What are Core Competencies: Examples to Add for Companies

With plenty of companies offering what’s essentially similar services, differentiating and making a name for yourself has never been more difficult – but not impossible. From the hired staff to having a more distinct communication model, seemingly little things can make a big difference.

That’s called core competencies – and it’s one tool that can help you differentiate your company from the rest of your competitors.

Continue reading to learn more about a company’s competencies, what they are, some examples, and why they’re an integral part of any company.

What are core competencies?

Core competencies are the traits that give a company their unique traits. This includes everything – employee skill framework, work processes, workflow, technological expertise, company culture, and the like all come together to provide a strategic advantage for companies.

Importance of core competencies

Competencies provide your company with the uniqueness it needs to survive in today’s highly competitive business world. This makes it so that even if both company A and company B offer similar services, their company's core competencies ensure that they’re delivering different products to their customers, ensuring a competitive advantage over their competitors.

For example, Istanbul tourism companies that took part in a study have shown that several competencies checked out every one of their company’s success factors. These include Differentiation Advantage, Cost eldership Advantage, Time advantage, Profitability, and Growth.

For a company, developing core competencies, whether it’s basic or more complex, can help them allocate their resources to what can help them grow further.

Characteristics of core competencies

Competencies within the company are characterized by the unique traits that separate them from their competitors. Essentially, competencies are what makes the company unique and hard to imitate.

Take Google as an example – though several companies like Yahoo and Bing offer the same search engine service as them, they have better, cutting-edge software that easily blows its competitors out of the water. That’s Google’s competency, and what sets them apart from other search engines.

Core competencies examples

There are four competencies and essential skills to consider: communication, leadership, attention to detail, and customer service.

Communication

Effective inter-company communication provides employees with a more connected and aligned feeling, along with boosting productivity by at least 25%. This is because effective communication creates fewer misunderstandings, which results in less time clarifying instructions, which can then be spent in a more productive manner and help teams reach their designated performance metrics.

Proper communication between staff and management ensures that the company’s workflow will be as smooth as possible and without facing any delays. This can be done through more creative strategic initiatives like making use of apps like Slack, Skype, or Viber, or through more simplistic methods like holding regular team meetings where everyone can share their opinions freely.

Leadership

When a leader does their job well while displaying exemplary skills for their employees, the more motivated their employees will be. Although studies have shown a decrease in leadership satisfaction for 2024, having an engaging, transparent leader will make employees more likely to follow in their footsteps and boost team performance.

Not only that, but Reports have shown that leaders of established companies who possess the following skills can foster strong relationships with their employees, which can boost productivity:

• Open to innovative solutions.

• Unafraid of risk management.

• Empowering employees to self-organize and maintain a positive mindset throughout working hours.

• Able to identify and address customer concerns quickly.

• Prioritizes employee development, along with personal and professional growth.

• Able to handle multiple projects at the same time while reaching the desired outcomes.

Additionally, having good leadership competency framework ensures that the company will hire competent leaders who can help the business' competencies align with its needs.

Attention to detail

With 70% of employers hiring detail-oriented employees to join their team as of 2024, it’s become every company’s core competency over the past few years. When it’s ingrained within every employee, a company can see high returns and at least double the number of potential customers.

Especially nowadays – with the way social media works, delivering quality, attention-driven services go a long way. Even Forbes suggests going out of your way to double – and sometimes even triple – check everything to make sure that there will be no negative reception over social media. Every business now is just one bad social media post away from bad press that will follow them throughout their lives.

With attention to detail also comes less risk for errors. Less errors means less time to fix mistakes which can cost the company money, which can then result in better profit for the company in the long run. Making use of targeted training programs can help employees develop better attention to detail, while ensuring career growth for everyone involved as well.

Customer service

No company produces the perfect product right from the get-go – problems can arise even after the product launch, which then needs to be resolved via a good customer service platform.

Yes, every company may offer the same product – but it’s in the post-purchase support where most shine the best. From a more accessible customer service hotline to responsive social media pages, there are plenty of ways to provide quality customer service to your loyal clientele.

The first step to creating a solid customer service platform is hiring the right people to do the job. Professionals who work primarily in sales and relationships work the best for customer service-related jobs, but others within similar fields can work as well.

FAQs about core competencies

Here are some of the most commonly asked questions about core competencies.

What are common core competencies?

Common core capabilities include the following:

• Personal core competencies include specific abilities like critical and creative thinking skills, problem-solving skills, adaptability, technical skills, strategic planning, and more.

• Leadership includes having the skill to lead and inspire employees to work to their best ability, ensuring strategic objectives align with the company's identity, and delegating employees with key skills to perform specific tasks that match their expertise the most.

• Business competencies include customer service, quality of service, and more.

What are core competencies for companies?

For companies, the most relevant competencies are the distinct combination of skills, assets, and knowledge that sets them apart from their competitors.

How does a company identify their competencies?

The simplest way to identify it is by analyzing the company's mission statement and operations and then comparing them with those of its competitors.

What are the four types of skills a leader should possess?

Ideally, leaders should possess four specific skills: problem-solving skills, communication skills, emotional intelligence, and delegation skills.