What is psychometric testing in recruitment?

The definition of psychometric combines the words ‘psyche’, meaning mind and ‘metre’, meaning measure. Therefore, psychometric is a term that refers to the measurement of the mind. Initially, psychometric tests were created for educational and psychological purposes. However today, they are widely used throughout the recruitment process within a number of industries including Finance and Business.

Psychometric testing is an assessment method used in recruitment to measure a candidate’s mental capabilities and personality traits. Through multi-faceted methods of data collection, the recruiter is able to observe a candidate’s behaviour, personality, cognitive thinking and profile on the basis of this.

Psychometric testing was first introduced at the University of Cambridge in the 1800s. Historically, many companies relied on the Myers-Briggs Type Indicator Test to find out more about the personality of each applicant. It was anticipated that the use of this test in isolation presented limitations which resulted in recruiters adopting a more comprehensive range of psychometric testing to create a detailed assessment of each candidate.

Psychometric tests are different from traditional methods of testing that measure on the basis of education, knowledge and skill. Psychometric testing allows for further refinement during the hiring process as the recruiter can account for educational history, knowledge and skill by looking at the candidate’s application or CV.

Industry statistics show that additional factors such as personality traits and communication methods have equal importance in predicting how well-suited a candidate is for a job role or organisation.

A survey by the Society for Human Resource Management found that 18% of companies use psychometric testing, and this figure is projected to increase by 10-15% year on year.

There are two main types of psychometric testing; personality tests and aptitude tests. Personality tests identify your candidate’s traits and if they will be a good cultural fit for the organisation whilst aptitude tests assess reasoning or cognitive ability. When the right people are hired, it can have a domino effect as the energy of the employee can increase productivity of the existing team, resulting in better cohesion, performance and overall a happier workplace environment.

Studies show that of the companies that used psychometric testing, 81% stated that they predicted more reliable decisions with less risk attached when used within the recruitment process.

Due to the accelerated change happening in the world as a result of the ongoing global pandemic, job roles are becoming more fluid and remote working has become the new normal. Many companies, as a result, have responded with a flexible recruitment process to avoid missing out on a significant portion of the workforce.

With continued evolution of the working environment, it is thought that digital assessment methods - like psychometric testing - will become standard throughout the recruitment process.

The introduction of psychometric testing has gamified the recruitment process, with some tests allowing for virtual scenario creations. Within these virtual scenarios, potential candidates can enter into a digital workplace where they ‘meet’ colleagues and make decisions based on what they see or hear.

Psychometric testing is used for a number of reasons throughout the pre-hire process;

1. They are proven to help hire the best candidates

Numerous studies have concluded that psychometric and aptitude testing are highly effective preliminary indicators of performance and therefore, hugely reduce risk during the recruitment process. Both tests should be used in conjunction with interviews for optimal results.

2. They reduce time wastage during the recruitment process

Many companies receive upwards of 100 applications with each job posting, with larger employers receiving 250 CVs per position. As a result, there is limited time available to filter through each application and correctly appoint a candidate for the role.

Psychometric testing allows employers to add a further level of refinement to the recruitment process, identifying top performing candidates which they can carefully evaluate before providing a job offer.

Psychometric tests can also aid in steering the direction of discussion during the interview as they identify a candidate’s strengths and weaknesses.

3. They are cost-effective

A typical recruitment process can be costly, especially when the wrong hiring decision is made. As highlighted above, psychometric testing can improve the recruitment process by further filtering candidates and pre-empting performance. Therefore, integrating psychometric tests into the recruitment process can help avoid making costly mistakes when hiring.

4. They prevent bias and help diversify the selection process

Psychometric tests are regarded as a consistent and standardised measure of ability, not accounting for academic qualifications, personal history or experience in industry. Therefore, psychometric tests are unaffected by any factors other than raw intelligence and individual candidate potential.

An experienced recruiter may feel confident in their ability to determine whether an individual is the right fit for the specified job role. However, a more objective and measurable process is needed to ensure the hiring process remains fair.

Throughout the testing process, a candidate is asked a series of questions that feedback unambiguous results which can be compared against other candidates’ responses.

5. They are easy to use

At Qualyphi, we strengthen and make the hiring process easy by creating leading psychometric tests which you can issue to potential candidates. When these tests are used correctly, they can become a valuable resource that is continually implemented throughout the recruitment process.

You can view our complete list of tests available here.

There are a range of tests available, allowing you to choose tests that are best suited to your company or job vacancy.