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Skills Assessment Test for Pre-Employment: Advantages, Types, Examples

08/01/2024
skills assessment test
Reading Time: 6 minutes

Whether in a bustling corporate environment or managing a fast-growing startup, finding the right candidate can feel like searching for a needle in a haystack. You don’t have to scramble—what you need is a skills assessment test.

Employment skills assessment tests are tools designed to evaluate a candidate’s abilities, knowledge, and competencies for specific job roles.

They provide objective data to support your hiring decisions, guaranteeing you select the best people capable of effectively fulfilling their assigned responsibilities. 

Used at various steps of the recruitment process—from initial screening to final selection—these tests help efficiently identify the most qualified candidates.

Different industries use skills testing for employment in various ways. For instance, the financial services industry might use pre employment excel test, while government positions prioritize attention to detail and soft skills. Regardless of industry, the goal is the same: to find candidates who not only fit the job description but also have the potential to thrive within your company.

This guide explores the advantages of pre-employment skills testing, the types available, and more to help you enhance your hiring strategy.


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What is a Skills Assessment Test?

A skills assessment test for employment is used in the recruitment process to gauge a candidate’s suitability for a specific role. These serve as benchmarks they must meet to move on to the next hiring stage.

Key objectives of skills assessment tests

Improving hiring accuracy

Skills assessment tests provide objective data, allowing recruiters to make informed decisions based on actual abilities instead of solely relying on resumes or interviews

I recall a specific hire for a data analyst role. The candidate aced their interview but struggled with on-the-job tasks because their technical skills didn’t align with their claims. After implementing a pre-employment Excel test, we found candidates whose skills matched their resumes—and the difference in productivity was remarkable.

By measuring specific skills, these tests help identify candidates who are best suited for the job, leading to higher job satisfaction and improved performance. This objective approach eliminates guesswork and biases, resulting in a more accurate and effective hiring process.

Reducing turnover

Hiring skilled and capable candidates reduces the likelihood of early turnover. The average cost of replacement can be as high as 50-60% of an employee’s annual salary.

Employees who feel confident and competent in their roles are more likely to stay with the company long-term. Skills assessment tests help select suitable candidates, increasing employee retention and reducing long-term turnover costs.

Enhancing workforce quality

Skills tests create a standardized method for evaluating all candidates, making certain the final result is a high-quality workforce. By maintaining consistent testing standards, each candidate undergoes a fair and thorough assessment, making sure that every new hire meets the company’s benchmarks and effectively contributes to their assigned team.

Also, regularly updating and refining the testing process helps you hire competent candidates and foster constant improvement within the company.

Types of Skills Assessment Tests (+Examples)

With assessments, you can pinpoint the specific skill requirements that a candidate must meet; for example, the skill set needed for an HR generalist differs significantly from that of a data analyst.

Check out the different kinds of skill assessment tests in the table below.

types of skills assessment tests

1. Basic skills tests

Basic skills tests cover essential competencies like reading, writing, math, and attention to detail, which are fundamental for any job. 

For instance, reading comprehension tests assess a candidate’s capability to understand and interpret written information, while basic math tests measure their numerical proficiency. In sales positions, for example, basic math skills are crucial for generating accurate quotes for customers.

2. Technology skills tests

Technology skills assessments measure proficiency in tools and software essential for most workplaces, like Microsoft Office and other programs. 

For instance, a Microsoft Office skills test might evaluate a person’s ability to create complex Excel spreadsheets or format documents in Word. These computer skills tests are particularly helpful for administrative and technical roles, making sure your company hires people with the necessary software proficiency.

3. Admin support skills tests

Abilities like typing, data entry, and proofreading are all skills used in roles that require efficient office management and communication. 

Typing and data entry tests measure speed and accuracy, showing whether a candidate can handle data entry tasks promptly and correctly. Proofreading tests evaluate attention to detail and language proficiency, which are essential for maintaining quality in written communications.

4. Industry skills tests

Different industries require specific skills unique to their field. For example, accountants must demonstrate proficiency in accurately balancing spreadsheets, while medical professionals require adept data entry skills due to the amount of information they manage.

Light industrial skills tests gauge if a candidate has the specific skills needed for their industry. After all, you want someone who knows or works within your sphere and can handle the job’s requirements.

5. Cognitive ability tests

Cognitive ability tests measure general cognitive capabilities, including problem-solving, logical reasoning, and analytical thinking. These tests are helpful for jobs like analysts whose members need to know how to quickly comprehend a problem and develop solutions.

