C H A P T E R 5

Competency-Based Employee
Recruitment and Selection

Human resource plans are implemented, in part, through the functions

of employee recruitment and selection. Taken together, recruitment and
selection provide a key way of sourcing talent with the aim of achieving
organizational objectives. There are, of course, other methods of sourc-
ing talent—such as the use of temporary workers and consultants—but
in this chapter we will focus on recruiting and selecting so-called full-
time workers.
This chapter addresses the following key questions on recruiting
and selecting people to implement HR plans:
• What are employee recruitment and employee selection?
• How are employee recruitment and selection traditionally carried
out?
• How can employee recruitment and selection become competency
based?
• What are the advantages and challenges of a competency-based
approach to employee recruitment and selection?

95
96 Competency-Based Human Resource Management

• When should employee recruitment and selection be competency

based, and when should they be handled traditionally?
• What model can guide competency-based employee recruitment
and selection, and how is it implemented?

Employee Recruitment and Selection

Employee recruitment and employee selection are two sides of the same
coin. Recruitment is the process of attracting as many qualified appli-
cants as possible for existing vacancies and anticipated openings. It is a
talent search, a pursuit of the best group of applicants for an available
position. Selection reduces the list of applicants to those who are most
qualified to achieve the desired outputs or results. During the process,
HR practitioners try to predict which applicant will be most successful
and will best fit the job and the corporate culture.
Recruitment and selection are important issues in today’s work-
place. A study of human resource trends conducted by the Society for
Human Resource Management indicated that respondents considered
finding and keeping qualified candidates to be the greatest employment
challenge (1997 Survey of Human Resource Trends, 1997).

Traditional Employee Recruitment and Selection

The traditional starting point for recruitment is a job description and a
job specification. The job description describes the work activities or job
responsibilities of the successful job incumbent. The job specification
specifies the qualifications an individual should possess in order to carry
out the work. Qualifications are usually expressed as the minimum edu-
cation, experience, and other requirements necessary to do the job.
Some employers also use a job requisition, which justifies the creation of
a new position or the replacement of a departing worker.

The Traditional Recruitment Process

The traditional recruitment process requires HR practitioners to carry
out four predictable steps, as shown in Figure 6.
 Competency-Based Employee Recruitment and Selection 97

Figure 6: Traditional Recruitment Process

Step 1
Clarify the position to be filled through recruitment.

Step 2
Review and update job descriptions and
specifications for the position.

Step 3
Identify possible sources of qualified applicants.

Step 4
Select the most effective means of communicating
with and attracting qualified applicants.

Step 1: Clarify the position to be filled through recruitment

Employers act according to different philosophies of recruitment. One
philosophy suggests recruiting continuously—that is, without regard to
the number of vacant positions. For instance, an engineering firm may
recruit engineers all the time so that an appropriate applicant pool is
available whenever an opening occurs.
According to another philosophy, recruitment should be carried out
selectively and only as necessary to fill openings as they occur. For
instance, a firm may identify three management trainees as due for pro-
motion, reassignment, or turnover. Recruitment at this firm is then tar-
geted to fill the three openings.
Of course, it is possible for an employer to act in accord with both
philosophies, recruiting continuously for some positions and recruiting
for others only when openings occur. In either case, HR planning may
forecast the number and kind of persons who will be needed.
Step 2: Review and update job descriptions and
specifications for the position
Job descriptions, after all, clarify the tasks successful applicants will per-
form on the job. Job specifications enumerate the required qualifica-
tions. Without current job descriptions and specifications, HR practi-
tioners cannot screen applicants by comparing individual qualifications
to work requirements.
98 Competency-Based Human Resource Management

Step 3: Identify possible sources of qualified applicants

Recruitment is perhaps most often associated with this step. In the
broadest sense, of course, applicants may come from inside or outside
the organization.
There are a number of advantages associated with recruiting from
within. Internal recruitment maximizes the return on the organization’s
investment in its employees.1 By seeking internal applicants, manage-
ment gains increased awareness of individuals who are interested in fur-
thering their careers and reduces time spent on orientation and training
for persons with whom it is already familiar (Grensing-Pophal, 2000).
Applicants may be found internally through job posting and bidding
and by supervisory nominations.
Internal recruitment efforts very often result in promotions. Pro-
motion signifies reward for past performance and encourages employees
in their efforts (Sherman, Bohlander, & Snell, 1998). It also sends a posi-
tive signal to employees in suggesting that their own efforts may be simi-
larly rewarded.
Yet despite the many advantages to hiring from within, there are also
disadvantages. Grensing-Pophal (2000) noted that the practice limits the
potential number of qualified candidates, decreases opportunities to
gain new ideas and concepts, and creates additional open positions.
Methods of external recruitment include newspaper, radio, and tel-
evision advertisements; help-wanted signs; database searches of previ-
ous candidates; public and private employment agencies and search
firms; educational institutions; employee referrals; advertisements with
professional associations and labor unions; temporary help agencies;
and Web site advertisements.
Organizations vary greatly in their philosophy and practice of inter-
nal and external hiring. Some companies are committed to providing
development initiatives for their own employees and encourage promo-
tions but are somewhat reluctant to conduct external hiring (Michaels,
Handfield-Jones, & Axelrod, 2001). Other companies prefer external
hiring, particularly for some senior-level positions, because, among
other reasons, “regularly bringing new people in is a good way to con-
stantly calibrate—and even raise—the company’s standards for talent”
(Michaels et al., 2001, p. 72).
 Competency-Based Employee Recruitment and Selection 99

