While there are a range of somewhat disturbing trends that are now prevalent in the UK psychometrics industry - the generalisation of research and exaggeration of real business outcomes for example - two recent trends in particular require focused examination. These trends identify how commercialised the industry has become and why this may represent a regression, rather than development, of the industry.
In this short article I want to draw the reader's attention to these trends and what needs to change to start to get credibility back for psychometric testing. UK companies need to start making smart decisions about how best to use psychometrics and the data they provide in addressing business issues. When purchasing assessment services, practitioners are potentially being persuaded by marketing hype rather than real applied science. And they are paying a hefty price for it.
A move away from scientific-based models of personality is a particularly worrying trend. The study of personality and human cognition has a long history dedicated to establishing core elements that describe human behaviour. Recently, however, multiple tests have been launched that have no connection with psychology and are merely ‘overnight' models with no independent scientific support.
Psychometric assessments are required to demonstrate a connection with the science of psychology. With respect to personality, there are well-accepted and agreed models that form the basis for the science, developed through years of independent peer-reviewed research. This is equally true of cognitive ability. The basis for any psychometric test should be the science of personality and ability, so that assessments can be of maximum benefit to understanding the complexity of behaviour at work.
To allow the connection with science to be lost is to lose a defining link between occupational psychology and psychometric measurement. The result is the commercialisation of the discipline to the detriment of being able to understand the real complexity of behaviour at work.
But occupational psychology is a big business and this is evident in the number of publicly listed companies that offer it. As a result, profits are often paramount and have led to complex pricing models - for example, charging for purchase and ongoing usage. Prices of psychometric assessments can range from between £3 and £750 for what is essentially a very similar outcome. These highly priced psychometric tools are often justified on the grounds that price determines the quality of the psychometric assessment you buy. Yet, is there a real reason for these large differences in price? And are HR professionals and line managers getting value for money?
Organisations purchasing psychometric assessments need to start questioning the high price of assessments and reports. The simplest question that buyers of these tools should ask is: what is the ‘basis' for this price? There are no raw materials to be used continually and the similarities in comparable tests should far outweigh their differences.
Price is not necessarily a measure of quality. The real value in psychometrics is the data they provide organisations over the long term. However, for the most part, companies are mistakenly spending more to buy colourful reports not business data. Psychometrics can provide long-term value when organisations compare new and historical data.
The psychometrics industry has done a disservice to HR professionals by not giving them the capability to easily collate their own respondent data for later use. This means companies often have difficulty accessing the data to help predict performance inside their organisation, despite paying huge amounts for psychometric services over many years.
HR professionals should identify what their business needs are and then choose the most cost-effective psychometric solution that is likely to provide the data to address those needs. Practitioners who do a little shopping around will find they can get the same quality product for a fraction of what they may be paying currently.
HR professionals are rightly questioning the value of psychometric products, many of which are transactional and stand-alone. Users could receive huge amounts of data from individual test products yet are not encouraged to use the data to address bigger business issues. With the current economic climate there is now a real driver for change. Organisations are more concerned with accountability and receiving value for money. They want to know what they are getting for their costs, and the psychometrics industry should be in a position to speak with integrity about the value that psychometrics accurately provides.
As an industry, we should be helping HR professionals understand the added value they should be getting from psychometric assessments - for example, how organisations can use psychometric data to understand why people have potential and how to develop it within their organisation. But only by being aware of the trends behind the testing industry can HR professionals challenge the status quo and understand how to use psychometrics in the bigger picture to solve business problems. Psychometric assessments are only one element of an integrated approach that needs to be taken so that HR and business managers are equipped to make informed decisions on assessments and their usage.
Paul Englert is international business development manager at Psytech International, a global provider of psychometric assessments
