The Value of Psychometric Testing

Posted by Andrew on May 15, 2015

Psychometric tests have been widely used in a number of companies and recruitment agencies in the recent years. Not only the large and medium ones but also an increasing number of small companies and recruitment agencies have started using them to gather vital information from potential and current employees. One of our staff, Eva Novak, shares the value of psychometric testing in recruitment.

BUT FIRSTLY, WHAT IS A PSYCHOMETRIC TEST?

A psychometric test is either an online or paper-based assessment, used by companies or recruitment agencies in order to determine candidate’s abilities in the new workplace. It is usually presented in a multiple-choice format and is mainly used to assess knowledge, abilities, skills and personality.  Psychometric tests are usually a part of a wider, integrated evaluation strategy, alongside job interviews and reference checks.

It is estimated that the cost of a bad hire is at least one year’s pay, which is why there are huge incentives for organizations to get hiring right. When used correctly that is by psychologists or trained individuals, psychometric tests can actually help minimize organization’s hiring costs.

TYPES OF PSYCHOMETRIC TESTS:

Psychometric tests that are most commonly used in recruitment measure aptitude, personality and/or interests:

Aptitude Tests - assess the logical reasoning or thinking performance. These types of tests help to rate the potential of a candidate to learn new tasks and skills used in various jobs. They measure how people differ in their ability to perform or carry out different tasks.

 Interest Tests - help define candidates’ interests and determine what they like most. This information is very useful when making career choices. Interest tests measure how people vary in their motivation, in the direction and strength of their interests, and in their values and opinions.

Personality Tests - measure personal attributes of candidates that are suitable for a particular job, they measure different styles of people in interacting with other people. They assess behaviours, attitudes and opinions of an individual and have no right or wrong answer.

WHY PSYCHOMETRIC TESTS?

Many researches confirmed that if psychometric tests are handled with insight and sensitivity, they remain the most effective way of predicting behaviour.  Furthermore, experience has proved that tests are generally much more reliable and more valid than other techniques. Research studies in trade and industry have indicated that psychometric tests are about four times more effective than screening interviews. Unlike facets such as education, skills, experience, appearance and punctuality, the behavioural traits and personality of a candidate can be much more difficult to assess during an interview.

Another advantage of using psychometric tests is their objectivity. They greatly reduce bias and personal perspective, because they are standardised so that all individuals receive the same treatment. Since they have a robust framework and structure, they can give a more objective overview of a candidate’s character, strengths, weaknesses and working style. But bear in mind that the value of the psychometric test highly depends on the administrator. When they are poorly presented or explained, the results may be inaccurate. Subsequently a perfect candidate may not get the job or the unsuitable one gets it.

And that is the greatest value of using psychometric tests in the recruitment process - their significant contribution at identifying the right people for the right role. Maybe that is why all of the surveys of psychometric testing produced over the last few years are consistent in indicating that use has been growing steadily and that psychometric testing in recruitment has become truly common and useful.