Back to Basics: What is Competency-based Talent Management?

Competency-based Talent Management is an HR management approach that standardizes and integrates all HR activities based on competencies that support organizational goals.

What is a Competency?
Competencies are observable abilities, skills, knowledge, motivations or traits defined in terms of the behaviors needed for successful job performance.

Competency is a term that describes a pattern or cluster of actions taken to achieve a result.

It helps to understand the value of having a comprehensive picture of all the competencies needed for success within jobs by considering the iceberg as an analogy. While one can see the iceberg in the ocean, the majority of its bulk is hidden under water.

The whole “iceberg” represents the competencies needed for success in jobs. However, some factors (above the surface) are typically easier to identify and manage - for example, the skills, knowledge and experience of employees. Traits, motivations and self-concept, on the other hand, tend to be harder to identify and measure (below the surface). Skills, knowledge and experience are often the focus during hiring and selection; but, the other factors (below the surface), which are more intrinsic and difficult to identify and measure, are just as important for successful performance. Competencies provide a way of describing all success factors in terms of behaviors. These can then be measured and managed in the workplace.

Most organizations are fairly good at identifying technical skills, knowledge and experience required for jobs, but they are typically not as good at identifying those competencies like Initiative, Interactive Communication and Teamwork that can make the difference between highly successful versus not so successful performance in the workplace.

Why Competency-based Talent Management?
Competencies, and Competency-based Talent Management, translate the strategic visions and goals for the organization into behaviors or actions employees must display for the organization to be successful.

Benefits

There are many benefits to using competencies as the foundation for managing talent in the workplace, for example:

• They translate the organization’s vision and goals into the behaviors employees are expected to display for the organization to be successful;
• They improve hiring and selection decisions because the competencies, which are used as the standards for assessment and selection, reflect the behaviors employees must have to be effective in their jobs and roles;
• They increase employee productivity and operational effectiveness, because they focus employees on the performance behaviors they need to display to be successful;
• They help in identifying employee strength areas for development that are directly linked to the organization’s strategic objectives;
• They help to shorten the learning curve for employees, by allowing both the organization and the employees to focus on those competencies that need development;
• They provide employees with an understanding of what is needed to be successful in their current and future roles, giving employees a sense of empowerment and control over their careers, thus increasing levels of job and career satisfaction and employee retention;
• Finally, they support strategic HR planning. Identifying the competencies needed to achieve the vision allows the organization to address gaps between the current skills and competencies of employees, and those needed in the desired future state. Plans can then be put into motion to ensure the organization has the talent needed to achieve its vision.

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HRSG is a leader in competency-based talent management solutions. Contact us today to find out how we can help you.

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Want to learn more? Competency-based Talent Management, or CbTM, is the best practice for defining job requirements and building effective HR programs to develop skilled, engaged and productive workforces. Download this Best Practice Guide to learn how competencies can increase workforce effectiveness and improve business practices.

Top 2 Tips for Implementing a Competency-based Recruitment & Selection System

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

This is the eleventh 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

Implementing a good Competency-based Recruitment & Selection System requires two main ingredients:

1. training for those participating in the process and,
2. a well-staged plan for integrating competencies into your selection program.

1. Training on Competency-based Selection
Both line personnel and HR professionals must have the knowledge and skills to be able to apply the various competency-based assessment methodologies to arrive at valid selection decisions, and both must understand how to establish selection processes that are both efficient and effective (i.e., reliable, fair, valid and unbiased).  Likewise, employees must be able to participate effectively to provide an accurate picture of the competencies they possess.  All of this requires targeted training / orientation programs to ensure that all stakeholders have the necessary skills.

2. Implementation Stages
As competency profiles are developed for varied job groups, the following implementation stages are suggested for recruitment and selection.

Stage 1:

• Define the policies and decision-rules for using competencies in the recruitment and selection processes
• Identify considerations / guidelines for including information on competencies in notices of job requirements
• Develop sample notices of job requirements as the competency profiles become available for use.
• Customize or build an interview / reference checking question bank organized by competencies included in the competency profiles.
• Customize or build other competency-based tools or processes (e.g., track-record reviews) that can be used across a number of occupational groups. 

Stage 2:

• As the competency profiles are completed for the job groups, develop and implement recruitment, and selection processes consistent with policy and tools / templates defined in Stage 1.  Review and evaluate the effectiveness and efficiency of these processes and adjust policies, procedures, templates, etc., as required.
• Plan for and train managers and HR personnel on appropriate competency-based interviewing approaches (e.g., behavioral interviewing).  This training should be just-in-time – i.e., just in advance of recruitment exercises.
• Plan for, design and implement an orientation / training program for employees on how to participate in a competency-based recruitment and selection as new processes are being implemented.
• Collect data on the effectiveness of the new recruitment and selection process (e.g., correlate results of selection process with on-job or training performance results) and make adjustments to the process, as required.

 

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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.

Commonly Used Talent Acquisition Tools: Standardized Tests – Part 2

Part 10 of 11 of the CompetencyCore^TM Guide to Recruitment & Selection

This is the tenth 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

As noted in the previous blog, standardized tests and assessment tools are commonly used to screen and select candidates for jobs.  Like all other talent acquisition tools in the selection process, these must be focused on assessing the competencies needed for success in the job.  The last blog covered Knowledge / Ability Tests as well as Simulations.  This blog covers Work-related Personality Tests and Assessment Centres.

