Maximizing the ROI from Learning & Development Programs through Psychometric Assessments

10 January, 2017

The concept of Learning and Development (L&D) in organizations was stimulated some time in the 1990s by Peter M. Senge’s, “The Fifth Discipline” and countless other publications. The biggest challenge that organizations face today is the use of learning in knowledge assimilation that can lead to the fostering of innovation, faster than their competitors.

Return on Investment (ROI) is a measure used to evaluate the efficiency of expenditure against objectives and can be used to compare multiple investments against each other. However, traditionally ROI has always been associated solely with financial measurement and its traditional formula is:

Return on investment (%) = (Net profit / Investment) × 100

Everything you do in an organization needs to be intrinsically linked to ROI and same applies to Learning and Development programs. Psychometrically based development assessments help employees at all levels of performance and potential by increasing their level of insight and self-awareness. They help companies create development programs through conducting a needs assessment and thus, help identify the performance gaps in order to create training solutions that will effectively address employee issues that maximize ROI.

The insight that a psychometric assessment provides, makes it a great value even post-training to evaluate the efficacy of a learning or development program.

The Points to Keep in Mind while Designing Psychometric Based Learning & Development Programs

  1. Identify the performance gaps within the team that need to be addressed through a learning program. For example, you might want to understand why some sales representatives are great at presentation and influencing, but still lacking what it takes to close a deal.

  2. Identify a psychometric assessment that can help measure the key areas for this performance gap. For example, a sales potential test that assesses whether a candidate can build relationships, has empathy for clients, is disciplined enough to manage the process from start to end, amongst other traits.

  3. Plan and execute a learning module targeting the deficiencies observed.

  4. Provide feedback to employees about their strengths and weaknesses to foster insight.

  5. Re-test the employees after learning to evaluate to effect of learning.

“Today’s employers are better placed to source and recruit these ‘elusive unicorns”


Development assessments are a great tool for identifying high potential leaders as part of a broader talent management strategy. The use of psychometrics is a valuable tool in identifying ‘potential’ within the organization. It helps in identifying key leadership attributes, areas of opportunity, possible blind spots, and also helps to map development strategies to fill the deficient attributes.

Leadership development programs can be used to ensure that the leaders you choose, actually do lead your employees to their as well as your goals.

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