In today's competitive job market, selecting the right candidate is essential to business success. However, traditional hiring methods such as interviews and CV reviews may not provide enough information to make informed decisions. This is where psychometric testing can come in as a valuable tool for HR professionals.
Psychometric testing is a scientifically developed process that can evaluate a range of traits and abilities, such as cognitive abilities, personality traits, and emotional intelligence. These tests can help companies to determine which candidates are most likely to succeed in a particular role, and to identify areas for development.
But what are the actual benefits of using psychometric testing for candidate selection? Let's take a look at some data-driven insights.
According to a meta-analysis of 85 studies conducted by Schmidt and Hunter, psychometric tests are among the most effective selection tools for predicting job performance. In fact, the study found that the average correlation between psychometric test scores and job performance was 0.51, which is significantly higher than the average correlation for unstructured job interviews.
The cost of a bad hire can be significant for a business, not just in terms of financial costs, but also in terms of lost productivity and morale. By using psychometric testing to identify high-potential candidates early in the recruitment process, businesses can reduce the likelihood of making a bad hire and save on the cost of training and onboarding.
Traditional hiring methods such as interviews and CV reviews may be prone to unconscious biases, which can lead to a lack of diversity in the workplace. Psychometric testing, on the other hand, can provide a more objective evaluation of candidates' abilities and can help to reduce the impact of unconscious bias in the selection process.
Hiring the right candidate not only increases productivity and engagement, but it also improves retention rates. A study by Aberdeen Group found that companies using pre-hire assessments, such as psychometric tests, had a 39% lower employee turnover rate compared to companies that did not.
By measuring personality traits and cognitive abilities, psychometric testing can help to identify candidates who are more likely to fit well with the company culture and succeed in a particular role. This can lead to better job satisfaction and performance, as well as improved overall organisational success.
In conclusion, psychometric testing is a valuable tool for HR professionals looking to improve the quality and efficiency of their candidate selection process. By using data-driven insights, businesses can make informed decisions about which candidates are most likely to succeed in a particular role, while also reducing hiring costs, improving diversity and inclusion, and enhancing employee retention.
Through our fully configurable assessment platform, we enable organisations to make data-driven decisions that are fair, robust and explainable at every stage of the employee journey. Book a call to learn more about how psychometric testing and our approach to assessment can power your people decisions.