Top Five Pre-Employment Personality Tests (and What They Reveal About Job Candidates)
If you’ve ever conducted a candidate search or hired anyone, you know that there is no magic wand that can guarantee you’ll make the right decisions or that everyone you hire will click into place like a well-cut jigsaw puzzle piece. As the geographic boundaries and technological limitations that once defined hiring fall away, you have a potentially greater candidate pool than ever, with more tools at your disposal and endless professional research articles to guide you. All our innovations and increased options are supposed to make things easier, aren’t they? But sometimes hiring seems more complex and difficult than ever.
Enter the pre-employment personality test – personality inventories and screenings that help you learn more than ever before about your job candidates. A résumé reveals experience and skills, but what about the ineffable “cultural fit” and the alignment of values that are important to your company? What about personality factors that will make someone a great addition to an existing department or team? Or the best person to create an entirely new division within your company? References can help, as can interviews, but the idea of screening dozens of candidates early in the hiring process with a simple test is tantalizing for busy HR departments, hiring managers, and CEOs.
Pre-Employment Personality Tests for Hiring
Most of the pre-employment tests commonly used during the hiring process are personality inventories that are intended to reveal aspects of character, temperament, and work-related factors such as leadership, collaboration, and communication styles. Some hiring tests look at cognitive functions and processing speed.
The most famous personality test, Myers-Briggs, was developed specifically for use in HR departments, not for hiring, but for job placement and career development. This test is still widely used as originally intended, though increasingly in hiring as well. Other tests, such as the Wonderlic, were created as a hiring tool and have added significantly to the pre-hire personality test landscape.
Having data from a pre-employment test can support the interview process, as long as the hiring team is careful not to let personal feelings about personality types cloud their objectivity.
Top Five Pre-Employment Tests and What They Look For
Five of the most popular personality tests for employers are the Hogan Personality Inventory (HPI), the DISC assessment, Wonderlic Personnel Test (WPT), the Clifton StrengthsFinder, and Myers-Briggs Type Indicator (MBTI).
- Hogan Personality Inventory – According to the Hogan website, the HPI “describes normal, or bright-side, personality,” revealing information about people when they are at their best. The five areas of focus are adjustment (emotional stability), openness to experience, sociability (level of extraversion), likeability (agreeableness), and conscientiousness. The HPI was created to predict job performance and they recommend its use in hiring, leadership development, and succession planning. Advertised as “the science of personality,” the HPI seeks to rapidly quantify aspects of human nature previously discernable only with the familiarity developed over time.
- DISC Assessment – The letters in the name represent four personality indicators: dominance, influence, steadiness, and compliance (or conscientiousness), which blend and balance uniquely for every person. (Interesting fact: these same qualities were identified as the four humors by Hippocrates in c. 400 BCE.) Scoring the DISC Assessment involves plotting test-takers’ answers on a graph to determine the relative weight of each aspect of the personality. Employers use these results to assess how well employees will interact as a team, manage, and communicate. Knowing their own and their colleagues’ DISC type also helps team members build effective work and customer relationships.
- Wonderlic Personnel Test – The Wonderlic assessment is more of a cognitive ability test than a personality test. Unlike other tests on this list, the WPT is a standardized, timed test of general intellectual ability used specifically for hiring purposes. It is promoted as a test that can reduce employee turnover by correctly identifying the best candidates prior to hiring, based on their motivation, processing speed, and cognitive strengths.
- Clifton StrengthsFinder – The StrengthsFinder assesses behaviors and patterns of thought, categorizing them into themes. The 34 themes fall into four overarching categories: executing (e.g. achievement, consistency, and focus), influencing (e.g. competition, self-assurance, and command), relationship building (e.g. adaptability, positivity, and empathy), and strategic thinking (e.g. analytical, futuristic, and learning). Initially intended as a team-building tool, StrengthsFinder is being used to support hiring, specifically to discover how a candidate’s strengths work together and sync with the strengths of the team.
- Myers-Briggs Type Indicator – Probably the most well-known personality assessment, it is also the most widely used in hiring. Test-takers fall into one of 16 personality types, indicated by the combination of four either/or pairs or groupings: introverted/extroverted, intuitive/sensing, feeling/thinking, and judging/perceiving. This test is helpful to both potential candidates and businesses seeking to hire. A MBTI personality type reveals what kind of career and work environment suits the candidate, and whether a candidate will align with workplace culture, job requirements, and expectations. When using Myers-Briggs for hiring, businesses are looking for how and in what capacity an individual will fit best.
Test to Hire – A Strategic Piece of Smart Recruitment
Personality tests for hiring are becoming increasingly common. These tools benefit both candidate and company by making it possible to begin the new relationship based on transparency about strengths and areas of challenge, and encouraging honesty on both sides.
