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Industry trends: Future of coding tests in hiring

Updated: July 1st, 2025, 16:26 IST
in Business
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In the evolving world of tech hiring, the humble coding test is undergoing transformation. Once seen as a filter to screen candidates, it’s now becoming a strategic tool that helps organisations hire faster and smarter. The future of coding tests lies in identifying strong coders and aligning hiring with business goals, enhancing the candidate experience, and supporting future-ready talent strategies.

Let’s explore how coding assessments are shaping the future of hiring and what organisations must do to stay ahead.

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From gatekeeper to game changer

Traditionally, coding tests served a single purpose: screening. They helped recruiters identify candidates with basic programming knowledge. However, this basic filter is no longer enough in a world where businesses are increasingly defined by their digital capabilities.

The new generation of coding assessments goes beyond syntax checks. Platforms like Mercer | Mettl’s Coding Assessments are helping organisations make this shift by enabling role-based evaluations that simulate real-world tasks like debugging production-level code or optimising system performance. All these factors make hiring decisions more grounded and data-driven.

Tailored, role-specific, and contextual

One-size-fits-all assessments are falling out of favour. Companies are now designing coding tests that mirror developers’ challenges on the job. This contextual approach gives hiring managers a more accurate view of a candidate’s abilities and helps candidates understand what is expected of them.

For instance, Mercer | Mettl allows hiring teams to tailor employment assessment by domain and complexity level, ensuring high relevance.

The candidate’s experience matters

Today’s developers are choosy about where they apply and how they are evaluated. Poorly designed assessments can lead to drop-offs, especially among top talent.

The future of coding tests is deeply tied to candidate experience. Shorter, gamified, or project-based mobile-friendly assessments integrated with coding environments that candidates already use see higher engagement and completion rates. Transparency in the evaluation process and timely feedback also contribute to a more positive experience, improving the employer’s reputation.

AI and automation are changing the game

Artificial intelligence is making employment tests smarter. Automated evaluation engines can now assess code quality, logic, and performance in real-time. Some platforms even offer AI-based hints to candidates during the test, mimicking real-world scenarios where developers consult documentation or pair-programs with colleagues.

Most sophisticated assessments use AI to detect plagiarism, assess soft skills through coding behavior (like how often candidates test their code), and even predict on-the-job performance. This automation also saves recruiters and hiring managers valuable time, allowing them to focus on the final hiring and onboarding stages.

A tool for workforce planning, not just hiring

The future of coding assessments extends beyond recruitment. Organisations increasingly use these tools to map skill gaps, identify high-potential employees, and even reskill teams. In an era where upskilling and internal mobility are critical to business resilience, coding assessments are integral to talent development strategies.

They offer invaluable data on skill availability, hiring efficiency, and training needs that can inform workforce planning and organisational design.

From tactical to transformative

As the nature of work evolves, so must the way we hire. Coding tests are no longer just an early step for job applicants; they are becoming the foundation of smarter, faster, and more equitable hiring practices.

For organisations willing to embrace innovation, personalise assessments, and prioritise candidate experience, coding tests offer a powerful competitive advantage for top tech talent.

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