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Psychometric Assessment: A Valuable Business Tool - Second Annual OPG Survey

Psychometric Assessment: A Valuable Business Tool – Second Annual OPG Survey

Psychometric assessment is a valuable business tool according to over 85% of respondents to the OPG’s second annual psychometric assessment survey.

Working with multiple hypotheses that all support the broader utilisation of psychometric assessments, the OPG surveyed 43 HR and business people in 2019 on their use of such tools. We then compared this data with the findings of the 2018 survey of 58 comparable subjects.

The key finding is that, although psychometric assessment is readily applied by recruiters and trainers, who clearly have every confidence in it, its potential as a tool in high-stakes decision making (particularly in performance management and restructuring) is still far from optimally exploited.

85% of respondents found psychometric assessment to be reliable and useful according to the OPG poll.

This is especially true for users of psychometric assessment who overwhelmingly see the advantages of using psychometric testing in recruitment and learning & development. Some 70% of respondents use assessment in recruitment and selection. 78% of those surveyed use psychometric assessment for learning & development.

78% of respondents found that psychometric assessment helped them make better people decisions overall

With overwhelming evidence that psychometric assessment is used to help make better people decisions it is surprising to note that psychometric testing tends to be used only in recruitment & selection and learning & development. Here psychometric assessment is widely deployed to help identify an individual or teams’ strengths and development needs.

A missed opportunity

Surprisingly, The OPG poll found that just 12% of respondents use assessment in the performance management cycle despite the obvious advantages using such assessments provide with a similar percentage using assessment in their restructuring activities.

The OPG often uses psychometric assessment along with 360-degree feedback to help clients make people decisions. This is known as ‘high stakes assessment’ and is used only in conjunction with other data sources such as performance information, individual discussions and so on.

The 2020 survey will try to identify why psychometric assessment is not used for high stakes assessment very widely. For example, restructuring or organisational development.

The quality psychometric tools dominate the rankings

The OPG asked respondents to say which psychometric tools they used. The findings reflected market data in that the OPQ32 from SHL was the leading multipurpose tool with Discovery Insights and MBTI being used extensively for development. Hogan was also popular with Saville Wave, Talent Q and 16PF trailing. Less well supported tools also included DISCUS and Thomas Profile.

The OPG’s experience is that, when properly administered and fed back, psychometric assessment adds significant data for strategic decision-making.

Consultants help interpret the data

Around half of the respondents use business psychologists and leadership consultants at least some of the time. In our experience this is especially prevalent for leadership and high potential assessment.

The OPG works with clients to provide bespoke feedback reports and feedback which contextualises the data. This means that considerable value is added by understanding the reasons why candidates behave in the way they identify and by having a conversation with candidates around the data.

Used at every level

The research also identified that psychometric assessment is deployed at every level in organisations and not just for management level staff. However, overall, over 50% do use psychometric assessment mostly for senior management and leadership level assessment. This is the main areas The OPG operates within in addition to high potential assessment and development.

Conclusions

The full survey offers a snapshot taken in October 2019 around the use of psychometric assessment and the benefits and limitations in its use. The main take from the survey is that psychometric assessment is a valued assessment tool which is utilised at every level in the organisation.

It also reveals that psychometric assessment is often not used at strategic levels despite the advantages it can potentially offer organisations when they make high stakes people decisions. Specifically, psychometric assessment is not being deployed for restructuring and performance management widely.

To download our psychometric assessment survey click the button below.

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