What is the role of competencies in calibration and succession decisions?

• A. Competencies Are Optional And Untracked
• B. Competencies Inform Ratings And Readiness; Gaps Highlight Development Needs And Potential Readiness For Roles
• C. Competencies Determine Salary Levels Only
• D. Competencies Are Not Used In Calibration Or Succession Decisions

Answer: (B)

Competencies provide the criteria used to evaluate current performance and readiness for future roles. In calibration, ratings anchored to well-defined competencies ensure fair, consistent judgments across employees by focusing on the specific skills and behaviors that matter for success in a role. By comparing how people demonstrate these competencies, you can spot gaps that point to development needs and indicate where someone is ready now, or where readiness could grow with targeted coaching.

This approach also supports succession decisions by comparing an individual’s competency profile to the requirements of target roles, highlighting high-potential candidates and informing development plans to close gaps. So, competencies are about measuring capability and potential, not just adjusting salaries, and they’re actively used to guide both development and future role placement.