HR Leader posted an article in July 2010 outlining the latest trends on the importance of using psychometric testing in the recruitment and selection process. The process for any company to hire a new employee can be quite expensive. HR Leader states that many companies incur costs in high turnover and unsuitable new employees as a result of their HR departments not utilising a reliable recruitment strategy and process. A study conducted by Chandler Macleod in 2009, revealed that a staggering 60% of companies have no documented recruitment strategy, leading to thousands of dollars spent in unnecessary hiring costs. The survey also revealed that the average cost of hiring a new employee was $15K. Many companies did not view the need for detailed and planned recruitment strategies a necessary course of action.

Current research has revealed the importance for companies and their HR departments to take the time to analyse and hire the right employee in order to eliminate the high initial turnover. Psychometric testing has consistently proved to be one of the most valuable selection tools in the recruitment process. Many organisations are now beginning to realise the value of psychometric testing to aid in the selection process. They assist in streamlining the recruitment process by quickly screening and eliminating a large amount of applicants, and short listing the best applicants (in terms of person-job fit) for consideration in the job interview stage.

Although psychometric testing is weighted as an extremely important and effective element in assisting in the recruitment process, testing should also be used in conjunction with other procedures. Importantly, hiring companies and their HR departments should always investigate the validity of the test being used (those that are supported by extensive research and data), and choose a reputable provider. Secondly, they should also define the critical characteristics and attributes needed by a candidate to succeed in the position in order to determine the best match. In other words, the tests assist in matching candidates’ profiles with the ‘ideal’ candidate’s profile (as stipulated by the company/HR department) for the position.


Annie Cerone