Conducting Applicant Assessments: Best Practices and Considerations

Have you ever hired a candidate only to find out they didn’t possess the minimum qualifications to do the job? Hiring the right talent is crucial for business success, and applicant assessments can play a significant role in evaluating candidates effectively. However, it is essential to choose the right type of assessment, ensure legal compliance, and avoid unintentional discrimination. Below, we explore the various applicant assessments available to employers and key considerations for conducting fair and effective evaluations.

Types of Applicant Assessments

1. Cognitive & Aptitude Tests

• General Cognitive Ability Tests – Measure problem-solving, reasoning, and critical thinking.

• Numerical Reasoning Tests – Assess mathematical and data interpretation skills.

• Verbal Reasoning Tests – Evaluate reading comprehension and logical reasoning with written information.

• Logical/Abstract Reasoning Tests – Measure pattern recognition and problem-solving ability.

  
  

2. Personality & Behavioral Assessments

• Personality Tests – Identify traits that influence work style and culture fit (e.g., MBTI, Big Five).

• Situational Judgment Tests (SJTs) – Present real-life scenarios to assess decision-making and problem-solving.

• Emotional Intelligence (EQ) Tests – Evaluate interpersonal and self-awareness skills.

  
  

3. Skills-Based & Technical Tests

• Job-Specific Skills Tests – Assess knowledge and proficiency in job-related tasks (e.g., bookkeeping, customer service).

• Typing & Data Entry Tests – Measure typing speed and accuracy for administrative roles.

• Coding & Programming Tests – Evaluate technical skills in programming languages (e.g., HackerRank, Codility).

• Writing & Communication Tests – Assess grammar, clarity, and effectiveness in professional writing.

  
  

4. Work Sample & Job Simulation Assessments

• Work Sample Tests – Require candidates to complete real job tasks (e.g., drafting a report, making a sales pitch).

• Job Simulations – Mimic workplace scenarios to evaluate performance (e.g., Zoom meetings, customer interactions).

• Coordination & Dexterity Tests – Evaluate fine motor skills for roles requiring precision (e.g., surgeons, machinists).

• Role-Playing Exercises – Assess interpersonal and problem-solving skills in customer-facing roles.

  
  

5. Integrity & Risk Assessments

• Integrity Tests – Measure honesty, reliability, and ethical decision-making.

• Safety Awareness Tests – Evaluate knowledge of workplace safety protocols (common in manufacturing & construction).

  
  

6. Physical Ability Tests (For labor-intensive jobs)

• Strength & Endurance Tests – Assess physical fitness for demanding roles (e.g., firefighting, warehouse work).

  
  

7. AI & Gamified Assessments

• Gamified Assessments – Use interactive games to assess problem-solving and cognitive skills.

• AI-Powered Video Interviews – Analyze facial expressions, tone, and speech patterns to assess soft skills.

  
  

8. Assessment Centers (Comprehensive Evaluations)

• Group Exercises – Evaluate teamwork and leadership abilities.

• Case Study Presentations – Assess analytical thinking and business acumen.

• Panel Interviews with Multiple Assessors – Provide a well-rounded evaluation of candidates.

Key Considerations for Conducting Assessments

1. Define the Desired Outcome

Before administering an assessment, identify the desired work product or competencies you aim to evaluate. Ensure that the instructions provide sufficient detail to elicit the necessary information and allow candidates to demonstrate their skills accurately.

2. Ensuring Test Validity and Job Relevance

A strong correlation must exist between the assessment results and job requirements. If the test does not accurately predict job performance, it could lead to unfair hiring decisions and legal complications.

3. Avoiding Disparate Impact and Ensuring Fairness

• Ensure consistency in administering assessments to all applicants (internal and external), i.e., at the same stage of the hiring process and with the same tools and resources.

• Develop clear rubrics or scoring systems to ensure objectivity and minimize bias.

• Be cautious with personality tests, as they may have inherent biases or lack job relevance.

• Consider the impact of cognitive ability tests, as some have been shown to disadvantage certain groups.

• Provide reasonable accommodations for individuals with disabilities to allow for fair participation.

• In 1978, the EEOC adopted the Uniform Guidelines on Employee Selection Procedures or “UGESP” under Title VII. See 29 C.F.R. Part 1607.1. UGESP provided uniform guidance for employers about how to determine if their tests and selection procedures were lawful for purposes of Title VII disparate impact theory.

  
  

4. AI & Generative AI Considerations

Some candidates may use AI tools such as ChatGPT to assist with assessments. Evaluate how AI-generated responses are used—whether candidates simply copy and paste or apply AI in a thoughtful, strategic way. AI can aid in crafting a response, but should not replace original thought and job-specific expertise.

5. Assessment Length & Compensation

• Determine a reasonable assessment time limit to balance thorough evaluation with candidate convenience.

• Clarify whether the assessment time is paid or unpaid, especially if candidates produce work that provides value to the business.

  
  

6. Legal & Ethical Considerations

• Compensation & Fairness:  If a candidate produces work that has commercial value and economic benefit to the employer, consider compensating them, as this generally requires compensation under the Fair Labor Standards Act (FLSA).

• Intellectual Property (IP) Rights: Candidates typically retain ownership of their work unless otherwise agreed upon in writing.

• Anti-Discrimination Compliance: Assessments should be carefully designed to avoid unintentional bias and align with employment laws.

• Confidentiality Agreements: If the assessment requires disclosure of company confidential information, have candidates sign a confidentiality agreement beforehand.

Final Thoughts

When properly designed and implemented, applicant assessments can significantly improve the hiring process by ensuring candidates have the necessary skills and attributes for the job. However, employers must remain mindful of legal, ethical, and fairness considerations to prevent discrimination and ensure a positive candidate experience. By selecting relevant, validated assessments and applying them consistently, businesses can make more informed hiring decisions while maintaining compliance with employment regulations.

Assessments can be valuable, but shouldn't be the sole method for evaluating candidates. Interviews and reference checks offer additional insights. By combining assessments with structured interviews, you can better assess cultural fit, motivation, and soft skills.

If you'd like additional information and support, contact your HR consultant or  Edna Nakamoto. They can help you navigate the many assessment options available and identify the best one for the position.