Many businesses and organisations deal with these kinds of challenges. If you'd like a solution to help prevent hiring mistakes, Fermion's psychometric testing in Perth could be a valuable addition to your recruitment process.
The recruitment process involves assessing candidates' strengths, skills, and potential to determine their suitability for a role. While candidates showcase their abilities, employers are focused on evaluating how these qualities align with the needs of the organisation. However, recruiters may also have personal biases and can have moments when they are distracted, not feeling their best, or not fully focused, which can lead them to overlook a good candidate who might be a great fit for the role.
While interviews and reference checks are essential, the key to an effective selection process lies in timing, asking the right questions, and incorporating psychometric assessments when appropriate.
Hiring the wrong person can be a costly mistake. Beyond the direct costs of termination, there’s also the lost productivity and the time invested in finding and training a replacement. The Society for Human Resource Management (SHRM) estimates that it takes six to nine months of an employee's annual salary to replace them, which means that for an employee earning $60,000 a year, it can cost between $30,000 and $45,000 to recruit and train a replacement. This doesn’t even include the money lost from missed business opportunities during that time.
Psychometric testing, whether it is IQ, EQ, or personality profiling, enhances the reliability of structured interviews by providing a more complete view of candidates. This helps improve recruitment decisions by not only assessing their skills and experience but also their cultural fit and growth potential.
Research shows that traditional interviews alone are not the best predictor of future performance. That's why Fermion provides high-quality, online psychometric tests throughout Perth and all of Western Australia to help companies across the region improve their recruitment processes. We aren't affiliated with any specific test provider. Instead, we choose the best psychometric tests based on the latest research.
Proper administration and interpretation of psychometric tests are crucial. It goes beyond simply sending a link to candidates and receiving results. At Fermion, we use a reliable testing methodology that guarantees reliable results.
Before proceeding with the psychometric test, we speak with candidates to ensure they fully understand the process. We also provide clear verbal and written instructions, so there is no confusion. In addition, we interpret the data within the specific context of each client's needs and requirements.
Our approach is practical, data-driven, and follows the latest best practices in organisational psychology.
The term 'psycho' comes from the Greek word for 'mind', while 'metric' means 'to measure'. When combined, 'psychometric' broadly refers to measuring the qualities of the mind. In modern psychology, this involves assessing a broad range of mental and emotional attributes, from clinical measurements of anxiety and depression to evaluations of behaviour, intelligence, skills, and personality traits, particularly within organisational psychology.
Psychometric testing is widely used in clinical, educational, research, and organisational settings. For a test to be considered of high quality, it must meet two crucial standards: reliability and validity.
Reliability means a test produces consistent results for the same candidate each time. For instance, if a candidate scores in the average range of an intelligence test, they should get a similar result if they take a different version of the test. A good test must be reliable. If it's not, then the results are not useful.
Validity ensures a test measures what it’s supposed to measure. For example, an emotional intelligence test should assess emotional intelligence, not other traits like processing speed. An important aspect of validity is predictive validity, which shows how well a test can predict future behaviour.
In organisational psychology, general intelligence has been shown to be the strongest indicator of success and training outcomes, even though other traits also influence success.
Yes, psychometric testing can significantly improve recruitment decisions when used effectively. Here’s why:
Objective Data: A psychometric assessment provides objective insights into candidates' cognitive abilities, personality traits, and skills, helping employers make informed, data-driven decisions rather than relying solely on gut feelings or biases.
Predictive Accuracy: Research shows that a psychometric assessment, especially when validated, can better predict job performance and success than traditional interviews or resume evaluations.
Reduced Bias: By focusing on objective criteria, psychometric tests help reduce unconscious biases that may affect the interview process, providing a fair and equitable comparison of all candidates.
Match to Job Requirements: Psychometric tests tailored to specific job roles help guarantee that candidates possess the right abilities and personality traits needed for success in the role.
Time Efficiency: Psychometric assessments help streamline the screening process, saving time and resources by efficiently identifying top candidates, and allowing hiring managers to focus their efforts on the best fit.
Candidate Fit: Psychometric assessments can identify candidates who not only have the necessary skills but also align with the company’s values and culture, leading to better job satisfaction and long-term retention.
Legal Defensibility: When properly implemented, psychometric testing strengthens the defensibility of recruitment decisions by promoting a fair, consistent, and standardised hiring process.
Psychometric testing should be part of a complete recruitment strategy that includes interviews, reference checks, and skills tests. When used alongside these methods, it can improve the quality of hiring decisions.
While psychometric testing for recruitment comes with a cost, it is much lower than hiring the wrong person. For instance, hiring someone for a $60k position and realising after three months they aren’t the right fit could cost you $15k in wages, plus recruitment, training time, and lost opportunities. This example highlights the significant cost of hiring mistakes, which can be more expensive for senior roles.
At Fermion, our psychometric testing for recruitment services in Perth help reduce this risk and improves hiring decisions. We offer aptitude or skills tests for $120 per candidate and a personality profile for $210. We also recommend a general intelligence, emotional intelligence, and personality test package for $450 (excl. GST) per candidate, which takes around 45 minutes to complete.
For $1,800, testing four candidates could save you thousands by preventing a mis-hire and ensuring you hire the right person. Over time, psychometric testing provides great value and can save you significant costs.
Fermion can enhance your recruitment process to prevent mis-hires and improve retention rates.
Fermion is an HR consultancy based in Wollongong specialising in psychometric testing and organisational psychology.
Phone: 02 4258 3480
Mobile: 0401 752 602
Address:
Ground Floor, Enterprise 1 Building, Innovation Campus, Squires Way, North Wollongong, NSW 2500