Most employers try to balance the cost of recruitment against their

likely success at finding the best talent. The SHRM survey of 2000 indi-
cated cost-per-hire results from various sources as ranging from $99 for
job fairs to $30,655 for an executive search (Pfau & Kay, 2002).2

Step 4: Select the most effective means of communicating

with and attracting qualified applicants
This step usually involves marketing the organization to prospective
applicants. After all, people often self-select themselves, which means
they choose to apply based on the perception that an organization’s
image matches their own self-image. HR practitioners are familiar with
methods of communicating with possible applicants. These include
open houses, campus visits, presentations to groups of possible targeted
job applicants, internships, and school-to-work programs. In other
words, the organization must find a way to build awareness that it is a
good place to work.
Specialized approaches to recruitment include a variety of new
Web-based efforts aimed at attracting applicants from a broad range of
geographical locations. The Paine Webber Group estimated that busi-
nesses will spend more than $8 billion for on-line recruiting by 2005
(Rubin, 2002).
In recent years, considerable attention has been paid to recruiting
special groups, such as protected-class employees represented by women,
minorities, the disabled, and others whose inclusion helps to achieve a
diverse and thereby more creative workforce. In providing equal employ-
ment opportunities, many organizations create a formal program that
includes the recruitment of protected classes as an integral part.

The Traditional Selection Process

The traditional selection process begins where recruitment ends. The
selection process requires HR practitioners to carry out 10 predictable
steps, which are shown in Figure 7.

Step 1: Clarify the selection process

It is important to clarify how the selection process will be carried out. For
example, will the applicant have to meet subjective or objective criteria—
100 Competency-Based Human Resource Management

Figure 7: Traditional Selection Process

Step 1
Clarify the selection process.

Step 2
Clarify the selection methods.

Step 3
Shorten the list of potential candidates by comparing
the applicants to the selection criteria.

Step 4
Establish a list of finalists for the targeted jobs.

Step 5
Conduct a detailed examination of the finalists to
identify the best candidates for the targeted job.

Step 6
Make the selection.

Step 7
Negotiate a competitive compensation and benefits
package with the successful candidate.

Step 8
Extend an offer to the successful candidate.

Step 9
Confirm that all requirements are met.

Step 10
Confirm that the selection decision was correct.

or some combination of the two? Will evaluation be performed by mul-

tiple, independent reviewers—or by one? In short, on what basis will a
selection decision be made, and who will make it?
 Competency-Based Employee Recruitment and Selection 101

Step 2: Clarify the selection methods

It helps to get clear what the organization wants to find. There are many
tools and approaches available for pinpointing the most appropriate
applicant in a group. Methods include application forms, weighted
application blanks (WABs), reference checks, honesty tests, psychologi-
cal tests, manual dexterity tests, assessment centers, graphology, medical
examinations, drug tests, and planned (structured) or unplanned
(unstructured) job interviews. HR practitioners must choose the appro-
priate methods for identifying the most qualified individual.
Step 3: Shorten the list of potential candidates by comparing the
applicants to the selection criteria
Develop a list of probable candidates by comparing applicants to the
selection criteria. This may require compiling test scores and interview
results, or a combination of methods.
Step 4: Establish a list of finalists for the target jobs
After individuals have been screened by one or more selection methods,
only a few well-qualified people should remain. One candidate usually
emerges as the preferred choice. The names of other candidates may be
retained, however, in the event that negotiations with the preferred can-
didate are unsuccessful.
Step 5: Conduct a more detailed examination of the finalists
to identify the best candidates for the targeted job
At this point, decision makers may insist on additional interviews or fur-
ther evidence of an individual’s ability to perform the job successfully.
Step 6: Make the selection
Decision makers in the organization should now be in agreement on
which individual they believe is best equipped to do the job. Some
organizations may check a candidate’s references before finalizing the
decision.
Step 7: Negotiate a competitive compensation and
benefits package with the successful candidate
The goal at this stage is to match the candidate’s expectations with the
employer’s ability to pay. This step is likely to be completed successfully
102 Competency-Based Human Resource Management

when applicants have already been informed of the pay range and asso-
ciated benefits.
Step 8: Extend an offer to the successful candidate
A formal offer may involve requesting the candidate’s signature on a let-
ter in which he or she agrees to the terms of employment. Less formal
offers are extended orally. Written employment contracts are common
at certain executive levels in some professions (and in other nations) but
are not generally used in the United States.
Step 9: Confirm that all requirements are met
Final requirements may include tests such as drug screening or evidence
of educational credentials.
Step 10: Confirm that the selection decision was correct
This step may require a probationary period. If the individual meets the
organization’s performance requirements during this preliminary pe-
riod, he or she becomes a permanent employee. If not, the organization
may terminate the individual in a manner consistent with legal require-
ments and any collective bargaining agreements previously negotiated
by the employer.

Making Employee Recruitment and

Selection Competency Based
In considering a transition from traditional to competency-based
recruitment and selection, one question is uppermost: How can a com-
petency-based approach improve the organization’s ability to predict
successful job performance from prospective applicants?
The answer to this question is simple, but it does require some
explanation. The success of a competency-based approach depends on
whether or not the organization has clarified work performance require-
ments and kept them up-to-date. If, for instance, the organization’s
managers have not clarified the desired work outcomes, then trying to
match applicants to those ill-defined goals will not be easy.

