(1)A Study of the Competency-based Recruitment System for Expanding Youth Employment

A Study of the Competency-based Recruitment System for Expanding Youth Employment. Researcher-in-charge: Joohee Chang <The study provides an analysis of the current state of the competency-based hiring system and of NCS (National Competency Standards) based recruitment using data collected by a survey of corporate HR managers and case studies of business establishments. It also offers an examination of stakeholder awareness of the changes occurring in employment via focus group interviews with HR managers and individuals preparing for employment, as well as through indepth interviews with staff at university employment centers. Based on these findings, policy suggestions surrounding competency-based employment are divided into introductory and dissemination phases.>. I. Background and Purpose. ￭ Although excess investment in private tutoring for employment continues, along with the deepening trend of prolonged youth unemployment, the practice of hiring based on paper qualifications is beginning to reveal its limitations. • Until recently, the recruitment process has focused on capabilities irrelevance to actual job performance. As a result of paper-qualification-centered hiring, young job-seekers have struggled to secure employment befitting their aptitudes, while companies have failed to employ talent equipped with the necessary competencies. ￭ Now, companies are moving toward placing a greater importance on competency in their recruitment process. • They are starting to emphasize the verification of job competency by enhancing descriptions of job responsibilities, placing weight on cover letters which show candidate interests and competencies on jobs for which they apply, expanding internship programs, and further fortifying in-depth interviews. ￭ The Park Geun-hye government pushed ahead with the “NCS-based and competencycentered recruitment” at 130 public institutions in 2015. • With the purpose of realizing a meritocracy, the policy aims to expand NCS-based recruitment to all public institutions by 2017. Competency-based hiring, which assists in employing qualified people for jobs using sophisticated assessment tools based on job-related information, ensures equal opportunity while promoting youth employment..

￭ This study provides an examination of the current state of competency-based recruitment to make suggestion for its dissemination. • The Objectives of this study are to: 1) identify the current state of competency-based hiring and its problems and requirements; 2) identify measures for enterprises, young jobseekers, and universities for responding to the shift toward competency-based recruitment; and 3) provide policy suggestions for the implementation and development of the merit-based hiring system.. II. Major Findings. 1. The Current State of Corporate Hiring Based on Competency and a Case Analysis ￭ The current state of competency-based recruitment • A total of 449 respondents answered this survey, most of whom were HR managers with three or more months of HR work experience at public institutions and private enterprises. • When posting job opening, companies—to some extent—provide information on the specific jobs and major tasks, but only a small portion of companies provide information on required competencies, and departments and majors related to the job or job group. • Although structured interviews are recognized as the best predictor for job performance, only 15.8% of responding companies indicated that they utilize such a method during recruitment screening. • Furthermore, a mere 25% of respondents indicated the use of selection tools during competency evaluations, and most of those being used only during document screening or the aptitude test. • A majority of companies surveyed (58.6) replied that they had never heard of the NCS. • Among corporate respondents, twenty-three respondents indicated a positive experience of recruiting based on the NCS, with many pointing out the fairness of the evaluation, which is not dependent on educational attainment and prejudice. ￭ A case study on the competency-based hiring at five companies. • Specific cases analyzed for this study of NCS-based hiring include S&D Engineering (SME), Korea Electric Power Corporation, Korea Airports Corporation, and Korea National Park Service (public companies) and of competency-based recruitment at Lotte Group..

2. Analysis on the Awareness of and Demand for Competency-based Recruitment ￭ The results of focus group interviews with HR managers • Although companies recognize the necessity of using diversified and job-relevant assessment tools, they are often unable to translate this understanding into action due to cost constraints and the insufficient competency of those in charge. • Respondents from private enterprises indicated that there are prerequisites that ensure the utilization of a competency-based hiring system: a job-based assessment and compensation system; and a shift of employment practices from open recruitment to employment on demand. • NCS-based hiring requires additional preparation in that it is necessary to develop a recruitment system catered to each organization, train HR staff, create a consensus among employees, and improve the quality of consultancy firms. • The application of the system also requires limiting frequent job rotation and considering business specific characteristics, including organizational size and attributes, and the job being offered. Interviewees have expressed hope that, following the prepartory period, an environment allowing NCS-based recruitment will be created within a reasonable timeframe. ￭ The results of focus group interviews with young jobseekers • Respondents admitted a feeling of burden concerning the sudden introduction of the NCS-based recruitment system and expressed confusion over the too broad and rather abstract nature of the system. • They also believed that, despite the new system, paper qualifications would remain important. In addition, they shared the belief that it would be more costly to accumulate the work experience required by the new recruitment system. • To alleviate these issues, they requested university education catered to work in the field, an expansion of school-industry partnership programs, and more knowledgeable and better equipped university employment centers. ￭ The results of in-depth interviews with staff members for university employment support centers • Those in charge of employment services at universities learned about the NCS and its recruitment system through briefing sessions for staff of university employment centers. They were able to gain further information through access to the NCS-based recruitment website..

• These staff members recommended a reorganization of website content so that students might more easily understand the system. They also suggested the provision of a separate set of materials and cases for freshmen and sophomores so that they might use them for advance preparation. • The lack of experts in the NCS and the NCS-based hiring system is the primary hurdle preventing the operation of camp or special programs on NCS-based recruitment.. III. Policy Suggestions. ￭ The introduction phase of the competency-based recruitment system • Provide a clear direction for policies related to the systme to hire based on the NCS • Establishing the directionality of the system—from a broader and long-term perspective regarding how to nurture, evaluate, and utilize talent to transform Korean society into a meritocracy—is of the utmost urgency. This task requires the cooperation of relevant government ministries as well as consideration for the necessary changes in university education, along with the overall changes, such as new qualifications, that will be needed in the labor market. • Pass legal revision to ban discrimination in the recruitment process • Although Article 7 of the current Framework Act on Employment Policy bans discrimination in recruitment, this is a rather declaratory provision that stops short of obliging employers of any duties. The Ministry of Employment and Labor distributed the guideline on open standard resume and standard interviews in 2007 in an attempt to disseminate a recruitment practice prioritizing experience and competency and prevent discrimination on grounds such as physical appearance, gender or religion. These guidelines, however, have not been widely implemented. • A revision bill was drafted to complement the declaratory phase of the employment policy act, but despite the urgent need for this revision, it is still pending at the National Assembly. • Development of the materials and guidelines related to NCS-based hiring • Materials related to the NCS-based recruitment system are needed not only for university seniors who will soon graduate, but also for freshmen and sophomores. Guidelines specific to corporate size, industry, and job area should also be developed, and a qualitative (rather than quantitative) evaluation focused on difficulties and areas for improvement of the system should be created. ￭ The dissemination phase.

• Verify efficacy through continuous research and evaluation • In order to successfully disseminate a system of competency-based hiring, it will be vital to set benchmarks and create a social consensus by highlighting successful cases, thus verifying the effectiveness of that system. Unless corporate practice, culture, and public awareness is changed, the new recruitment practice is unlikely to take root. Promotion of education regarding the new system will be essential in preventing private employment tutoring and ensuring reasonable recruitment. • Continuously support and monitor to promote NCS-based hiring • Financial incentives and expanded consulting service opportunities will also be necessary if the promotion of NCS-based recruitment is to be successful. Methods should be devised to connect this new system with existing talent recruitment and nurturing systems, such as the “talent-nurturing SEMs designation system” and “public sector Best-HRD organization certification system.”.