Competency-based hiring could reduce ‘paper ceiling’ for leadership roles
A Boston Consulting Group report — Competence over Credentials: The Rise of Skills-Based Hiring — says that focus on traditional hiring parameters create a “paper ceiling” (professional barriers for those without a formal degree) and does not give much value to skills. With the advent of more fast-paced technology, the report argues, skills trumps degrees in many cases; it also has additional benefits such as creating a more diverse workforce and ensuring higher retention rate.
What does this mean for hiring for leadership roles?
Competency mapping is a crucial process for organisations. But it becomes especially important when filling leadership positions, says Radhika Vivek, Senior Partner, TRANSEARCH India. These roles significantly impact a company's success, and a poor hire can have detrimental consequences.
“Competency-based hiring is a game changer in today's world,” says Nishant Chandra, Co-founder, Newton School. “A LinkedIn study shows that companies could increase and even diversify their candidate pool by an impressive 11 times by implementing competency-based hiring practices.”
Competency-based hiring can help ensure that selected candidates possess leadership attributes like high emotional intelligence, strategic thinking and long-term orientation, decision-making ability and adaptability. This approach can lead to a better hiring fit, reduction in time to full performance and reduced turnover, says Sonal Arora, Country Manager, GI Group Holding.
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