Hiring intelligence

What Federal Merit-Based Hiring Reforms Can Teach Private Employers

Federal hiring policy is placing more weight on job-related assessments and less on candidate self-ratings. Here are the practical lessons private employers can apply.

Hiring systems are strongest when they ask candidates to demonstrate job-related capability instead of relying primarily on self-ratings, polished résumés, or an unstructured interview. Recent federal hiring reforms bring that principle into sharp focus—and the lesson applies well beyond government.

The federal change, in plain language

In January 2025, an executive order directed the development of a new federal hiring plan centered on merit, practical skill, faster hiring, and the use of technical and alternative assessments where appropriate. The Office of Personnel Management and the Domestic Policy Council issued the Merit Hiring Plan on May 29, 2025.

OPM continued that implementation in 2026 with guidance on self-reported assessments and the use of assessments under direct-hire authority. In March 2026, OPM reported that standardized assessments had been expanded across more than 400 federal roles. The direction is clear: candidate claims remain useful information, but the hiring process should verify them with evidence connected to the work.

JAN 2025

A merit hiring plan is directed

Federal policy calls for faster, skills-focused hiring and greater use of technical and alternative assessments.

MAY 2025

The plan is issued

OPM and the Domestic Policy Council publish the Merit Hiring Plan and implementation resources.

2026

Assessment use expands

OPM adds guidance and expands standardized assessments across hundreds of federal roles.

The larger lesson is not about government

Every employer faces the same basic problem: the information easiest to collect is not always the information most useful for predicting performance. A résumé summarizes the past. A candidate questionnaire may capture the person's own view. An interview shows how the person responds in a conversation. Each can contribute evidence, but none defines the job or demonstrates the complete match.

A stronger process begins with a different question: What does successful performance require in this position? Once that is clear, the employer can choose evidence that is relevant to the actual work.

Merit starts with the requirements of the job—not the confidence of the candidate.

The goal is a consistent process that gives every candidate an appropriate opportunity to demonstrate relevant capability and fit.

Five practices private employers can apply

  1. Define success before evaluating candidates.Clarify responsibilities, performance expectations, technical demands, thinking requirements, behavioral demands, and sources of motivation before reviewing applicants.
  2. Use more than one kind of job-related evidence.Combine the right measures for the role—such as experience verification, technical tests, work samples, whole-person assessments, and structured interviews.
  3. Ask the same core questions.A structured interview makes comparisons more consistent while leaving room to explore candidate-specific evidence.
  4. Separate technical capability from broader job fit.A person may know how to perform a task but struggle with the pace, problem-solving demands, working relationships, or interests that shape long-term performance.
  5. Document the evidence behind the decision.Record what was measured, how it relates to the role, and how the combined evidence informed the decision.

How PXT Select fits into a complete selection process

PXT Select adds objective, position-specific evidence in three areas: thinking style, behavioral traits, and occupational interests. The results can be compared with a PXT Select Performance Model built for the role. This helps the hiring team understand where a candidate aligns with the work and where the interview should go deeper.

PXT Select is strongest when it is part of a broader evidence model. Technical tests and work samples can demonstrate job knowledge or hands-on capability. Experience and credential verification can confirm relevant background. Structured interviews can test the examples and judgment behind a candidate's answers. PXT Select contributes the whole-person, job-fit evidence that those measures do not provide on their own.

A practical evidence model for merit-based hiring
EvidenceWhat it helps answerExample
Qualifications and experienceHas the candidate developed relevant background?Credential and experience verification
Technical capabilityCan the candidate perform an important part of the work?Work sample, simulation, or technical test
Whole-person job fitHow does the candidate align with the role's thinking, behavioral, and interest requirements?PXT Select and a position-specific Performance Model
Applied judgmentHow does the candidate explain decisions and respond to job-relevant situations?Structured interview

Merit means job relevance—not simply the highest score

A defensible selection process does not reward the person who scores highest on every measure. It identifies the evidence the job requires, applies the process consistently, provides appropriate accommodations, and interprets results in context. The best candidate is the person whose combined evidence offers the strongest support for success in that specific role.

Federal hiring and private employment operate under different systems, but the underlying discipline is transferable: define the work, verify the evidence, and keep the job at the center of the decision.

Define the job before you evaluate the person.

That principle sits at the center of merit-based hiring, PXT Select, and The Assessment Company's Occupational DNA® process.

Questions buyers ask

Frequently asked questions

What is merit-based hiring?

Merit-based hiring evaluates candidates using consistent evidence tied to the requirements of the job. That evidence may include qualifications, technical or work-sample assessments, whole-person assessments, structured interviews, and other job-relevant information.

Does merit-based hiring mean choosing the person with the highest test score?

No. Merit-based hiring is not a highest-score-wins system. It means defining the job, selecting relevant measures, applying them consistently, and considering the combined evidence before making a decision.

Can PXT Select test a candidate's technical skills?

PXT Select measures thinking style, behavioral traits, and occupational interests. Employers can add technical tests, work samples, credential verification, and structured interviews when the job requires evidence of specific knowledge or hands-on capability.

How does a PXT Select Performance Model support merit-based hiring?

A Performance Model provides a position-specific reference point. It helps hiring teams compare each candidate with what the role requires and focus the interview on meaningful areas of alignment or concern.

Sources and further reading

Keep exploring

Put the answer in context.

Explore PXT Select What does a pre-employment assessment measure? See the Occupational DNA® process

Start with a real workforce decision

Could an assessment help you make it better?

Tell us what you’re trying to improve. We’ll help determine whether there’s a fit.

Send a messageSchedule a conversationPrefer to call? 800-434-2630