What is Cognitive Reasoning? Types, Importance & How to Evaluate?

Learn what is cognitive reasoning, its key types, and why it matters in hiring. This guide explains how to evaluate cognitive reasoning skills using assessments, scenarios, and structured interviews.
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TL;DR

You’re running late for work, and as you grab your car keys, you instinctively check your pockets for your phone and wallet. You don’t stop to think why, you just know it’s the right thing to do. This quick decision is a result of cognitive reasoning, the mental process that helps us solve problems, make judgments, and make simple daily life decisions without overthinking every detail.

Now, imagine applying the same reasoning skills in a high-stakes environment, like hiring the right candidate, troubleshooting a technical issue, or making a financial investment. Whether we’re making snap decisions or carefully weighing options, cognitive reasoning shapes how we think, react, and problem-solve.

Cognitive reasoning is at the heart of human intelligence. It allows individuals to process information, analyse situations, and make rational decisions. Whether in recruitment, business strategy, or problem-solving, cognitive reasoning ensures that choices are based on logic rather than impulse.

A study by SHRM also showed that there is a 35% reduction in turnover costs and boost in the overall productivity for about 25% when there is an emphasis given to cognitive ability.

In fact, research also suggests that 90% of top performers excel in critical thinking and cognitive reasoning, making it one of the most sought-after skills in the workplace. According to the World Economic Forum, the latter skills will remain as important as artificial intelligence to transform the job market.

But what exactly is cognitive reasoning, and how does it impact hiring, decision-making, and professional success? Let’s break it down.

What Is Cognitive Reasoning?

Cognitive reasoning refers to the mental process of analysing information, identifying patterns, and making logical conclusions. It involves problem-solving that helps recruiters identify hiring challenges, such as talent shortages, and develop strategies to attract the right candidates.

Critical thinking allows them to evaluate applicants’ skills and experiences objectively rather than depending on surface-level impressions.

Logical reasoning ensures structured decision-making, such as shortlisting candidates based on job-relevant criteria rather than personal biases. Finally, strong decision-making skills help recruiters think between multiple factors like the technical expertise, cultural fit, and growth potential and decide which is the best hire.

For example, if two candidates have similar qualifications, a recruiter with strong cognitive reasoning skills may study past performance, adaptability, and problem-solving abilities to make a fair and strategic hiring choice.

The Role of Cognitive Reasoning in Hiring

In hiring, cognitive reasoning plays an important role in assessing a candidate’s ability to handle real-world challenges. A developer, for instance, may have strong technical skills, but without cognitive reasoning, they may struggle to debug code efficiently and give his best performance. Recruitment is more than just evaluating resumes and conducting interviews.

It requires careful comparison of candidates' thought processes, decision-making skills, and problem-solving abilities. This is why cognitive reasoning assessments, such as those offered by WeCP (We Create Problems), help recruiters measure candidates’ analytical thinking through structured assessments.

Without cognitive reasoning, hiring managers risk making biased decisions based on intuition rather than evidence.

Cognitive reasoning helps in:

1. Identifying Top Performers

Employees who excel at cognitive reasoning are better at solving complex challenges and making informed decisions. This is particularly valuable in industries like technology, finance, and healthcare, where logical thinking is critical.

For example, a software company is hiring a senior developer. Instead of focusing solely on technical knowledge, they conduct a cognitive reasoning test to measure the candidate’s ability to troubleshoot errors and other skills. The candidate with the best reasoning skills performs better in real-world tasks.

2. Reducing Bias in Hiring Decisions

Cognitive reasoning helps recruiters avoid unconscious biases that can lead to poor hiring choices. When hiring is based on objective assessments rather than intuition, companies build diverse and high-performing teams.

Take a hiring manager who might unconsciously prefer candidates from their previously known spheres. However, by using structured cognitive reasoning tests, they can focus on evaluating analytical and problem-solving skills instead of making biased decisions based on background.

3. Predicting Job Performance

Cognitive ability is one of the strongest predictors of job success. Employees who score higher on reasoning tests tend to learn faster, adapt better to challenges, and contribute more effectively.

For example, a financial analyst role requires strong logical reasoning skills. Candidates who perform well in data interpretation and decision-making assessments are more likely to succeed in the role.

