Competency-based recruitment

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Competency-based recruitment is a process of recruitment based on the ability of candidates to produce anecdotes about their professional experience which can be used as evidence that the candidate has a given competency. Candidates demonstrate competencies on the application form, and then in the interview, which in this case is known as a competency-based interview.

Contents

The process of competency-based recruitment is intended to be fairer and a more realistic approach than other recruitment processes, by clearly laying down the required competencies and then testing them in such a way that the recruiter has little discretion to favour one candidate over another; the process assumes high recruiter discretion is undesirable. As a result of its perceived fairness, the process is popular in public services. Competency-based recruitment is highly focused on the candidates' story-telling abilities as an indication of competency, and disfavours other indications of a candidate's skills and potential, such as references.[ citation needed ] In competency-based recruitment, candidates' storytelling abilities serve as key indicators of competency, prioritizing concrete examples of professional experience over other traditional markers, such as references. [1]

Core Competencies

Core competencies are the set of skills which are crucial to a business, for them to gain a competitive advantage in their market. Senior managers are unable to manage every single aspect of their business, including the competencies needed to maintain a strong business. This means that they must come up with a set of competencies which truly affect their competitive advantage, as this will save them time in the long run when it comes to hiring employees.

Hamel and Prahalad's main idea was that over time companies will develop key areas of expertise which are unique to that company and crucial for their long term growth. They said the core competencies should not be seen as being fixed; these competencies should change in response to changes in the company's business environment. This is because over time, the business will evolve and new opportunities will arise and so the same must happen to the core competencies. Hamel and Prahalad came up with three questions which businesses must consider when identifying their core competencies: [2]

  1. Are the competencies difficult for competitors to imitate?
  2. Do the competencies provide potential access to a wide variety of markets?
  3. Do the competencies make a large contribution to the consumer benefits?

Elements of a competency-based job description

Key elements of the job description are: [3]

Purpose

There are 4 main reasons why competency-based job descriptions are crucial to businesses: [4]

  1. They provide crucial information for assigning the correct title and pay grade for the job
  2. They make it easier to recruit candidates as the process becomes more efficient
  3. Means potential candidates have a complete understanding of the duties and responsibilities they are to undertake
  4. Finally, the competencies identify the essential functions of the job

Job descriptions and competencies allow potential employees to identify the skills, qualities, experience and training needed for a certain job. [5] The information in the job description and competencies is included in the performance requirements which form the performance reviews. Businesses rely on job descriptions and competencies to create training programs for their employees whereas employees use these to obtain the skills required for them to get a promotion or pay rise!

Small businesses

Small businesses struggle a lot more than larger businesses when it comes to employing people for jobs. It is much better for them to use competency-based job descriptions as they differ from standard job descriptions because they emphasize the worker rather than the work. Competency-based job descriptions decrease the chances of the employer hiring the wrong person for the job. [6]

To ensure that staff are placed properly within a small business, they must create a detailed job description. For a small business it is crucial that they hire the right number of people. This is because, if they hire too many people it could lead to money being wasted on staff income (wages are the highest costs to business). As well as other issues, as the saying goes: "too many cooks spoil the broth"! On the other hand, if they hire too few people, it could lead to inefficiencies and large costs for the small business in the long run.

The best approach for small businesses will be to have a job preview, assess whether individuals are capable of learning the skills needed by the company. [7] This will help filter out those candidates who will not be suitable for the job. If possible, small businesses should use experienced individuals in the hiring process, these individuals will know if the future employee will fit into the culture of the company as well as if they possess the relevant skills.

Competency Life Cycle

The competency life cycle consists of 4 phases which aim to develop and enhance individual and organisational competencies. The different phases are: [8]

  1. Competency mapping – this phase is there to provide the company with a summary of all the crucial competencies needed in order to fulfil its targets (outlined in the business plan), outline the job requirements and the group needs. This phase also defines the required skill level for each job profile
  2. Competency diagnosis – this is based on the current employees in the company. This outlines the present proficiency level each employee possesses. The company will perform a ‘skill gap analysis’, which defines the gap between the skills the employee currently has compared to the competencies needed for their job
  3. Competency development – this phase deals with development of training/activities the company provides to employees to fill the skill gaps found in the previous phase
  4. Monitoring of competencies – an analysis of the results of the competency development phase

Competency Analysis

In order to conduct thorough competency analysis, one has to gather information from various sources. These sources are known as job content experts (JCEs) and they have a good understanding of positions in companies. JCEs are usually the people who manage the position one is looking to fill. The first step of the competency analysis is to accumulate detailed descriptions of the tasks which make up the job: ‘task analyses’. This is done through a range of data collection methods: [3]

Once the data from these various sources has been analysed, a list of the competencies needed for the job description can come together, completing the competency analysis.

