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Hello! Thanks for your question about competencies in organizations. The short version is that there are a number of companies that have implemented competency frameworks to help retain employees. Below you will find a deep dive of my findings.


I reviewed information from a number of credible sites such as corporate websites, industry reports, and trusted media sites. I found a number of trusted articles that rated the top companies that have successfully used competency frameworks. I used these articles to compile a list of ten companies who have successfully implemented such a framework.

Some of these companies did not directly provide statistics on employee turn around. In order to provide you with these statistics, I used an employee turn around formula. Please note that there is no fixed formula to calculate employee engagement, which is why I could not provide you with information on employee engagement for a number of these companies.

When making hiring decisions companies often assess three components: knowledge, skills, and competencies. The component with the highest risk of getting overlooked is competencies. The reason for this is that it is difficult to identify and measure. It is because of this that companies implement competency-based systems. Here are just some of the ways in which these systems can help a company:

- They assist the human resource process and help to eliminate bias by focusing on behavior;

-Structured competency-based interviews are 81% more accurate than unstructured interviews;

- Competency-based systems are forward-looking. By evaluating the past or current employees these systems find key competencies, which are then built into a predictive model;

- They provide clear candidate feedback. An estimated 94% of candidates want feedback if they are rejected, but only 41% of candidates actually receive it;

- They lower employee turnover by identifying the specific behaviors that employees have at work in order to reduce the chances of a bad hire;

- They establish expectations for performance and excellence;

- They help to direct career development and modify the employee's working style.


Many companies have found success in using a competency-based approach. Below is a list of ten such companies.

One of the company's sites had a turnover rate of 60%. The company hired a Senior Professional in Human Resources (SPHR). After using a competency-based selection process, Devereux Cleo Wallace's turnover rate fell from 15% to 20%.

2. HCL
There came a point in the company's history where 30% of their workforce, each year, was new hires. They turned to The Ken Blanchard Companies Situational Leadership II program. As a result employee turnover decreased from 22% to 16% and repeat customer business improved from 74% to 92%.

By using a competency framework to solve many of the problems faced at Fujitsu, the company was able to reduce help-desk staff turnover from 50% to under 8%. Fujitsu was also able to reduce its annual staff turnover from 42% to 8%.

The bank's competency framework significantly decreased employee turnover for the following age groups:

Employees under 30 leaving - 12.9% in 2014 to 8.3% in 2015
Employees aged 30-50 leaving - 3.3% in 2014 to 2.4% in 2015
Employees aged over 50 leaving - 5.8% in 2014 to 3.5% in 2015

The company's 2015 Annual Report states that the company employed 43,000. The 2016 Annual Report states that the company employed 41,000 staff. By using the employee turnover formula, the company's employee turnover for 2016 stood at 4.65%.

6. Royal Bank of Scotland RBS
In 2015, RBS employed 90,200 staff and 82,500 in 2016. By using the employee turnover formula, the company's employee turnover for 2016 stood at 8.53%. Employee engagement was down 3 points, 6 points adverse to the Global Finance Services (GFS) norm.

In 2016, LBG let go of 1,585 of its 75,000 employees. By using the employee turnover formula, the company's employee turnover for 2016 stood at a very low 2.11%.

In 2015, HSBC’s employee turnover rate was 19% per year. This is not necessarily a success story, but more of a forward-looking approach if HSBC were to invest in employee engagement. The company would decrease its turnover rate by 25% and its bottom line savings would yield €113 million.
In 2014, IBM had 379,592 employees and by year-ended 2015 had a headcount of 377,757 employees. By using the employee turnover formula, the company's employee turnover for 2015 stood at 19.18%.

The company boasts a 3% annual turnover of full-time employees. In 2015 over half of its employees have been on the job for 10-years and 3,500 employees had worked for the company for over 20-years. This is a great example of good employee engagement and low levels of employee turnover.


To wrap it up, many of these companies saw the need for an effective competency framework within their organizations in order to reduce employee turnover and build on employee engagement. This strategy has worked for them and the numbers are proof of this.

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