For companies using pre-employment tests, cut-off scores can be an easy way to filter out candidates who might not have the right skills for a role. However, if not set properly, they can lead to unfair hiring practices, legal troubles, and even cause businesses to miss out on great talent.
This guide breaks down everything you need to know about cut-off scores—what they are, how they’re set, common misconceptions, legal considerations, and best practices for using them in hiring.
1. What Exactly Are Cut-Off Scores?
Cut-off scores are like the “minimum height requirement” at an amusement park—except instead of determining if you can ride a roller coaster, they decide whether a candidate moves forward in the hiring process. These scores set a clear pass/fail threshold based on test performance. If a candidate meets or exceeds the cut-off, they stay in the game. If they fall short, they’re out.
Cut-Off Scores vs. Benchmarking: What’s the Difference?
A lot of people confuse cut-off scores with benchmarking, but they work very differently.
- Cut-off scores say, “You need at least X points to move forward.” It’s a firm line that separates who continues and who doesn’t.
- Benchmarking is more about comparisons. It ranks candidates relative to others, like “top 25% of test takers.” It doesn’t eliminate people outright—it just helps gauge where someone stands against a larger pool.
Think of it this way:
- A cut-off score is like a driver’s license test—either you pass or you don’t.
- Benchmarking is more like an Olympic race—your performance is judged relative to other competitors.
The Risk of Setting the Wrong Cut-Off Score
At first glance, using a cut-off score seems like a great way to streamline hiring. But if it’s too high, you might eliminate strong candidates who could excel in the role with a little training. If it’s too low, you might let in candidates who aren’t truly qualified.
And that’s not the only risk—cut-off scores that aren’t backed by research can introduce bias, lead to legal issues, and even filter out great talent unnecessarily. That’s why companies need to be thoughtful and strategic when setting them.
Done right, cut-off scores can save time and help employers find the right fit. Done wrong, they can unintentionally block diverse talent and hurt hiring outcomes. So, if you’re going to use them, they need to be carefully designed, job-related, and legally sound.
2. The Legal Side of Cut-Off Scores: What You Need to Know
Cut-off scores might seem like just another hiring tool, but they come with some serious legal baggage. It’s not as simple as picking a number and running with it—if that number isn’t properly backed by data and job relevance, it could land your company in hot water.
Why? Because if a cut-off score unfairly blocks qualified candidates, especially from certain demographic groups, it can lead to discrimination claims. That’s why hiring teams need to approach cut-off scores like a science, not just a gut feeling.
Why Legal Defensibility Matters
When cut-off scores are challenged in court (yes, that happens!), companies have to prove that their scoring thresholds are:
- ✔ Directly tied to job performance (You can’t just say, “We only want people who score 80% or higher” unless you can prove that’s necessary.)
- ✔ Not disproportionately excluding specific groups (If certain demographics consistently score lower, you need to prove the test isn’t biased.)
- ✔ Based on actual research and not arbitrary decisions (A well-documented process protects you if hiring decisions are questioned.)
Basically, if you’re using cut-off scores, you need receipts—hard data that shows why they make sense.
Methods for Setting Legally Defensible Cut-Off Scores
There are a few gold-standard psychometric methods that experts use to set legally sound cut-off scores. These aren’t random numbers pulled out of thin air—they’re backed by rigorous research.
🔹 Modified-Angoff Method
This is one of the most widely used methods. A panel of subject matter experts (SMEs) estimates how a minimally competent candidate (MCC) would perform on each test question. The process involves discussion, independent ratings, and adjustments to reach a fair and realistic cut-off score.
🔹 Bookmark Method
Here, experts go through a ranked list of test questions, placing a “bookmark” where they believe the cut-off should be. This approach helps identify the difficulty level at which a candidate should be considered competent.
🔹 Contrasting Groups Method
This method compares high-performing employees with low-performing ones to figure out a meaningful score threshold. If the top performers consistently score above a certain number, that score might be used as the cut-off.
Each of these methods adds credibility to the hiring process and ensures that cut-off scores aren’t just random guesses.
Why You Need Experts Involved
If your company is using cut-off scores for hiring decisions, it’s a good idea to bring in a psychometrician or legal consultant. They’ll help ensure that your scoring process is:
- 🔹 Fair (No unintentional biases or discriminatory impact)
- 🔹 Defensible (You can prove it’s necessary for the job)
- 🔹 Accurate (Actually predicts job success)
At the end of the day, cut-off scores can be useful, but only if they’re set responsibly. A legally questionable cut-off score isn’t just a bad hiring practice—it’s a legal risk that could cost companies big time.
3. Common Myths About Cut-Off Scores: The Truth Behind the Numbers
Cut-off scores can sound like a magical hiring shortcut—set a number, filter out weaker candidates, and boom! You’ve got the best people lined up. But in reality? They’re not that simple.
