
Skills-Based Hiring for Better Assessments
Discover how skills-based hiring enhances candidate evaluation and improves hiring outcomes.
Candidate assessment is the process of evaluating job applicants to determine if they are suitable or qualified for a job role. The potential employer evaluates the skills, qualifications, and experiences of candidates with assessment methods such as written tests, interviews, or job simulation tests.
Candidate assessment has become more crucial than before because job roles today are now more complex due to technological advancements, changing customer expectations, the need for faster and better decision-making and changes in the labor market. For example, remote work has become the norm, and it is important to hire people with the required skills and abilities to deliver results even when they are not in a physical office.
Today, a significant part of the hiring process happens online with new technological tools, compared to years ago when candidates had to appear in a physical office to apply for jobs and get interviewed. It is therefore crucial for candidates to be correctly assessed to bring in the right talent and prevent wrong hires.
One of the first ways to assess candidates is at the application stage. When candidates apply for jobs online, many companies include a series of questions that require short responses, which form part of the screening process. The resumes are also parsed to extract information about the candidate’s experience and skills.
For example, many LinkedIn job applications require responses to questions such as the highest level of educational qualifications, language skills, years of work experience, and experience working with software or platforms, such as Customer Relationship Management software (CRMs) or Content Management Software (CMS). These questions help to select candidates who will proceed to the next stage of the recruitment process.
Skills tests are designed to evaluate a candidate’s skills and ability to perform tasks related to the job applied for. Both hard and soft skills are tested to determine if the candidate can meet the demands of the role.
Examples of skills tests include:
General aptitude tests
These tests measure cognitive skills such as logical reasoning, decision-making and problem-solving. They also include assessment of personality traits and other abilities that can predict how well the candidate might perform on the job.
Soft skills tests
Soft skills tests measure adaptability, communication, teamwork and interpersonal abilities, which make the candidate a well-rounded employee and is crucial in the workplace.
Technical skills tests
Technical skills tests measure the candidate’s knowledge and ability to perform specialized tasks and the practical application of tools to carry out these tasks. Technical skills vary across industries. Examples include programming, data analysis, technical writing, graphic design, robotics, and machining.
These tests evaluate the candidate’s understanding of the procedures, responsibilities and tools of the job. They test the candidate’s knowledge accuracy to determine if they can perform the job correctly. For example, a candidate might be tasked with the following:
Job knowledge tests help to improve the quality of hire and enhance performance, since the candidate already possesses the knowledge necessary to succeed in their role.
These are used to evaluate the candidate’s ability to perform job tasks. Candidates may be asked to produce and submit a piece of work, such as a writing sample, for evaluation. They may also be given assignments or required to solve problems related to the job role to measure their practical abilities and problem-solving approach. In job simulations, the candidate may be asked to write code, design a website or demonstrate how they would address and solve a customer’s problem.
Cognitive ability test measures a candidate’s mental abilities, such as thinking, problem-solving, and learning. Cognitive ability tests evaluate attention to detail, memory, and logical reasoning.
The main types of cognitive ability tests are:
Personality tests are designed to provide insights into an individual’s character, traits, and behaviors, which directly affect how they perform at work and how they relate with others. Personality tests help to determine if the candidate can be a good fit for the job and the company culture, if they can work well in a team, and the kind of environment they’ll thrive in. Personality tests are often done after the candidate has gone through technical and cognitive assessments. They are useful for roles that require strong interpersonal skills, teamwork and leadership.
Examples of personality tests are:
Myers-Briggs Type Indicator (MBTI)
The MBTI helps to determine the career type and work environment that suits the candidate and whether they can align with the culture and job requirements. The test groups individuals into 16 personality types, and it helps to assess candidates by identifying unique preferences for how they interact with others, make decisions, gather information and structure their lives.
DISC
The name is an acronym of four personality indicators: Dominance, Influence, Steadiness and Conscientiousness. By knowing the weight of each of these aspects of a candidate’s personality, it can be determined how well they might work in a team, manage situations and communicate at work.
Hogan Personality Inventory (HPI)
The HPI was created to predict job performance and is used in hiring, leadership development and succession planning. It measures traits that are important at work, such as adjustment, ambition, sociability, interpersonal sensitivity, prudence, inquisitiveness, and learning preference.
