Psychometric pre-employment testing is a valuable tool that can provide employers with a wealth of information about job candidates, including their cognitive abilities, personality traits, and job fit. By using these metrics to inform hiring decisions, employers can improve their chances of hiring top performers and building a strong, engaged workforce. In this article, we will explore some key metrics related to psychometric testing and their impact on business performance.
Cognitive Ability
Cognitive ability is one of the most important metrics for talent measurement. Research has shown that employees with higher cognitive ability are more likely to perform well on the job and be successful in their roles. A recent meta-analysis (Sackett et al., 2022) concluded that cognitive ability is a strong predictor of job performance, accounting for much of the variance in performance across a variety of jobs. Cognitive ability assessments should be strongly considered for any pre-employment assessment program, with their importance increasing as the cognitive complexity of the role increases.
Personality Traits
Personality traits are important for job performance, and psychometric tests can be used to measure traits including conscientiousness, agreeableness, and emotional stability, and more. Studies have shown that employees with certain personality traits are more likely to be successful in certain roles, such as sales or management. For example, a study by Barrick and Mount (1991) found that conscientiousness was a strong predictor of job performance in a variety of roles, while a study by Judge and Bono (2001) found that emotional stability was a key predictor of job satisfaction and organizational commitment. Personality assessments can be configured for specific roles to maximize their effectiveness and predictive validity.
Job Fit
Job fit measures how well a candidate’s skills and abilities match the requirements of the job. When employees are a good fit for their roles, they are more likely to be engaged, productive, and successful. For example, a study by Kristof-Brown et al. (2005) found that employees who perceived a good fit between their skills and their jobs were more engaged and had higher levels of job satisfaction and organizational commitment. The ability to tailor an assessment to meet the requirements of the target job can dramatically increase the likelihood of a good fit between the employee and the job.
Employee Engagement
Employee engagement is a key metric for business performance, as engaged employees are more likely to be motivated, productive, and committed to their jobs. Psychometric testing can be used to identify factors that contribute to engagement, such as job satisfaction and organizational commitment. For example, a study by Saks (2006) found that job satisfaction was positively related to employee engagement and performance, while a study by Meyer et al. (2002) found that organizational commitment was a key predictor of employee retention and job performance.
Retention
High employee turnover can be costly for businesses, so measuring retention rates is important. Psychometric testing can help identify factors that contribute to employee turnover, such as poor job fit or lack of engagement, allowing employers to take steps to address these issues and improve retention. For example, a study by Van Vianen et al. (2008) found that job fit was a key predictor of turnover intentions, while a study by Meyer et al. (2002) found that organizational commitment was negatively related to turnover intentions.
Bottom Line $$
The implementation of a valid employee selection system has been shown to significantly increase employee performance, which can translate into measurable financial benefits for organizations. For example, according to a study by the Society for Human Resource Management, the cost of a bad hire can range from 50% to 150% of the employee’s annual salary, depending on the level of the position. On the other hand, a study by Aberdeen Group (2014) found that companies with a standardized approach to hiring had a 15% increase in employee performance compared to those without such an approach.
These findings suggest that the use of a valid employee selection system can have a significant impact on employee performance, and in turn, on an organization’s bottom line. For example, let’s assume that an organization has 1,000 employees with an average salary of $50,000 per year, and the organization experiences a 15% increase in employee performance as a result of implementing a valid employee selection system. This increase in performance could potentially result in an additional $7.5 million in revenue for the organization (15% of $50,000 x 1,000 employees).
Conclusion
In conclusion, psychometric pre-employment testing can provide valuable insights into a candidate’s abilities, personality, and fit for a role, which can have a significant impact on business performance. Clarity Talent Measurement offers a complete portfolio of valid, reliable, and fair assessments that are best suited to achieve these metrics. By using Clarity’s assessments to inform hiring decisions, employers can confidently identify the best candidates, improve retention rates, and ultimately build a strong, engaged workforce that drives business success.