Psychometric vs Competency-based assessments

In our previous blog, we highlighted the importance of assessments in avoiding hiring mistakes and making the right choices. Two essential tools in the assessment landscape, psychometric assessments and competency-based assessments, offer powerful insights. But how do you know which one to choose and when?

1. When to Use Psychometric Assessments?


Psychometric assessments are designed to evaluate personality traits, cognitive abilities, and behavioral tendencies among candidates. These assessments provide a deeper understanding of who a candidate is and how they might perform in your organization’s environment.


Psychometric assessments are particularly useful for understanding how candidates align with your organization’s values and culture. For example, if collaboration is a core value, these assessments can highlight candidates who are naturally inclined to work well in team settings.


When you want to make an unbiased decision with objective data regarding strengths and areas for growth, psychometric assessments are your go-to. They help identify qualities that might not be evident from a resume or interview. This step also ensures candidates’ personalities complement the existing team.


2. When to Use Competency-Based Assessments?


Competency-based assessments measure specific skills, knowledge, and behaviors required for a particular role. These assessments focus on what a candidate can do rather than who they are.


Competency-based assessments are ideal for roles where specific skills are critical to success. For instance, when hiring a software developer, you’ll want to ensure they have the coding skills and problem-solving abilities required to excel in the position. Competency-based assessments can determine if a candidate can meet the performance indicators relevant to a specific job or role.


This will provide you with a comprehensive map to compare candidates against specific criteria and establish a benchmark. It will also highlight areas for training and development.


3. Do you want to maximize your assessment impact?


How can you link and close the loop? Have a consultant ready to share insights and input. But not every consultant will promise impact. An important criterion to look out for is a consultant who understands both your organizational culture and the broader geo-cultural context. This can significantly enhance the effectiveness of these assessments. Their expertise helps bridge the gap between data and actionable insights.


What is the Role of a Consultant?


Interpret results with cultural sensitivity: In today’s global workplace, understanding cultural nuances is key. A skilled consultant can debrief assessment results in a way that respects diverse backgrounds and expectations.


Tailor insights to your needs: Beyond the raw data, a consultant can provide customized recommendations that align with your company’s goals, values, and challenges.


Facilitate better alignment: Consultants can identify ways to align candidates’ profiles with organizational needs, improving hiring decisions and team performance.


Both psychometric and competency-based assessments offer unique advantages, and knowing when to use each can elevate your hiring and development strategies. Psychometric assessments uncover the "who" behind the candidate, while competency-based assessments reveal the "what" they can do. Pairing these tools with the insights of a knowledgeable consultant can ensure your workforce is not just skilled, but also aligned with your organizational culture and vision.


Guess what? With our TFI method (Talent & Fitness Indicator), we've combined both types of assessments and aligned them with your organization's competencies. Start making informed decisions and create a workplace where people thrive and businesses grow.

Reach out to us!