With findings candidates with the right skills a challenge for 67% of employers, there’s never been a better time to learn how to conduct competency-based interviews. This structured interview style assesses the skills and abilities a candidate can bring to the table, helping you to access a wider pool of talent, hire more objectively, and find the best person for the job. Competency-based interview questions are a crucial tool in any skills-based hiring strategy. These questions are designed to assess candidates’ abilities by using real examples, focusing on specific skills rather than general experience. By exploring the abilities and practical know-how a candidate can bring to the table, employers can get a better idea of whether they have the required skills to be successful in a role. In this article, we’ll go through what competency-based interviewing is and how you can implement it effectively.

What is a competency-based interview?

Competency-based interviews focus on gauging whether a candidate has the skills or competencies necessary to succeed in a role. In order to achieve this, competency-based interview questions ask the candidates to recount specific situations where they have effectively demonstrated the required skill or competency in the past.

The benefits of competency-based interviews

Competency-based interviews provide a structured and insightful approach to evaluating candidates, assisting employers in making more informed hiring decisions. In contrast to traditional interviews, which often hinge on subjective impressions or instincts, a competency-based approach assess candidates on proven skills and behaviours. With that in mind, let’s delve into some of the key benefits you could reap by utilising competency-based interviewing

Access a wider talent pool

By concentrating on competencies rather than solely on experience or qualifications, you can identify high-potential candidates who might be overlooked in a conventional hiring process. This approach is particularly valuable when recruiting for positions where transferable skills are more important than specific industry experience. By prioritising demonstrable abilities, you can attract candidates from diverse backgrounds who possess the right skills, even if their career paths do not follow the traditional route.

Make objective decisions

Traditional interviews often leave room for personal bias, where interviewers or hiring managers may prefer candidates based on their likability or shared experiences instead of actual capability. Competency-based interviews, however, provide a structured evaluation framework, ensuring that candidates are assessed against the same criteria. This simplification allows for fair comparisons between applicants, facilitating the selection of the best candidate for the role based on evidence, not intuition.

Reduce bias

Bias, whether conscious or unconscious, can negatively affect hiring decisions. Employers may unintentionally favour candidates who share similarities with them in appearance, speech, or thought, leading to a lack of diversity within the workplace.  Competency-based interviews help mitigate this issue by concentrating on objective performance indicators rather than personal backgrounds or demographic characteristics. This fosters a more inclusive recruitment process and cultivates a stronger, more diverse workforce.

Lower the risk of costly bad hires

A poor hiring decision can be a costly error, both financially and in terms of productivity lost. Candidates selected based on personality fit alone, rather than proven competencies, may struggle to meet job expectations. Competency-based interviews help reduce this risk by requiring candidates to demonstrate how they have successfully applied essential skills in real-world situations. This ensures they possess the capabilities needed to excel in the role, decreasing the likelihood of hiring errors.

Boost employee retention

Employees who are well-suited to their roles are more likely to thrive and remain with your organisation for the long term. When hiring decisions are grounded in actual competencies rather than superficial considerations, employees are positioned for success from day one. This results in increased job satisfaction, enhanced performance, and reduced turnover, ultimately saving both time and money on repeated recruitment efforts.

Strengthen employer branding

A fair and transparent interview process leaves a lasting impression on candidates, regardless of whether they secure the job. When applicants feel that they have been assessed based on their skills and given a fair opportunity, they are more likely to view your organisation favourably. This enhances your employer brand, helping to attract top talent and cultivate a reputation as an organisation that values merit and professionalism.

How to conduct a competency-based interview

Competency-based interviews require careful planning to ensure they effectively assess candidates’ skills and behaviours. Here are some of the key steps you can implement to conduct successful interviews using this approach.

1. Identify key competencies for the role

Before you can craft effective interview questions, you need to define the essential competencies for the role. These will vary depending on the position and your organisation’s values, but typically include both technical skills and core behavioural attributes. To establish a competency framework, follow these steps:

• Review the job description, noting key responsibilities, required knowledge, and essential skills.
• Consult current employees and hiring managers to identify the competencies critical for success in the role.
• Create a shortlist of the skills, behaviours, and knowledge areas that matter most.

For example, if you are hiring a Content and Communications Executive, relevant competencies might include:

• Organisation: Managing multiple projects and deadlines effectively.
• Copywriting: Crafting engaging, high-quality content tailored to different audiences.
• Creativity: Generating innovative ideas and presenting them persuasively.
• Collaboration: Working effectively with colleagues and stakeholders towards shared goals.

Once you have established these key competencies, you can structure your interview to assess them in a meaningful way.

2. Prepare questions

With your competency list in place, you can now develop targeted questions designed to reveal whether candidates possess these attributes. The best competency-based questions prompt candidates to provide real-world examples of their skills in action. For example, for the competencies outlined above, you might ask:

• Organisation: “Tell us about a time when you had to manage multiple deadlines. How did you ensure everything was completed on time?”
• Copywriting: “Describe an experience where you had to tailor content for different audiences or platforms. How did you approach it?”
• Creativity: “Can you share an example of a new idea you introduced at work? How did you gain support for it?”
• Collaboration: “Give an example of a time when you worked as part of a team to achieve a goal. What was your contribution?”

Many candidates will be familiar with the STAR technique (Situation, Task, Action, Result) for structuring their responses. If a candidate goes off-topic or omits key details, follow-up questions can help bring them back on track:

• “Could you walk us through the specific steps you took?”
• “What challenges did you face, and how did you overcome them?”
• “What was the outcome, and what did you learn from the experience?”

These follow-up prompts ensure you gather enough detail to accurately assess a candidate’s competency.

3. Prepare the candidate

Interviews can be nerve-wracking, and a stressed candidate may not perform at their best. Giving candidates advance notice that the interview will follow a competency-based format allows them to prepare relevant examples. You may also wish to provide an overview of the interview structure, such as: Encourage candidates to draw on examples from volunteer work, education, or other relevant experiences, not just previous jobs, so they can present the strongest possible evidence of their abilities.

4. Decide on a scoring system

A structured scoring system ensures fairness and consistency when assessing candidates. Consider using:

• A numerical scale (e.g., 1-5) to rate responses based on relevance and quality.
• A checklist of key criteria to see if candidates meet essential competencies.

By standardising your assessment, you can compare candidates objectively and make evidence-based hiring decisions.

5. Structure the interview

Consistency is key to maintaining objectivity. Ask all candidates the same core questions and evaluate them against the same criteria. If a candidate struggles to answer a question, allow them time to think or offer the option to return to it later. This ensures you gather the best possible evidence of their capabilities.

6. Take detailed notes

Recording candidates’ responses during the interview is essential for an objective evaluation. It also helps when providing constructive feedback, whether a candidate is successful or not. A best practice approach is to have one interviewer lead the conversation while another takes notes. This ensures the candidate receives full attention while responses are captured accurately for later review.