Psychometrics · 11 min read

Situational Judgment Tests in Hiring: A Guide for Employers

What a situational judgment test is, what it predicts and how to develop one for your roles. With a sample scenario, scoring and a step-by-step plan.

Door Ingmar van Maurik · Founder & CEO, Making Moves


Short answer

A situational judgment test (SJT) presents candidates with realistic situations from the role and asks which response is best. It measures practical judgment in the context of the work. An SJT predicts job performance reasonably well (average validity about 0.26), typically shows smaller group differences than a cognitive ability test and is seen by candidates as fair and relevant. You get the most value from an SJT built on scenarios from your own practice.

This article is part of our complete guide to assessments in hiring.

What is a situational judgment test?

An SJT consists of a series of short scenarios, each with several possible responses. An example from customer service:

Scenario: A customer calls for the third time about the same delayed delivery and gets angry. The colleague who manages the case is absent today. What is the best response?

OptionResponseExpert rating

|---|---|---|

AYou say the colleague will call back tomorrow.Weak: the customer is left without an answer BYou acknowledge the frustration, look up the status yourself and agree on a concrete callback time.Best response CYou immediately offer compensation to satisfy the customer.Doubtful: outside your authority and solves nothing DYou transfer the call to a manager.Fair: sometimes needed, but not as a first step

Which option is best depends on the organization's way of working and values. That is why experts from within the company set the scoring key.

Formats and response instructions

Text, video or animation

Most SJTs are text-based. Video or animated versions feel more realistic and require less reading, which is why they typically show smaller differences between groups. They are more expensive to produce, though.

"What is best?" or "What would you do?"

This looks like a detail, but it matters:

  • "What is the best response?" mainly measures knowledge of effective behavior. Candidates find it harder to game, because there is an objectively best answer. This format is more strongly related to reasoning ability.
  • "What would you do?" measures behavioral tendency more and is more strongly related to personality. It is more sensitive to socially desirable answering.
  • In selection, the first format is usually the safer choice.

    Response formats

    You can ask candidates to choose the best response, the best and the worst, or rate each response on a scale. Rating each option gives the most information per scenario.

    What does an SJT predict?

    According to the meta-analysis by Sackett, Zhang, Berry and Lievens (2022), the average validity of SJTs for job performance is about 0.26. Important to know:

  • An SJT is a method, not a trait. Depending on the scenarios, it measures judgment, job knowledge, teamwork or integrity. Its value therefore depends heavily on how well the scenarios match the role.
  • Smaller group differences. SJTs typically show smaller differences than cognitive ability tests, especially when the reading load is low.
  • Positive candidate experience. Candidates see right away what the work is about. That also acts as a realistic job preview: those who don't recognize themselves sometimes rightly drop out.
  • Added value. An SJT complements a [cognitive ability test](/en/articles/cognitive-ability-test-hiring) and an [integrity test](/en/articles/integrity-test-hiring) well.
  • How reliable is an SJT?

    Because each scenario taps something different, the internal consistency (Cronbach's alpha) of an SJT is often lower than for other tests, usually between 0.50 and 0.70. That does not automatically mean the test is poor: test-retest reliability says more here. Use enough scenarios (often fifteen to twenty-five) and never let the result count as the only criterion. More on judging quality in what makes an assessment valid and reliable.

    Developing an SJT in six steps

    1. Collect critical situations

    Interview experienced employees and managers about situations in which the difference between good and poor behavior became clearly visible. This is called the critical incident technique.

    2. Write realistic scenarios

    Turn the situations into short, recognizable scenarios without unnecessary detail or jargon.

    3. Collect response options

    Have employees with different levels of experience write down how they would respond. That gives you realistic good and less good options, not straw men.

    4. Build the scoring key

    Have a group of experts rate each option. Keep only scenarios on which the experts agree sufficiently.

    5. Run a pilot

    Have current employees and candidates take the test. Check difficulty, reliability and group differences, and drop or rewrite weak scenarios.

    6. Validate and calibrate

    Link scores to performance and turnover, and refine the scenarios and weighting as data comes in. See also how to design company-specific assessments.

    SJTs and AI

    AI can help write first drafts of scenarios and response options faster, but experts from your organization must always review them and set the scoring key. Also watch the other risk: language models often pick the socially desirable, common-sense answer on generic SJTs. With company-specific scenarios, where the best answer depends on your way of working, and with time limits per scenario, that is harder.

    Where in the process?

    A short SJT of twenty to thirty minutes is a strong first filter at high volume: job-relevant, pleasant for candidates and with limited group differences. For specialist roles you can use it later, alongside a work sample or structured interview. Which combination works for which role is covered in the guide to assessments.

    Off-the-shelf or custom?

    Standard SJTs exist for broad job families such as customer service or management, but the real strength of an SJT lies in recognizable scenarios from your own practice: the complaints your customers have, the safety protocols at your sites, the trade-offs your managers make. Those predict better, feel more logical to candidates and are harder to fake. See how we develop custom assessments.

    Frequently asked questions

    What is a situational judgment test?

    A test with realistic work situations in which candidates indicate which response is best. It measures practical judgment in the context of the role.

    How is an SJT scored?

    With a scoring key set by experts from the organization. The closer the candidate's answer is to the experts' judgment, the higher the score.

    How reliable is a situational judgment test?

    Internal consistency is often 0.50 to 0.70 because scenarios measure different things; test-retest reliability is more meaningful. With enough scenarios and in combination with other methods, an SJT is very usable.

    How long does an SJT take?

    Usually twenty to forty minutes, depending on the number of scenarios and the format.

    Can candidates prepare for an SJT?

    Practicing the format helps candidates feel at ease, so offer a few sample scenarios. With company-specific scenarios, the best answer cannot be learned from generic practice sets.

    What is the difference between an SJT and a personality test?

    A personality test asks about general traits ("I like to work carefully"). An SJT presents concrete work situations and measures how well someone judges them.

    Summary

  • An SJT measures practical judgment with realistic scenarios from the role.
  • It predicts performance reasonably well, with smaller group differences and a positive candidate experience.
  • Prefer the "what is the best response?" instruction and a scoring key from your own experts.
  • Expect a lower alpha; use enough scenarios and combine with other methods.
  • Most of the value lies in scenarios from your own practice.
  • Want an SJT with scenarios from your organization? See how we develop custom assessments or get in touch.


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