The recruitment industry dilemma
You may be surprised to learn that the recruitment industry and the interactions between employers, candidates, and recruitment agencies are burdened with the classical problem of asymmetric information, which is the situation when one party has more or better information than the other but does not share that information. This problem arises when prospective employees applying for a position do not share a) enough information with employers or b) do not share the right information that will help make a hiring decision. Conversely, the same is true when prospective employers do not provide adequate information about their company, the role and/or what is required for success. One workaround has been the proliferation of tools and techniques such as interviewing methodologies, candidate testing, reference checking and more to mitigate the risk of a bad hire and/or a bad job.
"bad hires had cost the company well over $100 million." Zappos CEO
Note this compelling statistic; according to the U.S. Department of Labor, the price of a bad hire is at least 30 percent of the employee's first-year earnings. While no company can afford to waste money according to this formula, for a smaller company or a start up, a five-figure investment in the wrong person is a threat to the business. Astonishingly, Zappos CEO Tony Hsieh once estimated bad hires had cost the company "well over $100 million."
For prospective employees, misalignment in a new job caused by inadequately communicating their career goals or a lack of a thorough understanding of the company culture can lead to taking the wrong job. The career impact of this, is measurable by a potential termination, a gap in your resume, poor references in your next job search and loss of income.
Towards creating a win-win solution to this dilemma?
Some time ago, I began to ask the question, what is the ideal scenario for the employee and the employer, one that creates a win-win for both? The answer I most commonly received was this:
For the employer, it is when they find the best candidate who fits the organizational culture and has the necessary competencies for success in the role.For job seekers, it is when they find the best company where they can use their strengths and prosper in a culture that will help them thrive.
To create this ideal scenario one must look at solving the asymmetric information dilemma by introducing more transparency in the recruitment process. This must take place during the early stages of the process allowing companies to find the best candidate that fits their requirements and, at the same time, allow the candidate to self-select (in or out) before approaching the prospective employer. This scenario creates more efficiency in the recruiting process as well as an increase in the likelihood of a good hire.
I remember during my graduate studies in Minnesota, the professor advised that employers should not introduce psychometric testing until later in the recruitment process in order to be more cost-effective. This statement was made under the assumption that the employer was shouldering all the recruitment costs. On the contrary, more and more candidates are making significant investments to prepare for and/or find the ideal job. In fact, the average cost of a professionally written resume ranges from about $80-$349. Many candidates gladly pay for this service in the hopes that they are putting the best, polished view of their credentials out into the market. The problem is, there is no certification process validating one’s ability to write resumes that are effective. As a result, these resumes often miss the mark and provide limited and often irrelevant information to employers not helping them make a faster and effective hiring decision.
After a lot of research and expertise in the field, I created the Competency Resume™(Provisional Patent Registered) to mitigate the problem of asymmetric information and to create a more efficient and effective process for both stakeholders, the candidate and the employer.
Introducing the Competency Resume™
The Competency Resume™ is an enhanced tool that not only includes the traditional data of a resume such as education, certifications and experience, but also include verifiable data around the candidate’s top competencies and psychological preferences. This data comes from valid and reliable psychometric assessments that are used to identify the top psychological preferences and the behaviors associated with it, which in turn identifies the candidates’ top competencies. Competencies are defined as observable knowledge, skills, motivations or traits defined in terms of the behaviors needed for successful job performance. Companies nowadays use the modern competency-based Human Resources approach, whereby, they center all their talent decisions (recruitment, development and retention) on competencies that are critical for success in the role and in the company. Many companies nowadays have a framework that outlines the specific behavioral competencies needed for success in the role and in the organization. Based on that trend, the Competency Resume is the ideal tool for job search nowadays because it addresses employers’ current practices and needs.
The Competency Resume™ is based on the following four pillars:
The modern competency based HR approach which allows companies to see resumes in a language they can understand and link to quantifiable job requirements and in turn be able to find the best-fit employee;
The strength based approach where people target jobs that unleashes their full potential because it allows them to use their top behaviors and psychological preferences.
The full transparency around strengths and preferences allowing candidates to self-select (in or out) before applying to the job, in the same time, allows employers to find their best-fit candidate using the competencies needed for success.
The validation of competencies and preferences using valid and and reliable psychometric assessments allowing employers to be efficient in making a hiring decision.
The Competency Resume™ will be the new standard for resumes going forward.
Setting a new standard for the future of Resumes
In summary, the Competency Resume™ allows candidates to share their top competencies ahead of time, enabling companies to source the best-fit candidate in a more efficient and effective way. This approach leads to a faster time-to-fill for the open position. Additionally, when the candidate clearly understands his/her top competencies and preferences, they have increased self-awareness and are able to make wiser job decisions.
I believe that the Competency Resume™ will become the new standard for resumes and it is now time to transform the antique resume and into a reliable and valid Competency Resume™ that adds significant value to both employees and employers.