What’s the difference between tasks, skills, competencies and capabilities?

We’ve been talking a lot about skills lately, and one thing has become clear: there’s often a lot of confusion around what constitutes a task, a skill, a competency or a capability.

We want to clear the matter up once and for all, so let’s get straight into it!

Tasks vs skills vs competencies vs capabilities

Four similar concepts, four different meanings! What are the key differences between these important concepts, and where might you spot them in the workplace?

Where does ROI show up at each level?

There’s a big difference between completing a task (a day-to-day activity) and mastering a capability (a large-scale, strategic organisational ability) in terms of effort, skills and knowledge required and the impact on the business. 

But it’s also about what you get back from each of them! For instance, while a task should be relatively quick to complete, the ROI will likely be fairly low, while mastering a capability is a much bigger investment of time, effort and money, with much larger potential ROI. 

Here’s what that looks like at each level:

The link between ROI and skills intelligence

You may have spotted that we’re preparing to launch our brand-new AI skills intelligence solution in the coming weeks. We’re confident that this will help learning and talent leaders finally understand what the skills in their businesses really look like, including where they’re showing up, who has them and what skills gaps need to be filled. This is backed by conversations with dozens of L&D professionals, all of whom have shared how difficult it is to track skills growth across the organisation.

On top of this enhanced visibility and understanding of skills, including how they contribute to competencies and capabilities, this will also give a better insight into the ROI of your efforts. For example, what’s the real impact of your skills training and coaching? Has it helped boost productivity through better-skilled employees? Has it cut costs on correcting mistakes? Has it accelerated time to market? AI skills intelligence helps you dig deeper into your skills data so you know for sure how your learning initiatives are helping.

5 ways AI skills intelligence helps learning and talent professionals

We have the potential to allow organisations to easily report on ROI within L&D, that being not only how this new concept can lead to cost savings but also how effective any resulting, or existing, learning interventions are. By tracking how skills manifest in day-to-day work, and correlating those shifts with business outcomes, organisations gain clear, quantifiable proof of training effectiveness.

Our new AI skills intelligence solution brings with it five key benefits to help learning teams, talent professionals and senior business leaders understand the real impact of the skills, competencies and capabilities in play across the organisation.

• Demonstrating behavioural shifts in real time
  By continuously monitoring how leaders and teams communicate and solve problems, organisations can see immediate changes in behaviours like conflict resolution, delegation or empathetic feedback. These in-the-flow observations provide tangible evidence that the training is working, far beyond static completion reports, showing that real time data is validating actual behavioural improvements rather than short-lived or surface-level changes.
  
  
• Mapping competency growth to business outcomes
  Linking improvements in specific competencies (e.g. strategic thinking or communication) to key performance indicators (such as project success rates or customer satisfaction) offers compelling ROI evidence. This direct correlation shows stakeholders that spending on upskilling efforts drives both individual growth and organisational impact, cementing the value of investing in L&D.
  
  
• Continuous feedback for just-in-time learning
  By blending AI-driven skills monitoring with targeted learning interventions, employees receive ongoing feedback on how well they’re demonstrating newly acquired skills. Such an adaptive, data-driven approach ensures training budget isn’t wasted on generic content. Instead, each learner is nudged toward improvement in areas with the highest potential ROI.
  
  
• Improved employee retention and reduced turnover costs
  Soft skills and leadership training often lead to higher employee engagement and a more supportive work environment. Tracking behaviour shifts that encourage inclusion, recognition and mentorship could be correlated with, for example, a drop in voluntary attrition, significantly lowering the expensive cycle of recruitment and employee onboarding.
  
  
• Enhanced value proposition for stakeholders
  When leadership and L&D teams can present quantifiable evidence, like before-and-after snapshots of behavioural metrics or detailed competency heatmaps, executives and budget holders see clear proof of value. This level of accountability and visibility in skill development solidifies the case for ongoing investment, tying personal growth and cultural improvements directly to business objectives and potentially boosting overall profitability.