Competence is a noun that describes the ability of a person to be qualified to do something, such as a task or a job. Competency, on the other hand, is the quality or state of being skilled and able to perform a specific task. It is a fine line between the two, as they almost have the same meaning.
In biology, competence refers to the capability of a cell to take up DNA. In geology, the competence of a spectator means having the mental capacity of a person to contribute to legal proceedings.
Competency entails a description of proficiencies and knowledge along with having individual experiences and characteristics which would allow the person to perform the work.
To effectively perform a job, a person needs to have certain qualities and work ethic. Not every employee is different, which is why it is important to know an employee's strong suits. One employee may be strong in their behavior, while another may be stronger in their performance.
This is where Competence and Competency come into play. Competence is based on skill. It is achieving a goal based on the standard. An example has technical skills to provide support to a customer.
Competencies are based on behavior. This is an attribute-based off personality, which helps everyone achieve their goals. An example could be problem-solving.
Competence and competency look very similar in terms of meaning. This even explains why both words are most times used interchangeably. However, the major difference between the two is that both are used mostly in different contexts. Competence simply means the state or quality of being competent. In other words, it means the state of being able or suitable to form a task.
For example, his competence in getting the needed information is what led to the arrest of those criminals. The word competence is often used in law to mean the legal authority to decide on a matter in a court of law. This is why a court of law meant for criminal cases might say it does not have the authority to hear a civil case because it doesn't have competence in civil cases.
On the other hand, the word competency is usually used in relation to a particular skill in someone, which makes him or her more suitable to perform a task. The little difference between competency and competence is that the former usually leads to the latter.