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Psychometric tests still to catch on

Punita Jasrotia / New Delhi

When psychometric testing as a concept was introduced in India, it was hailed as a “major help/utility” in a company’s recruitment process for finding the right individual with the right of frame of mind—a necessity in an IT company. But today, a few years down the line, the trend has not yet caught up with the industry, and many companies are not even aware of its real benefits. Whatever usage is evident is either in top companies (TCS, Escosoft Technologies, TVA Infotech, UB, Bharati and LG), or the MNC groups, where this practice would have trickled down from their parent companies. Besides, many ITES players have also started using these tests for their recruitment process.

The reason for the lack of initiative in this segment is the kind of negative perception that has been woven around psychometric tests, besides the time and effort which needs to be initially invested from an organisation’s point of view. Considering that there is no immediate return on investment (RoI), most companies prefer to judge a candidate on technical knowledge rather than invest in these tests.

What are psychometric tests?

Psychometrics is that part of psychology which is concerned with the measurement and interpretation of psychological variables such as aptitude for different kinds of jobs. A psychometric instrument is designed to produce a quantitative assessment of one or more psychological attributes like reasoning ability, interests, aptitude, temperament, etc. The tools help employers understand how the candidate would behave, relate to others, approach and solve problems. Basically, psychometric tools evaluate the individual’s behaviour through questionnaires. The results are mapped on a graph, which analyses this pattern and accordingly profiles it with the company’s work culture. Says M L Taneja, the vice-president of human resource development at HCL Infosystems, “Psychometric tests are tools to help understand the personality of the prospective employee at the selection stage, and subsequently to train and develop him to fit in the culture of the organisation, and to exploit his latent qualities to his and the organisation’s advantage.”

While this definition may differ from company to company depending on its usage, the basic purpose of a psychometric test is to help screen candidates at the initial stage of recruitment. Says Chandra Sekaran, the senior vice-president of Cognizant Technology Solutions, “Psychometric tests help in understanding the personality, the non-intellectual dimensions of a person. The resulting psychological profile represents an individual’s score or relative position on various personality dimensions.” Sundara Rajan, the managing partner of TVPS (Thomas International), explains that these tests assess aspects like verbal ability or the ability to comprehend information in a written passage. Besides this, they are also used to explore personal attributes like personality or temperament, career or employment interests, values, attitude and motivation.

Growing importance

Considering the kind of global scenario in which most companies operate, they are in constant need of individuals who fit job requirements very precisely, not just in terms of knowledge, skills and background, but also in terms of personal attributes. As the decision to recruit is important for both the employee and the employer, a psychometric test can help an HR manager predict the probable success of an individual who intends to join the organisation. Says Sekaran of Cognizant, “Psychometric tests are becoming increasingly important in today’s business scenario. This is because organisations around the world are realising that non-IQ related skills such as the ability to innovate, think independently, lead and network are becoming crucial to individual and organisational success. In a collaborative and empowered industry like information technology, lack of these skills becomes glaringly obvious.”

Yasho Verma, the vice-president of HR & MS at LG India adds, “The need for these tests is growing as every organisation has its own culture, and every person joining the organisation needs to adapt to the culture. This adaptability can be best achieved if people with a similar mindset are selected so that acceptability becomes easier. In this competitive environment, selection of the right person for the right job cannot be left to chance.”

The pointers

Based on the answers to the psychometric tests, a description of the candidate—whether he is a team worker, observer, or analyst—is inferred. The typical features of each description are then assessed. There is also an overview of the positive and negative qualities of the candidate, and qualities that can be worked on. The feedback is immediate and saves the selection committee’s time.

Besides this, there are also advantages in terms of reduced time and cost of hiring as the tests help in segregating the grain from the husk at the initial stage itself. Paul Traffinder of Accenture points out that in a traditional interview, managers typically decide on a candidate in the first two minutes and spend the rest of the interview convincing themselves that this snap judgment is correct. Kelvin Murphy, former head of the Society for Industrial and Organisational Psychologists, estimates that such interviews are only

65 percent accurate in judging an

applicant’s potential strengths and leadership style. Adding testing or other psychological tools can raise the accuracy to 85 percent.

Some of the companies which swear by the benefits of psychometric tests are PCS, L&T Infotech, Touchtel, i-Seva, ESS and TCS. Citing his own experience, Rajan says, “Personally speaking, I head two ventures, and I use Thomas Systems in both the companies for selection and development of people. Whenever I have ignored the warning signs flashed by the system about certain people we have ended up in trouble.”

Considering the kind of opportunity which lies in this field, there has been an increase in solution (read software products) providers, with the major players being Thomas International, Saville & Holsworth, and Predictive Index and Insight. While traditional tests like the Myer Briggs Type Indicator (MBTI) and PF16 are of longer duration, Thomas profiling tools like human job analysis, personal profile analysis and team analysis are considerably quicker. However, the preference is more for a suite of products instead of a single product.

The standards

According to experts, some of the tools that enjoy popularity with Indian corporates are MBTI, 16PF, FIRO-B, Thomas PPA, OPQ, Picture test and Ink Blot test, with the key selection parameters being speed of administration and analysis, user friendliness (not requiring an external team to come in all the time), price, popularity (in terms of usage in India and abroad) and continuous application development reflecting trends across the world.

Considering the sensitivity of these tests, most companies use them for their middle and senior level management recruitments. However, there are some cautious ones who are targeting even freshers as they don’t want to hire any liabilities. According to Sanjay Aggarwal, the managing director of HR Minds Consulting, “At the entry-level most companies feel that they can mould the person, and hence the perception is that the cost of a wrong hire or wrong attitude is not very high and quite easily correctable. However, at the middle and top level, a right hire positively impacts morale, motivation, sense of belongingness, loyalty, determination, etc. Thus it is first administered to the top management personnel.”

Ajit Isaac, the director and chief executive officer of PeopleOne Consulting, agrees that psychometric tests can be administered to any individual regardless of the level of entry into an organisation. The most critical aspect of such testing remains the quality of the tests and the person who conducts it. Says Akhilesh Mohan, the vice-president of human resources at HFCL, “The test and the analysis is required to be done by trained clinical psychiatrists so that there is proper interpretation. However in India some organisations have tied up with western vendors and obtained standard software packages which administer and provide standard analysis to the tests, while others have insiders (mostly HR personnel in the company) who interpret and communicate. The quality of each analysis is vital as each person is unique.”

Most IT companies have however not opted for such solutions as these tests fail to impress the top management. Another deterrent is that that they give preference to technical knowledge of an individual rather than the psychological criteria.

A trained person should always be used to analyse the test results and judge the candidates. This results in high set-up costs for the testing of candidates. The initial purchase of re-usable materials and the training of test administrators are usually expensive. In addition to this, organisations in the IT field have kept small, low-cost HR departments, mainly for recruitment purposes and maintenance functions. There is not much confidence in the accuracy of their testing tools.

Experts point out that in the long run per usage costs will be extremely low, and that the tests can be used on a large number of individuals. Considering the immense opportunities which can be exploited through these tests, what is needed is proper education of the market. Vendors also need to stop plugging them as just recruitment tools, and point out that they can also be used for the development of employees.

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