How to use situational judgment tests for better hiring

The challenge of predicting workplace performance

Traditional hiring methods – like standard interviews and resume screening – often fail to capture how a person will actually behave when the pressure is on. While technical skills are relatively easy to verify, the soft skills required for success are much more elusive. This is where a situational judgment test (SJT) becomes an invaluable tool for modern HR leaders.

A situational judgment test presents candidates with realistic, hypothetical workplace scenarios and asks them to identify the most effective response. It moves beyond what a candidate says they can do and looks at how they actually think. By using these assessments, we can bridge the gap between theoretical capability and practical application, ensuring a better fit for your team culture and specific role requirements.

At Compono, we believe that understanding a person’s natural inclinations is the key to building high-performing teams. When you combine situational insights with a deep understanding of work personality, you gain a clearer picture of how an individual will contribute to your organisation’s long-term success.

How a situational judgment test works in practice

Most situational judgment tests follow a consistent structure. Candidates are given a written or video-based scenario – such as a conflict with a colleague or a sudden shift in project priorities. They are then provided with several possible actions and must either choose the 'best' and 'worst' options or rank them in order of effectiveness.

These tests are designed to measure specific competencies that are critical for your business. For example, if you are hiring for a leadership role, the scenarios might focus on delegation, conflict resolution, or strategic decision-making. For customer-facing roles, the focus might shift to empathy, problem-solving, and resilience under pressure.

The beauty of the situational judgment test is its ability to reveal 'tacit knowledge' – the kind of practical wisdom that isn't taught in textbooks but is essential for navigating office politics and interpersonal dynamics. It provides a level of objectivity that interviews often lack, reducing the impact of unconscious bias in your recruitment process.

Identifying the right work personality for the role

While an SJT tells you how a person might handle a specific moment, understanding their broader The Evaluator or The Coordinator profile tells you how they will handle their work every day. High-performing teams aren't just made of talented individuals; they are made of complementary personalities.

For instance, an The Auditor might excel in a situational judgment test focused on compliance and detail-oriented tasks, whereas The Pioneer would likely shine in scenarios requiring innovative, out-of-the-box solutions. Both are valuable, but their effectiveness depends entirely on the context of the role.

By integrating these insights into your hiring workflow, you can move away from 'gut feel' and toward data-driven decisions. Compono Hire allows you to select the specific work personality you need for a role and automatically score candidates based on their fit, ensuring you aren't just hiring for skill, but for long-term cultural alignment.

Resolving conflict before it starts

One of the most powerful applications of a situational judgment test is assessing how a candidate handles friction. Conflict is an inevitable part of any workplace, but how your team navigates it determines whether it leads to growth or disruption. A well-designed SJT can highlight whether a candidate is a The Helper who seeks harmony, or The Campaigner who uses persuasion to find a way forward.

When you understand these natural tendencies, you can manage your team more effectively. For example, a leader might need to help The Advisor commit to a firm decision in a conflict, while encouraging The Doer to consider the emotional impact of their direct communication style.

Using these assessments during the recruitment phase gives you a 'preview' of these dynamics. It allows you to ask more targeted questions during the interview, such as: "I noticed in the situational assessment you prioritised task completion over team consensus – can you tell me more about your reasoning there?" This leads to much deeper, more authentic conversations.

Key takeaways for your hiring strategy

• Objectivity is key: Use a situational judgment test to reduce bias and standardise how you evaluate soft skills across all candidates.
• Focus on context: Ensure your test scenarios reflect the actual challenges and environment of your specific organisation.
• Link to personality: Combine SJTs with work personality assessments to understand both 'what' a candidate will do and 'why' they do it.
• Improve the candidate experience: Realistic job previews via SJTs help candidates understand if the role is actually right for them before they sign a contract.
• Drive performance: Better hiring decisions lead to higher engagement and lower turnover, strengthening your overall team culture.

Where to from here?

* Explore: Compono Platform

* Talk to an expert: Book in a 15-minute chat to get a walkthrough of Compono.

Frequently asked questions

What is a situational judgment test?
An SJT is a psychological assessment where candidates are presented with hypothetical workplace scenarios and asked to identify the most effective response to measure soft skills and decision-making.

How do situational judgment tests reduce hiring bias?
By providing a standardised set of scenarios and objective scoring criteria, SJTs ensure every candidate is evaluated on the same basis, reducing the influence of subjective 'gut feelings'.

Can situational judgment tests be used for existing employees?
Yes, they are excellent for leadership development and identifying training gaps by showing how current staff handle complex interpersonal or professional challenges.

Are situational judgment tests better than personality tests?
They serve different purposes. SJTs measure specific job-related behaviors, while personality tests measure underlying traits. They are most effective when used together.

Do candidates find situational judgment tests difficult?
While they require critical thinking, most candidates appreciate them because they provide a realistic preview of the job's actual day-to-day challenges.