What is an assessment center?

The assessment center approach allows employers to gather information about candidates’ skills and competencies for a specific role. Each candidate performs multiple exercises that replicate the job duties for a current or future opening. This might include job simulations or assignments similar to the day-to-day activities performed in the position, such as:

• Role-playing interactions 
• Analysis activities
• Presentations
• Group or individual problem-solving exercises
• Case studies
• Inbox activities

It allows you to evaluate an employee’s potential for success by giving them an opportunity to demonstrate their skills through immersive experiences. Assessment centers may help you predict their success in the position. You can use them with current employees who might be promoted or outside candidates seeking a position with your organization.

Benefits of using assessment centers

The benefits of an assessment center approach include:

• Tracking applicants’ behavior. They review an applicant’s behaviors through interviews and assessments to help you analyze how the applicant might navigate a task. For example, they might use a hypothetical scenario involving a frustrated customer to assess whether the candidate can contribute problem-solving skills with a calm demeanor. Role-playing scenarios during interviews can help show whether a candidate may perform well and have this ability.
• Providing an objective analysis. The assessment center goes beyond the applicant answering questions in an interview by allowing you to observe the applicant’s skills and habits in a realistic setting to help form an objective view of the person’s success potential. For example, you might request a skills test for your copy editor role that may involve candidates reviewing an article and correcting grammatical inaccuracies.
• Measuring a larger range of skills. An assessment center may reveal an applicant has a hidden skill set that isn’t obvious through interviews or written assessments. For example, presenting a hypothetical scenario through role-play may lead the candidate to show leadership qualities, despite working autonomously in prior roles. 
• Standardizing the evaluation process. Effective assessment centers typically use standardized simulation exercises that allow candidates to demonstrate their abilities. This can help you develop a fair hiring process that minimizes unconscious bias.

How to create an assessment center

The human resources or operations department can typically facilitate the implementation of assessment centers. Consider these steps to create an effective assessment center for your organization.

1. Identify your needs

Having a clear outline of the competencies the role requires allows you to develop exercises that accurately evaluate those areas. Each role will have different requirements, and priorities might vary, even for similar roles.

For example, a project manager position on one team might need a deep knowledge of budgeting, while the role on another team might focus more on risk management. Different teams might also work on different types of projects, which may require technical or project-specific knowledge.

2. Create the exercises

Tests and exercises should typically align with the purpose of the role. You might also discuss processes and assessment methods with the hiring managers. Consider building tests that analyze psychological skills, experience listed on the applicant’s resume and soft skills, such as flexibility.

3. Develop a schedule

Having a scheduled process for the assessment center can help the evaluations run smoothly. Ensure you provide enough time for the applicant to highlight their abilities. You should also allow time for observers to give directions to the applicant on how to complete each exercise.

4. Establish your feedback procedure

Providing feedback to all participants can help increase transparency and maintain relationships with applicants who aren’t selected for the current position.

Feedback can help them improve their skills and maintain interest in future positions within the organization. It can also help improve the candidate experience, which may help your company’s reputation as an employee-focused organization.

Best practices for establishing a center

Consider these best practices for establishing an effective assessment center.

Include all decision-makers

Involving multiple employees in the recruitment process may help you develop a well-rounded assessment center that accurately evaluates key attributes. It can also help to have participating managers discuss how they plan to review each candidate, which may lead to diverse ideas to improve the efficacy of the assessment center.

Analyze the costs

Assessment centers often increase hiring costs due to personnel expenses and materials used during the exercises. You may also have venue costs if you conduct it off-site. Some organizations hire outside consultants to develop standardized assessments and train team members to evaluate participants.

You can develop a budget that details the necessary resources and staffing based on the proposed evaluation process. This may help you determine whether it works within your organization’s recruiting budget or if you need to make adjustments to reduce costs.

Train all evaluators

The goal of an assessment center is to gather objective data about each candidate. That typically means having multiple evaluators observe the candidates to gain a well-rounded assessment of their skills. Training the employees who will evaluate applicants can increase the chances of conducting an objective assessment of all candidates.

FAQs about assessment centers

What types of roles work well with assessment centers?

You can use assessment centers for any role where hiring candidates with specific skills is important. They can be particularly helpful for technical or high-level roles, such as surgeons or data forensic investigators, that may benefit from this type of assessment method.

Entry-level and high-volume hiring situations, such as those in the retail or hospitality industry, might not allow enough time for assessment centers.

How long does an assessment center last?

An assessment center can range from a few hours to a full day of evaluations. It depends on how many activities you ask each candidate to complete and how long those tasks take. The assessment for high-level or complex positions might take longer than less technical roles due to the level of skills required. Conducting a mock assessment center with your team can give you a realistic idea of how long it will take.