The Business Case for Assessment and Development Centers

Assessment Centers Improve Selection & Succession

Assessment centers are used by organizations to evaluate and measure candidates' abilities, behaviors, and potential in realistic job scenarios that replicate the requirements of the position. Advancements in technology and the dynamics of the modern workforce have led to a rise in the popularity of both online and virtual assessment centers.

Skills and competencies are taking the center stage in hiring but assessment centers still have a valuable role to play. Typically used in tandem with other psychometric assessments and interviews, assessment centers provide the added advantage of evaluating multiple candidates simultaneously, observing how individuals interact in team settings. This can reveal critical insights into communication, collaboration, and leadership abilities—qualities that can be harder to assess through other methods.

Candidates themselves tend to view assessment centers positively as a transparent and fair way to be evaluated—known to be a key expectation of current workforce. They also gain valuable feedback on how they are perceived by others, helping them refine their skills and align better with organizational goals.

How Structured Exercises Shape Stronger Teams

Having a structured approach within a standardized environment ensure every participant is given the same opportunity to showcase their skills, making the assessment center both fair and data-driven. Here are six examples of exercises that provide value:

1. Analysis / Written Report

What it is: Candidates receive a case study or scenario and must analyze the information, identify key issues, and write a clear, structured report with recommendations.

Why it’s useful: This exercise tests analytical thinking, problem-solving, and written communication—essential skills for roles that require data-driven decision-making and strong reporting abilities.

2. Inbox Simulation 

What it is: Candidates manage a simulated inbox filled with tasks, messages, and competing priorities. They must decide what needs immediate attention, delegate effectively, and handle disruptions in a predetermined timeframe. 

Why it’s useful: This mirrors a fast-paced work environment, assessing time management, prioritization, and the ability to stay organized under pressure.

3. Role-Play Exercise 

What it is: Candidates engage in a work-related scenario, such as handling a difficult conversation between a manager and an employee or negotiating with a client. 

Why it’s useful: Assessors evaluate interpersonal skills, conflict resolution, persuasion, and adaptability—critical for leadership and customer-facing roles.

4. Case Studies 

What it is: Candidates analyze a real business problem, working individually or in groups to develop and present a solution. 

Why it’s useful: This tests problem-solving, critical thinking, and collaboration together with the candidate’s thought process and ability to justify their recommendations.

5. Group Discussion 

What it is: Candidates work in teams to discuss and solve a real or hypothetical issue. Assessors observe how participants communicate, collaborate, and persuade others. 

Why it’s useful: This exercise reveals teamwork, leadership potential, and negotiation skills. It’s not just about having great ideas—it’s about engaging with others, contributing meaningfully, and finding common ground.

6. Individual and Group Presentations 

What it is: Candidates receive a set of complex data or information to analyze and then present in a structured format. This can also be replicated in a team environment where small teams collaborate to prepare and deliver a structured presentation on a given topic. 

Why it’s useful: This tests critical thinking, problem-solving and the ability to draw relevant conclusions from information and present them coherently under time constraints. When in a team, it highlights how well candidates can work together and accept different viewpoints to create a compelling, well-organized message.

Add Confidence to Your Talent Decisions

Assessment and development centers can be an important source of talent data for organizations seeking to evaluate key skills and competencies, particularly around communication and teamwork, of individuals, be they prospective candidates or existing employees. While assessment centers require an upfront investment of time and resources, the long-term benefits can far outweigh the costs. The shift to virtual assessment centers has made the process even more cost-effective, eliminating expenses related to travel, venue rental, and logistics.

Organizations can make smarter hiring decisions, overcome skills gaps, and reduce employee turnover, leading to significant savings and stronger workforce development. Furthermore, by observing candidates in real-world scenarios, organizations can pinpoint those with the potential to grow into leadership roles, strengthening succession planning efforts.

SHL’s end-to-end digital assessment and development centers are the most efficient and accurate way of identifying potential from anywhere in the world.

Learn more about how to make them work as part of your hiring, development, or mobility strategy.