Types of Cognitive Reasoning

1. Deductive Reasoning

Deductive reasoning follows a top-down approach, meaning conclusions are drawn based on general premises. If the initial premises are true, the conclusion must also be true.

Example:

  • Premise 1: All cybersecurity experts must understand encryption.
  • Premise 2: Sarah is a cybersecurity expert.
  • Conclusion: Sarah understands encryption.

Recruiters use deductive reasoning tests to assess whether candidates can apply general principles to specific problems. This is especially useful in engineering, legal analysis, and scientific research roles.

2. Inductive Reasoning

Inductive reasoning works in the opposite direction—drawing general conclusions based on specific observations. It is commonly used in data analysis and pattern recognition.

Example: A hiring manager notices that the top-performing sales employees at their company all have strong negotiation skills. Based on this, they conclude that negotiation ability is a key predictor of sales success.

Inductive reasoning is valuable for recognizing patterns in employee performance and optimizing recruitment strategies accordingly.

3. Abductive Reasoning

Abductive reasoning is about making the best possible guess based on incomplete information. It is widely used in troubleshooting and diagnosing issues.

Example: A software engineer encounters a system failure. Based on previous experiences, they suspect it’s due to a recent update. This assumption helps them troubleshoot the issue efficiently.

In hiring, recruiters use abductive reasoning to evaluate candidates based on limited data, such as their resumes and interview responses.

How to Assess Cognitive Reasoning in Candidates

Cognitive Ability Tests

Cognitive ability tests assess a candidate’s problem-solving skills, pattern recognition, and logical reasoning. These tests are commonly used in hiring because they provide a strong indication of job performance.

For example, a tech company looking for software developers may use WeCP’s coding assessments to test their logical thinking and analytical abilities. These tests present real-world coding problems that require structured reasoning to solve, ensuring that only candidates with strong cognitive skills move forward in the hiring process.

Behavioural Interviews

Behavioural interviews help recruiters understand how candidates use reasoning and decision-making in practical situations. Instead of theoretical questions, candidates are asked to describe past experiences where they had to think critically.

A common question might be, “Tell me about a time you had to make a quick decision with incomplete information.” If a project manager answers by explaining how they prioritized urgent tasks during a tight deadline, it demonstrates their ability to assess situations logically and take effective action.

Case Studies & Problem-Solving Tasks

Providing candidates with real-world problems allows recruiters to observe their reasoning in action. This method is particularly useful for roles that require analytical thinking, such as finance, consulting, and product management.

For instance, a company hiring a financial analyst might give candidates a dataset with stock market trends and ask them to propose an investment strategy. This exercise reveals how well a candidate can analyse data, identify patterns, and justify their recommendations with logical reasoning.

AI-Powered Assessments

AI-driven hiring tools help evaluate cognitive reasoning more accurately by eliminating human biases. Platforms like WeCP analyse candidate responses to problem-solving tasks and provide data-driven insights.

This approach ensures a fair evaluation process by focusing purely on skills rather than subjective impressions. According to a LinkedIn Talent Report, 76% of recruiters believe AI-based assessments improve hiring accuracy by identifying top talent more effectively.

Cognitive Reasoning Assessments to Use in Your Hiring Process

Companies are increasingly prioritizing cognitive reasoning skills when evaluating job candidates. WeCP’s pre-employment cognitive assessments provide recruiters with data-driven insights to make informed hiring decisions.

Implementing cognitive reasoning tests during the hiring process helps ensure that candidates possess the intellectual skills necessary for the role. Below are some key assessments that can enhance your recruitment process and improve hiring outcomes.

1. Numerical Reasoning Test

This test measures a candidate’s ability to work with numbers, interpret data, and solve mathematical problems efficiently. It is especially useful for roles in finance, accounting, data analysis, and engineering.

For example, an accounting firm might use this test to assess whether a candidate can accurately interpret financial reports, calculate profit margins, and analyse numerical trends. WeCP’s numerical reasoning tests help employers evaluate candidates’ proficiency with fractions, percentages, ratios, and data visualization.

2. Verbal Reasoning Test

Verbal reasoning is crucial for roles requiring strong communication and analytical skills. This test evaluates a candidate’s ability to comprehend written information, identify logical relationships between words, and draw conclusions based on given text.

