Is Psychometric Testing Right for Your Business?

Adding psychometric testing to your hiring process can help reduce your shortlist to a manageable size. You can then conduct interviews with candidates most likely to be a good fit. You speed up the hiring process, build a better team, and reduce HR costs.

You can quickly weed out bad hires that could cost your business dearly in terms of the financial outlay of hiring, onboarding, and paying salaries for personnel who turn over rapidly. Replacing the wrong candidate after hiring them can cost up to 200% of their salary.

You can also avoid placing people in customer-facing roles who might damage your business’s reputation. In addition, you can alleviate concerns about new hires being a good fit with other team members. Over 75% of Fortune 500 companies use psychometric testing in their hiring process to build better teams.

This short article offers a basic definition of psychometric testing, an understanding of its different types, and a discussion of its benefits and limitations. You’ll be able to decide if testing can streamline your hiring process and help improve the return on your investment in employees. 

What Is Psychometric Testing?

Psychometric tests measure the behavioral style and mental capabilities of individuals. They evaluate role suitability by identifying how well a person’s personality and cognitive abilities fit the requirements for success in the position you are filling.

Employers can use psychometric testing to uncover applicant characteristics that may not appear on CVs or be revealed in face-to-face interviews. Through psychometric testing, you can discover emotional IQ, measure leadership qualities, and learn about an applicant’s ability to respond to change. 

Types of Psychometric Testing

Different types of psychometric tests target distinct aspects of an individual’s makeup. There are essentially three classifications of psychometric tests,

Aptitude Tests

Aptitude tests measure inherent strengths and weaknesses and present a picture of a person’s natural inclination to flourish or fail based on innate characteristics. For example, an individual’s ability to succeed at a given task with which they have no prior experience can be determined by an aptitude test.

An aptitude test does not measure intelligence or knowledge. It only indicates particular skills or propensities for behaving in a specific pattern. 

Skills Tests

While aptitude tests measure natural abilities, skills tests measure things developed through practice and knowledge. People have aptitudes naturally; they can learn and develop skills.

Skills testing determines if a job applicant has the skills needed to do the job. Tests weed out individuals who lack the skills to perform the various tasks associated with the position.

Personality Tests

Personality tests generate information regarding an individual’s way of interacting with situations and people by measuring motivations, interests, preferences, and emotional makeup.

The profile created helps employers determine if the individual will be a good fit for a role or is likely to cause friction among team members or the public. The personality test can also predict job satisfaction and performance.

The personality traits most useful to assess for work situations are:

  • Extroversion
  • Agreeableness
  • Emotional stability
  • Conscientiousness
  • Openness to new experiences

Psychometric tests offer a deeper understanding of what lies beneath the education and experience listed on a CV and the impression a candidate creates in an interview. Employers can use the information these tests provide to gauge how an applicant may fit in and perform.

Benefits of Psychometric Testing

Using psychometric tests to determine candidates’ emotional and intellectual makeup can give discerning employers an advantage over competitors in discovering and placing the best talent

Shorten the Recruitment Process

The traditional recruitment process requires the time to sort through hundreds or even thousands of generally qualified candidates. Building psychometric testing into the workflow allows you to shortlist only the most suitable applicants for interviewing.

Empower Interviewers

A better understanding of a candidate’s strengths and weaknesses enables interviewers to form a more profound impression of the person. They’ll know what characteristics lie below an interview colored by nervousness or an excellent display. Your HR team will have more insights and takeaways to empower better decisions.

Highlight the Right Personality Traits

A CV will tell you about professional achievements and education, but it probably won’t delve deeply into personality traits like how an applicant  handles adversity or if they’re a good networker, critical thinker, or a quick decision maker. Understanding a person’s psychometrics can help you build competency-based questions tailored to the role.

Discover Good Cultural Fits

Hiring a person who struggles to fit in or constantly disrupts the workplace can be costly. Information about the work environment in which an individual will best function can help avoid inappropriate hires. Hiring a quiet introvert who looks great on paper but may not be comfortable within a noisy, emotionally expressive team can result in poor performance or a quick turnover.

Highlight Opportunities for Development

The best candidates may have a few rough spots that need development work. Knowing these will help you create the environment an otherwise excellent prospect needs to grow into the role and thrive.

Limitations of Psychometric Testing

Although the pluses far outweigh the minuses, psychometric testing does have limitations.

It’s Not Standalone

The results of psychometric tests are a valuable addition to other HR evaluation methods like CV analysis and live interviews. Testing is of particular value in reducing your shortlist to a manageable size.

Inaccurate Results Are Possible

It’s possible for testers who are familiar with tests and have researched the ideal candidate profile to give dishonest answers and skew results. Also, if a candidate is a poor tester, an accurate result may not appear.

Cultural Differences Can Affect Results

A person from a different cultural background or who has a language barrier may interpret test questions and answer differently than the test designers anticipated. The result could be a low score that doesn’t mean they’re a terrible fit.

Over-interpreting

Psychometric tests are not all-encompassing measures of a person’s abilities, intelligence, or interpersonal skill set. It’s impossible to determine if a person is good or bad. Instead, tests reveal bits of information you can combine with other information sources to generate a more complete picture of candidates.

How You Can Streamline Hiring With Psychometric Testing

Your business can enjoy the benefits of psychometric testing and easily avoid the pitfalls. Oleeo Global has integrated psychometric testing into our ATS platform to help your business identify and fast-track the best candidates to build better teams. Request a demo now.

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