The whole “iceberg” represents the competencies needed for success in jobs. However, some factors (above the surface) are typically easier to identify and manage - for example, the skills, knowledge and experience of employees. Traits, motivations and self-concept, on the other hand, tend to be harder to identify and measure (below the surface). Skills, knowledge and experience are often the focus during hiring and selection; but, the other factors (below the surface), which are more intrinsic and difficult to identify and measure, are just as important for successful performance. Competencies provide a way of describing all success factors in terms of behaviors. These can then be measured and managed in the workplace.
Most organizations are fairly good at identifying technical skills, knowledge and experience required for jobs, but they are typically not as good at identifying those competencies like Initiative, Interactive Communication and Teamwork that can make the difference between highly successful versus not so successful performance in the workplace.