What are job competencies?
Job competencies are the core skills, behaviors, and attributes that an employee needs to be successful in a specific role. These competencies go beyond job duties—they include technical knowledge, interpersonal skills, work habits, and values that align with the position and your company culture.
For small business owners, clearly identifying job competencies can improve every stage of your people operations—from hiring and onboarding to training and performance management. With Homebase, you can streamline hiring processes and ensure that the people you bring onto your team meet the competencies your business needs to grow and thrive.
Why job competencies matter in small businesses
In a small business, every team member wears multiple hats—and even one bad hire can create costly disruptions. Defining clear competencies helps ensure that:
- You hire the right people the first time
- New hires get up to speed quickly
- Employees know what success looks like
- Performance reviews are fair and objective
- You promote and develop team members more effectively
Without defined competencies, it’s easy to rely on vague or subjective judgments like “a good attitude” or “hard worker.” Competencies give you a shared language to assess fit and performance.
Types of job competencies
Job competencies typically fall into three categories. Most roles require a mix of all three:
1. Core competencies
These are the essential traits and behaviors expected of all team members, regardless of role. Examples include:
- Communication
- Teamwork
- Reliability
- Accountability
- Adaptability
2. Functional or technical competencies
These refer to the specific skills and knowledge required to perform the duties of a particular job. Examples include:
- Operating a point-of-sale system
- Inventory management
- Food preparation techniques
- Basic bookkeeping
- Scheduling software proficiency
3. Leadership or behavioral competencies
For roles that involve supervision, decision-making, or customer-facing responsibilities, these competencies are key. Examples include:
- Conflict resolution
- Time management
- Initiative
- Coaching or mentoring
- Customer empathy
Identifying the right mix of these competencies for each role helps create clear expectations and better hiring outcomes.
How to identify the right competencies for a role
To define job competencies for your business:
- Start with the job description – List out the responsibilities, then ask: What does someone need to know or be able to do to perform these well?
- Consider your best employees – What qualities make them effective? What behaviors do they consistently show?
- Think about gaps – Have you had turnover or performance issues in the past? What competencies were missing?
- Tailor competencies to your business needs – A cashier at a quiet boutique may need a different mix of skills than one at a busy quick-service restaurant.
Once you’ve created a competency list, use it in job postings, interview questions, onboarding checklists, and performance evaluations.
Using competencies in hiring
Competency-based hiring helps you move beyond résumés and gut instinct. During interviews, ask behavioral questions that help candidates demonstrate competencies in real-life situations:
- “Tell me about a time you handled a difficult customer.”
- “Describe a situation where you had to solve a problem quickly.”
- “How do you stay organized during a busy shift?”
Scoring candidate responses against your job competency checklist can help you hire with more confidence—and reduce turnover in the long run.
Integrating competencies into onboarding and training
When new employees know what’s expected from day one, they’re more likely to succeed. Use your job competency list to:
- Set training goals and checklists
- Create mentorship or shadowing programs around key skills
- Track progress during the onboarding period
- Provide feedback that’s specific and actionable
This helps employees build the habits and skills you need on your team—and feel more confident doing so.
Job competencies and performance management
Competency-based performance reviews are fairer and more objective because they’re based on clear expectations, not personal opinion. Rather than “You need to try harder,” you can say:
- “Let’s improve your time management when prepping for the lunch rush”
- “You’ve consistently shown great customer empathy during peak hours”
- “We’d like to help you develop your leadership skills as you take on more responsibility”
Competencies also help you spot potential future leaders and create development paths for high performers.
How Homebase helps support competency-driven hiring and development
Homebase simplifies the entire hiring and employee management process for small business owners. From job descriptions to training to shift management, you can build a team that fits your business and grows with it.
With Homebase, you can:
- Post roles with clear competency-based job descriptions
- Screen candidates efficiently with structured hiring workflows
- Onboard new hires with digital tools and training documentation
- Track shift performance and attendance in real time
- Support employee growth with scheduling, messaging, and payroll integration
Explore Homebase Hiring and Onboarding to build a more consistent, competency-driven team—one great hire at a time.