You can also find these assessments used for management and technical roles where critical thinking is paramount. A team leader, for instance, must know how to make difficult calls, especially when dealing with angry customers.

Advantages of Skills Assessment Tests

So why is it better to have skill tests for your hiring process in addition to just interviewing candidates? Here are some of the advantages:

Accurate candidate abilities

The top advantage of using a skills test is getting an unbiased and accurate assessment of a person’s abilities. It provides a clear understanding of their capacity to handle responsibilities and their industry knowledge. 

By thoroughly assessing their skills, you can make decisions based on concrete evidence rather than relying solely on educational background or employment history, eliminating biases that may come from padded resumes.

Improved hiring accuracy

Skills assessment tests lead to more informed and accurate hiring decisions because they provide objective data on a candidate’s abilities. The information reduces the reliance on resumes and interviews, which can be subjective. 

Companies that use pre-employment assessments report a 24% higher likelihood of hiring people who exceed their performance goals. These assessments accurately measure candidates’ skills, enabling employers to select the most suitable people for each role. 

This targeted approach not only enhances employee satisfaction but also contributes to improved overall performance and outcomes for the organization.

Reduced turnover rates

Assessing skills beforehand reduces employee turnover by guaranteeing new hires have the necessary abilities to succeed in their roles. When employees are well-matched to their jobs, they are more likely to feel confident and capable, which enhances retention rates. 

A study by Aberdeen found that companies using pre-employment assessments experienced a 39% lower turnover rate. Lower staff resignations save on recruitment costs and help maintain continuity and morale within the team.

Enhanced workforce quality

Skills assessment tests significantly contribute to building a more competent and productive workforce by making sure candidates have the required competencies. This results in a team that is better equipped to handle their responsibilities, thereby increasing overall productivity and efficiency. 

Faster hiring process

You can streamline the recruitment process with a skills test because they can quickly identify the most qualified candidates. This procedure reduces the time spent on screening and interviewing unqualified applicants. 

Reducing the average time to fill a position from 42 days can be achieved by using pre-employment tests. This approach facilitates faster hiring processes, minimizing downtime and accelerating the onboarding of new employees, all of which contribute to seamless business operations.

Better employee development

Your company can also use assessments for employee development. Having your existing teams take them means you can identify skill gaps for additional training. This approach to growth can help you in creating personalized professional development programs. 

As a result, your hires can grow and advance within the company, which can encourage them to engage more. A report from LinkedIn Learning showed that companies with solid training programs that address skill gaps experienced a 30-50% increase in retention.

Which Essential Skills to Test For

When hiring new employees, there are different basic employability skills you can test to see if they suit the role and can contribute to the company. Here are the vital areas to evaluate:

Which Essential Skills To Test For

Cognitive and analytical skills

For roles that require complex decision-making and strategic planning, you would want to evaluate a candidate’s cognitive and analytical abilities. These skills encompass problem-solving, logical reasoning, and overall mental agility. 

If you test for cognitive and analytical skills, you can see if a candidate can handle intricate tasks and make informed decisions. These abilities are vital for management, finance, and technology positions, where rational thinking is crucial for success.

Technology skills

In roles demanding specialized technical knowledge, candidates must show proficiency in industry-specific tools, software, or technical processes. For instance, finance roles often need skills in manipulating formulas and creating charts in Excel. Hiring people with these skills can significantly reduce training time and improve productivity.

Emotional intelligence

Emotional intelligence (EQ) is the capacity to recognize and manage emotions and empathize with others. 

High EQ is crucial for leadership, customer service, and team-based roles. Candidates with vital emotional intelligence better handle stress, communicate effectively, and resolve conflicts. 

Assessing EQ can be done through behavioral interviews and situational judgment tests. These methods help identify candidates who excel in navigating interpersonal dynamics and positively contributing to the workplace.

Learn more about the different skills you can test for in these guides: Smart Hiring With Pre-Hire Personality Tests and Management Personality Test: What to Look For

Boost Hiring Precision

Skills assessment tests are powerful tools for making informed hiring decisions. By thoroughly evaluating the specific skills required for each position, you can build a competent and harmonious workforce. This approach not only reduces turnover but also enhances job satisfaction among new hires.

Adding skills assessment tests into your recruitment strategy can significantly enhance your hiring process. Partnering with EmployTest allows you to access tailored tests that match you with the ideal candidates.