Competency-Based Recruitment
The traditional recruitment process must be reinvented if it is to become
competency based.
 Competency-Based Employee Recruitment and Selection 103

Competency-based recruitment begins when the organization’s

leaders identify the key work roles, positions, or other work designations
in need of recruitment efforts. This involves setting priorities. Decision
makers must also decide on the time span over which the recruitment
process will take place.
A competency-based approach to recruitment and selection places
more demands on an organization, compared to the effort required for
a traditional approach. But what if sufficient resources are not available
to adopt a competency-based system for the entire organization? In such
a case, the organization should invest its available resources in a compe-
tency-based approach to recruiting and selecting for those jobs or posi-
tions that are most critical to the organization’s success. After key posi-
tions have been filled, leaders can evaluate the costs and benefits of
extending the use of these methods to other areas.
After the organization’s leaders have identified their recruitment
needs, they must confirm the accuracy of the descriptions and specifica-
tions for the positions to be filled. The information can be gained
through moderate to extensive job analyses and should meet the follow-
ing requirements:
• Work outputs, activities, and tasks as well as job competencies and
the behavioral indicators by which those competencies can be meas-
ured are clearly stated and aligned, and the managers who are seek-
ing applicants agree on them.
• The competencies necessary for successful performance of the work
are valid for the purposes stated.
• Key competencies that are the greatest predictors of job success have
been identified and validated by the managers who are seeking
applicants.
With a competency-based approach to recruitment, the third step
of the traditional recruitment process must be reframed. The task of
finding the needed competencies is made easier when the organization
has conducted an assessment of existing staff competencies and can
access that information through a competency inventory. It is also
helpful to identify past sources of exemplary performers. Analysis may
reveal that some sources of talent yield the best applicants more often
than do others.
104 Competency-Based Human Resource Management

In the final step of the recruitment process, the organization actively

seeks applicants. It is particularly important that decision makers iden-
tify and communicate those competencies that are not developed with
training and must be sourced through recruitment and selection. For
example, most people would agree that it is difficult, if not impossible,
to train new employees to persevere. Consequently, locating this compe-
tency may require special attention during recruitment and selection.
Sea-Land, a large U.S.-based member of the global shipping industry,
is an example of a company that uses a number of different approaches in
its recruitment practices, including, increasingly, Internet technology
(Little, 1998). Sea-Land also utilizes various recruitment strategies that
include use of both retained and contingency firms specializing in recruit-
ment, temporary and full-time staffing, and contract recruiters and per-
sonnel. It has established good relationships with nine core colleges and
places strong emphasis on competency-based selection.

Competency-Based Selection
Traditional employee selection methods must also be reinvented if they
are to become competency based. The following discussion refers to the
10 steps of the traditional employee selection process shown in Figure 7.
The goal of Step 1 in traditional employee selection is to plan the
selection process. Planning is equally essential, if not more so, for the
competency-based selection process. The goal of both is, of course, to
make the best match between the person and the work.
With the competency-based approach, the criteria for selection are
objectively stated. The process is systematic and disciplined. Perhaps the
most desirable method of application is multiple interviews conducted
by trained professionals, either individually or in teams. The goal of the
interviews is to determine whether individuals possess the competencies
necessary to achieve exemplary work results. This may be done by
requesting work samples from experienced applicants or examining
work histories for the behavioral anchors associated with the desired
competencies. Consequently, selections are based on data rather than
opinions. HR practitioners frequently comment that competency-based
selection is probably one of the fairest and therefore most defensible
approaches their organizations have used.
 Competency-Based Employee Recruitment and Selection 105

Next, HR practitioners clarify the selection methods to be used in

reaching a decision. Regardless of the work to be performed, the selec-
tion methods chosen should provide as much advance information as
possible about those competencies that are the most critical for exem-
plary performance of the work. A competency assessment report from a
former supervisor would offer this kind of valuable insight, for example.
Selection methods generally fall into two categories. One category
has to do with assessing the individual’s ability to perform the work.
Methods in this category are competency based. One example might be
job applications that seek information about individual competencies
instead of work history or credentials that may not be directly related to
proven performance. Another example is preparation of structured
interview guides to solicit information about competencies linked to
successful or exemplary performance and the behavioral indicators
associated with them. Methods in the second category address the indi-
vidual’s fitness to perform and take into consideration additional
requirements, such as drug tests and medical examinations, that are
peripheral to an applicant’s ability to perform.
In Step 3, HR practitioners shorten the list of applicants; when using
the competency-based approach, they work with managers to compare
evidence of competencies with competency-based selection criteria. HR
practitioners should focus their attention on the applicants’ competen-
cies as discovered and documented to the minimally acceptable, fully
successful, or exemplary competency requirements for the department,
occupation, work role, or job category. Individual competencies are
therefore the primary criteria for narrowing the field of applicants.
Finalists are chosen in the next step. What is the difference between
a traditional approach and a competency-based approach at this stage of
the selection process? The traditional approach relies on a considerable
number of assumptions about a candidate’s qualifications, based on
superficial evidence of ability, such as academic degrees or work and
salary history. In a competency-based approach, the guesswork is large-
ly eliminated. The goal of competency-based selection is to go beyond
the superficial to discover real evidence of ability to perform, based on
interview questions that explore actual experience or work samples that
verify an applicant’s ability to create outputs much like those required
106 Competency-Based Human Resource Management

for the position. Persons with little experience may be tested for the
ability to create the work products necessary for job success.
Steps 5 and 6 of the traditional selection process shown in Figure 7
cover interviews and final selection. Competency-based selection relies
on carefully planned behavioral event interviews. Much attention is
focused on the interview questions, how they are asked, the setting, and
the approach used to assess results. We provide a detailed discussion of
these points in a later section of this chapter.

