Skill-Based Interviews, the new recruitment method 

The hiring process is always evolving.

Job interviews were initially an informal conversation designed to help the interviewer ‘get to know’ the job applicant. Once it became clear that this way of interviewing is less reliable at predicting job performance, the interview evolved into the structured job interview process,  with standardized questions that are marked against a scoring criteria. 

In more recent times, we have seen a move from face-to-face interviews in the employer’s office to online video interviews. The online video, due to AI and recruitment tech, quickly evolved into AVIs (Asynchronous Video Interview). AVI is an interview where the job applicant records video responses on a web portal to preset questions within a set timeframe, rather than speaking to a live interviewer.

In the last few years, more employers have moved away from traditional recruitment practices that focus on degrees, job titles, and years of experience. Instead, they are turning to skill-based job interviews — a recruitment method designed to answer one critical question: Can you actually do the job?

What Is a Skill-Based Interview?

A skill-based interview evaluates candidates based on their ability to perform real sector-related tasks relevant to the advertised role, rather than relying solely on pre-prepared interview answers to commonly asked interview questions. 

In the last decade, job hunters have turned to the internet, and more recently AI, to ‘search, remember, and repeat’ interview answers. In this way, the best actor was offered the job role, not the most suitable candidate. Most job seekers with an upcoming interview search ‘top ten common interview questions and answers for ‘role’ and parrot-phrase the online content. 

Hiring managers are wise to this trick and have turned to a skill-based interview model to observe what an applicant can do, rather than believe what they say they can do. 

Instead of only asking job interview questions like:

  • “What degree do you have?”
  • “Where did you work before?”
  • “How many years of experience do you have?”

Employers are more likely to ask you to:

  • Solve a realistic problem
  • Complete a practical task
  • Walk through how you would handle a real work scenario
  • Demonstrate your thinking and decision-making process

The employer’s goal is to assess what a candidate can do, not just what they claim they can do.

Skill-based interviews can take several forms:

  • Practical assignments (case studies, planning exercises, coding assignments)
  • Live problem-solving during the interview
  • Role-plays or simulations
  • Portfolio or project reviews
  • Behavioral questions focused on leadership skills

Management and senior leader interviews often combine multiple formats.

The Benefits of Adopting a Skill-Based Interview Approach

Predict job performance more accurately

  • Reduce bias tied to education or background
  • Identify leaders who can deliver results
  • Reveal how candidates handle real pressure and ambiguity

Skill-Based Interview Examples for Management Roles

With management positions being a common role that requires a skill-based interview, we chose this position as our example. 

To prepare for other job positions, think about the day-to-day duties for the advertised position and what steps you take to complete these tasks. The skill-based interview questions or assignments will be based on these essential job criteria. 

After the examples, I will share my skill-based interview tips.

Below are examples of management position skill-based interview questions and tasks, along with what employers are actually looking for.


1. Team Performance & Leadership Scenario

Interview Task:
“Your team has missed two key deadlines in a row. Morale is low, and senior leadership is concerned. Walk us through what you would do in your first 30 days.”

What This Tests:

  • Leadership approach
  • Prioritization
  • Communication and accountability
  • Ability to diagnose problems before acting

Strong Approach:
A good answer would include:

  • Listening to the team and identifying root causes
  • Reviewing processes and workload
  • Setting clear short-term goals
  • Communicating expectations and support clearly
  • Providing quick wins to rebuild confidence

2. Conflict Management Role-Play

Interview Task:
“You have two high-performing employees in conflict, and it’s affecting the rest of the team. Role-play how you would handle a one-on-one conversation with one of them.”

What This Tests:

  • Emotional intelligence
  • Active listening
  • Fairness and professionalism
  • Ability to de-escalate tension

Strong Approach:

  • Ask open-ended questions
  • Acknowledge concerns without taking sides
  • Focus on behavior and impact, not personalities
  • Guide the conversation toward solutions and shared goals

3. Decision-Making Under Pressure

Interview Question:
“You’re given a limited budget cut and must decide which project to pause. How do you make that decision?”

What This Tests:

  • Strategic thinking
  • Business judgment
  • Risk assessment
  • Communication with stakeholders

Strong Approach:

  • Clarify objectives and constraints
  • Evaluate impact, ROI, and risk
  • Consider short-term vs long-term consequences
  • Explain how you would communicate the decision transparently

4. Coaching and Development Exercise

Interview Task:
“One of your direct reports is technically strong but struggles with communication. How would you coach them?”

What This Tests:

  • Coaching mindset
  • Feedback delivery
  • Talent development skills

Strong Approach:

  • Provide specific, constructive feedback
  • Set clear improvement goals
  • Offer support (training, mentoring, examples)
  • Follow up with measurable progress

5. Live Case Study: Business Problem

Interview Task:
“You’re taking over a team with high turnover. Here is a summary of recent exit feedback. What do you do next?”

What This Tests:

  • Data interpretation
  • Leadership strategy
  • Change management

Strong Approach:

  • Identify patterns in feedback
  • Prioritize issues that affect retention
  • Balance quick fixes with long-term culture changes
  • Measure progress through engagement and performance metrics

How to Pass a Skill-Based Interview as a Manager

To succeed in management-focused skill-based interviews:

  • Think out loud — show how you analyze problems
  • Balance empathy with accountability
  • Use real leadership examples, not theories
  • Focus on outcomes and impact
  • Explain how you communicate decisions

Employers want to see how you lead, not just that you’ve managed before.

Skill-based interviews are designed to reveal how candidates perform in real-world situations. For management roles, they test decision-making, communication, emotional intelligence, and the ability to drive results through people.

In other roles employers may look for creativity, communication, problem-solving, stakeholder-management, empathy, risk assessments, project management, classroom delivery, data analyst, well, the list can go on and on.

Top 10 Tips to prepare for skill-based interviews 

Predict the Skills 
Carefully review the job description and identify the core skills (e.g., coding, analysis, writing, design, troubleshooting). Focus your prep on those exact competencies.

Practice Real-World Tasks
Skill-based interviews often mirror actual job work. Practice with realistic problems, case studies, coding challenges, mock presentations, or simulations relevant to the role.

Master the Fundamentals First
Interviewers often test basics before complexity. Ensure you understand core concepts thoroughly—you’ll perform better under pressure if fundamentals are solid.

Explain Your Thinking Out Loud – this is KEY!!
Interviewers care how you approach problems. Practice verbalizing your reasoning, trade-offs, and assumptions as you work through tasks. Sometimes debating a situation with yourself can share your breath of knowledge on a subject. 

Review Past Projects and Experiences
Discuss specific examples where you used the required skills. Prepare concise stories covering:

  • The problem or goal
  • Your approach 
  • Tools/techniques used
  • Outcome and lessons learned

Time Yourself During Practice
Many skill tests are time-bound. Practice completing tasks efficiently without sacrificing accuracy, and learn how to prioritize under constraints.

Prepare for Follow-Up Questions
Expect “why did you choose this?” or “how would you improve it?” Be ready to defend decisions and suggest optimizations or alternatives.

Brush Up on Tools and Technology
Refresh your knowledge of tools, platforms, or frameworks commonly used in the role. Even basic fluency can make a strong impression.

Practice Handling Mistakes 
You don’t need to be perfect. If you get stuck, stay calm, acknowledge it, and explain how you’d troubleshoot or seek a solution—this shows professionalism and problem-solving skills.

Mock Interviews
Mock interviews help reduce anxiety and improve clarity, confidence, and pacing. Book a mock interview or job interview coaching session with Employment King.