When it comes to measuring the capabilities and skills of employees, HR departments seem to have mastered the art of people science. But why do some organizations only begin these assessments once the candidate has accepted the role?
Psychometric testing is a must-have for any tech-savvy HR department looking to collaborate and compare the individual capabilities of candidates, pre-employment. From predicting future performance to measuring suitability, psychometric testing allows for reliable and effective insights into your future workforce.
Despite this, some organizations still believe in outdated and unsubstantiated myths around psychometric testing.
Revelian, a global leader in data-driven human behavioral insights and psychometric assessments, revealed to HR Tech News the top three misconceptions around these tests – and revealed how pre-employment screening is not only encouraged, it’s a real necessity.
According to Revelian, the most common myths are as follows.
Far from wasting your time, psychometric tests add a scientific step to the process which enables more effective decisions to be made more quickly and a strong outcome achieved with more confidence. As testing can be implemented at the start of the recruitment process, this gives HR more time to make an informed decision on a prospective candidate.
Negative candidate experience
As all HR leaders worth their salt understand that candidate experience throughout the recruitment process is key to brand survival. Not only does psychometric testing avoid creating a toxic atmosphere – the tests actively encourage a positive outcome. The level of rigor demonstrated in these tests shows any potential candidate just how seriously you take your recruitment processes.
Whilst some organizations may fear the costs of implementing psychometric testing, the actual purchase price for a psychometric test can be less than $100* per test and even lower if purchased on a license agreement. Compared to the potential cost impact of a bad decision in either recruitment, employee development or restructuring, which can be astronomical in fixed financial terms, not to mention the indirect costs of frustration and time delay.
Speaking of expense – how exactly do you go about measuring the ROI on these assessment tools?
Revelian the best way to do this is to measure the gains from investment of the tech, minus the cost of the new tools, and divide this by the overall cost of investment.
(Gain from Investment: $100,000 – Cost of Investment: $50,000) / Cost of Investment: $50,000)
= 1 (or 100% in percentage terms)
Demonstrating the value of psychometric assessments to the C-Suite is a talking point that HR needs to practice. As the role of HR becomes more intrinsically linked to the overall organizational strategy, speaking numbers and profits will have to become second nature.
To help facilitate this, Revelian compiled a helpful checklist of the reasons why it’s so essential that organizations go the extra mile to assess the ROI of new technologies. The business benefits measuring ROIs include:
- Documenting the value of psychometric assessments to senior executives and the board
- Helping to justify the use of testing to line mangers and others who might be skeptical
- Making it easier to justify further investment in HR initiatives to senior management
- Increasing the perceived value of HR to the organization