An example of competency-based interviewing using a behavioral event

interview can be seen at the Veterans Affairs Medical Center (VAMC) in
Gainesville, Florida. Competency-based interviewing has been used at the
Gainesville facility for more than ten years since a train-the-trainer program
was introduced by the Veterans Affairs Nursing Service. In developing an
interview tool for a staff nurse position, key criteria for a nurse to succeed are
identified by a nurse manager and experienced unit staff. Expectations for
the job are developed along with a job description. Questions are then prior-
itized, and the method of interviewing is determined. VAMC has found that
an important consideration for the interviews is matching the number of
questions to the amount of time for the interview. Applicants are pre-
screened, and a determination is made as to whether eligibility requirements
are met. The nurse manager then decides who will conduct the interview.
Panels are often preferable in competency-based interviews; however, an
individual can also conduct the interview. At VAMC, a panel of two or three
members, including the first-line manager, experienced staff members, and
an additional head nurse, is often used. Sometimes an applicant is interested
in more than one position, and then other appropriate nurse managers are
included on the panel.
Before the interview is conducted, representatives of VAMC welcome the
applicant and introductions are made. An overview of the interview is then
described to the applicant. VAMC notes that it is beneficial to indicate to the
applicant that the interview will provide the opportunity to share work expe-
riences as well as the demonstration of both skills and capabilities. The appli-
cant is also informed that there will be notes taken during the interview.
While the interview is taking place, interviewers rate both verbal and non-
 Competency-Based Employee Recruitment and Selection 107

verbal responses to questions and scenarios that afford the opportunity for
both objectivity and consistency. It also serves as a reminder following the
interview.
Ratings at VAMC are (+) positive, (0) neutral, or (–) negative. Ratings are
done independently without any discussion. Final scores are calculated by
figuring the percentage of each rating based on the possible number. Finally,
it is determined which applicant is the best match for the job. At VAMC,
guidelines on acceptable scores are not available, but decisions are made by
those conducting the interview. In arriving at a decision, competencies are
considered as are the learning needs and the willingness of staff and the
organization to support training. At VAMC, much credit is given for the suc-
cess of a competency-based interview to the planning of the interview
process itself. (Blazey & MacLeod, 1996)

Step 7 involves the negotiation of a compensation and benefits

package with the successful candidate. This step is essentially the same
for both approaches. It is worth noting, however, that in competency-
based selection, the organization’s representative is negotiating primar-
ily to purchase the candidate’s talent, or competency, pool rather than to
simply “fill the slot.” Thus, competency issues dramatically underlie the
negotiations, even if they are not explicit. It is important for HR practi-
tioners to understand this as a philosophical point.
Steps 8 and 9 of the traditional selection process are basically
unchanged with a competency-based approach. The purpose of Step 9,
however, is slightly different. Verification applies to the successful candi-
date’s competency in a technical or professional area—for example,
medicine, engineering, plumbing, boiler maintenance, or psychother-
apy—and may require evidence such as licenses or employer references
to support an applicant’s claim of experience or credentials.
The last step is to validate the selection decision. In a competency-
based process, HR practitioners work with the new employees’ managers
to determine how well performance matches up to expectations and
work requirements.
A key consideration is the demonstration of competencies within
the employer’s unique corporate culture.
108 Competency-Based Human Resource Management

A competency-based, multirater feedback process is just one of

many possible methods. Or employees and their immediate supervisors
might participate in a two-part probationary performance management
process in which both parties provide competency and results ratings.
In summary, there are significant differences between traditional
and competency-based employee recruitment and selection processes.
Consequently, making a transition to a competency-based approach
requires considerable time, money, and effort on the part of the organi-
zation and its HR staff. The benefits, however, may exceed the costs, par-
ticularly if the competency-based approach increases the percentage of
exemplary performers within the organization.

The Advantages and Challenges of Competency-Based

Employee Recruitment and Selection
There are several key advantages to competency-based employee recruit-
ment and selection.
First, competency-based recruitment and selection are results ori-
ented. They make it easier to concentrate on the results expected of a
successful or exemplary performer. They focus less attention on approx-
imations of competence—such as educational level or years of experi-
ence—that have little connection to verifiable results.
Second, competency-based recruitment plays an important role in
attracting individuals who possess characteristics that might be diffi-
cult, if not impossible, to acquire by training or development efforts. A
competency-based approach encourages managers and other decision
makers to clarify the verifiable, measurable results they expect from
successful performers before a selection decision is made. That makes
selection methods more effective, which reduces turnover, since the
persons who are hired are more likely to do well in jobs or work roles
that are matched to their existing or potential competencies (Wood &
Payne, 1998). Competency-based selection also provides some insight
into whether or not a new hire will be a good fit with the organization’s
culture (Guinn, 1998). In addition, competency-based practices can be
very effective in hiring for virtual or flextime positions (Vincola &
Mobley, 1999).
 Competency-Based Employee Recruitment and Selection 109

