What is competency-based recruitment?

Competency-based recruitment is a hiring method that favors skills and abilities over education and experience. Several factors come into play to achieve success with this method. Consider these elements when open roles require competency-based recruitment.

• 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.
• Designing behavioral interview questions : Develop competency-based interview questions that use past behavior to indicate future performance.
• 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

When you want a fair, accurate way to bring on new staff, competency-based recruitment may help you fill skills gaps within your organization. This method focuses on specific competencies that employees need to succeed in the role, improving the job performance of the worker you eventually hire.

Why competency-based recruitment helps your company

When you want to transform your hiring process, competency-based recruitment may assist with optimization. Focusing on the skills, knowledge and behaviors you need can bolster your chances of hiring quality candidates that complement your company’s strategic goals and specific needs. A targeted approach drives organizational success by providing tangible benefits, starting with the hiring process.

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 accurately predict how well potential employees perform.

For example, your company needs a Project Manager with leadership and problem-solving skills. Instead of focusing solely on certifications, use behavioral interview questions and situational judgment tests to determine if a candidate is right for the role.

Improved performance

Hiring people with competencies that closely align with job requirements ensures employees can meet job requirements right away. 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 tests and behavioral questions to ensure they can effectively complete projects and join innovation efforts immediately.

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

Resume presentation, educational accolades and interview performance may introduce bias into the hiring process. By focusing on measurable, observable core competencies, you can make more objective decisions based on merit and performance.

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.

Related: Using Indeed Assessments to Administer Candidate Skills Tests

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 core competencies as a basis for hiring also makes sense when you need employees who can adapt quickly to emerging technologies. Traditional hiring methods may miss candidates with up-to-the-minute skills relevant to changes in your industry.

For instance, you need someone who follows artificial intelligence 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.

Related: What Is the AI Skills Gap? (With Tips for Closing It)

Downsides of competency-based recruitment

Competency-based recruitment has many benefits, but his method also has several downsides that can affect your hiring processes. Consider the following aspects before you change your approach.

• High initial costs: Changing the way you hire requires a significant upfront investment, including costs for developing competency frameworks, training HR staff and purchasing assessment tools.
• Stakeholder 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.
• Inflexibility risks: Hiring only within rigid competency frameworks could prevent highly qualified and motivated candidates from being considered for positions they would excel at.
• 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.
• Potential for bias: Without careful assessment development, you can introduce bias into your hiring processes by unconsciously favoring certain candidates.
• Resource-intensive process: Competency-based recruitment requires time and energy for development and updates. Consider staff training and process integration when determining whether your company has the resources for this approach.

8 competency-based recruitment strategies

Implementing competency-based recruitment can transform your hiring process by focusing on specific skills that align with your business’s strategic goals. By using these strategies to shape your HR department’s policies and procedures, you can boost your chances of hiring employees well-equipped to succeed in their positions.

1. Perform 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.

Read more: What Is Job Analysis?

2. Build competency frameworks.

Outline the competencies essential for each role with a high level of detail. Go over these competency frameworks with stakeholders to ensure they’re clear, measurable and aligned with company goals.

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. Incorporate assessment tools.

Make the process more objective by incorporating assessment tools into the hiring process. Consider leveraging online resources for assessments to streamline their use while reducing bias and helping to ensure consistency.

6. Train your HR staff and hiring managers.

Successful implementation of competency-based recruitment requires a buy-in from all parties involved, so provide training to HR staff and hiring managers. Also, give them access to ongoing support and resources.

7. 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.

8. 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.

Using competency-based recruitment helps your organization fill skills gaps and find employees with behaviors that typically result in success. By adopting and refining the strategies outlined here, you can potentially improve company performance while bringing your workforce into alignment with your business’s overall goals.