Complete Guide to Psychometric Tests in Recruitment

15 February,2024  |  By Brainwonders

What is a psychometric test in recruitment?

A psychometric test evaluates an individual's cognitive prowess and personality traits. Psychometric testing can anticipate significant insights into job performance, competency, and motivations through the candidate's responses.

Psychometric tests broadly fall into two categories: ability tests and personality tests.

• Ability tests ascertain a candidate's cognitive proficiency, evaluating numerical, verbal, logical, and critical thinking skills.
• Personality tests are designed to delve into the candidate's behaviours and motivations.

Psychometric tests must be:

• Objective - The score must be unaffected by the assessor's beliefs or values
• Standardised - Tests must be consistent and administered under controlled conditions
• Reliable - Errors must be minimised
• Predictive - Tests must provide an accurate prediction of performance
• Non-discriminatory - Tests mustn't put any group at a disadvantage due to race, age, or gender.

PSYCHOMETRIC TESTS USED IN HIRING

Why are psychometric tests used when hiring?

Psychometric tests offer unparalleled insights into a candidate's potential when recruiting new employees. They deliver a meaningful and highly reliable forecast of the candidate's knowledge, skills, abilities, and other traits essential for successful job performance.

Test publishers, such as Test Partnership, conduct these tests online, enabling the evaluation of hundreds or even thousands of candidates with a simple click. The data can then be automatically compiled and reported. This streamlined process is a significant time and cost saver for hiring companies, facilitating the swift identification of standout candidates from the pool.

An essential feature of psychometric tests is their impartiality, making them effective across all job levels, from entry-level positions to CEOs. Moreover, hiring companies have the flexibility to create custom assessments explicitly tailored to their organisation and designed for distinct roles.

ADVANTAGES

We've previously touched upon a few reasons employers opt for psychometric tests; now, let's delve deeper into some of the primary advantages they bring to hiring companies:

1. Job performance: Psychometric tests are regarded as highly potent and valid predictors of job performance in the present day, surpassing the average selection interview by over 14 times in predicting job performance (Hunter & Hunter, 1984). As a standardised testing method, psychometric tests provide a remarkably effective means of forecasting how well a candidate is likely to perform in their prospective role.
2. Organisational performance: Incorporating psychometric tests in the workplace has been associated with several positive outcomes, including heightened organisational performance, improved employee retention, lowered cost per hire, reduced employee turnover, decreased absenteeism, and elevated levels of employee engagement and motivation. Choosing candidates who perform exceptionally well and establishing a high-quality workforce are essential for any organisation. Psychometric testing stands out as an ideal mechanism to achieve these objectives.
3. Convenience: Online psychometric tests can be effortlessly dispatched to candidates with the click of a button, whether individually or in bulk. Consequently, psychometric testing is less time-consuming than other selection processes like interviews and assessment centres. Upon completion of the assessment by a candidate, reports are automatically generated and become accessible within seconds, demanding minimal staff input. This renders psychometric testing particularly well-suited for pre-employment screening, high-volume recruitment, or within busy human resources departments.
4. Return on investment: Psychometric tests are available for purchase online, and platforms like Test Partnership facilitate easy test setup. Research indicates that hiring a poorly performing candidate can cost 3.2 times the individual's salary (Gallop International). Conversely, high-performing candidates generated approximately 43% more revenue than an average-performing employee (Hay Group). Utilising a psychometric testing platform, such as Test Partnership, will likely be cost-effective, save money, and contribute to cultivating a high-performing workforce.
5. Objectivity: Utilising well-researched psychometric tests in employee selection enhances the fairness and impartiality of the process. This approach enables selecting employees based on merit through fair and standardised tests, mitigating subjective or biased methods. Unstructured interviews, for instance, represent subjective and inefficient selection tools that may inadvertently exclude high-performing candidates. Fair, standardised, and valid selection tests are reliable in enhancing fairness and objectivity in the selection process, reducing the likelihood of legal disputes arising from perceived unfair selection decisions.

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TYPES OF PSYCHOMETRIC TEST

What types of psychometric tests are there?

