An IT company selected a group of technical candidates using the usual
process of interviewing. Each of the candidates selected appeared to be team
players, forthright and open to communication.
However, six months later, one of them was found to be a non-performer and
had to be put through an inter-personal training session. As part of this
session, a psychometric test was carried out, which described the ‘non-performer’
as shy, introverted and meek. This was in sharp contrast to what the interview
had revealed. His capacity to work on his own was very high. But having a large
number of competent people around him, all working under stress, would make him
feel threatened and inadequate, thus preventing him from taking initiatives.
Further
sessions with the expert revealed that it was ‘almost’ as if he had a
dual-personality (note that he DID NOT have a dual-personality disorder). This
side of him would never have been revealed had it not been for the chance test
conducted. Based on the test, the company discussed the issue with him and
suggested group therapy. He was ultimately retained in the team. In other
circumstances, he would have been dismissed as a non-performer.
Hiring the right candidate is an exacting and critical decision to be made by
HR managers. Psychometric tests are tools that go a long way in making hiring
decisions more accurate and faster for them.
Psychometric tests were first used in World War I to single out recruits who
were likely to crack under pressure. Today, nearly 25% of IT companies in India
use similar assessment tests to recruit employees. Companies like Wipro,
Microsoft, HP and HCL do not use these assessment tests while they are a
critical component of the evaluation process during recruitment at LG
Electronics, TCS, Hughes Escorts and TVA Infotech.
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‘Psychometrics’ is essentially a measure of a person’s mental
abilities, which gives a lot of information on his/her strengths and weaknesses.
The predictions made by these tests may not be absolutely perfect, but they do
make the recruitment process more effective. According to Gobburu VS Rao, GM
(HR), Desein International, "Ability tests measure a person’s potential,
for instance, the skills needed for a new job or to cope with the demands of a
training course. And it is useful to view personality not as something we have
but how we relate to the world." According to Rao, psychometric tools are
more concerned with describing rather than judging a person’s ability or
personality.
The companies that are using these tests in India have taken care to not fall
into the habit of stereotyping candidates. And those not using psychometric
tests, state that three to five interviews for every position are sufficient for
selecting a candidate. But interviews tend to be very subjective. The tests help
in avoiding ‘personal bias’ and ensure fair and objective selection. Human
perception, even while interviewing a candidate, has an inherent tendency to
co-relate behavior with functions of the personality. And traditional methods
are not equipped for an immediate feedback mechanism regarding a candidate.
Besides, these tools help employers understand how the candidate would
behave, how he would relate to others and how he would approach and resolve
problems. These tests prevent common misinterpretations like an orderly person
being looked upon as being structured, or someone fun loving as not serious
about work and somebody intuitive as unprepared. Based on the answers to the
psychometric tests, a description of the candidate–whether he is a team
worker, an observer, analyst or is pragmatic 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 a lot of the selection committee’s time.
"These tests are used as tools for screening candidates at the initial
stage of recruitment. They give us an indication about the candidate’s
personality and ability, thereby assisting us in our decision to a great
extent," explains V K Verma, Deputy Manager, HR, TCS.
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LG Electronics has shown that psychometric tests can predict job performance
with a success rate of 83%. The company has designed separate tests for both
managerial and supervisory levels and is using them for its 930 employees.
"We have selected standardized tests and modified them to match our needs.
There are a lot of ongoing in-house research and test designs, to which changes
are periodically made," informs Y V Verma, VP (HR), LG Electronics.
"Tests like Belbin, MBTI and Mao-B have been re-structured and
researched according to our needs. And in order to avoid bluffs during testing,
the applicant assessment process comprises two to three tests with in-built lie
detectors," he adds. LG uses these tests not only for recruitment but also
throughout the employee cycle, for re-assessing employees at different levels of
change like appraisals, transfers and promotions.
New Delhi based Escosoft Technologies, a subsidiary of the Escorts Group
invested in psychometric tests for recruiting both creative and tech personnel.