There are a lot of misconceptions floating around about how cut-off scores work, and some of them can actually hurt your hiring process. Let’s separate fact from fiction.
❌ Myth 1: “Higher Cut-Off Scores = Better Hires”
It’s easy to think that raising the bar will automatically lead to better candidates. After all, if only the top scorers get through, you’re getting the best, right? Not always.
🔹 Why This is Wrong:
A super high cut-off score can filter out strong candidates who have other valuable skills—like leadership, creativity, or adaptability—that aren’t measured by the test.
🔹 Example:
Imagine hiring for a marketing role. A candidate who scores slightly below the cut-off in a general skills test might still be an incredible communicator with innovative ideas. If the cut-off is too strict, you could be missing out on someone who could transform your team.
👉 Reality Check: Instead of automatically assuming higher = better, it’s smarter to set a reasonable cut-off that aligns with real job needs—not just test performance.
❌ Myth 2: “Cut-Off Scores Are One-Size-Fits-All”
Some companies think they can slap the same cut-off score on every role and call it a day. But that’s like saying a single fitness test should determine who gets to be a firefighter, a surgeon, and a graphic designer.
🔹 Why This is Wrong:
Every job has different requirements, so the same cut-off won’t work across the board.
🔹 Example:
A cut-off score for a data analyst test might be heavily focused on logical reasoning and numerical ability, while a cut-off for a customer service role should probably focus more on communication and problem-solving.
👉 Reality Check: Cut-off scores should be customized for each role to reflect what actually matters in the job.
❌ Myth 3: “Cut-Off Scores Don’t Need to Change”
A common mistake? Setting a cut-off score once and never looking at it again. Jobs evolve, markets shift, and the skills required today might be totally different in five years.
🔹 Why This is Wrong:
If your cut-off scores aren’t updated, you could be screening out top talent based on outdated criteria.
🔹 Example:
A company hiring software engineers in 2015 might have placed heavy emphasis on Java and PHP skills. Fast forward to 2024, and they may need engineers skilled in Python, cloud computing, and AI. Keeping the same cut-off doesn’t make sense.
👉 Reality Check: Regularly review how your cut-off scores correlate with job performance, and adjust them as needed. Don’t let an old cut-off cost you great hires.
❌ Myth 4: “Cut-Off Scores Eliminate Hiring Bias”
It’s true that standardized tests can reduce bias—but they don’t eliminate it. If the test itself has any kind of bias built in, then using a cut-off score won’t fix that.
🔹 Why This is Wrong:
Some tests unintentionally favor certain groups based on language, culture, or socioeconomic background. If a test is biased against a certain group, then using cut-off scores will only reinforce that bias.
🔹 Example:
A verbal reasoning test designed primarily for native English speakers might put non-native speakers at a disadvantage—even if language skills aren’t critical for the role. If a company applies a strict cut-off score, they could be unintentionally filtering out highly qualified multilingual candidates.
👉 Reality Check: Cut-off scores should always be paired with bias checks to ensure they’re fair for all candidates. If the test is flawed, the cut-off score will be too.
4. Best Practices for Using Cut-Off Scores in Hiring
If you’re committed to using cut-off scores in your hiring process, you’ve got to do it right—otherwise, you could end up screening out great candidates, introducing bias, or even putting yourself at legal risk. A good cut-off score isn’t just a number you pull out of thin air—it’s a strategic decision backed by research, job relevance, and fairness.
Here’s how to make cut-off scores work for you, not against you:
1️⃣ Tailor Scores to the Specific Role
Not all jobs are created equal, so why would all cut-off scores be the same? A cut-off score that makes sense for a data analyst probably won’t work for a customer service rep or a sales executive.
💡 How to Get This Right:
- Start with a job analysis—figure out which skills are absolutely necessary and which ones are just “nice to have.”
- Look at past high performers—what scores did they achieve on pre-employment tests? This can help anchor your cut-off to real job success.
- Don’t overdo it—setting the bar too high might mean you’re eliminating people who could thrive with a little training.
2️⃣ Validate Scores with Real-World Data
Making hiring decisions based on a hunch is a recipe for disaster. If you’re going to use a cut-off score, it needs to be backed by real data.
💡 How to Get This Right:
- Run a validation study—track employees’ test scores and compare them to their actual job performance.
- Look for patterns—do people who score higher actually perform better? Or are there other factors that matter just as much?
- Adjust as needed—if the data shows your cut-off score isn’t predicting success as well as you thought, tweak it.
👉 Bottom line? A cut-off score is only useful if it actually means something in the context of job performance.
3️⃣ Use a Legally Recognized Method to Set Scores
You can’t just pick a number because it “feels right”—that’s how companies end up in legal trouble. Instead, use psychometrically sound methods that are recognized in hiring science.
💡 How to Get This Right:
- Consider well-established methods like Modified-Angoff, Bookmark, or Contrasting Groups.
