360 Talent Solutions

How Psychometric Assessments Can Help Your Company Bridge Skill Gaps

Reading Time: 10 minutes

In today’s fast-paced business environment, skill shortages are a common problem that companies face. Companies can experience skill shortages due to various reasons, such as an aging workforce, low unemployment rates, and a lack of qualified candidates. The impact of skill shortages on a business can be significant, including decreased productivity, increased costs, and missed opportunities. However, there are ways to mitigate the impact of skill shortages. One of these is through the use of psychometric assessments. In this article, we will discuss how psychometric assessments can help companies experiencing skill shortages.

Table of Contents

Current Market Trends

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When speaking with hiring managers and HR professionals, they share their frustrations as their current recruitment processes are taking on average 3 months, with some roles being open longer than 6 months.    According to TotalJobs, only 50% of companies are confident they will recruit the people they need this year. 

The reason why confidence is low and recruitment processes are open for so long is because of the current skills shortage most companies are experiencing.  While companies said they struggled to recruit for all types of roles, finding specialists seemed to be the biggest challenge. Just under half of all businesses reported difficulty hiring for specialist roles.  Almost two thirds of London businesses are struggling to fill vacancies, while UK firms prepare the biggest pay rise in more than a decade to deal with the continuing skills shortage.

What are Psychometric Assessments?

Psychometric assessments are standardized tests used to measure an individual’s mental abilities, personality traits, and job-related skills. These tests are used to evaluate a candidate’s potential for success in a given role. Psychometric assessments can be used for recruitment, selection, and development purposes.

Psychometric assessments can include cognitive ability tests, personality tests, situational judgment tests, and job-specific tests. These assessments are designed to be reliable, valid, and fair. They are often used in conjunction with other selection tools, such as interviews and reference checks.

Using Psychometric Assessments to Counter Skill Shortages

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Psychometric assessments can provide numerous benefits to companies experiencing skill shortages. Here are five ways psychometric assessments can help:

Identify Talent:

Psychometric assessments can help companies experiencing a skill shortage to identify talent by giving employers insight into an individual’s skills, strengths, and weaknesses. This can help employers to get a better understanding of a candidate’s abilities, allowing them to make an informed decision about whether the candidate is a good fit for the job.

Psychometric assessments can help companies identify talented candidates who may have been overlooked by traditional recruitment methods. These assessments can identify candidates with the potential to excel in a given role, even if they lack the experience or qualifications typically required.

Psychometric assessments can also provide employers with valuable data on the skillsets of their current workforce, allowing them to better identify potential areas of improvement. This can be especially helpful in a tight labor market when employers are struggling to find qualified candidates.

Measure Candidate Fit:

Psychometric assessments can help companies assess whether a candidate is a good fit for a given role and organizational culture. These assessments can measure a candidate’s values, interests, and work style, providing valuable insight into how they may perform in the role.

They provide employers with an objective way of assessing a candidate’s suitability for a role. These assessments can help employers to identify candidates who have the right skills and personality traits to succeed in the role and who will fit well within the company’s culture. They can also provide employers with valuable insights into a candidate’s ability to learn and adapt to new situations, which can be particularly useful in a tight labor market.

Evaluate Soft Skills:

Psychometric assessments can help companies evaluate a candidate’s soft skills, such as communication, teamwork, and problem-solving. These skills are often critical for success in a role but can be difficult to assess through traditional recruitment methods.

 These assessments can help employers to identify candidates who are well-suited to the role and who will be able to contribute to the team’s success. They can also provide employers with valuable insights into a candidate’s ability to work in a team, manage conflict, and think on their feet.

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Evaluate Technical Skills:

Psychometric assessments can help companies experiencing a skill shortage to evaluate technical skills by providing employers with an objective way to assess a candidate’s knowledge and ability to perform in a specific role. These assessments can help employers to identify candidates who have the right technical skills and who are well-suited to the job. They can also provide employers with valuable insights into a candidate’s ability to learn new skills and adapt to new technologies.

Reduce Recruitment Costs:

Psychometric assessments can help companies reduce recruitment costs by identifying suitable candidates early in the recruitment process. This can reduce the number of candidates who need to be interviewed and can save time and resources.