A personality test can:
- Paint a good picture of a candidate to reveal cultural fit
- Show managers how a potential hire would fit and interact with the existing team
- Encourage honesty in the interviewing process since these assessments do not have right or wrong answers
- Help recruiters decide between two candidates with similar skills and experience
- Encourage authentic job objectives for new hires based on what aligns with the strengths and weaknesses revealed by the test
- Reveal ideal placement within a company, division, or team
There are pitfalls to be aware of. For example, when using a personality test for employee hiring:
- Candidates may feel vulnerable to judgement about qualities and traits they have no control over.
- You could screen out candidates who would actually be good hires.
- The results may be flawed if the test-taker tries to anticipate desired answers rather than responding honestly.
- The process may raise legal red flags around bias. These can be avoided as long as you can show the need for this kind of assessment and that you have not discriminated against anyone based on results.
Bottom Line
When pre-employment testing is conducted thoughtfully, these assessments can help businesses avoid discrimination in hiring, reduce turnover, increase loyalty, and recognize candidates who will align with the company’s culture, perform well, and find job satisfaction.
When looking for personality tests for employees and recruits, remember to determine what you want from the test, research your options thoroughly, and approach the process with complete transparency.
Corporate Development Manager About the Company Impel is a family of companies that offer comprehensive flow management solutions in partnership with each other and the best manufacturers in the world. Each of Impels branches represent individual brand cultures and span the West Coast. Impel serves customers in water, wastewater, agriculture, industrial, manufacturing, energy and mining. Impel was founded in 2021 with a vision to build a “one-stop shop” to serve municipal and industrial fluid management needs by acquiring complementary capabilities in contiguous geographies. The platform launched with the first acquisition of PumpTech , a premier distributor of high-quality pumping products and systems serving the Pacific Northwest. Subsequent acquisitions have grown Impel to over ten fluid management companies throughout the US. Impel is backed by Pike Street Capital , a private equity firm based in Seattle, WA. Recently, Pike Street successfully raised capital to fund additional acquisitions. Impel is actively pursuing growth opportunities and remains focused on acquiring and partnering with family-owned and operated companies in the sector. About the Role This is a key position managing the acquisition process within Impel. You will participate in all aspects of the investment process including industry/market research, deal origination, strategy and execution, and relationship building with acquisition target owners, executives, investment bankers and other intermediaries. This is a great role if you’re looking to own the deal process and progress your skillset as a deal professional. This role will give you deep insight into the entire acquisition process while closing multiple deals a year. We are a fairly lean team and believe in cross functional work so come with a growth mindset and you will develop a skillset across each business function; Our team believes in developing our team members. Primary Responsibilities Perform company analysis, including initial screenings, financial modeling and valuation, due diligence, consultation with external advisors, and preparation of materials for internal investment meetings. Responsible for M&A project management processes to include, but not limited to, valuations, letters of intent, due diligence analysis, financial planning, and business case development. Analysis of risks and opportunities of M&A activities, translate this into fact-based and well-reasoned insights on the valuation and structural impact of various acquisitions. Drive market research and strategic fit analysis. Conduct research on prospective sector opportunities and market trends and develop and present data-based opinions to inform decision-making and price transactions. Participate on deal teams to help structure and execute transactions, including coordinating the deal process and legal and transactional documentation. Special projects working directly with C suite, functional leads, and regional vice presidents. Qualifications 2-6 years experience in private equity, consulting, financial DD/QoE, investment banking, accounting, or corporate M&A Exposure to other diligence areas including commercial, operational, market sizing, risk analysis, customer and supplier, agreement review, etc. Excel and PowerPoint expertise Value oriented Strong communication skills Commitment to high professional standards Credentials: CPA preferred Interested in Learning More? 180one is a retained search firm and has been engaged by Impel to manage this search. If interested in learning more about the opportunity, please contact Tom Haley /503.334.1350/ tom@180one.com
Long Term Incentive Plans (LTIPs) and Why to Implement Executive compensation is a nuanced and multifaceted subject that involves a delicate balance between rewarding top talent and aligning their interests with the long-term success of the organization. Typically, executive pay packages consist of three primary components: base salary, annual bonuses, and long-term incentive plans (LTIPs). While base salary and annual bonuses have historically been the most visible and commonly discussed elements of executive compensation, LTIPs are increasingly being recognized as the third and arguably most important leg of the stool. LTIPs serve as a tool for aligning the goals of executives with those of the company over the long term, offering rewards that are tied to the sustained growth and profitability of the organization. As businesses evolve and face growing challenges, LTIPs have become a central component in shaping how executives are compensated, ensuring they remain focused on creating long-term shareholder value. Over the past 75 years, LTIPs have been a common feature in public companies, where stock options, performance shares, and other equity-based incentives align executives with shareholder interests. It hasn’t been until the past couple of decades that private companies have implemented LTIPs to align executives' interests with the long-term success of the company, but also almost out of necessity to compete for the same talent who might already possess an LTIP as part of their compensation. What Are Long-Term Incentive Plans (LTIPs)? Long-Term Incentive Plans (LTIPs) are compensation