| Using psychometric
instruments in human capital management
Finding effective measures to address common commercial
challenges, such as increasing productivity, innovation
and financial effectiveness, are common topics in boardroom
discussions. Yet, while human potential, or talent,
is recognised as a critical corporate resource, many
organisations are still struggling o clearly identify,
measure, or retain this valuable resource. A recent
survey by the business psychologist consultancy, OPP®
Limited, showed that 94% of respondents (HR managers
and directors) believe having talented employees improves
their profit margin, with 84% feeling that latent, untapped
talent exists within their organisations. However, over
75% of respondents to the survey have no strategy in
place to recruit or retain talented employees. Here
we consider how psychometric instruments can be used
to unlock this hidden capital.
How psychometric instruments release
value from organisations’ human capital
The experience of many leading organisations has shown
that psychometric instruments can provide a reliable,
objective and cost-effective solution to this need.
There are many different types of psychometric tests,
including measures of skill, ability, intelligence,
personality, motivation and interests. Psychometric
instruments can help improve the performance of any
organisation by tapping into the diversity, talent and
creativity of its workforce. By using them in a professional,
sympathetic and ethical way, organisations can start
to address the challenges of human capital management
– and avoid making costly mistakes. The key areas
of human capital management are talent management, leadership
effectiveness and change enablement.
Talent management
The use of psychometric instruments within selection
processes can help to ensure that suitable programmes
are focused on the appropriate, high-potential individuals.
Through an understanding of an individual’s abilities,
attitude and approach, organisations can identify an
individual’s potential and provide benefit to
a team or the organisation as a whole.
Psychometric solutions, such as personality questionnaires
and ability tests, can help to identify existing and
potential talent pools. They allow organisations to
rationally identify key traits and skills needed for
particular roles, ensuring the objectivity of people
management decisions. They form a vital component of
job reviews and competency analysis and the auditing
of selection systems.
These tools can be applied to a range of situations
including:
- Recruitment and selection
- Succession planning
- Motivation and retention
- Individual development
- Team development
Leadership effectiveness
A research survey conducted in 2001 by OPP showed that
only one in four people are satisfied with the quality
of leadership in their organisation, with 95% believing
that leadership skills can and should be taught.
Psychometric instruments can help businesses to develop
their leaders by recognising their skills and talents
and identifying areas for development. They also enable
organisations to identify people with leadership potential
and can be used in personal development, professional
growth and also succession planning.
A range of solutions, such as 360° feedback and
personality questionnaires can be combined to address
needs in these areas, including:
- Executive coaching
- Personality and interpersonal skills
- Mentoring design and delivery
- Leadership development
Change enablement
Research suggests that over 75% of all change projects
do not achieve their aims, and that 9 out of 10 of the
unsuccessful projects fail due to people-related issues.
Change enablement is about making sure change initiatives
work and deliver results, not just implementing a “change
management” process. Helping employees accept
and adapt to the consequences of change is one of the
most important challenges for organisations. Deciding
on the most appropriate strategies and finding the right
solutions is often demanding, as are introducing new
ways of working.
A psychological approach gives the organisation an insight
into overall personal, interpersonal, team and organisational
effectiveness. This approach recognises how groups of
individuals may react in coping with transition, adapting
to new cultures, and developing ways of working more
effectively.
Ultimately, it helps to deliver enduring, positive results,
including:
- Conflict resolution
- Identifying and aligning internal cultures
- Enhancing team problem solving
- Improving communication
- Performance management
For more information on talent management, leadership
effectiveness or change enablement, please contact OPP
on:
Tel: +44 (0) 870 872 8727
E-mail: enquiry@opp.eu.com
Website: www.opp.eu.com
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