Companies Failing to Maximise Investment in Psychometrics

Change management and training consultancy, cda, believes that a worrying number of companies are failing to realise the maximum benefit of utilising psychometrics as an integral part of their recruitment policy. As well as restricting the full development of staff potential, it is also damaging return on investment.

An increasing number of organisations are using psychometrics (60% according to the CIPD Recruitment, Retention and Development Survey 2006) as part of the recruitment process. This is not cheap, with costs typically averaging up to several thousand pounds once training and licences have been taken into account. Nevertheless, it is recognised as an investment worth making because the comprehensive use of psychometrics in recruitment and beyond will result in a ëbetter-fití recruit who is more likely to meet the full requirements of the employer, remain in place longer, contribute more to the company and provide a better return on investment.

Worryingly, however, a significant percentage of firms using psychometrics are only doing so within the initial recruitment procedure and are not then continuing to apply this approach as part of the on-going development process.

ìWe encounter too many instances of what we call ëSilver Bulletí mentality,î says Lisa Michelangeli, psychologist at cda. ìWhile there has been an increased recognition of the value of psychometrics, there can be an assumption that its integration into the recruitment process is a guarantee that it will result in a calibre of recruit who will have a long term positive impact on the organisation.

ìSome firms are not achieving full-value realisation of their investment because they do not use the outputs of the psychometrics to inform development beyond the recruitment stage. For example, if a group of individuals is recruited, the outputs of the personality assessment can inform the development of the team and how they interact with each other. This is an example of the invaluable opportunities that we encounter organisations not always making the most of.

ìPsychometrics are not a one-fix cure-all but have to be an integral part of the on-going development process.î

Consultants with cda also report that this situation can be exacerbated by a gap between HR and line management. Too often the HR function is involved only in the hiring (and firing) process and not in the continuous employee development, which can be regarded by line managers as their particular domain.

Lisa Michelangeli continues:

ìGiven the sums of money companies are investing, we believe that it is essential for business leaders to ensure that their HR experts are educating and then supporting line management in incorporating the output of psychometrics into the various stages of the employee lifecycle.

ìFor example, when line managers are trained in benefits such as the objective basis for performance management that psychometrics can provide, they embrace the practice wholeheartedly. However, it does need the business leaders to instigate clear policy to ensure that the essential instruction and on-going support is properly implemented by HR and incorporated by line management. Leaving it to chance is not good enough.î