Psychometric tests have been used since the early part of the 20th century. They were originally developed for use in educational psychology. These days, outside of education, psychometric testing has taken an entry into the business world, mostly used in the recruitment or selection process, development, training, performance management or rewards.

Psychometric tests are a way of assessing a person’s ability or personality in a measured and structured way. They are used to measure the individual differences such as ability, aptitude, interests, personality and other aspects.

Psychometric testing gaining popularity in organizations

Psychometric tests are developed especially to reduce the problems encountered by employees and managers of organizations. Such as, one of the biggest problems employers face today is the quality of the staff they hire. The reason is easy to understand; interviews don’t necessarily give the right picture about the candidates. Interviewee’s generally come with some prepared questions and in the short time available it is difficult to judge a candidate's capabilities. A bad hiring decision can be costly and time consuming.

Psychometric assessments play an important role by being consistent and impartial and they can enhance the objectivity of the selection process. They are standardized in terms of the questions asked, the time allowed, and instructions given, which means all candidates are placed on an equal footing, making the assessment fair and objective. By reducing selection errors, organizations can reduce staff turnover, training costs, lost opportunities and stress to individuals. So this is the reason psychometric testing has now become widely accepted as a benchmarking tool in the selection process.

How is it beneficial?

If psychometric testing is done properly it is beneficial for both employers and candidates.

• They are useful for "sifting out" large number of applicants at an early stage.

• Honest answers to the questions on behalf of the candidate, coupled with intelligent interpretation of those answers by the employer, can produce a perfect employee/job match, which ultimately is in everyone's interest.

• Furthermore they can also provide management with guidance on career progression for existing employees.

How is Psychological Assessment done?

Mostly the assessment is done through paper and pencil tests or these days some companies even administer them. The candidates may be asked to take the test in an assessment centre, test centre, office premises or online. The results are then tabulated and interpreted according to the guidelines. This reduces the element of human bias. Now a days, many management institutes have established Psychometric Laboratory in their premises. They are making the future managers aware about the importance of psychometric testing in the organizations. One such innovative step is taken by the Asia- Pacific Institute of management through the establishment of Psychological Assessment for Enhancement (PACE). It provides a structured and organized approach to psychological assessment and training for the students to enhance their growth and development. PACE looks after the overall personality of the students. The methodology involves subjecting the students to a variety of standardized psychometric tests which could help to identify the core dimensions of a student’s personality.

Which are the Indian companies using Psychometric Assessments in India?

Organisations Such as UB Group, Hindustan Motors, Arvind Mills, i-flex Solutions, Bharti, Touchtel, Sanmar, i-Seva, Wipro, and Cisco have utilized psychometric tests to assess candidates and select the right employee.