What is competency-based recruitment?
Competency-based recruitment is a hiring method that favors skills and abilities over education and experience. Competency-based recruitment typically involves several elements:
- Building competency frameworks: Create models that outline the key competencies you need for specific roles so you can assess candidates for the position uniformly.
- Mapping competency requirements: Identify competency requirements through job analysis to align those skills with the job description and your company’s goals. Keep in mind that competencies can come from formal education and work history, but also from military service, volunteer work or other real-world experience, so build your frameworks to recognize skills wherever they were developed.
- Designing behavioral interview questions: Develop competency-based interview questions that explore how candidates have demonstrated relevant competencies in past situations.
- Using meaningful assessment methods: Use pre-employment assessments, real-world simulations and situational judgment tests to evaluate candidates’ competencies.
Competency-based recruitment vs. traditional recruitment
Competency-based recruitment focuses on the specific skills and behaviors employees may need to perform a role. This approach can help employers evaluate candidates based on demonstrated competencies rather than relying primarily on education, credentials or previous job titles.
Why competency-based recruitment helps your company
Competency-based recruitment can help employers focus their hiring process on the skills, knowledge and behaviors most relevant to a role.
Increased predictability
Competency-based recruitment helps when you need to identify candidates with particular skill sets. Traditional methods rely on resumes, education and certifications, which may not always accurately predict how well potential employees perform.
This distinction matters more than ever: Indeed Hiring Lab data shows experienced workers are increasingly applying to entry-level roles, making job titles and years of experience less straightforward indicators of a candidate’s abilities. Competency-based methods can help you evaluate the skills a candidate can actually demonstrate.
For example, your company needs a project manager with leadership and problem-solving skills. Instead of focusing solely on certifications, consider using behavioral interview questions and situational judgment tests to determine if a candidate is right for the role.
Improved performance
Hiring for competencies that align with job requirements can help you identify candidates who have relevant skills when they enter the role. This can lead to higher productivity and improved job performance because these employees already have the necessary skills for success.
For instance, you post a competency-based job description for a programmer. You care more about their skills than their education, so you use technical assessments and behavioral questions to evaluate relevant skills.
Better retention rates
If you hire based on qualifications instead of competencies, the candidate may have the right skills for one portion of the job but perform poorly in other areas, leading to job dissatisfaction. However, looking for behavioral competencies that match your company’s needs can help improve your business’s employee retention rate.
For example, your company needs to fill a remote technician position with someone who has excellent people skills. You use tests to determine their technical skills and real-world simulations to gauge their patience, friendliness and ability to explain complex topics in simple terms. Because the new hire feels confident in every aspect of the job, they stay with your company longer than previous hires.
Enhanced objectivity
Focusing on defined, measurable competencies can give employers consistent criteria to use when evaluating candidates. This approach can help you focus the initial evaluation on skills that relate directly to the role.
For instance, using online skills assessments rather than in-person interviews bases your first impression on whether the candidates match the needs of your open job. By focusing on skills and not personalities, you find a suitable candidate to fill the role.
Greater goal alignment
When your company uses strategic planning for projects, you may need to use skills-based hiring to achieve the desired results. In those instances, finding candidates whose competencies align with your goals can improve your chances of smooth completion and improved outcomes.
For example, you prioritize innovation and leadership as required competencies because you plan on moving your new hire into a supervisory role later. Assessing those skills now lets you prepare the new hire for the position you hope to have them fill later.
Faster adaptability
Using competency-based recruitment can help you focus resume review and assessments on the specific skills the role requires.
For instance, you need someone who follows AI trends closely and understands how to use those tools. You create a competency framework, job description and skill assessment that include prompt engineering. Using competency-based recruitment for the job saves you time sorting through resumes by focusing on the measurable skill your business needs right now.
Potential downsides of competency-based recruitment
Competency-based recruitment has many benefits, but this method also has several downsides that could affect your hiring processes. Consider the following aspects before you change your approach.
- High initial costs: Changing your hiring approach may involve upfront costs for developing competency frameworks, training HR staff and purchasing assessment tools.
- Internal resistance: Reluctance to change the way your company hires may come from various parties with a stake in the process, including HR professionals and managers.
- Subjective processes: Measuring competencies may prove difficult when you can’t objectively define and test the skills needed for the position.
- Overemphasizing competencies: While you may need two or three core skills, candidates who have them may be lacking in other areas, including basic soft skills such as communication.
- Resource-intensive process: Developing and maintaining competency frameworks can take time and may require ongoing training and process updates. Consider staff training and process integration when determining whether your company has the resources for this approach.
8 competency-based recruitment strategies
These competency-based recruitment strategies can help you focus your hiring process on skills that align with your business needs.
1. Perform a thorough job analysis
Look at each role within your company to identify the competencies that matter most. Ask current employees and managers for input and feedback to determine the essential skills and behaviors for each role.
2. Build competency frameworks
Outline the competencies essential for each role with a high level of detail. Go over these competency frameworks with collaborators to confirm they’re clear, measurable and aligned with company goals. Indeed’s Skills Map is a useful reference point if you want to see how skills get named across roles and industries.
3. Write competency-based job descriptions
Update job descriptions within your organization to emphasize competencies over qualifications. Articulate the exact skills, knowledge and behaviors candidates need for success within each role.
4. Create structured interview processes
Using the competency frameworks you developed, write behavioral interview questions and scenarios that assess your requirements. Ensure interviewers can effectively evaluate responses based on the competency criteria you create.
5. Train your HR staff and hiring managers
Training and support can help HR staff and hiring managers understand how to use a competency-based approach consistently.
6. Review the hiring process continuously
Review and update competency frameworks regularly so they always reflect job needs, as well as tech and industry trends. Seek feedback from hiring managers and new hires to see where you can improve the process.
7. Leverage technology for improved analysis
Use HR software and analytics tools to track and assess competency data. Apply the information you gather and insights you glean to make data-driven hiring decisions and enhance the overall process.
Competency-based recruitment can help your organization focus hiring decisions on the skills and behaviors relevant to each role. Regularly reviewing your competency frameworks can help keep them aligned with changing job requirements and business goals.