For example, a content manager applying for a role at a marketing agency may be asked to interpret a case study and summarize key insights effectively. This assessment ensures that employees can process and communicate information accurately.

3. Spatial Reasoning Test

Spatial reasoning measures an individual’s ability to visualize and manipulate 2D and 3D objects. It is particularly valuable for architects, engineers, designers, and scientists who frequently work with technical drawings, blueprints, and models.

A construction company hiring a civil engineer, for example, might use this test to evaluate whether the candidate can interpret structural diagrams correctly.

4. Mechanical Reasoning Test

This test assesses a candidate’s understanding of basic mechanical and physical principles, making it essential for technical positions such as electricians, technicians, machine operators, and engineers.

If a manufacturing firm is looking to hire a machine operator, they can use this assessment to evaluate whether the candidate understands pulley systems, force distribution, and energy transfer, ensuring they have the necessary technical knowledge.

5. Problem-Solving Test

Employees often face unexpected challenges in the workplace, and the ability to analyse problems and respond effectively is a crucial skill. This test assesses how well a candidate can think critically and develop solutions under pressure.

A customer support specialist, for instance, may be tested on how they would handle a difficult client complaint using logical reasoning and conflict resolution skills.

6. Thinking Test

Critical thinking is essential for roles requiring independent judgment, such as legal, executive, and data science positions. This test measures how well candidates can analyse information, detect inconsistencies, and draw logical conclusions.

For example, a financial analyst may be presented with conflicting market data and asked to develop an investment strategy based on logical evaluation. WeCP’s AI-powered assessments help organizations evaluate candidates’ ability to think and make sound business decisions.

7. Reading Comprehension Test

Being able to understand and interpret written information is critical in many professional settings. This test measures a candidate’s ability to read, comprehend, and analyse written material. It is especially valuable for roles in research, journalism, and remote teams that communicate primarily through written methods.

A company hiring a political analyst, for example, may use this test to determine if the candidate can effectively summarize complex government regulations.

8. Following Orders Test

Every job requires employees to follow guidelines accurately. This assessment evaluates how well a candidate understands and applies instructions in various formats.

For example, an administrative assistant may be tested on their ability to execute a set of detailed organizational tasks, such as scheduling meetings and processing documents, to ensure efficiency and accuracy in their role.

9. Intermediate Math Test

For jobs that involve frequent numerical calculations, this test helps measure a candidate’s ability to work with fractions, percentages, and equations.

A logistics company hiring an operations manager, for instance, may use this test to assess their ability to calculate shipping costs, inventory levels, and transportation time estimates.

10. Double-Digit Math Test

This test evaluates a candidate’s ability to perform fundamental arithmetic calculations, such as addition, subtraction, multiplication, and division. It is particularly useful for retail and service industry roles.

A supermarket chain hiring a cashier, for instance, might use this assessment to ensure the candidate can quickly and accurately process transactions.

11. Triple-Digit Math Test

Some roles require employees to work with larger numbers in everyday tasks. This test measures an individual’s ability to solve math problems involving triple-digit numbers, making it suitable for roles in manufacturing, industrial work, and hospitality.

A warehouse supervisor, for example, may be required to calculate large inventory quantities, making numerical proficiency a critical skill.

12. Visual Test

This test evaluates a candidate’s ability to detect inconsistencies, patterns, and small details in images or visual data. It is particularly useful for roles like graphic designers, quality control analysts, and lab technicians.

A pharmaceutical company, for example, might use this test to ensure that lab technicians can accurately identify chemical compositions in medical research.

13. Textual Test

For jobs that require a high level of accuracy in handling written material, this test measures a candidate’s ability to thoroughly analyse and verify text-based information. It is particularly beneficial for proofreaders, legal assistants, and administrative roles.

A publishing company hiring an editor, for example, may use this test to determine whether a candidate can catch grammatical errors and inconsistencies in a manuscript.

Overcoming Challenges in Implementing Cognitive Reasoning Assessments

1. Resistance to Change Among Recruiters

One of the biggest challenges in implementing cognitive reasoning assessments is resistance from hiring managers who are accustomed to traditional hiring methods. Many recruiters still depend on resumes and interviews to assess candidates, often undervaluing objective skill assessments.

