There’s a clear shift in HR right now, as more organisations step away from traditional competency frameworks and embrace impact-based models.
Jobs are being redefined around outcomes, not activities. Roles are measured by value created, not tasks performed. Contribution is fast becoming the currency of modern work.
And honestly, it makes sense.
In a world shaped by rapid change, flatter hierarchies, and agile teams, it’s no longer enough to ask, “What skills do you have?” The more strategic question is, “What impact are you here to deliver?”
But as with any shift, there’s a risk of overcorrection.
Why the Move to Impact-Based Models Is Picking Up Steam
We’re seeing growing interest in impact-based job architectures because they offer:
- Clarity of purpose. Roles are directly tied to organisational outcomes.
- Strategic alignment. Talent is structured around business needs.
- Greater mobility. Roles aren’t locked into rigid skills or job families.
- Outcome-based progression. Advancement is based on what you contribute, not how long you’ve been around
It’s a compelling proposition, especially for organisations navigating complexity and change.
But Here’s the Catch: Impact Alone Isn’t Enough
Focusing on outcomes is smart. But focusing only on impact creates blind spots:
- How someone delivers results matters. Do they build trust? Collaborate? Burn out their team?
- Development gets harder. You can measure results, but it’s challenging to coach improvement without behavioural anchors.
- Culture drifts. If you reward outcomes without clarity on behaviours, you risk disconnecting what’s valued from what’s rewarded.
- Bias increases. Without shared behavioural standards, talent decisions become inconsistent and subjective.
- I Don't Want. With a focus on impact, people avoid doing the less impactful tasks as it impacts their chances for advancement.
Impact shows you what was delivered. But it doesn’t always show whether it was done well or sustainably.
Competency Frameworks Still Have a Role to Play. But They Need to Evolve
The issue isn’t with competency frameworks themselves. It’s with how we’ve used them: overcomplicated, overly generic, and often divorced from actual work.
But modernised competency frameworks can still deliver real value. When done right, they:
- Provide a shared language for feedback, growth, and leadership
- Translate organisational values into visible behaviours
- Anchor performance conversations in observable actions
- Support fairer, more consistent decision-making
In short, they bring the human side of performance into view.
So What’s the Smart Play?
It’s not about choosing one or the other. It’s about combining the best of both.
- Use impact models to define the what: the outcomes that matter most.
- Use competency frameworks to define the how: the behaviours that bring those outcomes to life.
When you bring both together, you get a people system that’s not only strategically aligned, but deeply human.
For HR Leaders, This Is the Moment
Don’t abandon structure. Redesign it.
- Let impact shape what roles are accountable for.
- Let competencies guide how people grow into them.
- Keep both accessible, current, and woven into real conversations.
This is how we build clarity without losing culture. Agility without sacrificing fairness. Performance without forgetting people.
Because great performance isn’t just about what gets done. It’s about how you do it, and what it makes possible for others.
