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Talent Assessment | 8 Min Read

All You Need to Know About Applications of Psychometric Testing

1. Recruitment

Principally, developing the business begins with hiring the right people. This is the crucial step in building a business, and to succeed, the HR team ought to have a strategic recruitment process using the right kind of tools required for the same.

Leveraging psychometric tools during the recruitment process provides a better overall evaluation of a candidate and ideally secure the best fit for the role. Typically, a behavioral assessment for employment doesn’t come in isolation; however, as one segment of a more extensive and coordinated assessment strategy. The people who already use this believe that it gives a more objective diagram of a candidate’s character, qualities, shortcomings, and working style.

When talking about recruitment, psychometric tests contribute to two different areas:

 

2. Role Fitment

Choosing the correct fit is the fundamental objective of the recruitment process. Based on the job role-specific competency framework, organizations use different kinds of Pre-Employment Assessments:

Nowadays, evaluating the candidate’s behavior alongside aptitude in the hiring process is preferred more than evaluating just the aptitude. Mettl’s psychometric tools: MPI and MPP, which are based on the Big Five Personality Traits aids in:

  •  Uncovering the bright traits of candidates
  •  Adding a scientific filter to the recruiter’s gut-based decisions

This ensures that the organization has hired candidates worthy of their roles and that they will guarantee the overall productivity and make fewer mistakes, for they are hired to do what they are good at. For instance, psychometric tests for the sales function assure that the person hired as a sales manager is a strategist, excellent at communication, having mentorship qualities, and qualifying other such criteria.

The Outcomes This Has on an Organization Are:

  •  Employees possess key performance indicators
  •  Reduced attrition rates
  •  Achieve a competitive advantage
  •  Overall employees and business growth

 

3. Culture Fitment

The organization culture is a system of shared assumptions, values, and beliefs that regulate how people behave in organizations. It presents the unique social and psychological environment of the company.

As it happens, turnover from a poor culture fit can straightforwardly cost directly up to 50%-60% of an employee’s yearly pay and indirectly to 90% to 200% of the annual compensation.

And the organization needs candidates whose qualities, judgments, outlook, and behavior fit in with the organizational culture.

The role of psychometric tools in discovering the cultural fit employees can be seen as:

MPI/MPP – focuses on a person’s strengths, growth opportunities- the positive side of human personality, who’ll fit for long.

MDPI – uncovers the candidates with dark personalities along with the level of risks they accompany with them.

Not only would you be able to test individuals for cultural fit via psychometric tests, but you also ensure the absence of bad hires. The other major outcomes it will have on business are:

  •  Sense of well-being
  •  Enhanced performance
  •  Reduced attrition
  •  Highly engaged employees

 

4. Training & Development

In this dynamic and competitive world, we wake up with something new in the business world every day. It’s undeniable that innovation is one of the reasons which escort to changes in the aims and objectives of the organizations. This kind of situation demands a recalibration of the skills of employees in terms of competencies aligned with the business objectives.

Training Employees Is a Complete Long Process Where Psychometric Tests and Tools Play a Vital Role

  1. Identifying Training Needs
  2. Pre-Training Assessment
  3. Training
  4. Post-training Assessment

When talking about recruitment, psychometric tests contribute to two different areas:

 

5. Training Needs Identification

The key first step in the training process is to identify the skill gaps in employees. This includes:

0_WHY

Identify and develop key competencies in employees to achieve business goals.

0_WHO

Picking out the employees who need training based on their competency levels.

0_WHAT

Preparing a customized training plan based on skill gaps and training needs.

Apart from physical assessments and development centers (AC/DC), which include activities like sailing, rope climbing, etc., there is a virtual AC/DC setup to identify the 3-W’s of training. Getting to know the exact amount of training to the precise employees would become an excellent piece of data to train employees.

360 Degree Feedback Tools are also often used as a method to identify training needs in organizations. They help identify the gaps in the behavioral traits of employees as perceived by other stakeholders.

 

6. Training Effectiveness

For an organization, it becomes crucial to know if the training program incorporated post understanding the training needs is effective enough.

This talks about if the training had a long-term, lasting impact on employees, whether the training program was powerful enough to help candidates apply their learning effectively and hence, increase performance at work.