Advantages

There are many benefits of using competencies in organisations: [9]

Criticisms

However, there are also some negative aspects of competency-based job descriptions. They can be time-consuming, as it takes a long time to gather the data needed to decide which competencies are relevant for the job profile. This process can also be very costly and not all businesses may have the funds available to carry out the competency analysis. The analysis also requires staff with specific skills, which certain businesses may lack.

Best practices

Having established the competency profiles for groups and roles, organizations can use the competencies as the standards for assessing candidates throughout the screening and selection process as well as advertising and communicating the organization's requirements to potential applicants.

Competencies support recruitment and selection by:

Some of the common benchmark competency-based practices in Recruitment and Selection include:

Implementation stages

As competency profiles are developed for varied job groups, the following implementation stages are suggested for their use in recruitment and selection on a corporate-wide basis.

Stage 1:

Stage 2:

See also

Related Research Articles

Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include manpower, labor, labor-power, or personnel.

Staffing is the process of finding the right worker with appropriate qualifications or experience and recruiting them to fill a job position or role. Through this process, organizations acquire, deploy, and retain a workforce of sufficient quantity and quality to create positive impacts on the organization's effectiveness. In management, staffing is an operation of recruiting the employees by evaluating their skills and knowledge before offering them specific job roles accordingly.

<span class="mw-page-title-main">Recruitment</span> Process of attracting, selecting and appointing candidates to a job or other organization

Recruitment is the overall process of identifying, sourcing, screening, shortlisting, and interviewing candidates for jobs within an organization. Recruitment also is the process involved in choosing people for unpaid roles. Managers, human resource generalists, and recruitment specialists may be tasked with carrying out recruitment, but in some cases, public-sector employment, commercial recruitment agencies, or specialist search consultancies such as Executive search in the case of more senior roles, are used to undertake parts of the process. Internet-based recruitment is now widespread, including the use of artificial intelligence (AI).

Human resource management is the strategic and coherent approach to the effective and efficient management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and employee benefits systems. HR also concerns itself with organizational change and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws.

Job analysis is a family of procedures to identify the content of a job in terms of the activities it involves in addition to the attributes or requirements necessary to perform those activities. Job analysis provides information to organizations that helps them determine which employees are best fit for specific jobs.

<span class="mw-page-title-main">Job interview</span> Type of interview

A job interview is an interview consisting of a conversation between a job applicant and a representative of an employer which is conducted to assess whether the applicant should be hired. Interviews are one of the most common methods of employee selection. Interviews vary in the extent to which the questions are structured, from an unstructured and informal conversation to a structured interview in which an applicant is asked a predetermined list of questions in a specified order; structured interviews are usually more accurate predictors of which applicants will make suitable employees, according to research studies.

Competence is the set of demonstrable characteristics and skills that enable and improve the efficiency or performance of a job. Competency is a series of knowledge, abilities, skills, experiences and behaviors, which leads to effective performance in an individual's activities. Competency is measurable and can be developed through training.

Office administration is a set of day-to-day activities that are related to the maintenance of an office building, financial planning, record keeping and billing, personal development, physical distribution and logistics, within an organization. An employee that undertakes these activities is commonly called an office administrator or office manager, and plays a key role in any organization's infrastructure, regardless of the scale. Many administrative positions require the candidate to have an advanced skill set in the software applications Microsoft Word, Excel and Access.

Competencymanagement systems are usually associated with, and may include, a learning management system (LMS). The LMS is typically a web-based tool that allows access to learning resources. Competency Management Systems tend to have a more multidimensional and comprehensive approach and include tools such as competency management, skills-gap analysis, succession planning, as well as competency analysis and profiling. The CompMS tends to focus more on creating an environment of sustainable competency in addition to entering and tracking learning resources in software. However, conceptually, there is no reason why a CompMS or LMS could not be manual and indeed learning management systems are as old as learning institutions.

A job description or JD is a written narrative that describes the general tasks, or other related duties, and responsibilities of a position. It may specify the functionary to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, information about the equipment, tools and work aids used, working conditions, physical demands, and a salary range. Job descriptions are usually narrative, but some may comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop a competency architecture for an organization, from which job descriptions are built as a shortlist of competencies.

