Are Psychometric Assessments worth the Investment?

A question we are often asked by our clients is how can one justify the cost of psychometric assessments? A better question to ask is whether a company can justify making the wrong talent decision, or why there is a lack of top talent.

A question we are often asked by our clients is how can one justify the cost of psychometric assessments? A better question to ask is whether a company can justify making the wrong talent decision, or why there is a lack of top talent. 

The real value of psychometric assessments lies in predicting the likelihood of the candidate to be successful in a role and mitigating the risks associated with unwanted behaviour in organisations, as well as the ripple effect that it can have on employee morale, engagement and performance. These are the factors that are key to becoming a high-performance organisation, and no company can afford to skimp on this critical part of the recruitment process. 

Here's why: 

  • Proven Commercial Value: Financial and commercial value is clear. Reports indicate that 75% of Fortune 500 companies and 95% of FTSE 100 companies report using psychometric assessments as part of their talent decision processes. Any company wanting to follow in their footsteps should consider employing similar human capital practises.
  • Proven to be Good Predictors: The research shows that psychometric assessments are one of the better predictors of subsequent performance success. Using a single measure in the recruitment process is likely to predict in the region of 30% of role fit.  While a well-structured integrated assessment can predict up to 60% of job success. When this is combined with other valid selection criteria, your process can predict an even higher percentage. 
  • Legal Defensibility:  When psychometric assessments rely on scientific methodologies, they are not influenced by personal opinion, and are therefore more objective. Most solid assessments are also proven to be bias-free toward different groups of people, helping you defend your talent processes if challenged. 

  • Allows for Data Intelligence: At a business unit or departmental level, psychometric assessments empower line managers to make decisions using various sources of information. At an organisational level, it provides deep-level insight into talent. It provides information on what employers need to do to engage and motivate them, but more importantly, it helps to identify top talent and insights regarding where employers can close the gaps in becoming a high-performance organisation.   

  • Increases Efficiency: With most assessments being available online, psychometric assessments free up the time of the recruiter and line manager. Many of our clients report spending between half a day and two full days in interviews for a single vacancy. For most companies, just the salary cost for the panel members while attending the interviews exceeds the assessment cost – and this excludes productivity cost and time spent on the rest of the recruitment process such as CV screening.   


We highly recommend that HR professionals and line managers take a broader approach to answering the question around the value of assessments. Replacing an employee can cost between 90% and 200% of that employee's salary (Payscale), and the cost of poor performance is even higher. Considering this, the cost of an assessment is minimal. Psychometric Assessments should not be seen as an expense but rather as a value-adding part of your talent management and risk-mitigating strategy.  

comments powered by Disqus