Design better products

The Transformative power of skill-based assessment

August 7, 2023
8 minutes
Ferenc Boroczky
Founder and CEO of anet360

In today's fast-paced and competitive world, organizations face a daunting challenge when it comes to finding the right talent. While candidates may boast impressive qualifications and academic achievements, the reality often reveals a stark contrast between their credentials and practical proficiency. This disconnect poses a significant problem for employers seeking skilled individuals who can hit the ground running and drive tangible results.

Conversely, individuals who have completed their education or professional training may find themselves ill-equipped with the skills demanded by real-world challenges. Despite their qualifications, many individuals struggle to bridge the gap between theory and application, hindering their professional growth and success.

This mutual challenge highlights the pressing need for a transformative solution that empowers both individuals and organizations.

During my research for this article, I came across a book - "Designing for Behavioral Change" written by Stephen Wendel. In this book, Stephen Wendel provides frameworks and actionable steps on how to design products to intentionally change behaviour in the best interest of the users. While investigating this topic, I discovered a company, The Behavioural Insights Team, and read their report on skills-based assessment. Now, I am intrigued to explore the concept of skill-based assessment further and understand its potential applications in various domains.

So, what exactly is skill-based assessment?

Skill-based assessments require candidates to show how they would handle important tasks or problems actually encountered on the job.

These tasks are commonly used in educational settings, job recruitment, and professional development to measure a person's ability to apply their knowledge effectively in practical situations. The aim is to give candidates an opportunity to demonstrate their skills rather than just talk about them.

Now, let's understand why skill-based assessment is important.

For professionals and companies, skill-based assessment plays a crucial role in objectively evaluating an individual's practical abilities, guiding professional development, making informed hiring decisions, and ensuring that professionals meet industry standards. These assessments contribute to personal growth, better job performance, and the overall success of organizations.

Embracing skill-based assessment unleashes a myriad of benefits, not only for professionals but also for companies. Let's explore this transformative power from both perspectives.

For professionals:
  • Validate skills: Skill-based assessments provide tangible evidence of expertise, making professionals more appealing to potential employers.
  • Discover growth opportunities: Gaining valuable insights into strengths and weaknesses allows individuals to focus on areas of development, bolstering overall proficiency.
  • Embrace lifelong learning: Skill assessments ignite a thirst for continuous improvement, inspiring professionals to seize every chance for skill enhancement.
  • Earn credibility: In competence-critical fields, skill-based assessments boost credibility, building trust with stakeholders, and clients.
  • Meet industry standards: Completing skill-based assessments proves competency, opening doors to practice in regulated professions.
For employers:
  • Assess perfect fit: Skill-based assessments transcend resumes, offering insights into candidates' true capabilities and suitability for the job.
  • Unearth top talent: Identifying high-performing candidates allows employers to welcome star performers who drive immediate impact.
  • Tailor development: Skill assessments reveal workforce skill gaps, guiding the design of targeted training programs for peak performance.
  • Enhance workforce excellence: Informed decisions on promotions and salary adjustments raise overall workforce performance to new heights.
  • Embrace innovation: Staying competitive demands constant evolution. Skill-based assessments ensure teams remain adept at navigating technological advancements.

The transformative landscape of Industry 4.0 highlights the demand for highly educated and rightly skilled employees, critical not just for success, but in some cases, for survival. In this era of technological revolution and ever-evolving markets, skill-based assessment stands as the key to unlocking the full potential of individuals and organizations alike.

As the world evolves, so must we. Skill-based assessment can be the catalyst that propels us to new heights of achievement, shaping a future defined by excellence, resilience, and unwavering success.

https://www.oreilly.com/library/view/designing-for-behavior/9781492056027/; https://www.bi.team/

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Ferenc Boroczky
Founder and CEO of anet360
With more than 15 years in design and technology focused on people, I've dedicated myself to growing a business that makes a real difference. I'm the Founder and CEO of Another Set of Eyes (anet), a company my wife and I built from scratch. We've come a long way without financial backing from investors, proving our resilience and innovation and developing a high-quality, yet user-friendly software solution. Our mission is to change how organizations gather and use important information, share insights, and train their teams.

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