Question time

Could psychometric testing help you fnd the perfect employee and save you from making a costly mistake?

Recruitment is an expensive business. According to research by the Chartered Institute of Personnel and Development (CIPD), the average direct cost of flling a vacancy is £3,600, rising as high as £8,000 when all costs are factored in. For more senior positions, advertising and headhunting costs can be astronomical.

Bringing new people on board also involves risk, which is why increasing numbers of firms are using psychometric tests as part of their selection procedures.

“Psychometric tests measure differences between people based on such things as intelligence, aptitude, ability, personality and typical behaviour,” explains CIPD adviser and HR expert Angela Baron.

The evidence and statistics behind the questions enables managers to make informed decisions about the suitability of a candidate or the ability of an employee and make objective comparisons.

“Selection has become much more sophisticated,” says Baron. “This is why psychometric testing is becoming more popular. Most larger organisations use some form of psychometric testing when recruiting, although it’s less popular among small firms.”

According to the 2006 CIPD Recruitment, retention and turnover survey, which provides information on current and emerging practice, 75 per cent of 804 organisations surveyed used general ability tests, while 36 per cent used personality or aptitude questionnaires. Some 25 per cent used online psychometric tests.

“Tests can reveal whether someone has the potential to develop,” continues Baron, “which is useful because the job might need to change in the future.”

There is a range of psychometric tests to choose from. For example, in-tray exercises, which usually take place against the clock, test ability to handle likely tasks, while revealing strengths or weaknesses in communication or decision-making. Questionnaires invite candidates to assess their own skills and outlook, which enables the establishment of a personality profile.

The price of ready-made tests varies from a couple of hundred pounds for a simple spelling test to several thousand pounds for a sophisticated personality test. Costs do not end there. Test supervision and analysis of results requires staff with appropriate training. There are also rules on discrimination and accessibility to be aware of – sometimes adjustments need to be made.

Baron has a word of caution for anyone planning to buy in test services: “There are many providers out there and standards vary. I’d recommend you contact the British Psychological Society, which has a register of independent advisers that can help you identify tests best suited to your needs.”

How effective are psychometric tests? “The search for the perfect recruitment tool continues,” smiles Baron, “but they can be effective when used in conjunction with other means – they do not form the sole basis on which selection should take place. A CV, interview and examples of work only tell you so much, too. Combining them helps you to establish a good overall picture.”