Focusing on acquired competencies makes lateral entry more effective

Due to the severe labor shortage, employers are increasingly turning to recruiting candidates from other professions. With a strong focus on their previously acquired competencies and effective guidance, this is an attractive recruitment channel. A competency test is valuable in this regard, but a motivation test and a personality test can also significantly increase the chances of success.

Shortages in an Increasing Number of Sectors

The growing shortages in the labor market-partly due to an aging population-were predicted years ago. In recent years, they have become increasingly noticeable in more and more sectors. Trains are running less frequently, Schiphol Airport can’t handle the holiday crowds, and school classes are increasingly being sent home due to the teacher shortage. And this isn’t just happening in the Netherlands, but throughout Europe. That makes the problem even more complex to solve. In the Netherlands, unemployment fell to a historic low of 3.3 percent in the first quarter of 2022. Looking at the entire eurozone, unemployment has also never been this low. In addition to the sectors that have long been struggling with structural labor shortages (such as healthcare, IT, engineering, and education), more sectors are now joining the list. Due to this shortage, the UWV’s list of high-demand occupations in early 2022 suddenly included forklift operators, train dispatchers, hotel receptionists, cleaning staff, and, for example, physical therapists. As a result, employers in an increasing number of sectors must tap into additional sources to find new employees. And this is not a temporary issue. We must expect staffing shortages in many sectors for many years to come.

More Candidates Through Career Changers

An interesting additional “pool” to draw from is that of career changers. After all, let’s not forget that there are also shrinking industries. And many people working in those sectors would like to transition to different professions and industries. Making that move is often quite feasible. Especially if employers carefully assess candidates’ competencies and match them to the competencies and tasks required within their organization. Sometimes there are also very logical connections to be made, as illustrated by the UWV’s lists of career transition options. In the Netherlands, the SER (Social and Economic Council), as an important advisory body, also advocates for a more skills-focused labor market approach. “Taking a more nuanced look at the skills people already possess and the opportunities those skills offer-whether or not through targeted training-opens up many possibilities. A breakthrough that provides a solid foundation for the developments in tomorrow’s labor market,” said then-SER Chair Mariëtte Hamer in 2021.

What is needed for successful career transitions?

Due to the increasing labor mobility across sectors in recent years, we’re gaining a clearer understanding of the conditions for successful lateral entry. This naturally starts with a focus on competencies, rather than traditional criteria such as degrees and work experience. Consequently, candidates’ previously acquired competencies must be clearly identified. In addition, the motivation and personality traits of lateral entrants also play an important role. This is also evident from an analysis by *Binnenlands Bestuur* that examined lateral entry into the engineering field. Furthermore, effective guidance and training are key success factors-ideally tailored to ensure that an educational program or training course is well-aligned with the career changer’s existing skills and those still to be developed.

Quick Insight into Competencies, Personality, and Motivation

Fortunately, convenient (online) tests are now available to quickly and effectively assess candidates’ competencies, motivation, and personal characteristics. For measuring skills, for example, there is the Competency Check from hrmforce. This provides a new or existing employee with feedback on their own behavior and competencies (also known as “zero-degree feedback”). In just twenty minutes, this provides a much clearer picture of strengths, weaknesses, and opportunities for development. In addition, a Motivation Test and a Personality Test (Big50) are also available. Motivators are also important, though not everyone is fully aware of their own. What drives a person? Is it status, independence, compensation, self-development, or creativity that matters most in their work? And does that align with the work in your organization? Furthermore, the results of a personality test can be translated into competencies, for example, based on an “ideal profile” for career changers. These tests quickly provide a clear picture of candidates and the likelihood of success for career changers in your organization.

Use of a Single Competency-Based Language

Conducting effective competency-based interviews-and productive development discussions after hiring-requires, above all, clear competency-based language. To achieve this, you can use competency-based questionnaires and, for example, the previously mentioned Competency Check. The questions can be linked to the competency profiles that are important for your organization and its roles. The characteristics from a Big50 Personality Test can also be linked to these. Unambiguous competency language is an important tool for conducting effective competency-based interviews. It ensures that everyone speaks the same language and helps prevent misunderstandings. Competency language clearly defines which competencies you are using and what behaviors correspond to them. An organization can develop its own competency framework or adopt an existing one, as there are already established frameworks available. A practical example: users of HRMForce’s HR software can create their own framework and integrate it with the tools, but a competency framework is also available that includes a comprehensive competency handbook. This framework comprises approximately 50 competencies (based on the Big50) that make behavior measurable and discussable. For each competency, a definition is provided along with examples of behaviors at various job levels, complete with selection questions, development tips, and coaching advice.

Research on Career Changers

After reviewing the tools designed to ensure the success of lateral entry and ongoing competency management, we will now examine the previously mentioned success factors in greater detail. Because there is still relatively limited knowledge and research data on lateral entry initiatives in the Netherlands, the Gak Institute (which focuses on the labor market and social security) commissioned a study in 2020. The findings regarding the chances of success for lateral entry are positive. “Organizations that link talent and value are highly successful. The success of a lateral entry initiative often hinges on effectively managing expectations and addressing the concerns of lateral entrants,” according to the study. The researchers also note that training is a key requirement for enabling career changers to successfully transition from one job to another. “Employers also want to take previously acquired competencies and skills into account,” the researchers note. However, there is also a clear demand for flexible, personalized training programs, which traditional educational providers in particular are not always able to offer effectively. In part, this is, of course, a broader societal (educational) challenge, although more and more partnerships are now emerging through which employers themselves are launching more flexible training programs (such as specialized vocational schools). These are often structured with various modules that can be tailored to each individual.

Examples of Successful Career-Changer Initiatives

Those who wish to focus more on attracting lateral entrants can now find an increasing number of examples of other initiatives. These are often organized at the regional, local, or sectoral level. In education, for example, there is the career change program offered by the Onderwijsloket, and similar initiatives exist in fields such as engineering or elder care. At the regional and local levels, there are also successful initiatives that take a more cross-sectoral approach. One interesting initiative in the Amsterdam Metropolitan Area is House of Skills, a partnership between the business community, industry associations, employee and employer organizations, knowledge institutions, educational institutions, and regional policymakers aimed at restructuring the labor market to be more competency-based. For career changers, there is, among other things, a “Transferpunt Zorg en Welzijn” (Health and Welfare Transfer Center) and an initiative for career paths in Engineering and Construction. The aforementioned study by the Gak Institute also highlights various successful initiatives and their success factors, including the “De Achthonderd” initiative. This is a regional platform where close integration takes place, bringing candidates, recruitment specialists, employers, and training providers together. By 2023, De Achthonderd aims to have secured approximately 800 sustainable job placements. Among other things, the study praises the “close collaboration within the chain.” Of course, there are an increasing number of examples where the focus is on lateral entry and prior learning. We will undoubtedly see this much more frequently in the coming years.