These assessments can help employers to identify those candidates who are best suited to the role and who will be able to contribute to the team’s success. This can help employers to focus their recruitment efforts and avoid wasting time and money on candidates who are not a good fit for the role.

Minimize Turnover:

Psychometric assessments can help companies experiencing a skill shortage to minimize turnover by helping employers to identify candidates who are well-suited to the role and who are likely to stay in the role for the long-term. These assessments can provide employers with valuable insights into a candidate’s ability to learn and grow in the role and their commitment to the job. This can help employers to make informed decisions and ensure they hire candidates who are likely to remain in the role for the foreseeable future.

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How to Implement Psychometric Assessments?

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Implementing psychometric assessments requires careful planning and execution. Here are five steps to follow when implementing psychometric assessments:

1. Define the Job Requirements

The first step in implementing psychometric assessments is to define the job requirements. This involves identifying the knowledge, skills, and abilities (KSAs) required for success in the role. It is important to have a clear understanding of the job requirements to select the appropriate assessments.

2. Choose the Right Assessment

Once the job requirements have been defined, the next step is to choose the right assessment.  By introducing assessments at the beginning of the recruitment process, you not only save time, you also become much more inclusive in screening potential candidates.

There are numerous assessments available, each with their own strengths and weaknesses. It is important to select an assessment that measures the KSAs required for success in the role and is reliable and valid.

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3. Communicate with Candidates

Before administering the assessment, it is important to communicate with candidates about the purpose of the assessment and how the results will be used. Candidates should also be informed of their rights and the steps that will be taken to ensure their privacy.

4. Conduct the Assessment

The assessment should be conducted in a controlled and standardized environment to ensure reliability and validity. The instructions for the assessment should be clear and the time limit should be appropriate for the assessment being administered.

5. Interpret the Results

Once the assessment has been completed, the results should be interpreted by a qualified assessor. The results should be compared to the job requirements and other selection tools to make an informed hiring decision.

Best Practices for Psychometric Assessments

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When using psychometric assessments, it is important to follow best practices to ensure they are reliable, valid, and fair. Here are four best practices to follow:

1. Avoid Bias

Psychometric assessments should be designed and administered to avoid bias. The assessment should not discriminate against candidates based on age, gender, race, or other protected characteristics.

2. Use Valid and Reliable Assessments

It is important to use valid and reliable assessments to ensure the results are accurate and meaningful. Validity refers to whether the assessment measures what it is intended to measure, while reliability refers to the consistency of the results.

3. Train Assessors

Assessors should be trained to administer and interpret the assessments to ensure reliability and validity. They should also be trained to avoid bias and to communicate the results to candidates in a professional and respectful manner.

4. Respect Candidate Privacy

Respecting candidate privacy is important when using psychometric assessments. It’s essential to obtain informed consent from candidates and to ensure that their personal information is kept confidential.

Challenges of Psychometric Assessments

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While psychometric assessments can provide numerous benefits, there are also some challenges to consider. Here are three potential challenges:

1. Potential for Misuse

Psychometric assessments can be misused if they are not used in an ethical and appropriate manner. For example, using assessments that are not validated for the role being assessed can lead to inaccurate results.

2. Perception by Candidates

Candidates may perceive psychometric assessments as intrusive or unfair. It’s important to communicate clearly with candidates about the use of assessments and to ensure that they understand the purpose and value of the assessment.

3. Cost

Psychometric assessments can be expensive, particularly if they are administered by external providers. Companies should consider the costs of assessments when deciding whether to use them in the recruitment process.

Who Are The Top 3 Providers Of Psychometric Assessments?

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When choosing a provider, it’s important to consider factors such as the types of assessments offered, the customization options available, and the level of expertise and support provided. By selecting a reputable provider and implementing assessments effectively, companies can gain valuable insights into candidate fit, potential, and performance, and make better hiring decisions to address skill shortages and build a stronger workforce.

