Employee Skills Assessment: How to Assess Employee Skills?

Employee Skills Assessment is a vital process for organisations aiming to build a competent, high-performing workforce. By evaluating the abilities and strengths of employees, companies can better align talent with roles, boost productivity, and identify opportunities for growth and development. A well-structured Employee Skills Assessment enables management and helps employees stay competitive in a rapidly evolving work environment.

In addition to aiding in personal development, Employee Skills Assessment plays a critical role in achieving business objectives. Through consistent evaluations, companies gain valuable insights into their workforce’s capabilities, promoting a culture of continuous improvement. 

With a clear understanding of skills within the organisation, leaders can make informed decisions about promotions, restructuring, and strategic planning.

Table of Content 

1) What is an Employee Skills Assessment

2) Importance of Employee Skills Assessment

3) The Employee Skill Assessment Process

4) Assessing Employee Skills 

5) How to use Employee Skills Assessment Results to Improve Performance: 8 Best Ways 

6) Conclusion

What is an Employee Skills Assessment? 

An Employee Skills Assessment is a test or series of tests that companies use to evaluate employees’ capabilities in a specific role. These assessments are valuable for internal recruitment and identifying organisational skills gaps.

By testing all candidates with the same neutral measure, Employee Skill Assessments reduce the risk of a mis-hire. This method eliminates bias and objectively identifies the most skilled candidates. Skills tests are beneficial for both internal and external hiring as they prevent personal bias from influencing the results.

For instance, without skills-based screening, a hiring manager might favour an internal candidate they know over a more skilled external candidate. A study found that 48% of HR professionals admit to bias in hiring decisions.

Employee assessments can be conducted online or in person, such as through practical tests. However, most tools for Employee Skills Assessment are online tests because they are easier, quicker, and more cost-effective to set up and administer.

 

 

Importance of Employee Skills Assessment 

Employee Skills Assessments are a crucial component of any skills strategy, offering numerous advantages for both employers and employees. When executed effectively, these assessments provide valuable insights into individual strengths and areas for improvement. Here are some key importance points:

a) Learning and Development Programs: Skills assessments help guide employee learning by first establishing their initial skill levels. Subsequent assessments track progress and learning advancements.

Modern learning experience platforms can automate skills assessments, evaluating employees throughout their training. These platforms can then recommend further learning opportunities or adjust the material in real time.

b) Employee Engagement and Retention: Employees are more likely to stay with organisations that prioritise skill development and have effective development programs. Accurate skills evaluations ensure employees have the best opportunities to pursue their career goals and professional development.

c) Candidate Evaluation: Objective, accessible, and role-specific skills tests assist recruitment leaders in evaluating candidates. These tests provide insights into candidates’ skill sets and offer an objective method for ranking them against their peers.

d) Succession Planning: Regular skills assessments are vital for successful succession planning. They identify upskilling or reskilling needs and help pinpoint high performers and employees with high potential, guiding succession planning efforts.

e) Performance Reviews: A skills-focused approach to performance reviews helps employees understand how their skill levels impact their work. Skills assessments can also lead to more productive development conversations, allowing managers to highlight strengths and capabilities and encouraging employees to envision their potential. 

This approach moves performance reviews beyond merely evaluating past performance.

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The Employee Skill Assessment Process 

In the quest for a more agile and productive workforce, assessing Employee Skills is indispensable. Here are the critical steps involved in evaluating and enhancing the skills of your workforce: 

 Identify Key Skills  

To determine which skills to evaluate, start by examining the job requirements and the tasks and responsibilities employees are expected to handle. Employee Skills Assessments can cover various types of skills, such as:

a) Technical Skills: These are specific to the job and necessary for performing particular tasks or operating certain equipment. For instance, programming for software developers or welding for metalworkers. These skills are often assessed through written exams or practical tests.

b) Soft Skills: These are interpersonal skills crucial for effective communication, teamwork, and problem-solving. Examples include communication, leadership, and conflict resolution. Employers usually evaluate these skills by observing the employee’s behaviour over time.

c) Job-specific Knowledge: This refers to specialised knowledge about particular products, services, or processes, typically gained through education, training, and experience in a specific field or industry. These skills vary depending on the job or industry.

