Today psychometric testing is known for multi-purpose, streamlined and cost-effective assessments that help businesses maximise the potential of their staff, from recruitment right through the lifecycle of an employee, encompassing training, development, staff satisfaction, retention and team efficiency.
The landscape of psychometric assessments in business has always been rapidly shifting, but the current changes are particularly far-reaching. What we are seeing, even as recently as last week, is the buy-out of big industry players by other large corporations. The trend for psychometric firms and larger companies to amalgamate looks set to continue, as clients change the way they utilise psychometric assessments in their businesses. The traditional psychometric assessment company is being replaced by companies that offer a range of management services, with assessments as only one part of their arsenal. No longer the preserve of dry academia, psychometrics is finally making its way into the business arena in a way that line managers and smaller companies can relate to.
Speaking as CEO of the only remaining large independent psychometric assessment company, it will be interesting to see how this tendency for conglomeration develops over the coming years. Thomas International has been run as a family business since its launch 30 years ago and since then we have grown to become the second largest psychometric company in the world, with revenues in excess of £30 million. This growth has come from our commitment to continuous innovation and, while remaining an independent family business, we are also committed to integrating with the right partners to provide tools that clients want and need.
It is encouraging to see smaller businesses being empowered in their HR processes through their new experience of psychometrics and Thomas International prides itself on the ability to bring these seemingly daunting concepts to SMEs who find real value in what these tools offer. Equally though, the industry needs to be aware of the threat of swinging too far in the other direction and over-commercialising what is, still, essentially a psychological tool. The market is definitely changing and that brings both challenges and opportunities.
The responsibilities that used to be held by large HR departments are now being passed down to smaller departments and, in many cases, even line managers, as HR departments find themselves squeezed and overloaded. This change makes it more vital than ever for psychometrics to be made accessible to more people, without the use of jargon or psychobabble that alienates managers unfamiliar with this area.
Another sea-change will be the awareness by SMEs, as opposed to larger corporates, that psychometrics isn't just an HR novelty, but a vitally useful tool in staff recruitment and management. For small businesses with, for example, 10 employees, one bad recruitment decision equates to 10% of their workforce, so for smaller companies the importance of putting some proven processes behind their recruitment is essential. Misconceptions that psychometric assessments are costly and time-consuming need to be updated with the realisation that these tools are now accessible to everyone, and companies like ours need to ensure accessibility, not just in terms of time and money, but also ease of use.
The increasingly litigious business climate will also increase the importance of intelligent recruiting as the risk of 'hit and miss' decisions increases. We'll also see more companies extending their use of psychometrics to encompass staff retention and development instead of just recruitment, making the most of tools that build team cooperation, staff morale and identifying staff members who are ready to move up and take on new challenges.
With one in four employees intending to leave their employer in the next 12 months, retaining staff is critical and motivating your employees to develop within their roles, ensuring happier staff and therefore greater productivity, has never been more important than in today's economic situation.
When Thomas International launched 30 years ago we offered one assessment. We now offer 134, with more added all the time as we react to clients' needs. Those needs will continue to change over the coming years, and the industry as a whole needs to adapt.
The trend for psychometric assessments to expand from its previous remit as a handy but limited recruitment tool, to an essential and powerful process applied to many areas of business, is one that will certainly continue in the coming years and decades.
Martin Reed, chairman and chief executive of Thomas International
