It has become a necessity for recruiters to constantly seek innovations, technological tools, and new strategies to streamline recruitment processes to identify the right candidates who possess the necessary skills and are also a good fit for the org.zation. In this regard, psychometric testing has emerged as a useful tool for recruiters to gain insights into a candidate’s personality traits, emotional intelligence, and their cognitive abilities.
According to a report by HR Tech Insights, 85% of org.zations that administer advanced psychometric tests during their recruitment process have reported a 20% increase in good hires. Given the transformative impact of data-driven tests on talent acquisition practices, it seems evident that the significance of will only increase in the coming times.
“[Today]… key theme for talent identification is turning out to be specificity, i.e., focusing on the right profile, identifying skills for agile work specifically in a remote-hybrid work scenario and retention strategies. This is now done through assessment tools, artificial intelligence, and data analytics. The reason is that talent identification and selection in a remote world moved from pedigree to potential. Thus, the evaluation of skills for jobs has become the most relevant problem.”
Siddhartha Gupta, CEO, Mercer | Mettl
(Learn, Unlearn & Relearn — The motto for digital era: Siddhartha Gupta, CEO, Mercer | Mettl, 2022)
The evolution of psychometric tests
The concept of psychometric testing for assessing intelligence, personality, and other aspects of individual behavior has been around since the early 20th century. However, over the years, the landscape of psychometric testing has changed considerably, propelled by technological advancements and the evolving dynamics of the modern-day workforce. Even today, psychometric testing is constantly changing, shifting away from traditional methods towards technology-driven approaches. Understanding the trends that are affecting these changes is crucial for org.zations to keep up with the latest advancements.
The present landscape of psychometric testing
In order to understand the trends that are shaping the future of psychometric testing, it is important to first take stock of the current landscape. An increasing number of recruiters are now integrating psychometric tests, such as personality assessments or cognitive ability tests, into hiring procedures, as these tools can be used to objectively measure the competencies of candidates, supporting informed decision-making.
A major trend that has already made its way to the present landscape of psychometric testing is the integration of gamified assessments. These tests are engaging and interactive, and they can accurately measure the skills and competencies of candidates and even offer recruiters a glimpse into the creativity and problem-solving approach of the candidates. Performing a more holistic evaluation of candidates, this shift in the market can be indicative of the direction the future of psychometric testing can take.
Market dynamics
The market for psychometric testing is driven mainly by the growing need for objective evaluation tools for as well as for employee development. The factors influencing the market dynamics include technological advancements, the evolving needs of org.zations, and changing market trends.
Key market trends to look out for
Customization of psychometric tests
The one-size-fits-all approach that psychometric testing used to follow traditionally was one of its biggest shortcomings. Assessments that focus on relevant skills and abilities make for a more positive and engaging experience for candidates, which is crucial for attracting top talent. Personalized assessments help ensure that there is a better alignment between the job and the candidate and also enhance the candidate experience.
In the coming times, a shift towards the availability of greater customization options can be expected. Customization options are already being offered by several major comp.es, like Mercer | Mettl, to help recruiters tailor the assessments based on the needs of their org.zation’s unique culture.
The impact of artificial intelligence
Artificial intelligence has proved to be a game changer for almost every industry, and psychometric testing is no different. Using AI algorithms, huge amounts of data can be analyzed with ease to identify correlations and patterns, which can offer recruiters deep insight into the potential of a candidate. Further, with machine learning, these algorithms will continue to improve themselves, helping ensure that assessments remain relevant and in line with the changing job requirements.
The future will bring AI-driven assessments with capabilities that go beyond those of the current static tests. AI brings with it the ability to design dynamic assessments that can adapt in real time based on the candidates’ responses, performing a much more personalized and highly accurate evaluation. Using AI will make it easier for recruiters to identify behavior patterns that may be indicative of success in specific job roles, helping improve the hiring process even further.
Diversity and ethical considerations
Before looking ahead to the future of psychometric testing, it is imperative that the associated ethical considerations be addressed first. There is a very real potential for bias, especially when working with algorithms, which raises serious concerns about the hiring process being fair and inclusive. It is up to the recruiters to ensure that no existing biases are inadvertently perpetuated in psychometric testing.
It can be expected that the future of psychometric testing will involve more concerted efforts towards mitigating biases and enhancing fairness. In the coming times, the ethical guidelines and standards will also evolve to address such concerns and to promote accountability and transparency in psychometric testing. For the time being, recruiters should begin actively looking for platforms and tools, as well as the design and implementation of which prioritize inclusivity and diversity.
