It remains the most baffling conundrum of the modern business landscape.

Today, an entrepreneur can recall their annual turnover instantly, a Head of Sales checks the closing rates of their sales staff daily, and a Marketing Director can recite the average value of a lead on the spot.

Data is everywhere in the professional world, rendering the progress of businesses measurable and objective.

Yet, most significant human decisions within a company (such as recruitment, evaluation, promotion, coaching, etc.) are still often based on perceptions and intuitions.

“He seemed motivated,” “I don’t think he’s ready,” “We believe they’re the right person for the job.”

But why is this so?

What impedes the use of data in these decisions, which often represent the most significant challenges for organizations?

Ignorance? Taboo? Lack of interest? It’s certainly not for lack of tools, because suitable solutions do exist!

Psychometric data, for example, has proven time and again to be an excellent means of evaluating individuals.

So, let’s explore the advantages of using psychometric data in HR decision-making together today.

1. Advancing Business through Psychometric Data

A – Enhancing Individual Performance

Psychometric data can predict an individual’s job performance. Personality inventories, such as those based on the well-known Big Five, can provide information on an individual’s personality traits like extraversion, open-mindedness, or conscientiousness, which can impact their work performance.

Cognitive tests, on the other hand, can measure an individual’s cognitive abilities, such as their problem-solving skills or their capacity to process complex information, traits that can also be tied to work performance.

Studies by Hogan Assessments and McKinsey show that businesses using psychometric data in their hiring processes are twice as likely to have high-performing employees than those that don’t.

Hogan’s data demonstrates that employees whose personality is a good fit with the job requirements and company culture are more productive, 2.5 times more engaged, and tend to stay longer with the company.

This is a substantial advantage!

Additionally, Hogan’s data shows that those who are personality-aligned with their jobs are three times more likely to succeed in high-pressure roles than those who are not. Hence the importance of accurately assessing managers and C-level executives!

Moreover, a Harvard Business Review study revealed that cognitive tests are reliable predictors of job performance. The study examined cognitive test results of over 300,000

workers and found that high scores correlated with superior problem-solving skills, decision-making, and overall job performance.

B – Maximizing Team Efficiency

In addition to predicting individual performance, the use of psychometric data can also aid in predicting the collective performance of teams.

A study by the Society for Human Resource Management found that teams with complementary personalities are more effective than teams with similar personalities. A Hogan Assessments study even quantified this difference. Teams with complementary personalities outperform those with similar personalities by 36%!

It’s like having a real-world Power Rangers squad.

But not all traits hold equal significance. A Google study found that the most successful teams comprise members with personality traits such as conscientiousness, open-mindedness, and kindness.

By identifying team members with these personality traits, HR decision-makers can form higher-performing, cohesive teams. Psychometric data can also help managers identify gaps in their team’s skills, assisting them in making informed decisions about skills development.

These studies suggest that psychometric tools help identify complementary personalities and diverse behavioral competencies within teams. And these factors can enhance team performance.

2. Advancing Individuals through Psychometric Data

A- Increasing Talent Retention

Psychometric data can also help improve employee retention. According to a Harvard Business Review study, employees whose values align with their company’s tend to stay longer than those who don’t.

In an era of the “Great Resignation” and “Quiet Quitting,” reliably measuring alignment between candidate values and company values is crucial to recruit those most likely to flourish within the company.

Why use a psychometric tool instead of a sincere conversation between the candidate and recruiter to measure this alignment?

Simply because a psychometric tool can help the candidate better prioritize their drivers and provide the recruiter with a clear vision without risk of over-interpretation.

This is not so simple, considering introspection isn’t an innate exercise. A significant portion of candidates—if they no longer feel at ease within a company—may struggle to objectively identify the real causes of their discomfort.

On the other hand, companies’ efforts to appear attractive may sometimes create a misleading perception of their culture. Even if the intention isn’t to deceive or disappoint, the result can be just that. Hence the value of introducing data to provide both parties with crucial information about their level of fit.

Therefore, to increase talent retention, the ability to evaluate managers more reliably using psychometric tools offers a real advantage, whether when recruiting or promoting them internally.

We all have numerous examples of managers who were excellent experts, who were promoted without a real evaluation of their potential success in a managerial role. However, we know that people usually leave their managers rather than their companies.

By better selecting managers or helping them, through a better understanding of their modus operandi, to develop their ability to engage teams, we would inevitably see improved retention rates.

B – Truly Promoting Diversity and Equity

Personality tests can help identify unconscious biases in the hiring process.

In other words, these data can help widen the pool of potential candidates, thereby building more diverse and inclusive teams.

A job interview leaves a subjective impression. The recruiter’s opinion could be partly influenced by their perception of the candidate. Personality inventories and cognitive tests aren’t influenced by factors such as a candidate’s gender, race, or age. By using psychometric data to assess candidates, employers can make more objective recruitment decisions.

They can also demonstrate a commitment in their recruitment to providing equal opportunities for all.

Remember, over 50% of younger generations are ready to leave their current company for a more inclusive one.

C- Adapting Training and Skills Development

Psychometric data can also facilitate talent management within companies.

By using personality tests and cognitive tests to assess the skills and personality traits of current employees, employers can identify areas where an employee can excel and help them develop their skills. Employers can also identify areas where an employee might need additional support or training.

Psychometric tools can also help identify areas where team members need to grow. This can then facilitate the design of targeted and effective team development programs.

In conclusion, using psychometric data offers numerous advantages when making HR decisions within a company.

It helps predict job performance and facilitates decision-making in recruitment. It also simplifies talent management and reduces biases in recruitment decisions.

While psychometric data shouldn’t be the sole method of decision-making, it can be a valuable tool for employers.

So why not consider using psychometric data in your human decisions? There’s nothing to lose, and perhaps a lot to gain.