Definition · Interviewing and assessment
Cut Score
Definition
A cut score is the minimum score a candidate must reach on an assessment or structured interview to move to the next hiring step. Also called a passing score or cutoff score, it turns a continuous score into a decision, so where you set it decides both how many people pass and who.
Also called: Cutoff score, Passing score, Cut line, Pass mark
Formula
Pass rate = Candidates scoring at or above the cut score / Candidates who completed the assessment x 100
- Cut score
- The minimum qualifying score set for the role
- Candidates completing
- Everyone who finished the assessment in the period
Worked example
A logistics company needs 60 hires a month for picker roles. About 50% of those who pass the assessment go on to start. So it needs about 120 passes. With 400 completions a month, it can set the cut where roughly 30% of candidates pass (120 / 400). If the cut that represents minimum competence passes only 18%, the company needs more applicants or a revised test, not a quietly lowered bar.
How to set a cut score
There are two honest ways to set one, and they work best together.
Judgment-based (the Angoff method). A panel of experienced supervisors reviews each test item and estimates the probability that a minimally competent new hire would get it right. Averaging those estimates across items and judges gives a cut score. A modified Angoff process is widely used for professional licensing exams and works well for job knowledge tests.
Data-based. Give the test to current employees, or track hires' scores against performance, and find the score below which people rarely succeed. This depends on having enough hires and a reasonable performance measure; see assessment validity.
Then check the practical side: the pass rate you need to fill seats, and whether that rate is realistic for your applicant pool.
Adverse impact
Where you set the cut changes who passes. Raising a cut by a few points on a test with group score differences can push one group's pass rate below four-fifths of another's, which is the common screen for disparate impact. The Uniform Guidelines expect cut scores to be reasonable and consistent with normal expectations of acceptable proficiency in the workforce. A cut set far above what the job needs, simply because you can, is hard to defend. Check pass rates by group whenever you change a cut. Rules vary outside the US.
Common mistakes
- Setting the cut by vendor default without any link to your job or your hires.
- Moving the cut to fill a class. Lowering it quietly when volume dips and raising it when applications surge makes the score meaningless and creates inconsistent treatment between candidates applying weeks apart.
- Treating the cut as precise. Every test has measurement error. Candidates a point or two below the line are not meaningfully different from those just above; some teams send near-cut candidates to a human review.
- Multiple hurdles with high cuts at each. Three assessments each passing 50% leaves 12.5% of candidates, which can starve a high-volume funnel.
Cut scores in high-volume hiring
In contact center and hourly hiring, a cut score is often the only decision rule applied to thousands of candidates, so it deserves a written rationale and a yearly review. A practical routine: document the method used, review pass rates weekly against hiring targets, review adverse impact monthly, and revisit the cut when the job, the test or the labor market changes. Keep the same cut for all candidates in a requisition window. For details on assessment types, see pre-employment assessment.
Frequently asked questions
What is a cut score in hiring?
It is the minimum score a candidate must achieve on a test or structured interview to advance in the hiring process.
How do you determine a passing score for an assessment?
Combine expert judgment, such as the Angoff method where supervisors estimate how a minimally competent hire would perform on each item, with data on how current employees or past hires scored and performed. Then check the pass rate and adverse impact.
Is it legal to use a cutoff score assessment?
Yes, when the assessment is job-related and the cut is reasonable for the job. If it causes adverse impact, the employer needs validation evidence for both the test and the cut level.
Should we lower the cut score when we are short of candidates?
Only through a documented review that confirms the new level still reflects minimum competence, applied to all candidates going forward. Ad hoc changes undermine consistency and defensibility.