Not only do other team members get upset about losing their colleagues but they’re also overworked as often, they end up taking over some of their responsibilities. High turnover usually has a bad impact on employee morale. Let’s return to the above-mentioned scenario. According to the Employee Benefits News, it costs employers 33% of a worker’s salary to hire a replacement for them, so there really is a lot at stake here. Both of which will most probably decide to leave your organization shortly after being hired. If you fail to incorporate competency based assessment in your recruitment, you might end up with under qualified or overqualified candidates. Those who possess the technical skills to perform the job to a certain standard. The main aim of conducting competency assessment is to make sure that you hire the most suitable candidates. Giving up on competency assessment can have serious business consequences. Bear in mind that in IT, the costs of hiring a single employee can reach an astounding $32,000! The risks of ignoring competency tests Last, but not least, if you can fill a skills gap with your current employees, you’ll be saving on recruitment. This will help you establish an attractive employer brand. With a clear understanding of your current team’s skills, you can also start planning career paths for new employees. This will boost motivation, with employees feeling a sense of purpose in the organization. If you know what skills your employees possess, you can design career paths for them. Another advantage? If you conduct competence tests continuously, you’ll be able to evaluate whether the training has, in fact, enhanced your employees’ skills. With competency assessments, you can not only save your employees’ time but also direct them to a better-tailored training that fits their skillset. The problem being that not all team members need it, as they might already be knowledgeable about the subject. Creating better training plansĪ common mistake that companies lacking competency assessments make is sending the entire team to the same training. From there, you can make a conscious decision whether you want this person to work on that skill or take another course of action. Knowing this will keep you from filling a senior role with someone who lacks the stamina to run a team. However, their communication skills might be below the required standard. For instance, one of your employees might have what it takes to become a team leader as far as hard skills are concerned. Identifying skills gapsĬompetency tests will often reveal that your team lacks not just hard skills, but also soft skills like communication and a team attitude. This way, you’ll have hard data on how far from reaching this business objective you are so you can design a complete plan to get there. You can conduct a skills audit to check how proficient each employee is in the technology. Let’s assume you’re a software consultancy and your objective is to become the #1 provider of Python development services on Capterra within the next 2 years. Benefits of running competency tests Creating a skills inventory Let us shed light on the benefits of running competence tests, and the risks associated with the lack thereof. Why are competency based assessments important?Ĭompetency based assessments are an extremely powerful method used by HR to evaluate strengths and weaknesses on a per-employee and team level. Based on competency assessments, businesses can decide whether they need to recruit new team members or are better off developing skills internally by providing employees with training.
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