Psychometric tests used in the selection and assessment processes fall into two main categories: cognitive ability tests (also referred to as aptitude tests) and personality tests. Cognitive ability tests gauge intelligence and mental capabilities, while personality questionnaires assess distinct traits like extraversion and agreeableness.

These psychological constructs hold significance in employee selection due to their meaningful correlations with job performance. Utilising scientifically validated psychometric tests in the hiring process, such as those offered by Test Partnership, allows for accurate measurement of these constructs. This, in turn, is a reliable predictor of solid job performance for client companies.

Within cognitive ability tests, a variety of specific aptitudes can be measured and evaluated, using the following:	Personality questionnaires are even more versatile and can measure the following variables:
Numerical reasoning tests Verbal reasoning tests Logical/diagrammatic reasoning tests Error checking tests Data analysis tests Critical thinking tests Mechanical reasoning tests	Leadership potential Strengths Teamwork Development needs Competencies Values Motivations and behaviours

Additional psychometric assessments, like situational judgement tests, combine elements from both cognitive ability tests and personality questionnaires. Consequently, many psychologists view these exercises as a middle ground between cognitive ability tests and personality questionnaires.

Given the diverse array of tests available, it is advisable to consult with an expert when considering the implementation of psychometric testing in the workplace.

Conclusion

Psychometric tests are important for things like hiring and education, but it's crucial to use them carefully. Plan how to use them in your process. After understanding how they help and what they measure, check out the tests at Brainwonders. If you have questions, you can contact us for career counselling, online or offline. Brainwonders, a 5-time national award winner, is recognized as the best career counsellor in India. Their team is reputed for providing exceptional guidance across all age groups, utilizing innovative techniques such as the US Patented DMIT or Online Psychometric Tests like IQ and Aptitude Test. Individuals can confidently embark on fulfilling and contented career paths with their assistance without facing any challenges.

Additional psychometric test FAQs

Q1. Are psychometric tests reliable for recruitment?

Ans: Psychometric tests are a valuable tool for employers during recruitment and highly effective job performance predictors. However, it's crucial to recognize that they are not flawless indicators of an individual's suitability for a job. The reliability of a test hinges on factors such as test quality and validation. A meticulously designed and validated test can furnish valuable insights into a candidate's abilities, personality, and job-relevant characteristics. To optimize effectiveness, it should be complemented with other assessment methods, such as interviews and work exercises, to obtain a more comprehensive understanding of a candidate's qualifications.

Q2. What are the three types of psychometric assessments?

Ans: There are three main categories of psychometric assessments: personality tests, situational judgment tests (SJTs), and aptitude tests.

• Personality tests: These evaluations gauge an individual's personality traits and characteristics, including emotional stability, openness, agreeableness, conscientiousness, and extraversion.
• Situational judgment tests (SJTs): SJTs evaluate an individual's capacity to respond to hypothetical scenarios or situations they may encounter in the workplace. These assessments measure decision-making skills, problem-solving ability, and ability to prioritize tasks and handle conflicts effectively.
• Aptitude tests: Aptitude tests assess an individual's cognitive abilities, such as verbal and numerical reasoning, memory, and spatial awareness. These tests measure an individual's potential to learn and perform well in a particular job or educational setting.

Q3. Can psychometric tests measure IQ?

Ans: Psychometric tests can assess an individual's cognitive abilities, encompassing intelligence, commonly known as IQ. It's important to note that while psychometric tests can measure cognitive skills, not all are explicitly tailored for assessing IQ. IQ tests, a subtype of cognitive ability tests, are specifically crafted to gauge a person's overall intelligence, characterized by their aptitude for learning, understanding, and reasoning.

Q4. How accurate is psychometric testing?

Ans: Psychometric tests are a reliable predictor of performance and play a vital role in a successful recruitment strategy. They offer objective evaluations of cognitive abilities, personality traits, and job-related skills, enabling the prediction of a candidate's potential success in a specific role. Employers, through the use of psychometric tests, can make more informed decisions in recruitment and selection processes. Additionally, these assessments empower organizations to tailor training and development programs to individual needs.