Psychometric Test Myths Debunked: The Ultimate Guide for Employers!

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<h2>Key Takeaways</h2>
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<li>Prioritise an effective and efficient process: Aim to increase the likelihood of hiring Great Performers and reduce the time and distractions that recruitment can cause for SMEs. This involves focusing on solutions that offer the best return on investment.</li>
<li>Question the use of psychometric tests: Be cautious about using psychometric tests, especially for SMEs, due to their cost, complexity, and potential for negative candidate experiences.</li>
<li>Enhance the candidate experience: Balance achievable actions that respect the candidate’s time and the company’s resources.</li>
<li>Utilise comprehensive assessment tools: Select assessment methods that are job relevant, objective, consistent, comprehensive, and predictive of success in the role, such as Job Simulations and Structured Interviews.</li>
<li>Promote diversity and avoid discrimination: Actively work to reduce bias and discrimination through fair and inclusive recruitment practices.</li>
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I generally don’t recommend psychometric tests. That may seem strange because previously I’ve discussed the importance of using multiple assessment tools, and Schmidt and Hunter show that they have valid predictive power. However, I find that cheap psychometrics are not good, and whilst expensive tests are better, they are difficult to justify for most jobs. I also see employers abuse them, candidates hate them, and the overall recruitment process slows down. So, you may wish to skip this article.

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What Are Psychometric Tests?

Psychometric or behavioural tests measure a candidate’s cognitive abilities and personality traits relevant to job performance. They include tests of intelligence, aptitude, and personality.

A typical psychometric test takes 30 minutes or longer to complete.

If the test is taken online, the results may be available immediately. If the test is administered by a professional, a follow-up meeting may be required. A detailed report will typically provide scores and an interpretation of what they mean.

Intelligence tests, also known as IQ tests, measure a candidate’s cognitive abilities and potential for learning. This can be useful when you wish to invest a lot in training and want to ensure that new skills will be picked up quickly.

Aptitude or ability tests measure a candidate’s innate ability to perform a particular skill or task. They often focus on maths, verbal comprehension, and diagrammatic or inductive reasoning. They can also be very specialist, for example, in areas of data entry or spatial awareness. They’re more often used in early-stage careers to help an employer understand potential, and they’re less relevant for experienced hires as candidates have already demonstrated the ability to perform a skill or task. Unfortunately, they often provide a poor candidate experience, so adoption is usually very low. The skills can also be learnt/gamed as a candidate’s ability is not necessarily fixed.

Personality tests assess a candidate’s character, emotions, and behaviours. They see how a candidate is likely to behave in certain situations, how they interact with others, and what motivates them. But realise that it is an occupational profile, not a clinical profile, and there is an important difference.

There are many different types of personality tests, and most are based on a psychological theory tied back to a five-factor personality model: openness, creativity, extroversion, agreeableness, and neuroticism (OCEAN). The most well-known and widely used are the Myers-Briggs Type Indicator (MBTI), Big Five Personality Traits test, and DISC.

Candidates are asked a variety of questions, often multiple-choice ones, such as:

<p><span class="text-style-email">When faced with a problem, I usually:</p>
<p><span class="text-style-email">a. Look for a quick solution.</span></p>
<p><span class="text-style-email">b. Take my time and consider all the options.</span></p>
<p><span class="text-style-email">c. Ask advice from others.</span></p>
<p><span class="text-style-email">d. Get easily frustrated and give up.</span></p>

This question is designed to assess problem solving style. While “[getting] frustrated” is clearly an incorrect answer, the same question will be asked in different ways to establish a pattern.

To simplify the subject, I have collectively referred to all the different types of tests as just “psychometric tests”. 

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Advantages of Psychometric Tests

• Objectivity: They can help reduce bias and the influence of subjective interpretations.
• Standardisation: They’ve been normalised on a large, representative sample of people, allowing for individual comparisons.
• Complementarity with other methods: Provide a different perspective on an individual’s abilities and traits compared to CVs, Structured Interviews, and Reference Calls.
• Self-awareness: Help candidates better understand their strengths and weaknesses, and how they interact with others.

