Why should you care about Psychometric Testing?
Source | xobin.com
Picture this – The average cost of a bad hire is approximately their compensation for a year. Couple that with the high attrition rate, it becomes a necessity to attach way more significance to the Cultural & Behavioral fit of applicants than the three quarters of hiring managers who don’t.
When used correctly, Psychometric and Behavioral Assessments improve the chances of new employees succeeding. Unfortunately, too many organizations use the wrong psychometric assessments or the right ones in the wrong way. Like there is a right way for everything, there are only a few things that organizations need to change in order to max out the usefulness of these tests while going close to eradicating any risks.
Common Mistakes while using Psychometric Assessments
There are loads of companies selling off-the-rack Psychometric Assessments, Cognitive Assessments and Personality Tests all around the world. Organizations and HR teams are being sold Psychometric Assessments purely in the name of Data-Driven Hiring, Cultural Fitment Test
Mistake #1: Psychometric Tests without Valid Standards for Job Performance
Psychometric Tests are not just run-of-the-mill personality tests one takes for fun. The primary aim is to find a level of correlation between Predictor variables (Traits of Candidate) and outcome variables (Traits of a Successful Hire).
Organizations are often guilty of focusing on the predictors, or “independent variables,” than on what is being predicted, or “dependent variables.” Any organization that doesn’t have a regular evaluative measure of employee performance on the job, then there is no baseline for them to correlate performance prediction based on the psychometric test results.
As a rule, organizations must use appraisals as a feedback loop to continuously update the Benchmarks of Psychometric Assessments based on job success.