Psychometric tests are most commonly used by organisations in a recruitment context.
By now it should be clear, that because they assess capability, and because capability is the most fundamental driver of individual and organisational performance, that they should form a standard part of any organisation’s recruitment and selection procedure.
It makes good business sense to include an assessment of both cognitive and emotional capabilities in your assessment battery. Used in conjunction with the Competency Assessment Tools discussed in the next module, this constitutes best recruitment and selection practice.
Capability 1 = IQ
Best overall predictor of job performance across all jobs

Capability 2 = EQ

Very strong predictor of job performance especially in leadership roles

IQ + EQ

Together explain two thirds of job performance.
However, psychometric tests are also underutilised in organisations as they have a number of other valuable uses which are discussed next.