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Psychometric Misconceptions #4: They Don’t Deliver a Tangible ROI

Psychometric Misconceptions #4: They Don’t Deliver a Tangible ROI

Psychometric Misconceptions #4: They Don’t Deliver a Tangible ROI

At times it can be difficult to measure or identify the tangible benefits of implementing psychometric assessments, and if ill-informed, can leave businesses wondering if they have really added any value. Increasingly HR teams are required to justify their investment into the recruitment process and must be knowledgeable about expected ROI.

Our clients across a variety of sectors and regions, however, have found that the inclusion of psychometrics have had a significant positive impact . Below are results, taken from some of our case studies:

50% reduction in number of Assessment Centres needed
Reduced end-to-end recruitment time by 84%
60% reduction in workload associated with recruitment, saving 30k annually

30% increase in successful hires

PLUS Double the amount of successful interviews & attrition reduced from 43% to 9%


Personality questionnaires allow us to to learn about an individual’s personality, preferences and behaviours at work, meaning you can ensure candidates are an excellent fit for specific roles as well as a wider fit to your workplace environment. This outstanding benefit of psychometric assessments means any new employees will likely be happier and healthier in their positions.


But how does this translate into ROI?

Reduced staff turnover


Choosing the people who are the best fit for your company generally means they will stay  longer with you (vs poor fit candidates). Psychometric assessments ensure you hire candidates with a good culture and role fit. If new hires are brought into the company whose preferences, behaviours and personality are not well suited, they may feel as if they are constantly the odd one out.

While on paper it may be their dream job, employees who feel out of place will be demotivated and perceive their job as more difficult. They will quickly become stressed, have higher absenteeism (likely due to stress) and will burn out much more rapidly. It is therefore not only in your interest, but also the candidate’s to pursue recruitment methods, such as psychometrics, which ensure candidates don't end up in a position to which they are poorly suited. You can also use psychometric tests for on-boarding and development to continue to keep employees engaged and feeling valued. 

This reduced risk of selection error results in reduced attrition. This translates into huge savings in replacement costs, measured by the reduction in the number of replacement hires average cost of replacing an employee.  For a more detailed breakdown of how Psycruit can save you money, try out our employee turnover calculator at the bottom of the page.  



Reduced recruitment cost 


A streamlined recruitment process can be achieved with psychometrics. For a higher ROI, the earlier in the process candidates can complete psychometric tests the better. If sifting can be based on psychometrics from the offset, it means that fewer candidates will have to be put through expensive assessment centres and a time consuming interview process.

For example, if a candidate completes a cognitive ability test and scores well below the minimum requirement for a position which involves work with numbers, then it shows this candidate is not suitable for the position. If psychometric tests were used early on in the process then this candidate would have been sifted out early on. If the tests hadn't been administered until later, the candidate would have still been sifted out but not until they had gone through another cost inducing element of the process, using up valuable time and resources. 

Similarly if candidates complete a situational judgement test during which they are presented with workplace scenarios relevant for the position they are applying for, they may realise that they would not be well suited for the position and self-sift out of the process rather than performing well consistently and pulling out last minute. Our online assessments platform Psycruit can also speed up the recruitment process in other areas such as using reports to provide interview questions or matching profiles to 'what good looks like'

ROI in this case will be a result of savings in time, cost and energy needed in the recruitment process. Psychometric assessments and reports mean that you can use other recruitment methods more efficiently, and as a result only the highest calibre of people pass through to the later expensive and time consuming stages of the process. 

Increased performance 


If employees are a good fit and feel comfortable in their position, they will enjoy their job more,  be happier, more motivated and work more productively. This will mean doing more in less time and getting through projects in a more expedient manner, perhaps saving you from having to hire another new employee. 

In this case your ROI would be measured in terms of saved time, saved additional wages, as well as a higher output of work and the associated benefits this would accrue for your company.


As you can see, there are many tangible and monetary benefits of including psychometric testing in your repertoire of recruitment and development tools. But if you are still unsure about what they can mean for your company, contact us on 01273 734000 or email letterbox@criterion.co.uk .

For more psychometric misconceptions and other interesting reads, keep an eye on our social media and website to stay in the loop about our upcoming blogs. Or take a look at the ones we've already posted!



Published by Lily Harvey

December 14th, 2018 | Psychometrics, Recruitment, Psychometric Misconceptions

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