“Hiring for an open position? Go by gut feel. Wondering who to promote? Go by gut feel. Want to build better teams? Well, go by the manager's gut feel.”
It doesn't take a lot to realize that the “HR strategy” mentioned above is as disastrous as making decisions by flipping a coin. And yet, sadly, this is how most organizations operate. As a result, productivity goes low and precious dollars are lost in training programs and new hirings that yield very little.
But fear not. With the use of psychometric data, you can do better. Psychometrics, or the study of psychological measurement, has become indispensable for HR managers today. Whether in the form of interview questions or assessments, psychometric assessments generate a huge amount of data for HR departments every year. This data can be used to reveal invaluable insights such as:
- Better hiring: Want to hire better? Then psychometrics is the sure way, revealing precisely what skills and mindset an individual should possess in order to be a right fit for a particular position in your organization.
- Efficient teams: How do you get to know whether your sales team is aggressive enough and what training it needs? With the help of psychometric data, you can quantitatively define and measure effectiveness, as well as work out the right training needs for your team.
- Predicting attrition: Psychometric data can reveal the levels of satisfaction among your workforce. In turn, this helps you identify early which employees are not happy and provide them a more relevant role (we’re talking culture fit here). As a result, you are able to predict attrition accurately and take corrective steps before it's too late.
- Leadership development: Leadership works best when cultivated in-house. But how do you identify potential leaders and perform an effective SWOT analysis on their skills? Here again, psychometric data helps you identify the right people and how their careers should be planned.
Are organizations really seeing the benefits of psychometric data? Well, the likes of Best Buy are. The company has succeeded in tying employee engagement to revenue, estimating that every 0.1% increase in employee engagement at stores results in $100,000 in sales. How's that for ROI!
Psychometric data is a powerful tool in the hands of the HR department. If you're not using it already, we suggest you either hire a consultant or even get started yourself – the transformation will be right before your eyes!