Finding the perfect candidate for a job role can often feel like searching for a needle in a haystack. Recruiters face numerous challenges in identifying individuals who not only possess the requisite skills and qualifications but also fit seamlessly into the organization’s culture and contribute to its success in the long run.

Traditional methods of assessment, such as resumes and interviews, often fall short in providing a comprehensive understanding of a candidate’s suitability for a position.

A research by Aberdeen Group indicates that competency-based assessments lead to more informed hiring decisions, with a staggering 82% of companies reporting an improvement in their ability to identify high-performing candidates.

But, what types of competency-based assessments are there? How can it be used to improve your workplace and recruitment process? 

We’ll go through what you need to know in this article starting with its purpose in the first place.

What is a competency-based assessment?

Competency refers to the candidate’s capability to succeed in carrying out the job responsibilities. Aside from their skills and knowledge, it may include their attributes and qualities that make them a good fit. 

Competency-based assessment revolves around the evaluation of specific competencies or skills that are critical for success in a particular role. Unlike traditional assessments that focus solely on qualifications and experience, competency-based assessments dig into the behavioral and situational aspects of a candidate’s capabilities.

Key components of competency-based assessment

From identifying core competencies to designing tailored assessment tools, each element plays a crucial role in evaluating candidates effectively and making informed hiring decisions.

Identification of core competencies

The first step in implementing a competency-based assessment is to identify the core competencies essential for success in a given role. These competencies may vary depending on the nature of the position and the organization’s unique requirements.

Core competencies can include a wide range of attributes such as communication skills, problem-solving abilities, leadership qualities, adaptability, and emotional intelligence.

Designing assessment tools

Once the core competencies are identified, recruiters need to design assessment tools that effectively evaluate these competencies. These tools can take various forms, including structured interviews, psychometric tests, role-plays, case studies, and situational judgment tests.

The key is to ensure that the assessment methods are aligned with the competencies being evaluated and provide reliable and valid results.

Conducting assessments

The assessment process involves administering the chosen tools to candidates and collecting relevant data to evaluate their competencies.

Recruiters may conduct assessments at different stages of the hiring process, from initial screening to final interviews, to gain a comprehensive understanding of a candidate’s suitability for the role.

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4 Types of competency-based assessments

We’ve listed 4 different types of competency-based assessments. These are useful for gathering information on candidate skills and high-performing employees.

This helps with decreasing the probability of mis-hire. After we go through these, we’ll cover how it’s used to improve your hiring decisions.

1. Skills gap analysis 

A skills gap analysis is where you identify the skills that are lacking in the current workforce. This gives you the chance to find any commonalities between your talent pipeline and your best employees. If there’s a clear parallel, it’s one sign of a good potential hire. 

Standardized tests are effective for analyzing each candidate and making a decision based on how they performed.

2. Self-assessment

A self-assessment in the workforce is where the employees give themselves feedback using a certain performance period. They’ll have the opportunity to not only analyze their own skills and knowledge. But for them to share their own perspective. 

However, a similar approach can be taken with candidates in an interview to get insight into their level of self-awareness and where there’s room for growth.

3. 360 Degree feedback

The 360 degree feedback is where you have employees share their input and provide each other with constructive criticism. This should be done anonymously so that people are encouraged to be fully transparent. 

Similarly, you can prepare group exercises or group-related questions for the interview to get a feel for how a candidate works in a team.

4. Manager review

Instead of self-assessing and getting feedback from your team, the manager will review the performance of each professional. In a similar fashion, they’ll offer feedback and help you determine ways to improve your work performance.

How to use a competency-based assessment to improve your decision-making

Now that we’ve covered the main types of competency-based assessments, we’ll look at how this is used to improve your decision-making. 

1. Identify the job competencies

There are competencies required for each job vacancy to carry out the duties and responsibilities to a good level. 

Here are a few examples:

  • Analytical thinking
  • Communication
  • Leadership
  • Self-awareness

A competency-based assessment helps with identifying those core competencies and if they have the ability to succeed in the role. 

Don’t forget to take the candidate’s potential into account. Despite them not being the ideal candidate for the job now, it doesn’t mean they can’t become that person in the near future with enough training and development.

2. Understand the ideal talent

Workforce analysis is useful for getting a better understanding of your employees. Using a competency-based assessment, you can also gather information about what the ideal talent looks like and use it as a guiding principle for your decisions. 

For example, look at the common traits and qualities you find between those in your talent pipeline and your best employees.

When you know what makes a candidate perfect for the role, it enables you to shape your criteria for recruitment. In other words, you know what to look out for in each applicant.

3. Set up a professional development plan

Professional development plans are especially important for improving the quality of hire and engagement of your employees. 

It can also be showcased as a company benefit in your recruitment marketing strategy since candidates have the opportunity to develop and expand their skill set. This is effective for not only attracting more applicants that are likely to be a fit for the company culture. But, it’s also effective for encouraging team members to stay for a longer period of time.

4. Use the job performance data to guide your decisions

Once you’ve acquired all the insights necessary regarding a candidate’s job performance through assessments and interviews, it can be used to narrow down the list of applicants. 

Analyze their knowledge, strengths, and weaknesses. Using standardized tests, it makes it easy to examine the performance and skills of each individual. The data could also be compared with the industry standards to evaluate where they’re currently at.

Want to get access to a range of assessments that are all in one place?

Testlify offers a range of tests for recruiters and employers to identify the ideal talent for their organization. 

All types of pre-employment assessments you need can be found in one place, including:

  • Job skills test
  • Software proficiency test
  • Cognitive ability test
  • Situational judgment test
  • And more…

If there are a particular set of competencies that you’re looking out for, you can customize each test to your own preferences. Therefore, you can ensure each assessment suits your needs and that you’re getting the information you need without compromising the candidate experience. 

The best part? You can get started now for free – no card details required. 

Final thoughts 

A competency-based assessment is key for continuously improving job performance as well as the quality of future recruits.

Although it’s similar to the different talent evaluation methods, both of these can be used to maximize your recruitment process. Use the data accordingly to make a more informed hiring decision. 

Here at Testlify, we provide you with all the necessary skills assessments in one place. Sign up for free and access our comprehensive test library to assess and hire the best candidates for your team.

Frequently asked questions (FAQs)

A skills gap analysis helps employers identify the gap between required and available skills, enabling targeted training, recruitment, and development strategies to fill skill shortages effectively.

Competency-based assessments evaluate specific skills, knowledge, and behaviors required for job success, providing objective insights into candidates’ abilities to perform job tasks effectively.

Professional development planning aligns employee skills and competencies with organizational goals, identifies areas for growth, and ensures continuous improvement and career advancement.

Factors include employee aspirations, organizational objectives, skill gaps identified through assessments, available resources, learning preferences, and career paths within the organization.

Yes, cognitive ability tests can be administered online, making them suitable for assessing remote job candidates as long as there is a reliable internet connection and proper test proctoring measures in place.