Third, a competency-based recruitment and selection process pro-

vides applicants with opportunities to outline, explain, and demonstrate
their qualifications in competency-based terms. People will not be con-
fronted during the selection process with questions that have little or no
bearing on their ability to produce desired work results.
Fourth, since competencies are readily transferable across work sit-
uations, competency-based selection may help the organization to func-
tion effectively even during times of rapid or unanticipated change. Of
course, there are limitations. For example, the demonstration of a com-
petency is often grounded in a unique segment of the corporate culture
and might not be amenable to transfer.
Fifth, competency-based recruitment and selection processes give
HR practitioners an opportunity to plan for developing competencies
for new hires and for experienced workers who must be reassigned.
Sixth, competency-based hiring methods do not discriminate. They
encourage managers to clarify the desired work results and to find indi-
viduals who can achieve those results regardless of age, race, gender, sex-
ual orientation, ethnic background, religion, or other considerations
that have little or no bearing on their ability to perform.
Seventh, competency-based selection methods can underscore the
competencies of candidates during succession planning initiatives. That
makes it easier to identify backups for key positions.3
And eighth, competency-based hiring processes can reduce tradi-
tional training times by ensuring the selection of applicants who can
perform. It also helps to raise the bar on performance, especially in
organizations that seek potential exemplary performers.
There are no panaceas, however. Competency-based recruitment
and selection present some challenges.
Competency-based processes require a disciplined and regulated ap-
proach to job and work analyses. HR practitioners must verify and vali-
date the outcomes of the analyses and ensure their accuracy.
Competency identification and modeling also demand commitment of
time and other resources. Many organizations are unwilling or unable to
invest in these activities.
Competency-based approaches are not appropriate for recruiting
and selecting unskilled or semiskilled workers. Individual discretion, a
110 Competency-Based Human Resource Management

key issue in competencies, is not a major factor in these jobs as it is in

professional and managerial positions.
Using competency-based job information in recruitment could dra-
matically increase the cost of advertising, since extensive information on
the job and candidate requirements must be published.
Competency-based selection requires the investment of substantial
numbers of hours by managers and others involved in group interview-
ing and assessments. Managers in particular are often difficult to sched-
ule for these activities, especially when an organization has downsized.

Deciding on Competency-Based or
Traditional Employee Recruitment and Selection
Employee recruitment and selection should be handled traditionally
under the following conditions:
• Decision makers are unwilling to make the substantial investments
in time, money, and effort that are necessary for researching and val-
idating competencies for any of the organization’s jobs.
• The organization’s resources are limited and cannot be committed
to establishing a competency-based approach.
• The organization’s need is for unskilled or semiskilled workers with
whom a competency-based approach is not that useful.
• Candidates’ competencies have already been documented or verified
through a comprehensive and systematic process, as is the case with
medical doctors, and only minimal additional competency assess-
ment must be completed in order to select a capable job candidate.
• Recruitment and selection activities must be completed within a
very limited period of time.
A competency-based approach to employee recruitment and selec-
tion is probably most appropriate in the following situations:
• The selected workers must complete work of strategic importance to
the organization.
• The organization needs to fill leadership and management positions.
 Competency-Based Employee Recruitment and Selection 111

• Decision makers will commit the resources needed to carry out the
competency-based recruitment and selection processes.
• It is necessary to fill “high stakes” jobs or specialized work roles for
individual contributors or team members in an intensely demand-
ing work environment.
There have been many research studies on competency-based
recruitment and selection.
In a study conducted by the American Compensation Association
published in 1996, researchers found that 88% of respondents use com-
petency-based interviews, which is the most frequently cited compe-
tency-based technique. The study also surveyed respondents on their
decision-making practices in the five major staffing categories: hiring
and selection, job placement, promotions, succession planning, and ter-
minations. Results in these areas were as follows: for job placement, 70%
used competency-based interviews and 59% used supervisor assess-
ments; for promotions, 68% used supervisor assessments and 49% used
competency-based interviews; for succession planning, 54% used super-
visor assessments and 32% used multirater assessments; for termina-
tion, 42% used supervisor assessments. Managers have received training
in conducting behavioral interviews, as indicated by 6 out of 10 respon-
dents, and 57% provide competency criteria to recruiters and placement
firms. The majority of respondents, however, do not believe that candi-
dates should be rejected because of poor alignment of competencies,
and only 38% reject candidates based on competency assessment as long
as they meet or exceed all other job or role criteria. Only one respondent
faced a legal challenge in any of the five major staffing categories (“The
Role of Competencies in an Integrated HR Strategy,” 1996).
The findings of another study indicated that 75% of respondent
organizations use job and role competencies in selection and promotion
(Cook & Bernthal, 1998).
In a study of nonprofit organizations, 29 respondents suggested
competency-based selection as a way of creating a higher quality appli-
cant pool. Recommendations based on the study included wider dis-
semination of information about job openings and hiring practices
based on measurable competencies linked to requirements for the job
rather than on colleague referrals (Knowlton, 2001).
112 Competency-Based Human Resource Management

Results from a 1999 survey of more than a thousand North

American companies indicated that lower turnover rates are experi-
enced by 36% of those respondents that use competency-based selection
and hiring practices. The survey also indicated that 43% of respondents
using competency-based selection experience higher levels of produc-
tivity (O’Daniell, 1999).
Findings in a survey conducted in by Schoonover, Schoonover,
Nemerov, and Ehly (2000) indicated that 53% of respondents consider
hiring as the area in which the application of competencies is “very
effective” or “effective,” and 38% find competency-based job descrip-
tions “very effective” or “effective.”

A Model for Competency-Based

Employee Recruitment and Selection
How does an organization go about implementing a competency-based
recruitment and selection system? The main difference between the tra-
ditional and the competency-based approach is largely one of emphasis.
The competency-driven system naturally is weighted toward competen-
cies that can be documented, discussed during formal interviews, and
demonstrated on the job.
The model portrayed in Figure 8 can be applied to implementing
competency-based recruitment and selection for an entire organization
or for only select portions of it. In an ideal world, we would be able to
implement the model organization wide, but finite resources often dic-
tate more limited use.