Employment testing is the practice of administering written, oral, or other tests as a means of determining the suitability or desirability of a job applicant. The premise is that if scores on a test correlate with job performance, then it is economically useful for the employer to select employees based on scores from that test.

Talent management (TM) is the anticipation of required human capital for an organization and the planning to meet those needs. The field has been growing in significance and gaining interest among practitioners as well as in the scholarly debate over the past 10 years, particularly after McKinsey's 1997 research and the 2001 book on The War for Talent. Although much of the previous research focused on private companies and organizations, TM is now also found in public organizations

E-HRM is the planning, implementation and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.

A competency architecture is a framework or model of predetermined skills or "competencies" used in an educational setting. Competency architectures are a core component of competency-based learning.

A competency dictionary is a tool or data structure that includes all or most of the general competencies needed to cover all job families and competencies that are core or common to all jobs within an organization. They may also include competencies that are more closely related to the knowledge and skills needed for specific jobs or functions.

Human resource planning is a process that identifies current and future human resources needs for an organization to achieve its goals. Human resource planning should serve as a link between human resource management and the overall strategic plan of an organization. Ageing workers population in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective human resource planning.

Potential analysis describes the structural examination of specific characteristics and competencies. Potential analyses provide information about abilities of employees, future events, methods or organizations. Due to that the analysis of the branch of production, the financial sphere, the research & development and the human resources is differentiated.

A pre-hire assessment is a test or questionnaire that candidates complete as part of the job application process. The use of a valid and expert assessment is an effective way to determine which applicants are the most qualified for a specific job based on their strengths and preferences. Employers typically use the results to determine how well each candidate's strengths and preferences match the job requirements.

Topgrading is a corporate hiring and interviewing methodology that is intended to identify preferred candidates for a particular position. In the methodology, prospective employees undergo a 12-step process that includes extensive interviews, the creation of detailed job scorecards, research into job history, coaching, and more. After being interviewed and reference-checked, job candidates are grouped into one of three categories: A Players, B Players, or C Players. A Players have the most potential for high performance in their role while B and C Players may require more work to be successful. The methodology has been used by major corporations and organizations like General Electric, Lincoln Financial, Honeywell, Barclays, and the American Heart Association.

A human resources management system (HRMS) or Human Resources Information System (HRIS) or Human Capital Management (HCM) is a form of Human Resources (HR) software that combines a number of systems and processes to ensure the easy management of human resources, business processes and data. Human resources software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payroll, recruitment, benefits administration, time and attendance, employee performance management, and tracking competency and training records.

References

  1. Peregrin, Tony (September 2014). "Competency-Based Hiring: The Key to Recruiting and Retaining Successful Employees". Journal of the Academy of Nutrition and Dietetics. 114 (9): 1330–1339. doi:10.1016/j.jand.2014.07.016.
  2. Riley, Jim. "Core Competencies". www.tutor2u.net. tutor2u. Archived from the original on 15 January 2007. Retrieved 23 October 2014.
  3. 1 2 "Competency-based job descriptions" (PDF). www.waljob.net. Retrieved 21 October 2014.
  4. "Guidelines for Writing a Competency Based Job Description" (PDF). www.northwestern.edu/. -. Retrieved 20 October 2014.
  5. Nordmeyer, Billie. "The Difference Between a Job Competency & Description". work.chron.com. Heart Newspapers. Retrieved 20 October 2014.
  6. Ashe-Edmunds, Sam. "Competency Based Job Descriptions". smallbusiness.chron.com/. Demand Media. Retrieved 27 October 2014.
  7. Lawler, Edward E. (21 Nov 2006). "From job based to competency-based organizations". Journal of Organizational Behavior. 15 (1): 9. CiteSeerX   10.1.1.331.8503 . doi:10.1002/job.4030150103.
  8. Draganidis, Fotis; Mentzas, Gregoris (2006). "Competency based management: A review of systems and approaches". Information Management & Computer Security. 14: 51–64. doi:10.1108/09685220610648373.
  9. Hawkes, Candace; Weathington, Bart. Competency-Based Versus Task-Based Job Descriptions: Effects on Applicant Attraction (PDF) (Thesis). p. 193. Archived from the original (PDF) on 20 December 2014. Retrieved 27 October 2014.

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