Behavioral Competencies Explained: Why They Matter and How to Build Them

Behavioral competencies, also known as soft skills, play a vital role in how individuals contribute to a team and succeed in their roles. These include personal qualities like communication, adaptability, teamwork, leadership, and emotional awareness.

The Minnesota Management & Budget office defines them as the skills, knowledge, and attributes that shape how results are achieved, not just the results themselves. These traits influence how people collaborate, build trust, solve problems, and handle challenges.

Unlike technical skills, which are task-specific and often taught through formal training, behavioral competencies show up in daily interactions and decisions. They are visible in how someone leads a meeting, listens to feedback, or adapts to shifting priorities.

While tools and technical know-how are important, it’s often these people-centered abilities that determine whether someone can work well with others and grow in their role. They’re not just a “nice to have,” but they’re essential to a healthy, productive work environment.

Organizations that apply a consistent competency model across talent acquisition, learning and development, performance management, and succession planning are five times more likely to achieve top-tier performance compared to those that do not..

This blog exclusively covers what behavioral competencies are, why they matter, how they differ from technical skills, their assessment, and development.

Let’s dive in.

Defining Behavioral Competencies

Behavioral competencies are the qualities and patterns of behavior that influence how individuals approach tasks, interact with others, and respond to challenges. These include interpersonal skills like communication and collaboration, cognitive abilities such as critical thinking and problem-solving, and emotional intelligence traits like empathy and self-awareness. Leadership attributes, such as accountability and decision-making, also fall under this umbrella.

The U.S. Department of Labor identifies core behavioral competencies including professionalism, adaptability, teamwork, and effective communication. These qualities determine how employees function in a team, manage change, and contribute to workplace culture.

In contrast, technical skills refer to specific, job-related “abilities” such as proficiency in software, data analysis, or equipment handling. While technical skills explain what a person can do, behavioral competencies reveal how they do it. For instance, someone may be highly skilled in a design tool, but their ability to collaborate, take initiative, and adapt to feedback will largely influence their success in a real-world setting.

Behavioral competencies are observable in everyday interactions and are developed over time through experience, reflection, and coaching. Unlike technical skills, they are transferable across roles and industries, making them essential for long-term career development. Organizations increasingly rely on these competencies to build cohesive teams, support leadership development, and strengthen performance across all levels

Adaptability, defined by Yale as “a person’s ability to adjust to changes in their environment,” helps employees thrive during uncertainty.

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Differentiating Technical Skills from Behavioral Competencies

Technical skills are job-specific capabilities, like coding in Python, managing financial ledgers, or operating machinery. These are typically acquired through training or formal education and define what a person can do. For instance, a software developer might master Java or cloud architecture, while a nurse may excel in diagnostics and clinical procedures.

Behavioral competencies, on the other hand, describe how someone applies those skills. They include interpersonal abilities like empathy and collaboration, as well as traits like adaptability, resilience, and decision-making. A project manager may understand planning tools (technical) but also needs leadership and communication skills (behavioral) to succeed.

Organizations that clearly define both sets of skills avoid over-reliance on resumes and credentials. Research shows 89% of hiring failures result from behavioral mismatches, not technical gaps, reinforcing the importance of assessing how a candidate works, not just what they know.

Why Behavioral Competencies Matter

Behavioral competencies shape how employees collaborate, communicate, and lead, making them essential to business performance and culture. Here's why they matter:

• They Drive Key Outcomes Across the Employee Lifecycle: Behavioral alignment improves hiring quality, employee engagement, retention, and performance. According to a 2024 LinkedIn report, 90% of global executives say soft skills are more important than ever.
• The Top In-Demand Skills for 2024 Are Behavioral: LinkedIn ranks communication, leadership, and adaptability as the most sought-after capabilities as organizations adapt to hybrid work, AI integration, and change management.

“People-to-people collaboration is going to come into the center more for company growth. For leaders, you’ve got to start with communicating clearly, compassionately, and empathetically with your teams. ”

Aneesh Raman

VP of Opportunity, LinkedIn

• Competency-Led Organizations Outperform Their Peers: Indeed, companies that build development strategies around behavioral competencies see measurable gains in retention, teamwork, customer satisfaction, and culture.
• Employees Thrive When There's a Behavioral Fit: Gallup data shows that engaged employees, those whose behavior aligns with role expectations and company culture, are significantly more productive and less likely to leave.

