It is well known that psychological testing is used by organizations when hiring candidates who fit well with the organizational culture. However, it is less known that the same tool is also used for developing key employee competencies. Discover what competencies and personality traits are, and why they are assessed as part of psychological testing.
What are competencies?
Competencies represent a combination of knowledge, skills, and attitudes necessary for effectively performing job tasks. They are not static; they develop through education and professional experience. They are built, acquired, and shaped, contributing to the professional development.
In psychological testing, questions like "How would this person lead a team?" are often explored. Would they lead through negotiation skills or perhaps another skill? When testing for managerial positions, a manager’s ability to inspire and support their team is often assessed. During testing, a manager who has mastered this competency might be described as someone who "supports team members in their professional development through various initiatives and programs."
Therefore, employers often invest in further development of their managers to acquire such future-oriented competencies and learn how to inspire, motivate, and influence others. One such program is the SELECTIO Leadership Academy, which teaches managers how to lead themselves and others and how to successfully implement and manage change as a true leader.
Why is it important to assess candidate competencies?
During selection and development processes, competency assessment contributes to strategic alignment. This means that by assessing competencies, the organization can more easily hire candidates who align with its long-term goals. This ensures that all team members meet the organization's needs, mission, and vision.
The competency assessment will also ensure talent recognition. The dynamic market and increasing competition in various industries create a need for specific, as well as leadership competencies. A well-conducted psychological testing helps identify such leadership competencies and talents within the team, enabling strategic career planning—transforming employees into leaders.
Competency assessment is also crucial for the development of employee expertise. It helps identify areas that need improvement and allows progress tracking. Based on this, targeted training can be conducted to prepare employees for future challenges.
Effective competency assessment methods
Competencies are assessed in the context of organizational goals. During psychological testing, competencies are evaluated based on how effectively a person uses their skills to achieve goals. Various assessment methods can be used:
- Assessment center offers a dynamic approach to psychological assessment through simulations of real work situations and interviews. This provides a deeper understanding of how skills are applied in a real work environment.
- 360° assessment gathers feedback from various sources, including superiors, colleagues, and subordinates, offering a comprehensive overview of an individual’s competencies from different perspectives.
- Belbin Team Roles® help understand how an individual’s visible behaviour affects team dynamics. This model shows how an individual’s competencies, such as leadership, innovation, or task organization, shape their approach to teamwork.
What is personality?
Unlike competencies, which are acquired through education and experience, personality refers to innate or upbringing-acquired traits. These traits are an important part of identity because they shape how individuals perceive the world, communicate with others, and react to different situations.
Personality traits are often described in psychological testing using adjectives or nouns like patience, extraversion, conscientiousness, and cooperativeness. They reflect "who we are" at our core. While competencies can be more easily developed and adapted, personality traits are generally considered stable throughout life.
How and why is personality assessed?
Part of psychological testing that assesses personality involves psychological tests. These are scientifically proven and widely validated, examining a range of personality traits. Based on test results and using candidate personality profiles, employers can make better-informed decisions during the hiring process.
When employers decide to test a candidate's personality during hiring, they are creating an opportunity to understand them more deeply and thoroughly. A detailed understanding of a candidate’s internal characteristics can help predict how they will behave in various business situations.
Personality assessment can also enhance and strengthen team dynamics. By hiring team members who complement each other, an organization creates a balanced and efficient team. Such a carefully selected team of employees works well under pressure and successfully tackles challenges.
Besides helping to better understand candidates and create a good team dynamic, personality assessment can also help predict job fit. Through psychological testing, it is possible to assess how well a candidate will fit the organizational culture and work environment. A positive work environment is important for maintaining employee motivation, engagement, and satisfaction. Greater employee satisfaction implies lower turnovers and more successful key talent retention, which positively impacts profitability.
What are the potential limitations of personality assessment?
Although personality assessment is an effective method for evaluating candidates, some limitations should be considered. Cultural bias is one of the challenges in personality assessment, meaning that the same behaviour can be interpreted differently in different cultures. This can affect the accuracy and fairness of personality assessment results.
Additionally, the way personality traits are expressed can vary depending on the situation and circumstances. Such variability in behaviour can make it difficult to accurately predict a person’s reactions to specific situations.
Furthermore, personality assessments can cause stress for candidates who feel pressured to present themselves in the best light. This can affect the honesty of responses and reduce the accuracy of results.
Assessing and understanding personality and competencies are crucial for effectively leading teams, selecting new quality employees, developing skills, improving existing employee's skills, and achieving organizational goals. In addition to assessing personality and competencies, psychological testing is also used to evaluate cognitive abilities, motivation, work values, and preferences. Therefore, psychological testing is a key part of the candidate search and an important element of organizational development. It can also be conducted online, so if you’re interested in the details, feel free to contact us!
