Competencies are the personal characteristics that can contribute to excellent rather than average performance in a particular position. It is soft skills and personality traits like communication, enthusiasm, teamwork, decision-making, and resilience, all of which are difficult to identify or measure.
Competency-based interviews, also known as structured or behavioral interviews, are used to uncover these transferable skills in candidates and how their abilities, behaviors, and mindsets can affect their effectiveness in the position. The interview contains questions specifically directed at a particular skill or competency relevant to the position. The candidate is asked to explain how they have used or demonstrated that specific competence in the past.
Effectiveness of Competency-based interview are listed below.
1. Provides more objectivity in the hiring process:
A competency-based interview emphasizes on situational or behavioral questions. Suppose you are trying to assess on the candidate’s leadership skills. As recruiting personnel, you should ask questions like, "Tell me about a situation where you were leading a project at your previous company?" "What tools you used to manage to lead the team at that time?" "How did you do that?" "If a similar situation arises, how can we achieve the same this time, given that our equipment and our machines are different from that company?" "Tell me of a time you led a sports team in college or university?"
Here, in such cases, the competency-based interview is different from traditional interviews. The competency-based interview tries to understand how each candidate can add value to the company in the future.
2. Create clarity and eliminate personal biases in hiring decisions:
The overall selection process focuses on the effort to create clarity in the selection and hiring procedures.
A competency-based approach ignores the gut feelings of a party's goals. The candidate cannot suppress his/her behavioral characteristics. A single person on the interview panel cannot overwhelm the hiring decision, as the selection process is governed by objective analysis.