As a manager, when you hire someone new in the organization, do you think to yourself how long will they last? This is a very common problem which corporates and startups both face alike. Hiring is perhaps still an art rather than science.
It all boils down to the fact that dealing with people is unlike dealing with machines as people are unpredictable, they lie and they are constantly under stress and pressure.
What’s even more astounding is the fact that humans are very difficult to benchmark. This is very true if you accept the statement that marks don’t reflect intelligence.
Traditional ways of measuring human potential i.e. Aptitude is slowly losing its authenticity & charm. It doesn’t account for the practice effect which simply means that practicing for an aptitude test causes an improvement in score. This means that it is not a great indicator of cognitive thinking.
There are other indicators for measuring human potential that can work better for the traditional office settings. I am talking of course of personality and interest testing. It measures those traits of a human which are essential for him/her to do a particular job or task.
All these tests; personality, aptitude, interest, and intelligence are collectively called psychometric testing (psycho: meaning mind, and metric: meaning measure)
Some of the biggest firms in the world use psychometric testing as a base for recruitment and training of their workforce.
More than 18% of the organizations currently use personality tests in the hiring process, according to a survey conducted by the Society for Human Resource Management.
This number is growing at a rate of 10-15% a year according to many industrial and organizational psychologists, as well as the Association for Test Publishers. Talking about the top Fortune 500 companies, all of them use one form or another of psychometric testing.
If you are an entrepreneur who wants to hire the right people for the right job then you need to be extremely sure that your next hire doesn’t hamper the current business processes.
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Conducting psychometric testing for your workforce should absolutely be mandatory, especially if you are a small or a mid-size firm. These tools will help you to gauge a person in a completely different realm; his/her innate nature.
It’s true that there are limitations to these kinds of testing such as social desirability, random answering, faking good and it cannot measure all the properties of the human behavior. However, they do reveal a valid chunk of information which can help you hire your next best employee.
When used correctly, cognitive and personality tests can increase the chances that new employees will succeed. Since the cost of a bad hire is widely estimated to be at least one year’s pay, there are huge incentives for organizations to get hiring right. Unfortunately, too many organizations use the wrong psychometric assessments in the wrong way.
Here’s what organizations need to know in order to minimize potential risks and maximize the predictive accuracy of these tests.
Let’s take an example to see how the right application of psychometrics can help hire the right employee.
Psychometric in Corporate Environment – Which one would you hire?
Now would you be interested to know whether he scores well in logic and verbal, or would you be interested to know whether he is a people person who possesses certain personality characteristics such as Diplomatic nature, Achievement Orientation, Persistence and Stress tolerance?
The answer is a mixture of both. Since salespeople should be good in numbers as well as verbal intellect. In addition to this their personality should be of a particular type.
Generally, diplomatic people, they should be persistent with clients and should set high standards for themselves and should have stress tolerant ability in order to cope with their jobs. Similarly, we can create an ideal psychometric sheet for all types of functions and job slots.
Psychometric assessments are the most cost-effective tool for predicting future job performance. They provide an objective and standardized view of a range of candidate competencies, such as abilities and personality.
Psychometric assessments supply an organization with valuable information about an individual. These assessments produce results which can be compared against established industry benchmarks, providing a clear positioning of candidates’ potential to perform against large, relevant occupational groups.
Research confirms that the most accurate, holistic view of a candidate is achieved when psychometric assessments are used together with other methods, such as interviews and work sample tests.
In Conclusion, Psychometrics is not just limited to aptitude tests, it also includes personality tests, interest tests, and creativity tests.
Corporates should use psychometric tests in combination with interviews and work sample tests to hire new employees in order to ensure that no bad hire happens. This is especially true for the small and medium enterprises.