Choosing Assessment Methods 

There are various methods for assessing skills, each with its own strengths and weaknesses:

a) Self-assessment: Employees evaluate their own skills and abilities through questionnaires that highlight their strengths, weaknesses, interests, and performance. While it can be biased, it promotes self-reflection and can lead to less intimidating improvements and productive discussions about skills and expectations.

b) Peer Assessment: Employees assess each other’s skills, providing insights into teamwork and collaboration. This method can be uncomfortable for some, but anonymity can help mitigate this issue.

c) Supervisor Assessment: Supervisors identify areas for improvement and set development benchmarks, ensuring alignment with job requirements. This method can be biased and requires skilled supervisors, so it’s beneficial to combine it with other assessments for a comprehensive view.

d) Performance Appraisal: Evaluates an employee’s job performance over a specific period, offering a broad view of their skills and abilities. While comprehensive, it can be time-consuming and may not effectively assess soft and transferable skills.

Skills Tests 

Here are several important factors to consider when creating an effective assessment plan:  

a) Define Specific Aims and Targets: Outline the goal of the assessment, the criteria you will evaluate, and the expected results. Well-defined objectives and aims contribute to making the assessment targeted and efficient in fulfilling its intended purpose. 

b) Develop a Schedule for the Evaluation: Make sure to develop a timetable that accounts for the time required to prepare, carry out the assessment, and evaluate the findings. A timeline aids in making certain that the evaluation is prompt and does not disrupt other business operations. 

c) Identify Who Will Carry Out the Evaluation: The subsequent step is to identify who will perform the evaluation. This could include choosing a group of evaluators, like hiring managers, team leaders, or specialists, or delegating the evaluation to an external service provider. 

d) Offer Explicit Directions and Protocols: You must give explicit directions and criteria for the evaluation process to guarantee it’s carried out uniformly and justly. Providing clear instructions aids in directing the examiners and guarantees that the activities align with the company's culture and goals.

Feedback and Review 

To provide effective feedback and coaching after an Employee Skills Assessment:

a) Deliver Constructive Feedback: Focus on both strengths and areas for improvement, using specific examples and offering actionable instructions for meaningful change.

b) Provide Coaching and Resources: Support development by offering training, mentoring, and other resources to assist employees enhance needed skills.

c) Monitor Progress: Track employee improvement over time, offering regular feedback and guidance to ensure they’re meeting their goals and developing essential skills.

Assessing Employee Skills 

The rapidly changing work environment and assessing employee skills are vital for both individual and organisational success. Skill assessments help businesses identify strengths, pinpoint areas for improvement, and align employee competencies with strategic objectives. Here are key reasons why assessing employee skills is essential:

a) Define The Extent and Objective of The Evaluation: The initial step in conducting an Employee Skills Assessment is to define the scope and aim. This entails selecting the employees you wish to evaluate, the kinds of insights you aim to obtain from the evaluation, and your intended use for those insights. When defining the purpose and scope, first decide if you want to assess a single employee, a team, or the whole organisation. 

This will aid in clarifying the kinds of skills information you seek. Additionally, think about whether your emphasis lies on pinpointing critical skills deficiencies, top achievers, or upcoming requirements.

b) Establish Objectives: After establishing the assessment's scope and purpose, you can create objectives that align the assessment with the broader business strategy. For instance, the aim could be to improve your succession planning approach or design the training and development initiative.  

When evaluating the objectives of skills assessment, make sure to take into account the specific needs of each employee. By means of further communication or an employee feedback survey, you might uncover employees harboring valuable and surprising career aspirations.

c) Select The Skills to Assess: Next, you must choose which employee competencies to assess. Numerous employee skills can be selected from. In general, your selection depends on the assessment objectives, your employees, and the organisation and sector.

Remember that effective skills-based organisations are assessing current and future skills requirements. Therefore, when selecting skills, assess which abilities employees require to perform their existing jobs effectively and which additional skills they will need in the future.

d) Choose Suitable Techniques: Methods for assessing skills vary from conventional written exams to virtual reality simulations. The method you elect will be determined by the skill you are evaluating, the aim of the assessment, and your strategy for skills development. 

No matter the methods you select, it's crucial to attempt, whenever feasible, to simulate genuine work scenarios. For instance, you probably won’t apply identical decision-making evaluations for attorneys and law enforcement officers. Although their functions may occasionally be alike, the situations in which they make choices vary.  