Psychometric assessments are again involved at each stage of the process.

0_Pre training AssessmentsPre-Training Assessment

To measure the current proficiency level of the employees with respect to the desired competencies.

0_Post training AssessmentsPost-Training Assessment

To evaluate the effectiveness of training, leveraging the Kirk Patrick 4 level training evaluation model.

With such a detailed process concerning the training and development of employees on the desired competencies using psychometric tests, a company can do a lot more in terms of productivity.

If company employees have been trained well on the skills they wish to, the chances grow multifold that they’ll stay in the company for long. This leads to reduced attrition and a huge decrement in the investments made to onboard them, which sums up approximately to half of their annual salary.

The outcomes of a better L&D program in an organization, apart from the increased productivity of employees, are improved morale and better business results.

 

7. Organizational Planning

Organizational planning means pinpointing the organization’s short and long-term objectives, hence planning and organizing it for what will happen in the years ahead. The business-related decisions require proper justification with data-backed information.

Even the Willis Tower Watson Study measured the utility of psychometric assessments in succession planning and identifying high potential across different seniority.

Let Us Move on to the Use Cases:

8. Succession Planning

Succession planning is a procedure for identifying and developing new pioneers who can substitute the old leaders on the off chance they leave, retire, or expire. It builds the accessibility of experienced and competent employees that are already set up to accept these roles as they end up being available.

This would require the assessment of skills, seeking to fill in the gaps between what an organization needs next, and the current skill set of employees aligned to business objectives. This may also accompany training and development initiatives for better leadership development. Psychometric tests track and develop the right set of high potential employees and prepare them for development through structures and scientific processes.

If we move on to the process, it goes like this.

 

0_IdentifyIdentify

Define key competencies needed to succeed in critical roles & nominate candidates.

0_Assess Assess
Use reliable & valid tools to evaluate candidate readiness on key competencies.

0_Plan Plan
Use customized reports to handpick the right candidates for succession.

0_Act Act
Develop & track the growth of selected candidates for a promising future.

It negates the cost and time behind external recruitment and training, which turns out to be statistically more expensive.

Succession planning aims to address many of the human resource issues such as:

  •  Increased turnover rates,
  •  Rapid changes in work,
  •  A desire for a healthy workplace across different levels.

 

9. High Potential Identification

High potential (HiPo) identification determines the furthest reaches of an employee’s development range. It would be apt to say that the more potential they have, the less expensive and trickier it is to develop them.

It is likewise essential that potential employees are force multipliers, pushing up the performance bar for their co-workers, and obviously for their immediate reports. They model and preach winning practices by their words and activities that shape high-performing cultures.

Just adding a star performer to a team boosts up the effectiveness of other members by 5-15%.

The ingredients or the general markers of potential include:

0_AbilityAbility

Cognitive tests are designed which measure the intelligence or brain-based skills required to carry tasks to completion.

0_Social SkillsSocial Skills

MPP/MPI evaluates interpersonal skills of candidates to assess how they get along with their colleagues or bosses.

0_DriveDrive

MPP/MPI evaluates the extent to which candidates are willing to go to achieve professional goals within the stipulated time frame.

Although identifying high potential employees isn’t an easy task, for not many employees are highly able, socially skilled, and driven. The use of scientific and data-backed tools ends up with a stronger portion of talented employees that contribute significantly to the organization.

This has a tremendous impact on business and is the key to higher levels of ROI.

 

10. How Mercer Mettl Can Help?

Mercer | Mettl is a robust platform that provides psychometric tests for both recruiters and companies to make well-informed decisions of recruitment, training, and promotion of candidates/employees. The extensive library of tests and simulators can help you create your customized assessments to evaluate the underlying abilities and current skills of the shortlisted candidate. Explore a wide range of psychometric, cognitive, role-centric and technical assessments to onboard the right people.

Originally published December 21 2018, Updated June 15 2020

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Written by

Abhilash works with the Content Marketing team of Mercer|Mettl. He has been contributing his bit to the world of online business for some years now. Abhilash is experienced in content marketing, along with SEO. He’s fond of writing useful posts, helping people, traveling, and savoring delicacies.

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