7 ways psychometric assessments add value to your organisation’s success

One of the key elements in ensuring outstanding organisational performance is the selection and development of excellent staff. Psychometric assessments can play a significant role in improving the selection process for both new entrants and internal promotions while also playing a key role in staff development processes (R.P Van Der Merwe, 2002).

Before we can fully delve into the benefits of psychometric assessments we need to understand the complexities that make up the human mind. When engaging in a selection process it is the underlying characteristics that are most likely to determine whether a person will be a good or poor fit for a role.

An iceberg can serve as a useful metaphor to understand the unconscious mind, its relationship to the conscious mind and how the two parts of our mind work together. As an iceberg floats in the water, the huge mass of it remains below the surface. Only a small percentage of the whole iceberg is visible above the surface. This is generally described as the conscious mind, which consists of all the mental processes of which we are aware. This is also generally the part recruiters see when conducting interviews or reading through an individuals CV.

The conscious mind is what we notice above the surface while the unconscious mind, the largest and most powerful part, remains unseen below the surface. This contains thoughts and feelings that a person is not currently aware of, but which can easily be brought to consciousness and generally steer our thoughts, behaviours, and feelings. Psychometric assessments give organisations the opportunity to see the person ‘under the surface’ and thus allow the recruiter to see beyond what the individual displays to the world.

But how does this add value to organisations?

First, we have to look at what is hampering organisations with regard to their employees. To cite Peter Drucker (the great management guru) - "chances are good that up to 66% of your hiring decisions will prove wrong in the first 12 months, and these will be the people who will stay”. Other studies have also shown that “most managers make up their minds - whether to hire or not hire a candidate in the first 4.3 minutes of an interview, and spend the rest of their time justifying their decision”. Being fit for the ‘job spec’ does not always mean the applicant is fit for your specific corporate culture or the position within your organisational structure.

This brings us to the first point;

1. Insightful interviews.

We are all aware of what is commonly known as human error. People are not perfect and they make mistakes. Therefore the chances of recruiters instincts being correct are as reliable as rolling dice and hoping for a particular number. Hires based on the recruiters gut are a risky gamble and thus less likely to hit the ‘job-fit’ mark. Psychometric assessments allow recruiters quantitative data to support their intuitions.

2. Objectivity and avoiding bias.

This point is two-fold. On the one hand, we are able to use an objective and unbiased benchmark and comparative view of results against other applicants, and also previous hire’s currently thriving in your organization. Secondly, the hire/ development is based purely on job performance and/or future learning and allows equal and fair opportunity regardless of previous experience or education.

3. Higher predictability of job performance and future learning

As explained previously it would be impossible to fully grasp or determine the behaviours, thoughts and feeling a person will exhibit when in the workplace. Through the use of psychometric assessments, we are able to recruit against more specific competencies and thus see past the CV or tertiary education. Contrary to popular belief, a strongly constructed psychometric test is difficult to game and go unnoticed. In most cases, the results mirror the candidates in question. From these results, we are able to better understand how he or she is going to interact with, engage with or improve your workplace.

4. Positive company image

When a company uses psychometric tests for recruiting, it certainly boosts their reputation. Employees are also attracted to these modern recruitment practices because they are fair and offers every employee an equal opportunity. As a result, it is also possible for you to attract the top talents.

5. Saves time and money

Using psychometric tests at the beginning of the application process eliminates the need to sift through a mountain of application forms because you are afforded a quick filter for unfit candidates. Adding to this you are able to determine a persons’ fit-for-role or how they would fit into the corporate culture prior employment. It could be said that psychometric assessments allow a better return on investment because it allows you accurate and reliable data with which to make an informed decision.

6. Candidates level of interest

Psychometric tests are always completed on a voluntary basis and as such completing a test requires time and effort from the applicant. Knowing that there is a somewhat lengthy process involved candidates who are not serious may opt-out early on. This, in turn, saves time and money to the company.

7. Corporate culture – Do they fit?

No two organisations or two managers are the same. It’s ideal to identify if said candidate fits in well with the rest of the team already working with you, or better yet - how well they fit into a company’s culture. Understanding an applicants drives, motives and interests as well as their personality within an occupational setting allows insight into how they will operate within a team and the organisation as a whole. This benefit has also been known to affect employee attrition.

References:

Van Der Merwe, R.P. (2002). Psychometric Testing and Human Resource Management. SA Journal of Industrial Psychology, 28(2), 77-86.

Schmidt, F.L. et al (2016). The Validity and Utility of Selection Methods in Personnel Psychology: Practical and Theoretical Implications of 100 Years of Research Findings. Working Paper.