Underutilized Benefits of Psychometric Assessment in the Workplace
As many HR professionals and business leaders are aware, psychometric analysis of individuals in the workforce has been gaining popularity as a tool used to qualify candidates during the recruitment and hiring process. However, the scope of benefits psychometric assessments can offer reaches far beyond just the hiring process. Here, we will explore just a few of the less commonly used benefits psychometric testing can provide your company to create an optimized strategic edge in workforce development, including:
Internal job mobility and employee development
Decreased recruitment, hiring and training costs
Increased performance, teaming, and innovation possibilities
1. Internal job mobility and development
When a need is identified within a company, whether it is an entirely new position or filling an existing role, a company with a well articulated, accurate employee development database can start within its own database of talent to decipher whether an internal candidate may be well suited for the position. This determination can be made through the combination of competency alignments and both internal and developed (or developing) traits. Rather than relying on job interest postings or memory alone, companies will be able to search the entire company database (possibly including previous candidates that were not hired but were well liked, depending on company policies) to match the competencies associated with a particular position to the competencies and development of individual employees in the company. And better still, this process can be completed within minutes. A sophisticated system, such as the TMA method, will scan and match existing or custom competency profiles to find the most appropriate matches against existing individual profiles created through employee assessments. The concept of job mobility as a lattice rather than a ladder helps to keep exceptional employees in house by expanding on their abilities, interests and natural strengths rather than focusing solely on promotions or supervisory roles exclusively. By creating more outlets for employees to be fulfilled in the work they do, employees are less likely to exit the company to look for engaging opportunities elsewhere. This increased engagement and development is the cornerstone for an active and vibrant workforce. Using this method, it is also possible to articulate individual competency potential and earmark development goals and strategies based on the individual development path for the employee.
2. Decreased recruitment, hiring and training costs in addition to increased retention
When a company can identify talent within to fulfill positions accurately, there is a possibility for substantial cost savings. According to shrm.org, the average cost to hire an employee comes in at over $4,000 and takes about 42 days on average. By searching internally, companies not only save on these associated costs, they already know the employees are a culture fit and will succeed with the company on a personal level. Competency assessment will help determine if the position will be a fit, saving time, money and the heartache of a bad hire. Alternatively, when employees are on boarded and found to be an ill fit for the company, these costs are lost and re-spent searching for additional candidates to fill a role. By determining competencies and screening applicants appropriately, it is more likely that a company would have a more qualified pool to interview and ultimately hire from. In addition to immediate cost savings, there are longer term retention benefits to consider. Employees who are naturally well suited tend to be easier to retain, given the company supports their growth and development. Engaged, fulfilled employees harbor a more positive culture and environment, contributing to a more desirable experience for all. In instances that outside recruitment is necessary, companies can enjoy a more positive reputation, attracting more qualified and desirable employees to the hiring pool.
3. Increased performance, teaming success and innovation
Employees who are a natural fit for a position tend to engage and commit higher levels of energy, promoting increased levels of performance and objective attainment. This increased performance can be experienced through greater outputs, but also through increased innovation of strategies, techniques or ideas. Another under utilized benefit of advanced psychometric assessments (like TMA) is the ability to pinpoint competencies desired for a particular project or group, and to use the desired competency profile to assemble a cohesive and synergistic team based on the competencies, behaviors and working styles of those involved. This way, teams may be handpicked and created to encourage effective collaboration and results for the given situation.
This is only the beginning of the potential benefits to be experienced by utilizing psychometric assessment in the workplace. This strategy, along with competent, responsible and thoughtful use and approach, can help create the synergy and competitive advantage to advance companies and employees to substantially improved levels.
Sam is the President and founder of CompTeam.
His core focus is leading companies through transformational change by optimizing talent initiatives with reward programs to achieve long-term strategic objectives. Sam’s diverse experience includes the design and optimization of performance-driven variable compensation plans for executive, sales and core employee populations of growing companies. Prior to founding CompTeam, Sam has worked in compensation functions of notable firms such as BlackRock, McKesson and Automatic Data Processing (ADP).
Sam is a global certified compensation consultant (CCP, GRP) with over 15 years of experience in Total Reward Strategies.
If you are interested in utilizing psychometric assessment as a tool in your company, reach out to CompTeam to discuss how we can help.