- If your company doesn’t have in-house expertise, work with a psychometrician or an HR consultant to make sure your cut-off score is legally defensible.
👉 If a hiring decision is ever challenged, you’ll be in a much stronger position if you can prove your cut-off score was set based on a valid, research-backed method.
4️⃣ Include Multiple Stakeholders
Setting a cut-off score shouldn’t be a one-person job. The more perspectives you bring in, the better the final decision will be.
💡 Who Should Be Involved?
- ✅ Hiring Managers—they know exactly what success looks like in the role.
- ✅ HR Professionals—they ensure the process aligns with company hiring policies.
- ✅ Current High-Performing Employees—they can provide insight into what really matters in the job.
👉 Why does this matter? Because different people will spot different strengths, risks, and gaps. A hiring manager might prioritize technical skills, while HR might be more focused on fairness and diversity.
5️⃣ Monitor for Adverse Impact
Even well-intentioned cut-off scores can unintentionally discriminate against certain groups. If your cut-off score disproportionately eliminates candidates from a particular demographic, that’s a problem.
💡 How to Get This Right:
- Regularly analyze test results—break them down by gender, race, age, or other relevant factors.
- If a pattern emerges, figure out why. Is the test itself biased? Is the cut-off too high? Are you prioritizing certain skills over others unnecessarily?
- Be willing to adjust—if your cut-off score is having an unfair impact, fix it before it becomes a legal issue.
👉 A good rule of thumb? If your hiring pool starts looking way too homogeneous, your cut-off score might be filtering out diversity instead of finding the best talent.
6️⃣ Adjust Scores Over Time
A set-it-and-forget-it approach doesn’t work with cut-off scores. As job roles evolve, industry trends shift, and new technologies emerge, your hiring criteria should change too.
💡 How to Get This Right:
- Schedule a regular review—at least once a year, revisit your cut-off scores to make sure they still make sense.
- Keep an eye on performance trends—if new hires who barely made the cut are excelling while high scorers are struggling, that’s a red flag.
- Stay flexible—what worked last year might not work this year, and that’s okay. The best hiring strategies evolve with time.
👉 Cut-off scores aren’t meant to be permanent—they should shift as your company, industry, and hiring needs evolve.
5. Should You Use Cut-Off Scores or Just Focus on Top Performers?
Cut-off scores can be helpful, but here’s the thing—they require a lot of effort to get right. Between legal compliance, fairness checks, and validation studies, setting a cut-off score isn’t just about picking a number and sticking with it. It’s a whole process. And for many companies, there’s an easier way: focusing on top scorers instead.
Why Prioritizing Top Scorers Can Be a Smarter Move
Instead of drawing a hard line and automatically eliminating anyone who falls below a cut-off, companies can rank candidates by performance and work with the best of the bunch. This keeps the door open for strong candidates who might have just missed an arbitrary threshold but still bring huge potential to the table.
- 🔹 More Flexibility
Cut-off scores can be rigid. If someone scores just one point below the threshold, should they really be ruled out completely? Prioritizing top scorers allows hiring managers to look beyond the numbers and consider the full picture—including soft skills, experience, and culture fit. - 🔹 Less Legal Headache
Cut-off scores need to be legally defensible, meaning they must be validated, non-discriminatory, and job-related. If they unintentionally create bias, companies can face legal challenges. Focusing on top performers instead reduces that risk—you’re not automatically excluding people, just advancing the strongest candidates. - 🔹 You Won’t Overlook Hidden Talent
Maybe a candidate barely missed the cut-off on a skills test but absolutely crushed the interview. Or maybe their test score wasn’t stellar, but they have years of hands-on experience that makes them a great fit. When you use a ranking system instead of a strict cut-off, you can spot underrated candidates who might have been unfairly ruled out otherwise.
When Are Cut-Off Scores Worth Using?
Even though prioritizing top scorers can be a more flexible and practical approach, there are times when cut-off scores make sense.
- ✅ For roles with high-stakes skills requirements
If a job absolutely requires a certain level of technical proficiency (think: pilots, surgeons, cybersecurity experts), setting a cut-off can ensure only qualified candidates move forward. - ✅ For large applicant pools
If you’re hiring hundreds or thousands of candidates at a time, cut-off scores can help quickly filter out those who are far below the required competency level. - ✅ When legally necessary
In certain cases, cut-off scores may be required for compliance or industry regulations. If that’s the case, just make sure they’re set properly—not too high, not too low, and always backed by data.
6. The Bottom Line
Cut-off scores can make hiring decisions more structured, but they come with legal, ethical, and strategic challenges. If you choose to use them, they must be:
- Job-related
- Legally defensible
- Backed by research
- Regularly reviewed for fairness
However, for many companies, a more flexible approach—such as focusing on the highest-scoring candidates—might be a better alternative.
Want to improve your hiring process? Instead of relying solely on cut-off scores, consider holistic hiring strategies that take into account both test performance and overall candidate potential.
