Cognitive and personality tests can increase the productivity and chances employee success if they are used correctly. Since the cost of a bad hire is widely estimated to be at least one year’s pay, there are huge incentives for organizations to get hiring right. Unfortunately, too many organizations use the wrong psychometric assessments in the wrong way. Here’s what organizations need to know in order to minimize potential risks and maximize the predictive accuracy of these tests.
Roughly 18% of companies currently use personality tests in the hiring process, according to a survey conducted by the Society for Human Resource Management. This number is growing at a rate of 10-15% a year according to many industrial and organizational psychologists, as well as the Association for Test Publishers.
General benefits of psychometric testing include measurable results which are objective and standardized. This means that recruiters are less likely to make bad hires based on gut feel and selection bias inherent in the interview process. Psychometric tests are generally used in the beginning of the selection process as a way of eliminating large numbers of candidates, resulting in a small pool of suitable candidates.
Psychometric testing, unlike psychological testing, can be done by anybody. Psychometric tests have started to take a “design first” approach, providing easy to read, data-rich tests that tell recruiters exactly what they need to know. The move to digital also assists recruiters, as digital tests can provide automatic in-depth analysis in the form of reports. This gives hiring managers the confidence to make informed and sound hiring decisions without having to resort to outside expertise.
Here are four ways of how psychometric tests can improve your business
Influence on Business
Psychometric tests will not help you if you do not have well-established measures of assessing job performance. Too often, organizations focus more on the predictors, than on what is being predicted. If an organization does not have quantitative measures of employee performance on the job, then there is no basis for statistical correlations of how well psychometric tests can predict performance. If you are aware of the needs of your business you will surely find a test that will actually evaluate the characteristics of your future recruits. For instance, while there are laws that prohibit companies from invading candidates’ privacy, there are no laws that can prohibit you from using strange or invalid assessment tools. If a company wanted to use astrology to pick a Scorpio instead of a Libra as the new CFO, there should not be any legal risks to doing so.
The benefits of an effective, valid, and reliable psychometric assessment in businesses are endless, and here are 4 ways to improve your business with psychometrics.
1. Improve your recruitment and selection processes
Psychometric tests have been shown to improve recruitment outcomes by 24%, which in turn saves the business money in both the short and long term.
Aptitude tests are incredibly beneficial to recruiters as they provide a quick gauge of how much the potential employee knows and can provide information about how well they can do the work that their role will require. CVs and resumes may provide information about a person’s education, but this may not always be representative of their current skill set and aptitude tests can provide a more realistic assessment of a potential employee’s skills.
Personality testing is beneficial on a more holistic level, as it provides recruiters with information about how well the potential employee will fit in with the rest of their group, whether they are better off working individually as well as the type of management structure that they thrive under. This allows for recruiters to select personality types that match the role they’re looking to fill.
2. Improve training and onboarding
When a professional is hired for him or her it is a new place, new layout, new responsibilities, new people, new culture, and in some cases, even a new country. Everything is new, and let us face it, we cannot handle all “new” the same way. Though the majority of people will feel excited about starting a new journey, none of them can ignore that small, anxious, tingly feeling in the pit of their stomach. The rest of the people, however, will experience extreme emotion: pure joy, or pure horror.
But as an employer or hiring manager, it is one of your responsibility to know how your new employee will feel when they first walk in to start their new adventure. It is also a part of your duty to make them feel as comfortable as they can be so they can start being productive and efficient quickly. A psychometric test will help you to identify the emotions and attitude of the recruits beforehand. In case you identify any negativities in their characteristics you can control the situation.
3. Create more synergetic teams
In addition to being invaluable in recruitment, selection, training, and onboarding processes, psychometrics can help you improve your business by allowing you to create more synergetic teams.
Psychometrics uncover someone’s personality profile, the hidden part of the iceberg. It sheds light onto someone’s thinking structure, motivation, leadership, sociability, and even resistance to stress. Having all of this information at your fingertips allows you to create balanced, composed, and synergetic teams.
Just as each trait has its strengths, they also each have their weaknesses. But that is beside the point. The point is having too much of a good thing is never good as we are all searching for is a balance and psychometrics are the best way to create a balanced, synergetic team.
4. Reduce turnover
The total costs associated with turnover range from 90% to 200% of a person’s annual salary. And if you find that statistic a little hard to swallow, consider the actual costs associated with turnover; replacement costs, lost opportunity costs, acquisition costs, training costs, and the list goes on.
Psychometrics testing can help you with that. When you take the time to really know your candidates and employees beyond what’s written on their resume, you will uncover new ways to improve your business in a matter of minutes.
Psychometric tests help reveal the traits and skills of employees, both in terms of personality and ability, giving businesses increased awareness into which employees are suited for particular jobs. Not only does this help with recruitment, where finding the ideal candidate can be difficult and costly, but can also be used to develop current employees and teams in a much more focused manner. Businesses benefit from psychometric testing through reduced recruitment costs, reduced turnover and increased productivity from employees who are suited to their tasks. Employees benefit as well, as they find themselves in roles that suit them and their needs, as well as through the reduction of personality clashes in the workplace.
cFIRST Think Tank is the team that researches and produces content for cFirst. This team comprises of seasoned content and digital design professionals and background screening industry veterans. Together we produce insightful blogs, infographics and reports meant for HR and background screening professionals.