Psychometric Assessments Reduce Turnover by up to 30%: Why Companies Are Investing in Personality-Based Hiring

June 05, 2025 03:20 PM PDT | By EIN Presswire
 Psychometric Assessments Reduce Turnover by up to 30%: Why Companies Are Investing in Personality-Based Hiring
Image source: EIN Presswire
CHICAGO, IL, UNITED STATES, June 5, 2025 /EINPresswire.com/ -- Talentuch, a leading IT recruitment company, shares recent research findings showing that companies implementing psychometric assessments in their hiring process experience an approximately 24% reduction in employee turnover. As the tech industry grapples with talent shortage and rising recruitment costs, personality-based hiring can become a game-changer for building stable, high-performing teams.

The IT sector, notorious for its 13.2% annual turnover rate, often faces unique challenges in talent retention. With the cost of replacing an IT professional reaching up to 150% of their annual salary, companies are turning to scientific assessment methods to make smarter hiring decisions.

"Traditional CV-based hiring is like driving blindfolded," says Anna Didus, Account Director at Talentuch. "Using psychological assessments helps companies reveal the candidate's qualities that truly predict success—cultural fit, problem-solving approach, and team dynamics. Having tried this approach, our clients consistently report improved team productivity and employee satisfaction."

The Numbers Tell the Story

Recent industry data underscores the importance of personality-based hiring:

- 82% of companies using psychometric testing report better quality hires (SHRM)
- Organizations using assessments see 39% less turnover in the first year (Aberdeen Group)
- 75% of Fortune 500 companies now use some form of psychometric testing
- Companies report a 26% increase in employee productivity when hiring with assessments

Beyond Technical Skills: Focusing on Personality

In IT recruitment, where technical competencies have traditionally dominated the conversation, more innovative players are recognizing that personality traits and cognitive abilities are as crucial as tech knowledge. Research shows that 89% of bad hires fail due to attitude and team & cultural fit issues, not lack of technical skills.

Talentuch states that, depending on the role, team, and company culture, IT hiring managers can evaluate the following traits in their candidates' personalities:

- Problem-solving style and cognitive flexibility
- Communication preferences and team collaboration potential
- Adaptability and learning agility
- Work motivation and career aspirations
- Cultural alignment and values fit

Real-Life Success Stories

A recent Talentuch client, a fast-growing SaaS company, has reduced their developer turnover from 22% to 11% within 18 months of implementing psychometric assessments. Another client, a fintech startup, reported that teams built using personality-based matching delivered projects significantly faster than traditionally assembled teams.

The ROI of Smart Hiring

The financial implications are substantial. With the average cost of a bad IT hire estimated at $240,000, and considering that 46% of new hires fail within 18 months, the investment in psychometric assessments—typically less than 1% of an employee's annual salary—means exceptional ROI, increased efficiency, and saved resources.

Looking Ahead: The Future of IT Recruitment

As artificial intelligence and machine learning continue to refine traditional recruitment methods and processes, Talentuch expects the vast majority of tech companies to incorporate personality-based evaluations in their hiring process. The company is already developing next-generation assessments that combine traditional psychometrics with AI-powered behavioral analysis.

"We're not just filling positions; we're building the future of work," concludes Anastasia Dondich, a Recruitment Team Lead. "In an industry where innovation depends on human creativity and collaboration, understanding the whole person, not just their code, is the key to success."

Yana Yarotska
Talentuch
+1 630-660-9512
email us here
Visit us on social media:
LinkedIn
Instagram
Facebook
YouTube

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content) is a service of Kalkine Media LLC., having Delaware File No. 4697309 (“Kalkine Media, we or us”) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.


Sponsored Articles


Investing Ideas

Previous Next