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Cognitive abilities in personnel selection: what tests of thinking ability show

How much cognitive abilities matter for performance at work, what tests of reasoning, strategic and tactical thinking measure and how the results should be read.

6-minute readLast updated

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Cognitive abilities show how well a person solves problems, recognises hidden connections and draws sound conclusions from information. In personnel selection they are an important indication of later performance. According to the result reports transformis uses in personnel assessment, the ability to solve different types of problems is the most important factor for performance at work. Its influence grows with the complexity of the task. Even so, a test score is not a verdict on a person. It is placed against a norm group and related to the requirements profile of the role. This article explains two procedures: reasoning, and strategic and tactical thinking.

What you take away

  • The ability to solve different types of problems matters most for performance at work, all the more so the more complex the task.
  • Test results are placed against a norm group and are statements of probability, not verdicts on people.
  • Strategic and tactical thinking describe different strengths. Together they make up critical thinking.
  • The yardstick remains the requirements profile. A test is one component alongside an interview, a work sample and feedback.

Why are cognitive abilities important for personnel selection?

The result reports open with one statement: the ability to solve different types of problems is the characteristic that matters most for a person’s performance at work. Reasoning ability predicts job performance for tasks of all levels of difficulty. However, its effect is greater the more complex the task.

For selection, this means: the more a role demands in terms of problem solving and decision making, the more weight the question of thinking ability carries. How much weight it receives in an individual case follows from the requirements profile.

What does a reasoning test measure?

The test checks whether a person can grasp hidden connections, fill gaps where no information is given, discover relationships between objects and recognise similarities between different figures. What is required is logical reasoning, not specialist knowledge.

The result is placed in one of three categories, measured against a norm group. In the result report, “low” covers the 16 per cent of the norm group with the lowest results (0 to 3 out of 10 points), “average” the middle 68 per cent (4 to 6 points) and “high” the 16 per cent with the highest results (7 to 10 points). An arrow marks where the person’s result lies.

How should high, average and low results be read?

People with a high score find it easy to solve tasks that require logical reasoning. They presumably get to grips quickly with very different tasks and perform above average. Their managers probably perceive them as more effective than people with lower scores.

People with an average score have an average ability to solve such problems. They probably learn their tasks at a normal pace and show average performance.

People with a low score have difficulty with tasks that require logical reasoning. They probably need more time than average to learn tasks and perform less well on many tasks. However, the report explicitly states that they can compensate for a lower score with a conscientious working style.

The wording is deliberately cautious. “Presumably” and “probably” show that a test score is a statement of probability and not a certainty about a person.

What distinguishes strategic, tactical and critical thinking?

The second procedure was developed specifically for managers and executives. It provides information on strategic and tactical thinking and combines both into a score for critical thinking.

Strategic thinking describes the ability to evaluate current business practices from a strategic perspective and to understand how new trends and technological innovations influence future business development. People with high scores focus on long-term issues and find solutions that combine the needs of different business units. They recognise new problems quickly, come across as innovative, curious and interested in feedback, and have a high tolerance of ambiguity.

Tactical thinking describes the ability to draw reasonable and defensible conclusions from available data and information. People with high scores focus on short-term problems, which they solve one after the other. They anticipate the consequences of decisions and recognise obstacles to implementation. In decision-making processes they are disciplined and come across as reliable, precise, detail-oriented and professional.

Critical thinking describes the ability to recognise and solve complex problems: balancing short- and long-term goals, linking innovation with implementation, recognising assumptions, understanding agendas and assessing arguments. According to the report, critical thinking predicts general performance in many occupations.

Workshop with a laptop in the foreground and a presentation in the background
Workshop with a laptop in the foreground and a presentation in the background

How are the results for managers classified?

The scores are reported as percentiles and placed on a scale from low through lower average to high and very high. According to the report, the procedure’s norm is based on a sample of 2,500 MBA students, applicants for senior roles and executives and managers. A percentile therefore shows how a result compares with this group, not with the population as a whole.

Since strategic and tactical thinking describe different strengths, it is worth looking at both sub-scores and not just at the overall score. Which profile a role needs follows from its requirements profile.

How do test results feed into a personnel decision?

A test of thinking ability is one component of aptitude assessment, not a substitute for it. The point of reference is the requirements profile of the role: what has to be done, decided and handled there? Only against this can one judge whether a result is sufficient for the specific task. A selection process for managers therefore combines several perspectives, such as an interview, a specialist sample task, reflection on leadership situations and a personality assessment with feedback.

What a test measures, what an interview shows and what is known from observed work remain distinguishable. Contradictions are examined rather than being netted out into a seemingly clear single score. The procedure includes a feedback conversation with the person.

Test results on thinking ability say more about potential than about performance. Potential is a person’s capacity to learn from job-related experience, that is, the ability to perform in unfamiliar situations. In the competency model that transformis describes for assessing managers, characteristics such as complexity, recognising connections, critical thinking and problem solving belong to the potential factor of mental agility. A high test score therefore says nothing yet about how someone actually handles their current tasks. The difference between performance and potential is described in a separate article.

What can a test of thinking ability not show?

It says nothing about personality, values and motivation, about behaviour under pressure or about everyday leadership behaviour. There are separate procedures and perspectives for these, such as a personality assessment or 360-degree feedback. Nor does it show how conscientiously someone works, and that is precisely what can compensate for a lower result.

In addition, norm values always apply to a specific procedure and a specific norm group. Current norms and legal requirements must be checked separately for the chosen procedure. Before use, the decision question, the choice of procedure, qualified administration, feedback and the handling of personal results are agreed.

What is this article based on?

The basis is two templates for result reports from transformis personnel assessment (Cognitive abilities, V 1.1): one report on reasoning and one on strategic and tactical thinking. The information on norm groups and score ranges comes from these templates and applies to the procedures described there. The classification within the selection process follows existing transformis page texts on aptitude assessment, requirements profiles and potential assessment.

Last updated Author: Kira Rempel, Senior Consultant | Head of HR competence team

Frequently asked questions

What are cognitive abilities?

Thinking abilities: solving problems, recognising hidden connections and drawing sound conclusions from information. In personnel selection they are measured with tests, for example of reasoning or of strategic and tactical thinking.

How important are cognitive abilities for job performance?

According to the result reports transformis uses, the ability to solve different types of problems is the characteristic that matters most for performance at work. Its influence is greater the more complex the task.

What does a low test result mean?

The person probably has difficulty with tasks that require logical reasoning and needs more time to learn tasks. A conscientious working style can compensate for this. Whether the result is sufficient for the role only becomes clear when it is compared with the requirements profile.

What is the difference between strategic and tactical thinking?

Strategic thinking evaluates business practices from a long-term perspective and recognises how trends and innovations influence the future. Tactical thinking draws defensible conclusions from available data, solves short-term problems one after the other and recognises obstacles to implementation. Together, both make up critical thinking.

What is a norm group?

The comparison group against which a test result is placed. In reasoning, a result counts as average if it lies within the middle 68 per cent of the norm group. For the procedure for managers, according to the report, the norm consists of MBA students, applicants for senior roles and executives and managers.

Is a test of thinking ability enough for a selection decision?

No. A test is one component of aptitude assessment. What counts is the comparison with the requirements profile, supplemented by an interview, a specialist sample task, a personality assessment and a feedback conversation. A test of thinking ability does not measure personality, motivation or leadership behaviour.

Further reading on the topic