Work-related Personality Tests

These tests are used to measure the personality characteristics of applicants that are related to future job performance.  Personality tests typically measure one or more of the five main personality dimensions: extroversion, emotional stability, agreeableness, conscientiousness, and openness to experience; but these can be further expressed along dimensions that relate to the competency requirements of the job (e.g., initiative; achievement orientation; etc.).  Most often organizations do not develop their own personality tests, and there are several well-researched and developed personality tests on the market.  To be defensible, the personality dimensions measured by the test should map well to the competency requirements of the job.  Test vendors should also be able to demonstrate that their tests show good reliability and validity under similar circumstances to those of the target job.  Finally, while well-researched personality tests have been shown to have moderately acceptable levels of reliability and predictive validity, they should be selected and used by experts in the field of employment personality testing and in combination with other job-related assessment processes (e.g., behavior-based interview) to ensure that the important job-related competencies are being thoroughly assessed through multiple methods.

Assessment Centers

An Assessment Center is not a place, but rather set of assessment tests, tools, simulations and processes designed around a set of competencies that are needed for success within a job or group of jobs.  Multiple methods are used to ensure that there is a comprehensive assessment of the competencies needed (e.g., leadership levels of the organizations).

Groups of candidates typically go through the Assessment Centre simultaneously, and their performance is rated by assessors who have been trained in observing candidate performance using competency-based rating scales and processes, and who also have direct knowledge and experience in the jobs for which candidates are being assessed.  Administrators of Assessment Centers are professionals in the field and have strong backgrounds in assessment and psychometrics.  They train assessors and manage the assessment center process to ensure candidates get a fair and equitable opportunity to demonstrate their skills and abilities.

Results of the assessment processes are often used to select and develop candidates for high-stakes jobs.  The results (competency gaps and strengths) are most often used to develop plans and programs for development (e.g., leadership development).  Assessment Centers are typically costly to develop and administer; therefore, they are used most frequently for jobs or levels in which the consequences of error are great (e.g., leadership levels; nuclear power plant operation; etc.).
 

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The next, and final blog in this series review the top two requirements for implementing a competency-based recruitment and selection system. 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.

Commonly Used Talent Acquisition Tools: Standardized Tests – Part 1

Part 9 of 11 of the CompetencyCore^TM Guide to Recruitment & Selection

This is the ninth 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

Standardized tests and assessment tools are commonly used to screen and select candidates for jobs.  Like all other talent acquisition tools in the selection process, these must be focused on assessing the competencies needed for success in the job.  This blog and the next cover a variety of types of standardized selection tests and assessment tools that can be incorporated in the selection process. 

Knowledge / Skill / Ability Tests

These are standardized tests using question formats (e.g., multiple choice, short answer, etc.) that allow the organization to determine whether the candidate has the job-related knowledge, skill or ability to perform effectively in the job.  They often can be used in group testing situations, or online in computer lab environments; and as such, can be used to screen down the candidate pool to those who meet certain job-related requirements prior to having them go through a more labor intensive interview process.

They are often acquired by the organization from test vendors.  In this case, in order to be able to defend the use of the test, the organization should conduct a thorough job analysis, such as would be the case in defining the job competency requirements, and then chose a test that addresses these requirements.  In addition, the vendor most provide evidence that the test has been well-developed and meets generally accepted professional standards for employment test development.  A professional with a background in psychometrics should be involved in identifying and selecting such tests.

Sometimes, organizations develop their own tests to assess specific skills / ability requirements that may be unique to their organization (e.g., entry-level tests for government related jobs; etc.).  In this case, once again, a thorough job analysis must be undertaken and the tests and items must be developed by psychometric experts in accordance with well-accepted professional standards in the field.

Simulations

These are a category of tests designed to simulate the challenges or conditions that are typical of the job or types of jobs the candidate will be entering.  They are designed to assess the competency requirements of the jobs and use a rigorous set of rating standards for assessing candidate performance.

They can take a variety of forms:

• In-basket / In-tray exercises – these simulate a set of professional or managerial job challenges typical of what the candidate could encounter on the job.  They are most often timed and could involve a change or additional demands being placed on the candidate part way through the exercise.  They must be scored by assessors who are well-trained in applying the assessment / rating criteria and who know and understand the job competency demands.  They can be acquired from test vendors or developed in-house.  If they are acquired from vendors, the buyer must ensure that the competencies that the test measures map well to the competencies needed in the job at the right proficiency level.  If they are developed in-house, they must be based on a thorough job analysis, and developed by experts in test development and psychometrics according to well-accepted professional standards in the field.

• Role Plays – often simulate an interpersonal challenge the candidate is likely to experience on the job (e.g., candidates applying for a supervisory position are given a role play in which they must conduct a mock feedback session / interview with an under-performing employee) and actors are sometimes used following a set script and set of standard responses depending on the approach the candidate takes in the role play.  In this way, the role play provides a standardized scenario for each candidate so that the process is fair and consistent for all.

• Group exercises - in this case, groups of candidates work on a common challenge, sometimes taking on certain roles (e.g., CEO, CFO, etc.).  The focus is on resolving a problem or completing an assignment based on written instructions and / or case scenarios.  Observers who are trained to use standardized rating criteria (based on the competency requirements) and who know and understand the jobs assess the candidates and outcomes as they perform.  Most often the group exercise covers leadership and management challenges.

• Simulators – range in complexity from online computer-based simulations to a complete environment designed to test individual skills / abilities for high-stakes jobs (e.g., aircraft pilot simulators).  Through the simulations there is an attempt to closely approximate the challenges likely to be faced on the job, challenges on which the candidate cannot be directly assessed prior to job entry.  Recent advances in serious gaming (online computer scenarios and assessments) build learning as well as assessments into the process, with algorithms that adapt based on how the candidate responds.

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The next blog in this series examines more commonly tools used in recruitment and 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.