What should organizations consider when conducting competency assessments?

In the realm of talent acquisition, two critical components demand attention: abilities and competencies. While abilities encompass the tangible knowledge and skills an individual possesses, competencies delve into the more intangible realms of attitudes and personal qualities. Traditionally, recruitment efforts were largely influenced by the “skills” enumerated on a candidate’s resume. However, the landscape has shifted significantly in recent years, with an increasing emphasis on competency assessments. Tools such as developer tests and coding tests have become instrumental in identifying candidates who excel in “problem-solving skills,” marking a pivotal departure from conventional hiring practices.

This discussion aims to unpack the essence of competencies, exploring their significance and the rationale behind competency assessments. We will delve into the key aspects to consider when testing for competencies and outline strategies for their effective evaluation. Join us as we navigate the intricacies of competencies, shedding light on their integral role in refining the hiring process.

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The concept of competency

Competency is a comprehensive set of abilities required to perform a job, including skills, behaviors, attitudes, and qualities, not just knowledge. In other words, competency includes not only knowledge and skills, but also attitudes such as personality, values, and mental requirements. It is often abbreviated as K, S, and A (Knowledge, Skill, Attitude).

The modern concept of “competencies” was coined by American psychologist Professor David McClelland, who defined competencies as variables that predict performance and success in the same environment. The implication is that it’s the individual’s competencies that allow them to achieve different outcomes in the same environment. Therefore, organizations need to accurately assess competencies and help employees leverage them to create performance.

Purpose of competency assessments

This is especially important when it comes to hiring and human resources, as competencies determine job performance and success. This trend is due to the lack of connection between specification-centered evaluation methods in the past and work performance. In fact, several studies have already proven that specification does not directly lead to work performance.

A study on the correlation between the way companies recruit talent and performance capabilities presented at the Korean Academy of Management Convergence Conference in 2022 found that specifications such as education, certifications, credits, and English grades do not predict performance after joining the company. In other words, the specifications that have been used as the basis for recruitment tests in the past are not directly related to actual work performance, which has led to increased interest in ‘competency assessment’ that can complement them. As such, competency assessments are aimed at identifying talent that will outperform and benefit from recruitment tests, while also helping to fill in gaps in competencies, ultimately making organizations more competitive.

Why competency assessments are necessary and important

Earlier, we looked at the concept of competency and the purpose of competency assessments. To summarize, competency assessments are a means to “identify high-performing talent and make organizations more competitive. The need for and importance of competency testing is also closely tied to this purpose. Let’s take a closer look at the need for competency testing from three perspectives.

First, competency assessments are necessary to maximize organizational performance. For an organization to consistently produce results, its members need to habitually demonstrate the core competencies needed to drive performance. Competency checks, such as internal developer tests, can encourage people to develop the competencies that are key to performance, and recruitment tests can use coding tests or task-based tests to select competent people.

Second, competency testing is necessary to identify opportunities for advancement. Organizations use competency tests, such as developer tests, to understand the level of their employees and design appropriate training based on the results. When effective training is designed based on the results of coding tests or developer tests to improve the competency of employees, it naturally leads to organizational performance.

Third, competency tests are necessary to build a healthy organizational culture that is oriented toward growth. Evaluating employees based only on ‘performance’, which is the result, can lead to a result-oriented organizational culture. In fact, there are variables called ‘environmental factors’ between cause and effect, and due to the environment, employees may perform beyond their capabilities, or conversely, they may not be able to perform at all. Therefore, in addition to performance evaluation, competency tests should be conducted, and a fair and just evaluation environment for employees should be supported to build a culture where employees voluntarily strive to improve their capabilities.

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Considerations for assessing competency

So what makes a good competency test? At its core, it’s all about fairness. Assessments are used to determine compensation, promotions, and hiring decisions, so they need to be fair to ensure a healthy and sustainable organizational culture. Below, we’ve summarized five considerations for fairly assessing employee competencies in a hiring test or HR assessment.

1. Set clear evaluation criteria
The first step to fairly assessing employee competencies is to set clear evaluation criteria. First, you need to specifically define the competencies required for the job, and then clearly set metrics and criteria for evaluating those competencies. This will allow employees to accept and agree with the results of their evaluations, creating transparency in the evaluation process.

2. Utilize a variety of assessment tools and methods
When selecting assessment tools, use a combination of different methods, such as interviews and practical projects alongside coding tests, to compensate for the limitations of each method and to comprehensively assess a range of competencies. This minimizes bias by any method and ensures a full reflection of competencies.

3. Use validated tests
Tests used for assessment must accurately reflect competency and be capable of producing reliable results. The use of validated tests demonstrates the effectiveness and validity of the competency tests and enables objective and consistent assessment.

4. Conduct ongoing assessor training
In addition, regular training should be conducted to ensure that assessors are fair and consistent in their assessments. This ensures that each assessor is using the same criteria and scales, minimizes subjective bias, and ensures that competency assessments are consistent and effective.

5. Gather feedback on personnel evaluations
Ongoing feedback on the appraisal process and results enables organizations to continuously improve their appraisal system and gather employee input. This increases the transparency and fairness of the appraisal process and improves employee engagement and satisfaction.

Adhering to the five key considerations outlined ensures fairness and objectivity in competency assessments. With a thorough understanding of competencies, their significance, and the imperative of meticulous consideration, Elice positions itself as a pivotal resource for organizations aiming to evaluate competencies effectively. Our suite of testing solutions spans from recruitment assessments to comprehensive evaluations of employee job competencies. Beyond the realm of coding, our offerings extend to data science, data literacy, artificial intelligence, and web development tests, among others. These tools are designed to rigorously ascertain the multifaceted competencies vital for a diverse range of professional roles, including developer positions and competitive environments. For businesses encountering challenges in internal competency assessments, Elice Tests emerges as a recommended solution, promising a pathway to enhanced organizational capability and performance.

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