The Big Five Test
This test provides a broad understanding of personality traits and can predict job and culture fit. It measures traits such as openness, conscientiousness, extraversion, agreeableness and emotional stability.
Caliper Profile
It measures an individual’s personality and aspects of the general mental ability or cognitive abilities. It can help to determine abilities such as time management, assertiveness and leadership.
A situational judgment test evaluates candidate performance in a realistic work scenario. The candidate is presented with a workplace situation and given a number of choices they can make. The candidate will then select what would be their most likely response. These tests are designed to evaluate problem-solving and decision-making skills, and they help employers identify strong performers from a large pool of candidates.
Behavioral assessments measure a candidate’s patterns of behavior. They assess the past actions, behaviors and tendencies of the candidate, to determine how they might behave in workplace situations and as a predictor of future performance.
The most common behavioral assessment methods include:
Background checks are a means of verifying the information provided by candidates during the recruitment process. These checks are done after the most suitable candidates have been identified. Some of the recommended pre-employment checks include education verification, work experience verification, reference checks, and criminal records checks.
The legal requirements and eligibility of employment should be met during the hiring process. These policies should be made clear and candidates should be informed of them at the beginning of the application process. Requirements include VISA requirements and eligibility to work in certain jurisdictions or countries, especially for remote or hybrid employees and any other restrictions that may prevent the candidate from working with the company.
Here are some of the benefits of a strong candidate assessment strategy.
Quality hires
According to a study by the Society for Human Resource Management (SHRM), 78% of HR professionals say the quality of their organization’s hires has improved due to their use of assessments. A good candidate assessment strategy improves the quality of hires because it creates a thorough process to evaluate candidates' abilities, skills and qualifications. The assessment is based on clearly defined metrics, which ensure that the best candidates get hired.
Improved candidate experience
A CareerPlug study found that over 50% of job seekers have turned down a job offer because of a poor candidate experience. Assessments enhance candidate experience because they give them the chance to demonstrate their skills in a structured way. This encourages candidates to trust the process and the organization, thereby improving candidate engagement during the process and enhancing the overall experience
Better employer branding
Well-designed candidate assessments create a positive perception of the copmany, making candidates more likely to accept job offers. The positive employer brand, in turn, attracts strong candidates; a LinkedIn study showed that companies with a strong employer brand receive 50% more qualified applicants.
Reducing hiring bias
Hiring decisions are often affected by unconscious bias when people are swayed by factors such as age, gender, race, and other biases. Assessments can reduce bias through a standardized evaluation process where candidates are assessed based on skills, qualifications and cognitive abilities rather than race or physical attributes. Hiring decisions can therefore be made from accurate data produced from the assessment process, which boosts transparency and fairness.
Better talent pipeline
Candidate assessments create better talent pipelines because the evaluation process allows for different forms of testing, such as cognitive abilities tests, behavioral tests, soft skills tests and tests for technical or hard skills. With these tests, well-rounded candidates can be identified, that is, candidates with great technical skills as well as excellent interpersonal and human skills.
Good understanding of candidates’ strengths
Assessments can provide insights into the strengths and weaknesses of candidates, and this will help the company plan better for onboarding and development programs.
Candidates can be assessed with cognitive ability tests to assess mental abilities in problem-solving, critical thinking and new knowledge application. There are also behavioral and situational tests, job knowledge tests or work samples relevant to the role, as well as personality tests. A combination of these assessment methods provides the most accurate prediction of job performance
To reduce bias in assessments, all candidates should take structured interviews with standardized questions. There should be multiple interviewers, and the hiring teams should receive training for unconscious bias. The focus must always be on criteria relevant to the job roles, and questions about personal characteristics that are unrelated should be avoided.
Hard skills are technical, job-specific abilities that can be measured objectively, such as programming languages, accounting knowledge, or machinery operation. These are best assessed through practical tests, work samples, or technical interviews. Soft skills encompass interpersonal and behavioral competencies, including communication, teamwork, and problem-solving. These are evaluated through behavioral interview questions, situational judgment tests, group exercises, or personality assessments.
The ideal assessment process typically takes 2-4 weeks from initial application to final decision, depending on the role's complexity and seniority level. This includes initial screening, multiple interview rounds, skills assessments, and reference checks. However, it's important to balance thoroughness with speed to market, as lengthy processes can make top candidates lose interest in the process, while rushed assessments may lead to poor hiring decisions.
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