Many of you may already have heard about “competency-based” hiring and are using this approach within your own organization. If you’ve been wondering what competency-based hiring is or how it works this article is written to help answer some of your questions.
What is a competency?
While the word competency has taken on several meanings, within the context of hiring competency refers to a bundle of skills that fall into several major categories: technical, relationship, interpersonal, managerial, and leadership. Each of these major categories is comprised of sub-competencies that describe a series of specific behaviours and abilities.
The hiring problem
The cost of hiring the wrong person can be significant. Not only does it include the cost of time and money for the hiring process, it also includes the costs associated with the loss of productivity. It is estimated that hiring the wrong person and then having to fire them can cost the organization up to three times the individual’s annual salary. With such a significant cost associated with hiring the wrong person, it is no wonder that organizations are looking for alternative ways to improve the success of their hiring efforts.
How is competency-based hiring different?
For many organizations, the basis of hiring and promoting is primarily based upon the individual’s technical skills and job knowledge. Today’s individuals need to work in an environment that requires a complex set of skills. Being technically proficient isn’t sufficient anymore. To operate successfully within today’s more complex environment we need to recognize social, political, technological, and economic ramifications upon our stakeholders.
The ability to succeed in this more complex environment is now more than a function of technical skills and job knowledge. Success today is defined not only by technical skills and job knowledge, but also by the individual’s values, work ethic, attitudes, and ability to grow, learn and change. In other words, hiring the right candidate requires assessment of not only technical skills and job knowledge, but also a greater understanding of the specific bundles of skills required within a specific role.
What’s involved in a competency-based approach?
When an organization decides to fully use a competency based model, it starts to form the basis for several of its human resource activities, including recruitment, job descriptions, professional development, and coaching. The competency based model allows your organization to develop:
- More meaningful job descriptions.
- More appropriate job ads and screening processes.
- Specific behaviorally-based interviews.
- Tailored reference checks based on the desired competencies of the specific role.
- Better focus on professional development.
What’s the hiring process with a competency-based approach?
While the steps for each situation will vary, the basic steps include:
1. Don’t panic. Take out the existing job description and ensure that it accurately reflects the job that the incumbent is doing. If not, update it.
2. Based on the strategic direction of the organization, human resource needs, and funding available, determine if you are going to replace the position. If so, will the position remain as it is or should it be modified?
3. For simplicity let’s say that the position will remain unchanged. Take the current job description and describe the key competencies (maximum of 8) an individual must posses to excel in this job. These competencies should be prioritized. To determine what these competencies are, you can:
- Discuss this with the incumbent.
- Discuss this with other staff and/or board members.
- Review your organizations’ existing list of competencies (if you have one).
4. Write the job description for the position using the desired competencies and have that job description reviewed (and changes made as necessary) by the incumbent, staff and board.
5. Write the job ad for the position using the new job description, and have the ad reviewed and amended as needed.
6. Develop a series of competency based criterion to screen the resumés of potential candidates, again using the job description.
7. Review the resumés and arrange interviews with qualified candidates.
8. Develop a series of behavioral-based interview questions using the new job description.
9. Conduct interviews using the behavioral-based questions. Depending on the position being hired for and the number of qualified candidates, this may mean several rounds of interviews.
10. Obtain approval from the candidates to conduct reference checks. The reference checks should now be asked to provide examples of behaviours to support specific competencies critical to success in this role.
What’s different about competency-based hiring?
When you look at the process described above and how you currently hire there probably isn’t a big difference. In fact, the key differences between traditional hiring processes and a competency-based approach are essentially:
- Way the job description is written.
- Criteria used to screen applicants.
- Use of behaviorally based interview questions.
- References are asked to provide examples of behaviour that support the stated competency.
A few words about behavioral-based interviewing
Behavioral-based interviewing involves asking questions that require the candidate to replay specific actions around an aspect of their job that is of interest to you in assessing their potential for success in the role you are trying to fill.
As the interviewer, it is your responsibility to help the candidate understand how you want them to answer your questions. For example, many candidates use the word “we” during a job interview. Some use the word “we” because they were part of a team, some use “we” because they didn’t really have a lot of involvement and others because they naturally share their achievements with others. As it is difficult to know which of these perspectives the candidate is using to answer the question, it is necessary in behavioral-based interviews to have the candidate use the word “I”.
A straightforward way of having the candidate structure their response to your question is to have them first describe a work situation, then the specific actions they took, and finally the result of their actions. It is then the interviewer’s responsibility to take these responses and fit them into the competencies already outlined for the specific job.
Key Points
The key with competency based hiring is that it is the bundles of skills (i.e. competencies) as well as technical skills and job knowledge that provide the tools for success, and behavior-based interviewing is used as past behaviours are the best predictor of future behaviours.
Ron Robinson is the president of ABARIS Consulting Inc. He can be reached at (519) 472-9788 or rrobinson@abarisconsulting.com. This article is provided free of charge, for information purposes only and is not intended, represented or to be inferred as providing advice. ABARIS Consulting Inc. makes no warranty, express or implied, or assumes any legal liability for accuracy, completeness, or usefulness of any information provided in whole or in part within this article.
ABARIS Consulting Inc. is credited as the source on all copies, reproductions and distributions, and CharityVillage.com is credited as the original publisher.
