Refers to tools or methods some companies use to assess the skills and abilities of prospective and current employees for hiring, promotion, training, and/or talent development decisions. A 2018 report (Saville and Holdsworth- SHL) found that about 60% of workforce managers use a tool for talent development, and about 93% of recruiters use a tool for hiring purposes. Examples of the various types of employee assessments include:

• 360-Degree Feedback: Gathers feedback from multiple sources including peers, subordinates, supervisors, and sometimes external stakeholders, to provide a comprehensive view of an employee's performance. It focuses on assessing interpersonal skills, leadership abilities, teamwork, and communication effectiveness.
• Psychometric Assessments: Assesses psychological traits and characteristics of individuals, such as cognitive abilities, personality traits, behavioral tendencies, and emotional intelligence; e.g., Myers-Briggs Type Indicator, DISC assessment, and Hogan Personality Inventory.
• Performance Appraisals: Evaluating an employee's job performance against predetermined criteria and goals, typically occurring at regular intervals such as annually or semi-annually, and focusing on aspects like task completion, goal achievement, job knowledge, and contributions to the organization.
• Skill Tests and Simulations: Assess proficiency in specific job-related skills or tasks. These can include practical exercises, case studies, role-playing scenarios, or technical exams designed to measure competencies such as problem-solving abilities, technical expertise, decision-making skills, and attention to detail.
• Behavioral Interviews: Asking candidates to provide specific examples of past behaviors or experiences in various situations. Interviews are designed to predict future behavior based on past actions and assess competencies such as adaptability, conflict resolution skills, leadership potential, and problem-solving abilities.