What is the difference between Competency Hiring & Skill Hiring?

Competency hiring is the key to successful hiring

Have we all come across employees, colleagues or friends who were the toppers of the class and yet failed to make a mark when it came to their careers? Surely the answer is yes. That is the gross difference between the impact of having a skill and lacking the competency. Today, more and more organizations are moving away from skill-based hiring to making more informed decisions by using psychometric tests in cities such as Mumbai to identify the competency of an individual before he gets hired in an organization.

The two terms skill and competency are often used interchangeably without realizing that skill is just one part of competency. The term competency directly impacts the performance of an individual, while the term skill only theoretically defines the ability of a person’s skill or knowledge of performing a particular job. Not many know that the competency is the combination of knowledge, skill and attitude. It is much more than skill. Many organizations continue to hire people on a basis of the skill and to bring on board individuals who are technically good yet remain non-performers.

Reasons to use psychometric tests 

The reasons why most organizations use Psychometric tests as a decision tool is because the tests verify if the candidate has the qualities required for the job. Does he have the competency and personal traits necessary for the job? The Psychometric tests that are conducted in cities all over India, including Mumbai have a scientific basis. They help organizations see the overall and detailed personality of the individual they wish to hire or have already hired. The latter case could be when employees are being considered for bigger roles. The Psychometric tests plot the mental and behavioral qualities of the person under evaluation.

Now when a company hires a well-skilled person with high grades they believe they have made a good decision. However, the job is only half done. When a company hires an individual, they don’t hire the person to work as a stand, alone worker. They hire an individual to work in hierarchical situations where the new hire needs to work with people at various levels. He needs to deal with his superiors as well as people at the parallel level and people who have positions under him. It is here where the individual’s human relationship management ability & attitude dictates how efficiently he can perform the tasks entrusted to him by the organization. The person’s overall competency & not only skill dictate how good the decision was to hire this specific individual.

An individual’s competency is very important 

While the skill certificates, define the knowledge, the psychometric tests, help decode an individual’s competency by measuring his ability and attitude to respond and resolve specific business situations. The tests throw light on individual’s inherent traits as well as weaknesses. An organization can make use of this valuable intelligence to create a perfect positioning strategy by placing the right person in right place.

An organization saves a significant amount of budget by making a competency-based hiring decision. It is well known that an individual will stay in a job that suits his inherent nature and objectives. By hiring people who are suitably competent and mutually fit into the organization’s narrative are sure to save costs towards rehiring and retraining for any organization.

So should the skill-based hiring be completely avoided? Well, one can use the skill grading to filter the candidates who can then be made to go through Psychometric testing to arrive at the overall suitability of an individual to the organization’s culture and the specific job on hand.

Remember, an organization is as good as its competency quotient!!

HireSharp helps organisations hire the right candidates, using psychometric tests as a key tool. Do read our blog on the importance of behavior in an employees performance, to know how it can impact your organisation.

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