“Measurement is one thing, what you measure is another. You can measure a lot of things that have nothing to do with performance and that don't help a company implement a system that allows managers to create change. ”

Jim Harter

Ph.D., Chief Scientist of Employee Engagement and Wellbeing, Gallup

How to Assess Behavioral Competencies

Organizations use a mix of formal tools and methods to apply competencies in practice. Leading HR firms have built competency frameworks, comprehensive catalogs of defined behaviors that guide assessment. For instance, Korn Ferry’s Leadership Architect (formerly Lominger) is a global library of 38 critical leadership competencies. Similarly, SHL’s Universal Competency Framework (UCF) organizes behaviors into 8 broad factors and dozens of sub-skills, all derived from decades of research. These frameworks give companies a common language for hiring, training, and evaluating.

Once competencies are defined, organizations employ validated assessment tools to measure them. Common approaches include:

• Behavioral Interviews: Structured behavioral interviews use open-ended questions (often STAR-style: Situation-Task-Action-Result) to elicit past examples of competency in action. For example, an interviewer might ask a candidate to describe a time they had to resolve conflict on a team, revealing communication and collaboration skills. Competency-based interviewing is widely regarded as a best practice because it ties questions to the required behaviors.
• 360-Degree Feedback - A Multi-Rater Scoring Method for Behavioral Competency Assessment: 360-degree feedback is a multi-rater method where employees are rated anonymously by managers, peers, direct reports, and sometimes clients using a standardized competency framework. It provides a comprehensive view of behavioral strengths and gaps by incorporating diverse workplace perspectives. This method is effective for assessing competencies like communication, teamwork, adaptability, and leadership. When paired with coaching, it can boost leadership effectiveness. Beyond evaluation, it helps reinforce a feedback-driven culture and supports data-informed development planning.
• Psychometric and Personality Tests: Validated assessments (e.g., cognitive ability tests, behavioral inventories, situational judgment tests) can gauge underlying traits tied to competencies. For instance, a reliable personality survey might indicate a person’s tendency toward conscientiousness or openness, traits linked to competency areas like reliability and adaptability. Many talent firms offer psychometrics explicitly aligned with their competency models. For example, SHL’s tools include behavioral questionnaires and exercises mapping to their Universal Competency Framework.

“It is important to ensure that feedback is focused on behaviors and actions, rather than personal characteristics or traits. This can help ensure that feedback is objective and focused on areas that the employee can actually improve upon. ”

Jonathan Westover

OD/HR/Leadership consultant from Human Capital Innovations

• Assessment Centers and Simulations: Some organizations use in-person or online simulations (workshop-style exercises, role plays, case studies) where participants must demonstrate target behaviors. These dynamic assessments allow direct observation of competencies (e.g., problem-solving or leadership) in action. They are especially common for high-potential selection or succession planning.

Selecting the right mix of methods depends on context. For recruitment, high-volume roles might rely on scalable tools like online tests and structured interviews. For leadership development, comprehensive approaches like coaching plus 360° feedback are typical.

As one guide notes, “if you’re focusing on behavioral competencies or leadership qualities, tools like behavioral interviews, 360-degree feedback, or personality assessments might be more appropriate.” By contrast, testing technical skills often involves task-based assessments or simulations.

Developing Behavioral Competencies

Assessing competencies is only the first step, and organizations must also actively develop them. Fortunately, many competencies can be strengthened over time. While some behavioral traits are stable (related to personality), others are highly malleable with the right interventions. By designing targeted learning initiatives, mentoring, and a supportive culture, companies can cultivate the desired behaviors.

• Developing Behavioral Competencies Through Training and Digital Tools: Organizations build behavioral competencies using a mix of structured training and digital solutions. L&D programs deliver targeted workshops and e-learning on skills like communication, emotional intelligence, and teamwork. Microlearning (short videos or quizzes) helps reinforce behaviors like adaptability on the job, while VR and gamified simulations provide hands-on practice for leadership or public speaking.

Training is most effective when based on assessed competency gaps, with content mapped to specific behaviors. Technology enhances this with Learning Management Systems (LMS), mobile apps for real-time lessons, and AI tools that recommend learning paths based on feedback, for example, suggesting an empathy module after peer reviews. Social learning platforms also foster peer-driven growth.