In a related manner, it’s crucial to recognise the distinction between a skill and knowledge. Knowledge refers to an individual’s understanding of factual data. Conversely, a skill refers to an individual's capability to utilise their knowledge in a particular context.

e) Deploying Assessment: Once you’ve chosen the appropriate methods for assessing employee skills, it’s time to roll out the assessment to your team. This process may take several days or even weeks. 

How to use Employee Skills Assessment Results to Improve Performance: 8 Best Ways

Effectively utilising Employee Skill Assessment results can greatly enhance both individual and team performance. Here are eight effective methods to convert these insights into implementable enhancements:

1) Provide Constructive Feedback on Employee Competencies: Constructive feedback involves identifying what went wrong and suggesting ways to improve processes in the future. Skills testing can assist with diagnosing issues.

By regularly testing employees’ skills, managers gain valuable data for use during evaluations. For instance, skills test results might show that a sales associate with poor sales performance has strong negotiation skills but struggles with lead generation. You can then provide lead generation training and monitor the impact on their sales.

2) Conduct Upskilling and Reskilling Workshops and Programs: Once you’ve identified areas for improvement, there are various ways to support employees through additional training.

You can offer access to tools like online courses and libraries for reskilling. Additionally, providing business opportunities for real-time skill development is beneficial.

Organising workshops, whether internally or through external consultants, is another effective strategy. Workshops are particularly useful when addressing common weaknesses within a team, such as poor communication skills, allowing staff to practice and improve together.

3) Develop Personalised Development Plans: Testing your team’s skills provides insights for creating better professional development plans.

A professional development plan outlines a worker’s career goals and details how they can achieve them. These plans include:

a) Employee strengths

b) Areas for improvement

c) Required resources

d) Implementation strategies

Using skills test results to refine these plans can yield significant benefits. Research shows that aligning HR processes with employee skill needs can reduce training costs and increase employee engagement by 50% and productivity by 40%.

4) Identify Candidates for Internal Mobility and Promotions: Storing Employee Skills Assessment data in a database or internal talent marketplace allows you to search for the skills needed for new roles within your current workforce.

Starting your internal candidate search with skills data helps reduce bias in hiring and career development. Managers often unconsciously favour those they work with most, rather than the most capable individuals.

Promoting internal mobility has additional benefits. Employees promoted within three years of joining a company are 70% more likely to stay, compared to just 45% of those who aren’t.

5) Create Leadership Development Programs: Personalised development programs and identifying candidates for internal promotions provide the insights needed to create targeted leadership programs.

Employee competency assessments are invaluable here, revealing which employees excel in their areas of expertise and who have potential leadership skills. Skills tests, such as a Motivation test, can also indicate which employees align closely with your organisation’s values.

6) Offer Certifications and Additional Qualifications to Top Performers: Certifying your employees enhances their abilities and reduces the skills gap within your organisation.

Consider sponsoring employees to complete certification programs using relevant tools like HubSpot or Tableau. Allocate specific working hours for them to achieve these certifications.

Investing in their careers fosters loyalty and encourages long-term retention.

7) Build Skills Matrices to Track Workforce Development: A skills matrix is a talent management tool that visualises your workforce’s skills. You can create a skills matrix using various methods, including:

a) Spreadsheets

b) Bar charts

c) Graphs

d) Tables

e) Infographics

8) Establish Regular Assessment Schedules: Employee skills are constantly evolving. With each new project, your staff gains more expertise. Therefore, it’s crucial to regularly reassess employees’ skills. The frequency of these assessments may vary by department. For example, employees in rapidly developing fields like technology might need more frequent evaluations.

For most employees, a yearly skills test could include metrics such as:

a) One or two core role-specific skills, like Facebook Ads for a social media manager.

b) Leadership and people management skills are needed to assess their growth as potential managers.

c) A skill identified by their manager as needing improvement, such as time management.  

d) A key soft skill is communication or problem-solving.

Conclusion 

The practice of Employee Skills assessment is a cornerstone of organisational success. Its multifaceted approach comprises diverse assessment methods and strength utilisation. As a result, it cultivates a more skilled and motivated workforce, presenting a valuable competitive edge in today's dynamic job market. 

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