To overcome this, companies should educate recruiters on the benefits of cognitive reasoning tests, such as improved hiring accuracy and reduced bias.

For example, a company transitioning to AI-powered assessments can conduct training sessions for HR teams to help them understand how these tools lead to better hiring decisions.

2. Test Relevance to Job Roles

Not all cognitive tests apply to every position, and using the wrong type of assessment can lead to ineffective hiring decisions. Employers must therefore make specific tests to specific job roles to ensure they measure the skills that truly matter.

For example, a finance role may require a strong numerical reasoning test, while a legal analyst would benefit from a critical thinking assessment.

By carefully selecting assessments that match job requirements, companies can make the hiring process more effective and fairer.

3. Avoiding Test Anxiety Among Candidates

Some candidates may feel stressed or intimidated by cognitive tests, leading to underperformance that does not accurately reflect their abilities. To address this, recruiters can provide candidates with practice tests or sample questions beforehand to familiarize them with the format.

For example, a company implementing WeCP’s cognitive assessments could offer a short, non-scored practice test to help candidates feel more comfortable before taking the actual evaluation.

4. Balancing AI with Human Judgment

While cognitive reasoning tests provide objective insights, they should not be the sole factor in hiring decisions. Human judgment remains essential for evaluating soft skills, cultural fit, and leadership potential.

A balanced hiring approach combines cognitive assessments with structured interviews and work samples. A company may use a coding test to evaluate problem-solving skills but should still conduct behavioural interviews to assess teamwork and communication.

5. Ensuring Fairness and Accessibility

Not all candidates have the same access to learning resources or test-taking experience, which can create an unintended disadvantage for some applicants. Companies must ensure that assessments are fair, inclusive, and accessible to candidates from diverse backgrounds.

For example, offering alternative test formats for individuals with disabilities or providing additional time for those who need it can help create a more equitable hiring process.

How to Improve Cognitive Reasoning

1. Engage in Critical Thinking Exercises

Practicing critical thinking through puzzles, logic games, and brainteasers helps strengthen cognitive abilities. These activities challenge the brain to recognize patterns, analyse situations, and develop problem-solving strategies.

For example, a project manager who plays chess regularly learns to think several steps ahead, anticipate obstacles, and make strategic decisions—skills that directly translate to effective decision-making in the workplace. WeCP’s skill assessment tools also offer logic-based tests to help professionals refine their reasoning abilities.

2. Read & Stay Informed

Continuous learning is key to sharpening cognitive reasoning. Reading books, industry research, and news articles broadens knowledge and enhances analytical thinking.

For instance, an HR professional who keeps up with studies on hiring bias can identify better recruitment strategies and avoid cognitive pitfalls in decision-making.

A LinkedIn Workplace Learning Report found that 94% of employees would stay longer at companies that invest in their learning and development, proving the value of continuous knowledge expansion.

3. Participate in Discussions & Debates

Engaging in discussions and debates forces individuals to think critically, articulate their thoughts clearly, and consider different viewpoints. By defending arguments and responding to counterpoints, professionals develop stronger reasoning and problem-solving skills.

A business leader who participates in panel discussions, for example, must analyse industry trends, present logical arguments, and respond thoughtfully to opposing opinions, all of which enhance their cognitive agility and strategic thinking.

4. Use AI-Based Learning Tools

AI-powered platforms provide structured cognitive training programs that help individuals improve reasoning skills through interactive exercises. Many companies are incorporating AI-driven assessments to train employees in problem-solving.

WeCP, for example, offer simulations and automated evaluations that measure and develop logical thinking in real-world scenarios. These tools ensure employees continuously refine their cognitive abilities, leading to more effective decision-making in their roles.

Conclusion

Cognitive reasoning is a crucial skill for both employees and recruiters. It influences problem-solving, decision-making, and overall workplace performance. By incorporating structured assessments, companies can hire smarter, reduce bias, and improve productivity.

Tools like WeCP enable businesses to measure candidates’ reasoning skills objectively, ensuring they select the best talent.

Abhishek Kaushik
Co-Founder & CEO @WeCP

Building an AI assistant to create interview assessments, questions, exams, quiz, challenges, and conduct them online in few prompts

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