The value is clear: 66% of employees say they need new skills to succeed, and 71% feel better prepared for the future thanks to training. Notably, 41% would leave a job lacking development opportunities, making competency-focused learning essential for retention.

• Clear, Focused, and Embedded Competency Frameworks: For behavioral competencies to influence real behavior, they must be clear, contextualized, and embedded into daily operations. Effective frameworks avoid jargon and focus on 5–8 competencies per role, each described with tangible, observable behaviors. These are then integrated into job descriptions, onboarding guides, performance review templates, and promotion criteria.

Embedding the framework across the employee lifecycle reinforces at critical moments, so it becomes second nature rather than abstract theory. Importantly, companies should localize behaviors to fit role-specific needs because problem-solving in a finance analyst looks different from a frontline service agent.

Tools like Pierce County’s example-based statements offer guidance for fair, specific, and bias-resistant definitions. This clarity also enhances equity: when competencies are understood and visible, employees know what it takes to grow, closing opportunity gaps across departments or demographics.

• Coaching and Mentorship: Personalized support is hugely effective. Professional coaches and internal mentors can work one-on-one with employees to develop behaviors. For instance, leadership coaching might focus on improving a manager’s delegation and feedback skills. Peer mentoring programs can help share effective habits (e.g., how top performers manage stress or collaborate). These interventions often include goal-setting around specific competencies and regular check-ins. Studies highlight coaching’s ROI: 87% of organizations report high ROI from executive coaching, and coaching is strongly linked to higher employee engagement. A striking example is Intel, whose large-scale leadership coaching program reportedly adds about $1 billion USD per year in operating income by improving manager behaviors and retention.
• Feedback Culture: Building competencies requires ongoing feedback. Managers should routinely observe and comment on behaviors (not just results). A constructive feedback culture means employees know what good communication or teamwork looks like, and how they can improve. Regular pulse surveys, peer shout-outs, and developmental conversations reinforce competency growth. Encouraging a growth mindset viewing skills as improvable makes people receptive to feedback. One L&D report notes that “Constructive feedback creates an open learning environment that can boost learner engagement, reduce employee turnover, and also cut down training costs through effective mentorship.” Informal feedback channels (like Slack shout-outs or peer coaching circles) also keep development continuous.
• Career and Job Design: Organizations can promote competencies through job structuring. This includes rotating assignments (stretch projects develop adaptability), cross-functional teams (build collaboration skills), and clear career pathways tied to competencies. For example, Google frequently organizes cross-functional teams, such as those behind Google Maps and Photos, bringing together engineers, product managers, designers, and marketers. This model enhances collaboration, communication, decision-making, and problem-solving across disciplines. Succession planning frameworks often define what skills managers need at each level. By embedding competencies into job ladders and performance goals, companies ensure development is not ad hoc but aligned to strategy.

By consolidating behavioral competency efforts into these strategic pillars, organizations move from abstract theory to real-world impact. These competencies underpin everything from innovation and collaboration to resilience and customer satisfaction.

Conclusion

To conclude, technical know-how gets the job done but it’s behavioral competencies that drive long-term success. A well-defined competency framework ensures clarity across hiring, performance, and development. It empowers organizations to not only assess skills accurately but also foster a culture where the how matters just as much as the what. Structured competency assessments lead to better hiring decisions, stronger teams, and higher retention. Most importantly, they create fairness: when everyone understands what excellence looks like, growth becomes inclusive and intentional.

At Edstellar, we bring this clarity to life. As a global leader in instructor-led corporate training, we offer 2,000+ programs, from technical and compliance training to leadership, management, and behavioral development. Our Skill Matrix software identifies individual skill gaps with precision, enabling targeted development without guesswork.

With Edstellar's Skill Matrix software, HR leaders can:

• Identify behavioral skill gaps across roles and teams.
• Personalize learning journeys without guesswork.
• Align training with performance outcomes using real-time data.

Whether you’re onboarding new talent or upskilling managers, we help you build a high-performing, future-ready workforce, where behavioral competencies aren’t just taught, but lived.

Because success isn’t just about what your teams know, but how they apply it, every day.