Implementing the Model

Steps 1 through 4 describe competency-based recruitment. Compe-
tency-based selection is explained in Steps 5 through 11.
Step 1: Identify HR and job recruitment needs
Every recruitment action should be an outcome of a larger, competency-
based HR planning process. Therefore, the first step of this model
requires the organization’s leaders to return to their HR system plans
and account for their recruitment need in strategic terms. As a result of
this inquiry, they should be able to answer the following kinds of ques-
 Competency-Based Employee Recruitment and Selection 113

Figure 8: Competency-Based Employee Recruitment and Selection

Step 1
Identify HR and job recruitment needs.

Step 2
Complete job or position documentation.

Step 3
Identify recruitment sources.

Step 4
Create recruitment materials and implement the recruitment process.

Step 5
Determine the selection criteria.

Step 6
Screen the applicants.

Step 7
Train the interviewers and conduct behavioral event
interviews with the leading candidates.

Step 8
Complete competency assessments, prepare the
selection recommendation list, and select the candidate.

Step 9
Verify the selected candidate’s qualifications.

Step 10
Negotiate a compensation and benefits package with the successful
candidate and extend an employment offer after the package has
been accepted, first by the organization and then by the candidate.

Step 11
Validate the selection.
114 Competency-Based Human Resource Management

tions. What outputs or results will the recruited employee produce? How
will those outputs or results contribute to the strategic success of the
organization? Could the organization continue to meet its strategic
business objectives without filling this job? When is the best time to
implement this job? Demonstration of what key competencies will
enable the successful candidate to produce the expected outputs or
results? What are the best sources of those competencies?
After decision makers have determined that embarking on the
recruitment process will serve the best interests of the organization, the
HR practitioner can proceed to the next stage of the recruitment effort.
Step 2: Complete job or position documentation
With recruitment activities commencing, the HR department begins
documenting the job and work to be completed in the forms of a job
description and a job specification. In doing so, HR practitioners must
keep in mind that competency-based job or position documentation
must embody the premise that competencies are the foundation for all
performance.
If job information has not yet been assembled, the HR practitioner
must complete the work, since the analyzed data will be part of the job
documentation. The following job analysis information must be re-
searched:
• Work outputs or results
• Work activities
• Work tasks
• Competencies and associated behavioral indicators
• Competency model
In addition, the functional manager for the job must identify any of
the following that are appropriate:
• Educational requirements or qualifications
• Work samples of successful outputs
• Experience with the same or related work, including possibly the
length of time spent performing the work
• License or certification requirements from government, academic,
professional, or other organizations
 Competency-Based Employee Recruitment and Selection 115

• Other requirements related to the employee’s ability and capability

to complete the work

Step 3: Identify recruitment sources

At this stage of the process, the HR practitioner, usually with suggestions
from the functional manager for the position, who is responsible for the
work to be performed, will identify sources for recruiting high-potential
candidates. In a competency-based environment, the recruitment pro-
cess requires a focus on competency sources or pools of recognized
effectiveness in the area of the recruitment. The HR specialist must work
with the manager and others in the functional area to identify tradi-
tional and nontraditional sources of talent so that information on the
position can be made available to them. It may be worth analyzing
sources of exemplary performers and targeting recruitment to historical
sources for the best talent.

Step 4: Create recruitment materials and

implement the recruitment process
The major objective in this step is to encourage only the most highly
qualified candidates (i.e., exemplary performers) to express their inter-
est in the job. Remember: Competencies and their availability in the
applicant pool drive this type of recruitment effort!
The content of recruitment materials is a critical element at this
stage of the process. It should communicate the values, vision, core com-
petencies, and industry status of the organization with the intent of
encouraging exemplary applicants to want to work for the organization
and thereby share its vision, values, and intentions. The expected work
outputs or results and general requirements and conditions of the job
should also be made very clear in recruitment materials. In addition, the
minimum and preferred educational, age, and other requirements (for
example, certifications) must be mentioned in recruitment materials.
The competencies needed for successful performance must be described
in plain language that can be understood by any person who can read at
the intermediate-school level.
Written applications should give specific information on what the
HR department needs from applicants in order to determine their via-
bility as job candidates. An organization that is serious about hiring for
competencies should be able to screen applicants on competency
116 Competency-Based Human Resource Management

requirements with a high degree of reliability using documentation the

applicants provide. This can be done in a straightforward manner by
instructing applicants to list each competency followed by a two- or
three-sentence description of its use in the same or a similar perfor-
mance context and how much time they spent using it. They should also
be directed to specifically document their competencies with education,
training, or long-term learning experiences. Although the application
received from a candidate in a competency-based recruitment process
might be considerably lengthier than a traditional application, it enables
more effective screening for the position.
Step 5: Determine the selection criteria
As they begin the selection part of the hiring process, HR practitioners
and their customers must determine the criteria to be used. They must
agree on the correct mixture of information, out of the volume of data
received from applicants, and weight each item so as to accurately assess
the candidates’ competency strengths and predict their likelihood of
success on the job.
What information should be used to establish the selection criteria?
Organizations use the following items to collect information from job
candidates:
• Job application form specifically designed to collect detailed com-
petency information as well as traditional information
• Reference statement from former organizational leaders and
competency assessments completed by persons with in-depth
knowledge
• Statements of work, academic, and life accomplishments
• Test data and their analyses with the use of instruments such as the
Sixteen Personality Factor™ Questionnaire (16PF®) assessment, Cali-
fornia Psychological Inventory™ (CPI™) assessment, Edwards Personal
Preference Schedule (EPPS), Holland Types, Jackson Vocational
Interest Survey (JVIS), Kuder Preference Record, and Strong Interest
Inventory® assessment.
• Work sample assessments
• Simulation interviews
• Documented work and life experience factors
 Competency-Based Employee Recruitment and Selection 117

