The psychometric testing industry has developed rapidly in the last 20 years, but how can HR professionals ensure they continue to make the most of the latest steps forward? John Hackston explains how to use business psychology to unlock the potential of your people.

Twenty years ago, psychometric testing had made it out of the classroom and although not yet in the boardroom, was starting to build a reputation in the workplace. However, only a few pioneering HR practitioners, mainly in US companies, were entirely convinced of its merits.

Two decades later, psychometric testing and psychology-based training form the backbone of how many major companies select and develop their people. The principles of psychology have spawned any number of best-selling management books, and the science of psychometric testing has evolved to a stage that it can now deliver measurable results to some of the biggest names in business.

Electronic revolution

Two key developments have ensured the rising popularity of psychometrics in the last 20 years. The most obvious is the proliferation of personal computers.

Ten years ago, the vast majority of psychometric testing was done with a pencil and paper. Now, the majority are conducted electronically. It may sound like a relatively minor step forward, but the impact on psychometrics has been profound. It has introduced a great degree of flexibility in the use of the tests, meaning they can now be completed remotely but still within a tightly managed process.

Perhaps more importantly though, technology has enabled huge steps forward in tailoring the outcomes of a psychometric test. Instead of delivering strings of scores that only a highly trained psychologist can interpret, computer programmes use complex scoring algorithms to generate expert reports that require less training to interpret effectively – some are actually designed for managers and candidates themselves. This has made psychometrics more accessible and cost effective, opening them up to many more organisations that were previously deterred by the complexity of the tests. It’s perhaps the key factor that has led to organisations embedding psychometrics into many HR processes as ‘human due diligence’.

Creativity

The second major step forward in the last 20 years concerns the tests themselves. In their infancy, many psychometric tests were little more than IQ tests, worded in rather academic language and delivering relatively specialised data. However, as the core ‘handful’ of personality tests created by the great thinkers in the psychology field have been commercially exploited, numerous instruments have spawned – some, with less reputable credentials.

There are benefits and drawbacks of this evolution. On the plus side, the range of practical applications of tests is broader than ever before; the degree to which high quality ‘classic’ instruments like the 16PF can be tailored for particular job roles is impressive. As the industry has matured, tools and techniques have been developed that answer some of the most pressing concerns in the boardrooms of a variety of industries. How can we lessen the impact of workplace conflict? How can we make sure new recruits fit quickly into our business? How can we create a leadership team that works effectively together? How can we foster greater innovation in our business and help our people to challenge existing ways of working? How can we accurately assess the potential of our people? How can we spot a career falling off the tracks before it happens? These are all questions that psychometrics has been able to address as its grown up in the last twenty years.

The downside is that not all tests ‘do what they say on the can’, and buyers need to beware that failing to check credentials can leave them with tools that are about as predictive as the quizzes in womens’ magazines (more on this in a moment).

The best instruments have evolved to become more rooted in everyday language and given a more real-life context. Questions in ability tests now often revolve around real-life situations that people can relate to. Because of this, the results give a more realistic picture of their abilities and the data that is collected is much more accurate.

Making the most of business psychology

The psychometrics market today offers a choice of instruments, qualified consultants and companies that are capable of working alongside your people to apply psychological principles to address specific issues. So how do you make sure you make the most of what’s out there?

A healthy scepticism of freely available products (for example, open to all via the internet) will serve you well. There are companies offering cheap, simple psychometric tools, but the ‘you-get-out-what-you-put-in’ rule should be applied here. Psychometric testing is a powerful tool, requiring either training or the support of expert consultants.

Two of the most important questions you should ask any psychometric supplier are around reliability and validity. The best products available have undergone rigorous research and benchmarking to ensure they deliver accurate, consistent results. We’d advise that any supplier that stutters at the reliability and validity questions should be avoided.

Once you find a partner, you need to determine exactly what you want to get out of the process. For selection purposes, you need to know what your profile of success looks like, or how can you match against it. For any application, you need to be clear about how you intend to use the results – and ensure that you communicate this honestly and transparently to those involved in the process, upfront.

Lastly, if you’re to get the most out of any psychometric tool, it needs to be ‘part of the picture’ and not used in isolation. For example, if you’re looking to use a personality questionnaire as part of your recruitment process, use it alongside an ability test and a structured interview. The research suggests that this will give you the best results in selecting employees who will be successful. For development, use with a 360 degree feedback tool for robust insight into individual development needs, or as the basis for coaching.

Psychometrics have come a long way since the first days of OPP. They promise to be a core component of HR processes for years to come, so understanding how to get the most out of them helps business of all sizes unlock the full potential of their people.

John Hackston is a senior consultant at business psychology consultancy OPP