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The Value of Hiring Based on Both Cognitive Skills and Soft Skills:
One of the most important opportunities for employers today is a large employment pool
from which to draw new talent. At the same time, competition for top performers has
never been more intense. Many highly talented employees will be seeking new jobs in
2011. Currently, over 80 percent of employees are open to switching employers. The
opportunity to upgrade the overall level of talent in your organization is strong. As you
seek to raise the level of talent, first consider what positions are most critical to your
bottom line. Positions where the level of performance varies greatly between the top
and the bottom performers are a good place to start. These positions are ripe for
improving the quality of new hires which will improve productivity and performance.
It is critical to consider which qualities of applicants are most important to high
performance and how these qualities can best be measured. Cognitive ability, or
intelligence, is the best predictor of job performance by many counts. Cognitive ability
refers to a person’s thinking skills and ability to learn. Many tests have been developed
over the years to measure general cognitive ability or specific cognitive aptitudes such
as logical, numerical and verbal ability. Research and validation studies of these tests
established cognitive ability as the single best predictor of job performance (Schmidt &
Hunter, 1998). Thus, smart employees can execute job-related tasks successfully.
Non-cognitive qualities of applicants, such as interpersonal competence, social styles,
work attitudes and values, also provide valuable insight into how well the applicants
would perform on the job (Barrick & Mount, 1991). These researchers argue that noncognitive factors are as important as cognitive ability (i.e., Goleman, 1998). Most testing
experts recognize that cognitive and non-cognitive qualities reflect the unique attributes
of a person and when used together substantially improve the ability to predict the
person’s job performance (Schmidt & Hunter, 1998). Cognitive skills predict some
aspects of job performance while competencies predict others. A best practice is to use
tests that measure both cognitive skills and competencies.
Although some may think that cognitive ability alone would suffice for the hiring, there
are many exceptionally bright people who can’t work on a team or coach a direct report.
These characteristics are captured by non-cognitive measures such as personality and
competencies. Personality, or the way a person tends to act and behave, has been
shown to be a valuable predictor of performance (Barrick & Mount, 1991). Behavior can
be assessed using structured interviews, or more effectively through multiple choice
assessments. There are a variety of ways that assessments get at non-cognitive
elements, which include social competencies, values, personal needs, and interests.
Some personality dimensions are more predictive than others because it depends on
the jobs and the nature of the work environment as well. The type of job determines the
most relevant personality factors and competencies. For instance, competencies
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reflecting work ethic and emotional intelligence tend on average to be the best
predictors of performance across many jobs. Work ethic and self management are
foundational to many roles. It doesn’t matter if a candidate is a skilled researcher if the
person doesn’t adhere to important company policies. On the other hand, research has
found that social skills are a better predictor of job performance for sales jobs than for
other jobs (Barrick, Mount, & Judge, 2001). Many personality instruments describe
individuals against a model or theory of personality. This is not useful in human resource
applications where it is critical that assessments are job related. It is also important that
assessments do not measure mental health or they risk violating the American with
Disabilities Act (ADA). One advantage to competency based assessments is that job
attributes are being measured directly and the results align with desired work behaviors.
Cognitive ability and non-cognitive qualities tap into different aspects of job success. For
example, cognitive ability assesses a person’s ability to learn, and non-cognitive
measures can evaluate the person’s willingness to learn. Used together, there is a much
stronger ability to predict job performance. Studies suggest that personality based
measures can increase the prediction of job performance by 18 percent (Schmidt &
Hunter, 1998). Cognitive ability and non-cognitive qualities together provide a great deal
of information for organizations to assess candidates’ capability and compatibility to the
job and/or organization. Because the specific competencies and cognitive skills required
for high performance differ at each level of the organization hierarchy, assessment is
also important to succession planning.
Job Analysis Sets the Standard
Accurately assessing required job requirements is the first step to ensure that the right
competencies are being measured. Job analysis helps to identify the key aspects of
cognitive ability and the non-cognitive competencies of applicants to be assessed for
certain jobs. Job Profile Reports in XC Insight! are based on subject matter experts’
ratings on criticality and frequency of three dimensions of critical thinking (logical,
numerical and verbal reasoning) and competencies. Competencies in XC Insight! are
defined behaviorally so that those behaviors are linked to successful performance.
These cognitive and non-cognitive components of XC Insight! independently
contribute to the selection of the best candidates. By using a narrow tool organizations
can miss the opportunity to hire a well-rounded candidate who has the most potential to
succeed in the job. These situations cost time, morale of other staff and dollars.
Because the results are holistic, the data provide managers with a way to understand
and guide team composition. The data is useful along the talent management spectrum.
Consider three candidates who went through XC Insight! for an entry-level sales job.
The first step was to create a job profile repot and to profile the current team. This set
the benchmark for new team members. This is a consultative selling role that requires
the ability to craft a solid solution and to communicate that solution effectively. Both
cognitive and not cognitive skills are required for the position.
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The first candidate scores high in competencies such as “Delivers Compelling
Presentations” and “Communicates Articulately” but performs poorly on the Numerical
Reasoning dimension in critical thinking, which is also important for the sale position.
This candidate was very impressive in the interview and has the polish and verbal skills
to make a terrific first impression. Yet his low scores on thinking competencies and
numerical reasoning suggest that he does not have the depth for complex sales where
judgment is required to build profitable proposals.
Another candidate ranked in the 95th percentile across Logical, Verbal and Numerical
Reasoning. She is able to solve problems and deliver impressive solutions on paper.
Her grasp of working the numbers and creating a value proposition is clear in the
interview process. This candidate’s competency profile reveals, however, that she
scored low in the key competencies for the job such as “Demonstrates
Flexibility/Resilience” and “Persuades and Influences”. She may become a
disappointment for the organization as she fails to adjust to the organizational culture
and misses the mark in consultative sales situations.
The third candidate has a well-balanced profile. He scored above average for key
competencies for the job. While his communication skills are not as dazzling as the first
candidate, he is above average in the most important competencies. In addition, his
numerical reasoning score was in superior range. This candidate will show good
judgment in working with his customers to deliver sound, properly priced proposals and
also have the ability to build solid relationships.
With all the information available, the employer can decide which candidate is right for
the position and what support and training each will require to be most successful. With
only cognitive data or competencies, it would be easy to miss out on understanding the
potential of the well rounded candidate or the well rounded team.