Continuous monitoring
Currently, psychometric testing is being used to get a deep understanding of the skills and abilities of candidates at a specific moment in time. A majority of org.zations only use psychometric assessments to recruit candidates for open positions. However, with the shift having already been affected, psychometric assessments can be expected to be included in employee development programs as well. In the coming times, psychometric assessments will be used for continuous monitoring and employee development by helping org.zations identify their employees’ areas of improvement so training programs can be tailored accordingly.
A change in the application for psychometric tests from hiring purposes to employee engagement and retention and talent management is imminent.
Integration possibilities
“As the skill ecosystem has rapidly evolved over time, so has the need to track the progress of learning and development through data-backed results.”
– Siddhartha Gupta, CEO, Mercer | Mettl
(Periodical Performance Feedback Anchors Employees Career Plans, 2019)
As recruitment processes become more and more digitized, recruiters will soon begin looking for platforms that offer comprehensive solutions for hiring, where applicant tracking systems, psychometric testing, video interviews, data analytics, etc., can all be managed with ease. So, it becomes imperative for psychometric testing to ensure it can be integrated seamlessly with other hiring tools and technologies. Enabling this kind of integration will give recruiters a holistic overview of all candidates by combining the quantitative data of assessment tests with the qualitative insights gained through interviews. The overall efficiency and effectiveness of the recruitment process can also be improved by the integration of different hiring tools.
AR and VR integration
With the continuous advancements in technology, psychometric testing may even see the integration of augmented reality and virtual reality in assessments. In the coming days, org.zations may be able to administer virtual assessments, where candidates will be required to participate in immersive simulations of challenges that they may face if they are hired for a specific job role. Apart from evaluating the technical skills of candidates, these simulations could help recruiters assess their interpersonal skills, problem-solving skills, decision-making abilities, etc., in real-world situations.
With virtual assessments, recruiters will be able to get a more authentic assessment of the capabilities of candidates and how they can be expected to perform in real-world conditions. There is already a trend where org.zations are trying to make their hiring processes more predictive of a candidate’s probability of on-the-job success, and the concept of experiential assessments aligns perfectly with it.
Big data analytics
Big data analytics is another major aspect that can be expected to impact the future of psychometric testing. Administering assessments to multiple candidates at once can generate large amounts of data and the ability to analyze these datasets can help recruiters uncover valuable trends, correlations, and patterns that go beyond the performance of individual candidates. This information gained using big data analytics can be utilized to make more informed decisions for workforce planning and org.zational development as well.
For talent management, leveraging big data can help recruiters identify predictive indicators of success in specific job roles, which will help mold a more targeted approach to talent acquisition.
Reskilling and adaptability
“Understanding which of your employees is best placed to skill themselves – both from a learning readiness perspective as well as from a knowledge perspective will help drive effectiveness in learning. From a cost perspective, it saves precious time and training costs.”
Siddhartha Gupta, CEO, Mercer | Mettl
(These are the tools accelerating L&D strategies on future readiness, 2019)
The digital transformation of industries is leading to rising demands for candidates with a growth mindset and an aptitude to learn continuously. The rapidly changing job market calls for learning agility, which is the ability to continually keep learning and applying the learning to new contexts so one may achieve desirable results. The ability to adapt and learn new skills is an important aspect that influences hiring decisions. In coming times, psychometric testing can be expected to include assessments that have been designed specifically to measure the potential of candidates to adapt and reskill.
It can be expected that psychometric testing will not only be able to measure the skills and competencies of candidates for specific job roles, but it will also be able to assess their capacity to evolve and acquire new skills.
Mercer | Mettl: Enabling org.zations to build winning teams
“We at Mercer | Mettl measure talent to help comp.es build winning teams! It’s our firm belief that for comp.es to survive and thrive in this disrupted world, the only possible way is to hire, develop and engage the sharpest talent and give them the freedom to rethink every process of value creation.”
Siddhartha Gupta, CEO, Mercer | Mettl
Elevate recruitment strategies with Mercer | Mettl’s extensive range of talent assessments with their proven ability to accurately measure the skills, knowledge, cognitive abilities, and behavioral patterns of candidates. The scientifically validated assessments and in-depth analytics offered by Mercer | Mettl can help deliver transformative results for businesses. The range of assessments offered by Mercer | Mettl spans entire employee lifecycles, from pre-employment screening to employee learning and development programs.
