Managing recruitment risks with psychometric assessments
The recruitment landscape in the UK is growing increasingly complex. Recent changes in employment legislation, economic pressures, and a competitive talent market are making hiring decisions more challenging than ever. In 2025, with the stakes so high, organisations can no longer afford to rely on instinct or traditional methods alone.
Intended to provide greater protections for employees, there are concerns that the Employment Rights Bill 2024 will cause employers to be more cautious in their recruitment (e.g. the introduction of ‘Day One’ rights and modifications to probationary periods).
Psychometric assessment is an established, but still under-used, means of minimising these risks and maximising the chances of selecting the right candidate. These help avoid costly hiring mistakes and build resilient teams for the future.
These new regulations demand a structured and defensible approach to hiring to avoid claims of unfair practices or breaches. Add to this the rising costs of recruitment—estimated at £30,000 to replace a mid-level employee (Source: Oxford Economics Study)—and the pressure to get it right is undeniable.
Why Psychometric Assessments Are the Answer
Psychometric assessments provide businesses with a systematic way to evaluate candidates, offering key advantages in today’s environment:
1. Objectivity in Decision-Making
Traditional hiring methods, such as CV reviews and interviews, are vulnerable to unconscious biases and subjective judgments. Psychometric tools provide standardised metrics, ensuring candidates are evaluated consistently.
For example, a study by the Chartered Institute of Personnel and Development (CIPD) found that cognitive ability tests are among the best predictors of job performance. (Source: CIPD Research)
2. Defensibility Against Legal Claims
Employment tribunal cases related to hiring practices—such as allegations of discrimination under the Equality Act 2010—are on the rise. In 2022, there were over 23,000 claims lodged in UK employment tribunals. (Source: UK Ministry of Justice) Psychometric assessments introduce a transparent, evidence-based layer to recruitment decisions, providing clear documentation to support hiring processes.
3. Cost- Talent Management
Poor hiring decisions can lead to significant financial losses, especially in high-pressure sectors like healthcare. A report by NHS Employers highlights the importance of selecting candidates who demonstrate resilience and adaptability, qualities measurable through psychometric testing. (Source: NHS Employers)
4. Resilience Amid Economic Pressure
In a climate where inflation and budget constraints dominate boardroom discussions, psychometric assessments offer a way to de-risk recruitment, ensuring every hire contributes positively to organisational goals. A survey by the British Chambers of Commerce found that 63% of businesses expect recruitment to become even more challenging in the current economic climate. (Source: BCC Quarterly Economic Survey)
A Case in Point: Retail Sector Example
A 2022 study by the British Retail Consortium revealed that retail staff turnover rates average 30% annually. By integrating personality assessments into their hiring process, a UK-based retailer identified candidates more likely to thrive under the pressures of fast-paced environments. This led to a 20% reduction in turnover within the first year, saving an estimated £200,000 in recruitment and training costs. (Source: British Retail Consortium)
Looking Ahead: A Recruitment Strategy for the Future
The UK’s employment landscape will continue to evolve, with further regulatory changes coming next year. By embracing psychometric assessments now, organisations can future-proof their recruitment strategies, ensuring they are equipped to navigate both compliance and market demands.
At Managing Change, we are experts in the selection and implementation of psychometric assessment solutions for both selection and development purposes, assessing personality characteristics and cognitive ability. These not only help you recruit the right talent but also support ongoing development and retention. Whether you’re looking to enhance recruitment, build leadership pipelines, or develop your people, our evidence-based approach delivers measurable impact. Get in touch to discuss how we can help or see here for more information.