• Certificates
• Licenses
• Ratings from peers, immediate supervisors, or direct reports,
including competency assessment data from a multirater compe-
tency assessment process
• Assessment center data, if available
Since every selection situation has its own unique set of compe-
tency requirements, it would not be appropriate for us to suggest a for-
mula or weighting method for general application. Decision makers
must specify the required versus the preferred competencies before
reviewing candidates’ qualifications. Next, a qualified HR practitioner
or other qualified professional should construct a one-to-one or one-
to-several correspondence between the job competency requirements
and the qualifications data submitted by the candidate as documenta-
tion for each of the competencies.
Step 6: Screen the applicants
Typically, the number of responses an employer receives for an advertised
position far exceeds the number of job openings. Consequently, only the
most promising among the pool of candidates will be selected for a formal
interview or otherwise continue to participate in the selection process.
Although screening will never be an entirely scientific procedure, it
certainly must be systematically completed. The process must give equal
weight to all candidates when competency profiles are assessed and the
first pool of finalists is chosen. The HR professional must have a clear
understanding of the minimum requirements for competency, experi-
ence, education, and other credentials and apply them equitably to each
profile. When there is doubt regarding a candidate’s qualifications, the
organization should err on the side of having too many candidates and
include the person in question in the pool.
A two-level screening process may be completed for candidates
whose qualifications are still unclear. Sometimes a simple telephone
call to the candidate will clarify the situation so that a decision can be
made.
When the paper screening is complete, the functional manager will
review the list of the most qualified candidates. The HR representative
might want to review some of the findings from the screening process in
118 Competency-Based Human Resource Management

order to obtain guidance on the customer’s preferences for formal inter-

views or other interventions.
Formal interviews with the leading candidates make up the next
stage in the screening process. With a competency-based interviewing
process, we suggest that only the top five candidates be included in the
first interview pool. Ideally, competency-based interviews should be
completed by an interview panel, and competency assessments by the
panel should follow completion of the interviews. Each candidate, all
members of the panel, and possibly a recorder must participate in both
the interviews and the assessment sessions. This presents quite a chal-
lenge in today’s business world, in which staff resources are stretched so
thin. If the process is to be completed virtually, the logistics become even
more labor-intensive. After the interviews and assessment sessions, the
panel must meet and reach agreement on the competency assessments
for each person interviewed. This requires more logistics. We don’t want
to discourage you from using these processes. It can be done if they are
well planned.
Step 7: Train the interviewers and conduct behavioral
event interviews with the leading candidates
What is wrong with traditional job interviewing questions and tech-
niques? The answer to this question could consume many pages in this
book, but we will keep our answer brief.
First, traditional interview questions such as “Tell me about your-
self ” tend to provide little or no information about the candidate’s qual-
ifications for the job. You might learn that this person really enjoys cook-
ing French food, but what does that have to do with the competencies
that are required to successfully teach Greek archaeology in a secondary
school in Yugoslavia? The connection is not an obvious one.
Second, traditional job interviews are not conducted systematically.
This leads frustrated candidates to charge that they did not have an ade-
quate opportunity to outline their qualifications for the position, that
inappropriate discussion items were raised, or that deliberate or system-
atic bias was introduced, thus compromising their candidacy.
When a systematic, planned, and disciplined competency-based
interview process has been used, all of these criticisms vanish. The inter-
view process focuses only on the work to be performed by the successful
 Competency-Based Employee Recruitment and Selection 119

applicant, the relationship of his or her experience to that work, and the
competencies presented by the candidate to be used in producing the
expected outputs or results. The process alone is sound, but it is made
even more so because interviewers are trained, were certified by their
trainers, and have practiced the use of the behavioral event interview
technique for selection purposes.4
L’Oreal, an international cosmetics firm, uses behavioral event inter-
views in its competency-based selection practices for hiring salespeople,
according to the Consortium for Research on Emotional Intelligence in
Organizations. The behavioral event interview used by L’Oreal was
developed by its consultant, with the goal of identifying key competen-
cies in successful sales. Those selected through the behavioral interview
method achieved $91,370 more in sales annually than did those selected
by the previously used method (Competency-Based Selection, 2002).
Since the details for training interviewers and using behavioral event
interviews for selection purposes are quite extensive and have been
explained elsewhere, we will not duplicate that information here.
Instead, we suggest that you review portions of Competence at Work that
focus on interviewing (Spencer & Spencer, 1993, pp. 114–155).
Before we proceed to the next step of our model, we offer the fol-
lowing suggestion. Because behavioral event interviews typically require
at least 1 to 2 hours for each candidate, we recommend that the HR cus-
tomer (the functional manager, for example) identify for interview
panel members the strategic competencies that must be present for
exemplary performance of the work. These strategic competencies
should be the ones explored during the interview process. With a con-
cise list, the panel might be able to concentrate on key competencies and
interview a larger number of candidates. Under all circumstances, we
strongly recommend identifying key items for all interviews.
Step 8: Complete competency assessments, prepare the
selection recommendation list, and select the candidate
After the interview panel has completed its competency assessments and
selection recommendations, a selection can be made.
Typically, although not always, the interview panel sends a report on
the candidates’ competency ratings to the decision maker. Panel members
usually complete further analyses of the competency strengths of the
120 Competency-Based Human Resource Management

candidates relative to work demands, and they will often call special sit-
uations to the attention of leaders in charge of selection. The report
must be objective, fair, and free of bias. The panel must never attempt to
subvert or undermine the selecting manager’s authority to recommend
or make a decision. More often than not, a decision maker who was not
a member of the interview panel will want to interview at least the lead-
ing candidate for the position and come to his or her own conclusions
on the candidate’s qualifications and fit in the work environment. The
manager might decide to interview additional candidates or even all the
candidates who were interviewed by the panel. This is his or her right
and it must be honored. HR practitioners might need to provide guid-
ance on the details of a competency-based approach to recruitment and
selection, and they should speak frankly about the professional aspects
of the processes and the outcomes to date.
In some situations, selection decisions must be supported by higher
management. Interview panel data on competency strengths can be
highly useful for making a final decision.

