COMPETENCY MODELS AS A STRATEGIC TOOL OF HUMAN CAPITAL MANAGEMENT

Abstract

The article substantiates the competency-based approach as a practice oriented methodology for human capital management and the development of flexible career systems. The historical origins of competency theory are reviewed, the differences between the concepts of «competence» and «competency» are outlined, and it is shown how this semantic distinction influences the formation of personnel standards. The authors describe a corporate competency model that integrates three groups of competencies and examine its practical applicability to key HR processes: recruitment, adaptation, performance appraisal, training and development, motivation, and career planning. Such a model is recommended for integration into personnel evaluation and development systems in order to enhance talent management efficiency and ensure the alignment of human capital with the strategic goals of the company. The article also presents the procedure for defining key competencies (business strategy analysis – functional job analysis – competency profiling – establishment of behavioral indicators) and provides examples of core competencies for several positions (HR manager, accountant, IT developer, project manager, marketer), illustrating the translation of profiles into HR practices. In addition, the paper includes real-life cases of implementing competency models in both the corporate and public sectors of the economy, in Ukraine and abroad. These cases confirm the universality of the competency-based approach and its adaptability to organizational specifics. The authors conclude that the competency-based approach enables the integration of human capital development with the construction of transparent and flexible career trajectories, which contributes to talent pipeline formation, internal mobility, and long-term competitiveness.