The Value of Psychometric Analysis when recruiting
Industry: Mining Services
Background: During an executive recruitment exercise, AblesonHowes was requested by a client to conduct the psychometric evaluation of the shortlisted candidates. An analysis of the key attributes needed by the business during a business turnaround were established – against which candidate results were evaluated. It was determined that high level strong communication and influencing skills, confident and decisive leadership, strong networking capability and innovative thinking designed to provide solutions within a capital constrained environment were needed. A national team supporting the role had already been established and were considered a ‘high performing team’ by the business. That team of professionals were diverse in their backgrounds and thinking styles, but confident in their ability to provide each other feedback and support, despite their different geographic locations.
Problem: The Managing Director (client) declined to accept the results of the psychometric testing, preferring to dismiss the test results and stress the importance of gender and how he ‘felt’ about the interview. During the short-listed candidate’s final interviews, the psychometric results were used to frame some of the questions, to better understand how different preferences identified by the tests impacted leadership style and decision making. The client’s preferred candidate scored low (Sten 1) on building organisational reputation, cultivating innovation, generating impactful solutions, encouraging involvement and consultation, delivering influential communication and on abstract reasoning. The candidate also scored in the bottom 10% of the management population for encouraging others to provide feedback. The psychometric profile showed a strong preference for regulatory work environments, working collaboratively and a strength in following established rules and procedures. When questioned about the scores, the candidate refuted the test outcomes and pointed to positive scoring on a 360 degree survey tool in a previous organisation.
Outcome: Psychometric testing is only a tool. And of course, when recruiting executives, there are a number of factors applied to why one candidate is selected and not another. However, used properly it has been demonstrated time and time again to be more predictive of candidate success than simply interviewing someone. Often, psychometric profiling will demonstrate different short-listed candidates have different strengths and sometimes the report will be used to exclude a candidate from a short list as being the wrong person for the role, given role and company specific needs.
What really happened? The candidate remained in the role for 8 months and was given a financial settlement to leave. 40% of the high performing team members and 66% of direct reports left the business within that period. One direct report negotiated a financial settlement to exit. Roles had to be replaced – at a cost to the business. Key managers from other areas of the business also exited the business sighting issues with the client’s chosen candidate and the business’s reputation for how people were treated was negatively impacted. It is difficult to put a dollar value on the reputational damage, but more importantly the loss of IP and client relationships that ensued.
It is always a client’s prerogative as to how they use psychometric test results and indeed who they select for key roles. This candidate would have succeeded in a vastly different environment.
I share this case study as a lesson in the cost (human, financial, and reputational) of ignoring the results of well renowned (in this case, the Wave Leadership Impact Expert Report) psychometric testing results and of the critical need to get the right person for the right role.