Step 9: Verify the selected candidate’s qualifications

Before an employment offer is made, it is essential to verify the preferred
candidate’s qualifications as they were presented in the application
materials and during the interview process. Organizations of all types
and sizes must complete thorough due diligence investigations in
human resource matters.
In some circumstances, an organization could put the lives or well-
being of others at risk by hiring an unqualified person. For example, a
medical doctor without a verified M.D. degree or a license to practice
medicine in the proper jurisdiction could cause injury and possibly
death to patients. The same cautions apply to other areas of expertise,
such as, for example, building engineering staff. Having less than a fully
skilled and licensed boiler engineer in charge of an office tower heating
system would be irresponsible. Never neglect due diligence responsibil-
ities, especially when making a selection decision.

Step 10: Negotiate a compensation and benefits package with the suc-
cessful candidate and extend an employment offer after the package
has been accepted, first by the organization and then by the candidate
 Competency-Based Employee Recruitment and Selection 121

This step proceeds as it typically would in a traditional hiring situation,

but one suggestion seems appropriate for a competency-based environ-
ment. Representatives of the organization who handle this step of the
process must remember that the organization is negotiating to purchase
a highly valuable commodity: human competence. This means that the
process and the candidate must be treated with a high degree of respect
and consideration. It is important also for the representatives to remem-
ber that many person-hours have been invested in the competency
investigations and the dividends on this investment must be captured
through a successful and reasonable outcome to the negotiations.
Step 11: Validate the selection
Now that the employee is on the job, one final question remains: Was
this a valid selection? If the use of a competency-based recruitment and
selection process resulted in an organizationally useful selection, then
we are satisfied that the approach is working. In this step, we are not pre-
senting a method of determining whether the best selection was made,
nor are we attempting to determine the future use of the process based
solely on the outcomes of one selection. Research needed to answer
those questions must be more rigorously designed and controlled.
The most direct method of validating the selection is to examine the
new employee’s performance at key points during his or her employ-
ment history. Always keep in mind when reviewing performance that
persons are employed by organizations to produce outputs or results
that are valued by the organization, its customers or clients, or both. The
new employee must have been on the job and had sufficient time to
begin producing the expected outputs or results. This consideration
affects the timing and circumstances of data collection.
In our experience, an individual must be on the job and fully
immersed in the work culture and external environment of the organi-
zation for 12 to 18 months before useful data can be collected. Except for
low-skilled or unskilled jobs, a 6-month probationary period is not suf-
ficient to allow the employee to become fully integrated with and pro-
ductive in an organization.
Others might disagree with this position. They might argue that
their organizations have highly structured and competency-based per-
formance management systems in place that support new-hire perfor-
122 Competency-Based Human Resource Management

mance at every step during the first 6 months of employment and that
reliable and valid conclusions can indeed be drawn after only 6 months
on the job. We accept that possibility. However, our experience with a
wide variety of organizations indicates that our caution is reasonable.
Allow time and provide performance support before making decisions
on performance.
What kind of data should an investigator collect and analyze in
order to validate a selection decision? Answering the following questions
should provide much of the needed insight:
• What measurable outputs or results did the employee produce, and
at what level of quality? Were they produced in a timely or agreed-
upon manner? Was the customer or client satisfied with the outputs
or results?
• What were the outcomes of a competency assessment (with data
provided by, at a minimum, the new-hire’s immediate manager) for
the competencies that were used to make the selection decision?
How do the results of the on-the-job assessment compare with
those of the pre-hire interview panel members?
• What are the new-hire’s thoughts, feelings, and actions relative to his
or her work performance, the organization, its customers, and his or
her fit with those entities?
In an ideal world, the answers to these three classes of questions
would reveal a consistently high fit between the employee and the orga-
nization. When that does not occur, as may be the case, then the follow-
ing additional questions might be helpful:
• Did we hire a competent person (as defined by the selection criteria)
but then place performance roadblocks in the way that impeded the
new hire’s producing the expected outputs or results in a timely
manner and at the expected level of quality?
• Did we provide adequate performance support for this new employee?
• Have there been changes in the organization or its clients or cus-
tomers since the selection decision was made, and, if so, has the sit-
uation affected the employee’s performance in an adverse manner?
 Competency-Based Employee Recruitment and Selection 123

• In what ways do the organizational and work unit cultures affect the
employee’s thoughts, feelings, and actions? What are the dimensions
of these impacts? If there is a mismatch, how could it have been
averted or possibly detected during the interview processes?
These questions may be sufficient, depending on the work situation.
A one-time assessment is probably not entirely enough to determine the
validity of the selection decision, but at the least, an initial investigation
should be made.

Summary
This chapter examined competency-based recruitment and selection,
two closely aligned processes. A competency-based approach differs
more in focus than in content from its traditional counterpart and
demands more resources from the organization. For a competency-
based approach, HR practitioners establish competency models by job
category, department, work role, or occupation and attempt to match
individual competencies to those models. In contrast, the traditional
approach relies on implicit links between the work as defined in job
descriptions and the qualifications of an applicant to carry it out.
Competency-based recruitment and selection are not always appropri-
ate for all positions and present challenges as well as offer significant
advantages.5