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Disadvantages of Psychometric Tests

• Absence of values: Most psychometric tests don’t consider a person’s values. For example, a salesperson and a vicar are similar; they are both good orators, engaging conversationalists, gregarious and persuasive. However, their values are very different, and these influence behaviour.
• Efficiency and lack of applicant adoption: Many providers claim that their tests are an efficient way to assess a large number of candidates compared to the time needed for face-to-face interviews. This sounds correct in theory (and I expect sells more tests), but getting candidates to take a test at the beginning of the recruitment process is problematic because it requires so much effort for little perceived reward. Additionally, candidates may believe they will be screened in or out based solely on a test.
• Limited predictive power: Although personality tests can provide insight, they’re not an infallible indicator of future behaviour. This problem is compounded by the fact that test results can be influenced by how a candidate feels; whether stressed or relaxed. It’s possible that someone could take a test more than once and get different results.
• Bias: While psychometric tests may help with objectivity, they can be biased against certain minority groups. Many psychometric tests were made in the US and benchmarked using American subjects, but there are significant cultural differences between America and other countries. Additionally, many tests were biased towards white male civil servants working more than 60 years ago. As organisations have become more diverse, the tests need to reflect this.
• Stereotyping and misinterpretations: The results of a personality test may be misinterpreted or overgeneralised, leading to misconceptions. For example, one test measures extroversion versus introversion, and the employer may have a bias that introverts won’t fit into the team dynamic, and so are inherently “unsuitable”.
• Testing too early in isolation: Inexperienced hiring managers can abdicate responsibility for effective screening by using psychometric tests to make decisions for them. Tests should never be used in isolation, and certainly not on their own to screen applicants. Instead, they should be used later in the recruitment process.
• Testing when a decision to hire has unofficially been made: If psychometric tests are taken at the very end of the recruitment process, hiring almost feels like a foregone conclusion. Often, the candidate is hired regardless of the results, which makes a mockery of the test.
• Professionals may be required: Some personality tests require a trained professional to assess the results and advise on using them effectively. This can cause delays and become expensive.

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How to Purchase & Use Psychometric Tests

Many psychometric tests can be purchased online. There are a lot of providers, but you need to consider carefully:

• Validity and reliability: Suppliers should provide the tool’s key validity and reliability indicators – without giving you a technical manual, which may even baffle experts!
• Normative groups: They should have tested on thousands of participants to make it relevant, and these should be a suitable ethnicity and diversity.
• Third-party review: We’re fortunate in the UK to have the British Psychological Society that provides reviews. Your country may have a similar organisation.
• Maintenance: Once a psychometric test has been created, it must be refreshed to ensure it remains relevant and screens out new biases.
• Supplier credibility: Properly purchasing and implementing psychometric tests can be expensive. You must ensure you’re working with a credible and stable supplier that can provide good support.
• Can you understand how it works? If you can’t understand the underlying principles, it is their fault, not yours.
• Good candidate experience: Try the tool yourself to ensure it is sensible, quick, and possibly even fun.

The cost can vary depending on the test, from £30 each up to several hundred pounds. A higher price doesn’t guarantee a better test. Generally, the employer pays; asking the candidate to pay is inappropriate.

Before giving a psychometric test to candidates, first offer it to your existing employees because:

• You should know your existing staff well enough to judge if the test results correctly identify your Good Performers and Great Performers.
• Your existing staff can act as a control group against which to benchmark candidates.
• Helpfully, you’ll see that great performing employees have different personality types. There’s no “correct” type, which should remind you to use the results only as guidance.

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<span class="grey-callout"><span class="text-color-purple">Warning:</span> Speaking from experience, be incredibly careful if you’re considering creating your own psychometric tool; it is very challenging. It can take 3-18 months just to see if you have a good predictor of success, and you’ll need a lot of resources, including occupational psychologists.</span>

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Recommended Use of Psychometric Tests

If you’re going to proceed with psychometric tests, using them at the right time is crucial:

• Too soon in the recruitment process, few applicants will complete them, and inexperienced hiring managers may use them to avoid making a proper shortlisting decision.
• Too late, and the results tend to be ignored because hiring a candidate feels inevitable.
• I recommend carrying them out between the first and second interview. Candidates are more invested in the recruitment process and so more likely to take them. Additionally, hiring managers can use test results to validate gut reactions and ask clarification questions during second interview. When sharing the results with a candidate, you can better understand how self-aware they are, and it can open up a deeper conversation.

If you don’t need a second interview because you’re confident in your decision, then you don’t need a psychometric test.

Overall, appreciate that human behaviour has no absolutes. Psychometric tests must be used within a broader context of Structured Interviews, Job Simulations, Work Culture Assessments, and Reference Calls.

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Additional Resources

• Recruitment Book; The Secrets of Great Recruitment: How to Recruit Great Employees.
• Downloadable PDF guide; Exposed: The Pros & Cons of Psychometric Testing in Recruitment.
• Article; Psychometric Tests for Recruitment: Are They Worth It?
• Article; How to Shortlist Candidates for Interview and Avoid Costly Mistakes.