They were on the lookout for creative, wacky people who would respect deadlines
and have good interpersonal skills. "Our dependence on the tests varies
between 50-60% depending on whether the candidate is a fresher or an experienced
professional. The indigenously designed tests help us assess a candidate’s
creative, cognitive, motivational, risk taking and interpersonal skills. It is a
critical part of our recruitment methodology," says Sanjeev Kumar, senior
consultant, HR, Escosoft Technologies.
Vinayak Kamath, VP, HR,Kale Consultants points out that it is not enough to
use psychometric tests alone for recruitment but they can supplement other modes
of assessment. "A well designed, well administered and most importantly,
correctly applied instrument helps in predicting behavior in a work
situation," says Kamath.
"Most companies in India use these tests at the time of recruitment and
none of them are being used in isolation from traditional methods. Companies
must start making extensive use of these tools and include them in their
training policy. These tests are designed in a manner that is indicative of a
person's potential and interpersonal dimensions, using a combination of various
techniques of assessment," says Professor Satish Kalra, chairperson
(placement), MDI.
For the last two years, TVA Infotech has been using these tests for assessing
training needs, deciding on promotions through team diagnostics and career
development. "The costs involved are small compared to the benefits. These
tests give valuable insights into how to maximize productivity in a team
situation," says Gautam Sinha, CEO, TVA Infotech.
About four months ago, Hughes Escorts started using psychometric tests to
choose the right candidate from among a pool of applicants. The company chose
Thomas profiling as a tool of assessment. "Among other things, the profile
helps us assess a candidate’s style of work, his behavior, temperament and the
level of pressure he can take under any given stance. Using this information, we
determine if the person is ‘fit’ for what the job profile demands,"
explains Rajesh Pandey, senior director (HR), Hughes Escorts. Pandey informs
that these tests are used only towards the end of the selection procedure, say
to decide among two contenders for a post. "We use these tests as
supportive and not decisive tools that validate our hunches. The cost per
candidate works out to be Rs 700,"he adds. Pandey states that psychometric
tools have an accuracy of nearly 95% in assessing candidates.
So, questions that HR managers typically face are what, when and how to use
these tests. Identifying the type of test is critical and the success of
prediction depends on the type.
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After establishing a very clear relationship between what the job needs and
what the tests measure, standardized tests are chosen and modified accordingly
by experts within or outside the company. The analysis and report should capture
what the organization is looking for. There should also be an understanding of
the implementation plans, the costs involved and if internal organizational
resources will allow each of the tests to be used independently. For smaller
firms, which cannot afford a trained psychologist, the psychometric tests could
define the key winning characteristics needed for the role or simply the three
most basic ‘must haves’ in the person. After this, the firm can approach a
consultant to develop simple tests measuring or spotting those characteristics
in the person. If this is to be done in-house, firms must have qualified and
trained staff for using and modifying these tests.
In general, it has been found that these tests are best used in the initial
selection process, to serve as a guide to the interview structure. Depending on
the number of candidates, the tests are used at the stage that requires the
least elimination.
"Not using a test when required, could result in the hiring of
inappropriate resources (in terms of personality traits) like frequent ‘job-changers’
when people who stick on, are needed. Then there is the cost of non-optimization
of manpower, as a wrong hire may not be able to learn and scale-up as well as
perform. And finally, there is the cost of loss in production as despite having
the skills, an employee may not have the ‘will’ to perform," says
Kalpana Padhi, director, Humanlinks.com.
Companies that do not use these tests cite practical constraints like time
and the cost as reasons. There is also a lot of reluctance from senior
executives to take these tests. "But these tests act as filters to separate
the wheat from the chaff. Companies gain by managing to create a team of right
workers as against a team of misfits. Also, the value of hiring the right person
will far outweigh the cost of investing in such a test. " adds GVS Rao. The
costs in India vary between Rs 700 to Rs 2,500 per candidate depending on the
type of test deployed. This cost is inclusive of interpretation, profiling and
counseling.
As the tests determine more than half of the traits that one can find during
a selection process, the option is therefore considered better than application
forms and most interviews. Across companies, psychometric tests are being used
in conjunction with traditional methods of selection like interview, group
discussions and previous work experience.
Radhika Bhuyan in New Delhi