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Alen Parker

Why Use Psychometric Testing for Hiring?

In the modern age, every decision has to be informed, backed up and justified by data. Psychometric testing is one area that has made the process of hiring, scientific which earlier depended on gut feel and synergy between job seeker and recruiter in the making of the hiring decisions. Today, over 75% of Fortune 500 companies make use of psychometric assessment in recruitment.

The following are the top reasons why HR managers depend on psychometric testing such as Mettl psychometric test for hiring:

  • Testing is better than gut feel

Relying on human instinct is just like rolling dice. Thus, costs of bad hire weigh heavily on companies. For replacing an unsuitable person selected for a skilled job, research says that it results in lost revenue amounting to 150% of the salary of the person. Thus, all businesses must strive to reduce costs of making bad hires.

Psychometric testing provides a level of objectivity and standardization to the traditional art of recruitment by helping to remove the unconscious bias that accompanies several selection decisions. As per meta-analysis, psychometric assessments can enhance recruitment results by 24% over traditional selection methods like unstructured interviews and resume screening.

  • Results can be measured

One of the toughest challenges facing organizations is the quantification of human behaviour and its related impact on the bottom line. With the emergence of Big Data, one of the most cost-effective and simple ways to quantify employee related ROI is pre-employment testing.

Correlation of recruitment results and assessments with outcome variables such as turnover percentage, performance at core job, commitment and engagement is the mode by which HR departments transform their image as a cost centre to a profit-driven, accountable, and critical function of the business.

  • No need to have special skills

The curtain has been drawn on the earlier practice of generating complex reports when a psychologist was required for interpretation of results of esoteric psychometric assessments. Today, creators of psychometric tests are accepting a principle of ‘design first’ and ‘data second’. Reports that are easy to read, rich in data and beautifully designed can be accessed online instantly. Simple graphics and real-world language are becoming the norm. Hiring decisions have become more confident by delivery of well-designed psychometric test report.

  • Creates  a positive company brand

Candidates for jobs are attracted to modern selection and recruitment processes. Many of them cite the objective approach to assess their capability as the main cause for satisfaction with the hiring process.This is particularly true for persons from linguistically and culturally diverse background because psychometric testing offers a level playing field, where all are judged equally.

  • Shaping of HR strategy

For a highly effective HR strategy, quality data is vital. HR depends on a number of various inputs to make decisions that havean impact on the whole company. Psychometric tools are vital data sources which help in shaping HR strategy.

When linked to job performance data of individuals, results of psychometric tests can generate lead indicators to help organizations with talent management, selection, assessment of the capability of the workforce, engagement of employees and understanding of the culture of an organization.

In sum, psychometrics is a vital part of best practices of modern recruitment. Organizations which are serious about retaining and attracting the right talent must make use these tools instead of only subjective selection methods.

 

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