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Why Do Companies Need Psychometric Testing?

January 6, 2021 by Contributed Post

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It is no wonder that commerce is becoming more and more competitive. We are living in a world where information flows at an ever-increasing rate and those who can process that information, while at the same time keep calm and able to perform in a fashion that provides value to an organization are valued.

The characteristics that allow these employees to thrive in this ever more demanding commercial and industrial environment must be measurable prior to their employment, it is through the application of psychometric testing that those prospective employees can be evaluated. That evaluation provides the organization with the comfort that their return on investment in the prospective employee will be rewarded.

Why Do Companies Need Psychometric Testing

What are the characteristics that psychometric testing evaluates?

Hiring managers or Human Resource Managers use a variety of tests to measure such factors as an aptitude for a particular function or position, the communication style of the prospective employee and emotional intelligence. In this way the candidate can be evacuated prior to the employment – and the company can save money.

That saving comes about in a variety of ways. The first amongst them being in the cost of training. Those employees who are lacking in certain psychological facets may require training that does not provide a return on the investment in their employment – at least when compared to those who have scored highly in their psychometric evaluation. The results of the psychometric evaluation can provide the organization with a far more measurable idea of the strengths and weaknesses of an individual candidate, especially when it comes to specialized positions.

The benefits of psychometric evaluation vary, but among the most important is just how those are hired for specific roles will act under pressure. In certain circumstances, this can mean success or failure when it comes to certain projects – and often a knock-on effect when it comes to relationships with clients or customers. Psychometric testing and evaluation can provide management with insight into how an individual employee will react under pressure – and that can mean the difference between fast-tracking that individual toward a senior position – or providing them with opportunities that are more in line with their individual style or capabilities.

The psychometric evaluation also allows an organization to gain some insight into just how an individual employee will interact with others. Their communication style and approach to the power dynamic that shapes an organization will provide those in the Human Resource department with insights that can make the difference to training and just how the individual employee matches the dynamic of the organization This can have far-reaching consequences to exactly how that employee not only progresses along their career path but also how they represent the organization outside of the formal office environment.

Psychometric testing also allows an organization to gauge the leadership potential of a candidate. When it comes to large organizations that leadership potential is pivotal – especially where large teams are concerned. It also allows the company to plan properly when it comes to succession. In today’s fast-moving corporate environment succession planning is vital. Identifying those who can step into the shoes of founders provides shareholders and other stakeholders with the peace of mind that there is a plan in place. Psychometric testing allows for the identification of future leaders – and allows the company to groom them for their future positions.

The fact that IQ tests may have fallen out of favor to gauge the suitability of certain candidates for specialized positions has not negated the necessity for the testing of general intelligence. Psychometric testing provides tools that test general intelligence. Measuring cognitive ability is important. It provides the organization with information and the ability to benchmark progress as far as certain tasks are concerned. The testing can provide an insight into the candidate’s ability to deal with numbers and process flow, as well as their ability to grow within the function and pick-up new skills. In today’s fast-moving business environment testing and evaluation of such aptitude has become more important than ever before.

There is of course the concept of emotional intelligence. A concept that has become more and more accepted as a vital factor that contributes towards the success of any candidate. Psychometric testing can provide insight into the way the employee acts within a group environment. It can also provide some insight into the preferred models of communication that would best suit the individual candidate – depending on their position within the organization.

In short, psychometric testing is essential in today’s business environment. The world of business is changing fast, and employees need to change with it. At the same time, organizations need to sure that their investment in individuals will provide the return on investment that stakeholders require. Psychometric testing is essential in ensuring that return.

Also read: Do we need background checks for new employees?

Filed Under: Employees Tagged With: employees, HR, recruitment

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