While there are many providers to choose from, here are three of the top providers of psychometric assessments:

1. Predictive Index

Predictive Index (PI) is a leading provider of psychometric assessments, offering a range of tools to help companies make better hiring and talent management decisions. Founded in 1955, PI has a long history of providing reliable and valid assessments to organizations around the world.

One of the key strengths of PI is their ability to measure both cognitive and behavioral traits, providing a holistic view of candidates and employees. They offer a range of assessments, including the PI Behavioral Assessment and the PI Cognitive Assessment, which can be used to evaluate job fit, potential, and performance.

In addition to their assessments, PI offers a range of other talent optimization tools, including job analysis and design, behavioral coaching, and team dynamics analysis. They also provide training and certification programs for individuals and organizations looking to develop their expertise in psychometric assessments.

2. SHL

SHL is another top provider of psychometric assessments, with a range of tools designed to help companies make data-driven talent decisions. Founded in 1977, SHL has over 40 years of experience in the assessment industry, and has developed a reputation for delivering high-quality and reliable assessments.

One of the key strengths of SHL is their ability to customize assessments to meet the specific needs of organizations and roles. They offer a range of assessments, including cognitive ability tests, personality assessments, and situational judgment tests, which can be tailored to the requirements of the role and organization.

In addition to their assessments, SHL offers a range of other talent management services, including job analysis and design, leadership development, and talent analytics. They also provide training and certification programs for individuals and organizations looking to develop their expertise in psychometric assessments.

3. Hogan Assessments

Hogan Assessments is a global provider of psychometric assessments, offering a range of tools designed to help companies improve their hiring and talent management processes. Founded in 1987, Hogan Assessments has over 30 years of experience in the assessment industry, and has developed a reputation for providing reliable and valid assessments.

One of the key strengths of Hogan Assessments is their focus on personality assessments, which can be used to evaluate job fit, potential, and performance. They offer a range of assessments, including the Hogan Personality Inventory, the Hogan Development Survey, and the Motives, Values, Preferences Inventory, which can be used to evaluate a range of personality traits.

In addition to their assessments, Hogan Assessments offers a range of other talent management services, including leadership development, team building, and executive coaching. They also provide training and certification programs for individuals and organizations looking to develop their expertise in psychometric assessments.

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As organizations become more competitive, it has become increasingly important for them to hire employees with the right skills and fit for the job. To achieve this, many employers are using psychometric assessments to evaluate potential employees.

Final Thoughts

Psychometric assessments can be a valuable tool for companies experiencing skill shortages. By identifying talent, measuring candidate fit, evaluating soft skills, reducing recruitment costs, and minimizing turnover, psychometric assessments can help companies make better hiring decisions. However, it’s important to implement assessments carefully and ethically, using validated and reliable assessments and trained assessors. By following best practices and addressing potential challenges, companies can use psychometric assessments to improve their recruitment processes and mitigate the impact of skill shortages.

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In Partnership With Humanostics

360 Talent Solutions Ltd is an Associate Partner of Humanostics® , a PI Certified Partner authorised to use the science, assessment software, and curriculum of management workshops of The Predictive Index.

In partnership with Humanostics, we provide companies in the UK and across Europe access to the assessment tools provided by The Predictive Index.

Take the 6-minute PI Behavioral Assessment™ today.  Once you have completed the 6-minute assessment, I will send you a Full Behavioral Report by Predictive Index.

How Can We Help

When it comes to predicting future performance, technology is key:

  • Education, years of experience, and references all have low predictive value. Yet, we rely on these for screening early in the recruitment process.
  • Cognitive and Behavioural Assessments, have much higher predictive value, and when combined with interviews, provide the most effective method for predicting future performance.

For me, hiring without the use of psychometric assessments is like trying to put together a jigsaw puzzle with pieces missing … and no picture on the box. It’s not fun, it takes longer, and when you are almost finished, you realise you have pieces missing.

Take the assessment today and start measuring more to improve your recruitment.

If you are interested in learning more or are ready to incorporate behavioral data into your recruitment process, please contact me today, I will be happy to help.

Let’s get started!

Dave Crumby

Founder at 360 Talent Solutions

Certified Predictive Index Practitioner 

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