risks but also multiply the value of their own team.

 

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