Competency standards are industry-determined specifications of performance, which describe the skills, knowledge and attitudes required by a worker in the performance of a particular role in the workplace. They are:

1. Building blocks for all activities in a competency-based training and certification system
2. Used as the basis for assessment, certification, articulation and accreditation
3. Clustered to form NVQ
4. Used to establish the basic linkage between the workplace and the training system
5. Used for identifying training needs and conducting labour market analyses/li>
6. Seen as the most effective way of closing the skills gap, developing the workforce of the future and promoting lifelong learning

A competency standard is made up of a unit title, elements, performance criteria, range statements containing evidence guide and key competencies.

A qualification is made up of a series of core and elective units of competence. An individual can be awarded with a Statement of Competence for the achievement of a unit of competence within a qualification or a National Vocational Qualification (NVQ) if all units within a qualification are successfully completed.