Why Employers Should Test Numerical Reasoning During Hiring
What is Numerical Reasoning?
Numerical reasoning is the ability to understand and work with numbers, mathematical concepts, and data. It goes beyond basic arithmetic; it involves interpreting numerical data, performing calculations, analyzing trends, and drawing logical conclusions based on quantitative evidence.
People with strong numerical reasoning skills can understand complex numerical information and use it to solve problems quickly and effectively.
We live in a data-driven world. To thrive, companies need employees who can turn raw data into actionable insights. HR professionals and hiring managers are increasingly seeking applicants with strong numerical reasoning skills. As a result, the US Bureau of Labor Statistics projects a surge in job openings requiring math skills between 2022 and 2032.
But what exactly is numerical reasoning, and why should employers test for it during the hiring process?
Is Logical Reasoning the Same as Numerical Reasoning?
Although logical and numerical reasoning are related, they’re not exactly the same. Logical reasoning is a broader skill that involves analyzing information, identifying patterns, and drawing conclusions based on evidence. Meanwhile, numerical reasoning is a specific type of logical reasoning focusing on working with numbers and mathematical concepts.
Here’s a quick comparison:
Logical Reasoning:
- Applies to various types of information (verbal, visual, numerical)
- Involves general problem-solving and critical thinking
- Used in a wide range of situations
Numerical Reasoning:
- Specifically deals with numbers and mathematical concepts
- Involves calculations, data interpretation, and statistical analysis
- Applied in situations requiring quantitative analysis
Both skills are valuable, but numerical ability is particularly important for data and financial information roles.
What Jobs Require Numerical Reasoning Skills?
Numerical skills are essential in many roles across various industries, from finance and engineering to marketing and healthcare.
Finance and accounting positions such as financial analysts, accountants, and investment bankers heavily rely on math skills. Similarly, project managers, business analysts, and marketing managers often work with data and need strong numerical skills in business and management.
The healthcare industry also benefits from professionals with solid numerical abilities, including medical customer service roles and healthcare administrators. Even in education, non-teaching positions such as school administrators often require a strong foundation in problem-solving.
With the changing nature of jobs requiring math skills, it’s more important than ever to have reliable methods to assess numerical reasoning abilities when hiring.
What is a Numerical Reasoning Test?
A numerical reasoning test is a type of pre-employment assessment that measures an applicant’s ability to work with numbers, interpret data, and solve mathematical problems. These tests include questions that require the following:
- Basic Math Skills: Addition, Subtraction, Multiplication, Division
- Light Industrial Math Skills: Basic math in an industrial environment, including word problems.
- Analytical Skills: Data interpretation from graphs and tables
- Financial calculations
Numerical reasoning tests are usually timed, adding an element of pressure that simulates real-world scenarios where quick, accurate calculations are necessary.
Why Should Employers Test Numerical Reasoning Skills?
Now that we’ve covered the basics, let’s dive into the compelling reasons why employers should embrace numerical tests as a cornerstone of their hiring strategy.
1. Predict Job Performance
A study in the Journal of Human Resources Management found that numerical assessments are valuable for predicting job performance in many roles, especially those involving data analysis, problem-solving, and decision-making.
2. Reduce Hiring Bias
Skills-based hiring, which often includes the use of numerical reasoning tests, can help reduce unconscious bias in the hiring process. Employers can make more objective hiring decisions by focusing on candidates’ abilities rather than their backgrounds or resumes.
A 2022 report by SHRM found that companies using skills-based assessments reported a 23% increase in workforce diversity.
3. Identify Hidden Talent
Not all candidates with strong numerical reasoning skills have degrees in mathematics or related fields. Testing for these skills directly helps employers spot talented applicants who may have developed their abilities through non-traditional paths.
4. Saves Time and Resources
Hiring the wrong candidate can be costly in terms of time, money, and resources. By testing math skills upfront, employers can avoid the expense of hiring someone who is not a good fit for the role.
How to Assess Numerical Ability When Hiring
Now that we’ve understood the importance of testing numerical reasoning skills, let’s look at how you can incorporate helpful assessments into your hiring process:
1. Identify Key Roles and Responsibilities
Determine the roles that require strong numerical reasoning skills. Analyze the tasks and responsibilities of these roles to understand the specific numerical skills needed. You can do that manually or use this helpful planning worksheet we’ve prepared for you!
2. Choose the Right Test
Select a numerical reasoning test that aligns with the specific requirements of the role you’re hiring for. Choose a reputable company that offers a variety of tests tailored to different industries and job levels. Ensure the test is validated by experts in the field and reliable.
3. Determine the Appropriate Difficulty Level
The difficulty of the test should match the level of numerical skills required for the job. Entry-level positions may require only basic math skills, while specific roles, such as accounting, will need specific skills.
4. Integrate the Test into Your Hiring Process
Decide at which stage of the hiring process you’ll administer the test. Some companies use it as an initial screening tool, while others incorporate it later in the process for shortlisted candidates.
Summing it Up
Skills-based hiring is about looking beyond traditional credentials to find the best person for the job. Numerical reasoning tests are a powerful tool in this approach, helping you identify candidates who have the skills to succeed in roles that require working with numbers and data.
So why wait? Start using numerical reasoning tests in your hiring process today: Schedule a call with our expert team!