Making the Case: Competency-based Recruitment and Selection

Part 1 of 11 of the CompetencyCore^TM Guide to Recruitment & Selection

This is the first in a 11 part series that looks at:

1. The Business Case
2. Key Advantages of Competency-based Selection
3. How Competencies Improve Selection
4. Top 3 Features of Best Practice Recruitment and Selection - #1
5. Top 3 Features of Best Practice Recruitment and Selection - #2
6. Top 3 Features of Best Practice Recruitment and Selection - #3
7. Common Tools: Job Postings & Behavioral Interviews
8. Common Tools: Track Record Review and Reference Checks
9. Common Tools: Standardized Tests, Part 1
10. Common Tools: Standardized Tests, Part 2
11. Tips for Implementing a Recruitment and Selection System

It has been long understood and proven through research that the better the match between employee competencies and job requirements, the more productive and engaged the workforce and the more successful the organization.

Most managers have experienced a “bad hire” or the constant churn of employees because of a poor fit between employee capabilities and the organization’s culture and requirements.  As a result, senior leadership often gives top priority to the recruitment and selection process with the goal of attracting and retaining capable and quality talent.

Organizations often invest heavily to achieve branding as an employer of choice through such means as the corporate website, print and e-advertising, exhibitions and job fairs, conferences, not to mention the time and efforts of numerous professionals and managers who set up, manage and participate in the recruitment and selection process.  Despite all this, organizations often fail to plan and organize their recruitment and selection processes in such a way as to gain the best return on their investment.

This series focuses on best practices and ways to maximize the value of recruitment and selection investments, through competency-based recruitment and selection processes that are efficient, reliable, and fair, and deliver the best candidates.

Some Facts and Figures
The Conference Board (2012) reports that the top two business issues CEOs care about right now are innovation and human capital (Conference Board, 2012).  In a survey of HR Executives, talent acquisition was rated as the number one challenge, with talent retention ranking sixth on the list (HR Executive Census, 2012).  Further, only 18% of HR professionals indicate that their companies have enough talent to meet the organization’s future leadership needs (Hogan Assessments, 2012).

On a more positive note, there is compelling evidence that Competency-based Talent Management (CbTM) offers a solution to these challenges.  Analysts note that 63% of best-in-class organizations¹  use a single competency model throughout their talent and workforce management processes, and are more than twice as likely to identify competency data (skills, knowledge, attributes, behaviors) for each employee(Aberdeen, 2009).

Early research (Spencer, 2001) showed that CbTM can have a huge return on investment with improvements in employee performance and productivity that go directly to the bottom-line (e.g., 19% improvement in employee performance, 12.5% in sales and profits).  These results are borne out by more recent research showing that organizations deploying CbTM achieve:

• 26% higher revenue per employee,
• 87% greater ability to “hire the best people”, and
• 92% greater ability to “respond to changing economic conditions” (Bersin, 2010).

The case, therefore, is very strong for a significant impact on organization performance with the implementation of a competency-based approach for managing talent, starting with recruiting and selecting new hires, and then managing and developing employees against the job competencies required for success throughout their careers.

¹Best-in-class organizations are defined as those performing better than others based on several key performance indicators, including financially.

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The next blog in this series examines key advantages of using competencies for recruitment & selection. Sign up to our blog’s mailing list through the form on the right-hand side to receive the rest of the series in your inbox.

HRSG is a leader in competency-based recruitment and selection solutions and training. Contact us today to find out how we can help you.

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Want to learn more? Download a Best Practice Guide to Improve the Effectiveness of your Interviewing Processes
Compared to unstructured interview approaches, the behavioral interview approach greatly increases your chances of making the best selection decisions. Download this guide to learn how to interview candidates to gather critical information about candidates’ past performance and accomplishments that you can use to predict their performance and accomplishments in the job that you are filling.