structures designed to reward executives for achieving long-term business goals. Unlike annual bonuses, which are typically tied to short-term financial metrics, LTIPs are structured to reward performance over a longer time horizon—usually three to five years or more. The primary purpose of LTIPs is to ensure that executives are motivated to focus on sustainable growth, value creation, and the long-term health of the company. The Factors Driving the Adoption of LTIPs in Private Companies According to a survey by WorldatWork, approximately 63% of private companies are using LTIPs as a means of rewarding executives and aligning their interests with the company’s long-term success. Several factors have contributed to the rise in popularity of LTIPs in private companies, ranging from the quest for competitive advantage to changes in organizational dynamics and evolving employee expectations. But the following reasons might shed additional insight: Companies with LTIPs Have 30% Higher Revenue Growth: Research by the National Center for Employee Ownership (NCEO) found that companies that implement equity-based LTIPs experience 30% higher revenue growth compared to those that do not. The statistic underscores the positive impact of LTIPs on a company’s overall performance, as they drive executive focus on achieving goals that lead to sustained revenue growth, innovation, and market expansion. 91% of Executives in Private Companies Cite LTIPs as Key to Retention: A survey by Korn Ferry found that 91% of executives in privately held companies consider LTIPs an essential factor in their decision to stay with the company. The statistics demonstrate the significant role LTIPs play in retaining key talent, ensuring that executives are motivated to stay with the company over the long term. By offering equity-based compensation, companies can reduce turnover and keep their leadership team focused on long-term objectives. Companies With LTIPs Are 50% More Likely to Meet Exit Targets: According to a report by Bain & Company, private companies that implement LTIPs are 50% more likely to meet or exceed their exit targets during mergers, acquisitions, or initial public offerings (IPOs). By aligning executives' interests with long-term value creation, LTIPs motivate leadership to work toward achieving the performance metrics that will maximize the company’s value at the time of sale or public offering. Transitioning Ownership and Succession Planning: For family-owned businesses or privately held companies with a significant ownership stake held by a small group, succession planning is another critical factor in the decision to adopt LTIPs. As the company grows and the leadership team evolves, there may be a need to transition ownership to new management. LTIPs can help retain key executives during this period of change, providing financial incentives that keep the team focused on the company’s long-term growth even during periods of uncertainty. As businesses strive to remain competitive and evolve in an increasingly dynamic marketplace, the adoption of LTIPs has evolved as a key driver for optimizing performance. No longer limited to public companies; private companies have increasingly recognized the benefit and need for these compensation structures. Perhaps adding these 4 simple letters (L-T-I-P) to a company’s compensation program could be the difference maker that they’ve been looking for.
Assistant General Counsel With roots going back to the 1960’s, Forest City Trading Group (FCTG), may have started as a small lumber yard run by two immigrant brothers, but has since grown into North America’s largest wholesale lumber product distributor. FCTG facilitates the distribution of products across 6 continents through our network of 12 operating companies and over 800 employees. The company’s impact is far-reaching, especially when considering that one in every ten houses today is built using products sourced and sold by our operating companies. As proponents of forest sustainability, FCTG actively supports suppliers who use sustainable forest management practices that promote forest sustainability and result in long-term environmental, social, and economic benefits. Due to significant growth over the last decade, and expecting strong growth in years to come, FCTG is adding an Assistant General Counsel to their legal team to support growth and help scale the business. Position Overview Forest City Trading Group is seeking a highly motivated and skilled Assistant General Counsel to report directly to, and support, the General Counsel and assist in managing the company's legal operations. The ideal candidate will have strong legal expertise, excellent communication skills, and the ability to collaborate effectively across different business units. This position offers an exciting opportunity to be a part of a dynamic team while contributing to the growth and success of the company. Key Responsibilities Provide legal support to the General Counsel on a variety of corporate, commercial, regulatory, and operational matters. Assist in the company's legal department operations, including document management, contract review and negotiation, legal strategy, and corporate governance. Draft, review, and negotiate contracts, agreements, and other legal documents to ensure compliance with applicable laws and regulations. Assist with the management of corporate compliance and risk management programs, including conducting legal risk assessments and providing recommendations for mitigation. Collaborate with cross-functional teams (e.g., finance, IT, human resources, marketing, trading operations) to provide legal guidance on operational and business issues. Advise on employment law matters, including policies, employee relations, and compliance with federal and state employment laws. Handle legal research and due diligence for mergers, acquisitions, and other corporate transactions as needed. Manage outside counsel and vendors, ensuring legal matters are handled efficiently and cost-effectively. Assist with litigation and dispute resolution matters, including managing internal investigations, handling settlement negotiations, and overseeing litigation strategy. Stay updated on legal developments and regulatory changes that may impact the company’s operations and provide proactive legal solutions. Qualifications and Skills Juris Doctor (JD) degree from an accredited law school. Licensed to practice law in Oregon. Minimum of 5 years of legal experience, with preference for some experience within a corporate or in-house legal environment. Experience in corporate governance, commercial contracts, employment law, and regulatory compliance. Strong analytical skills with the ability to identify and solve complex legal problems. Excellent written and verbal communication skills. Ability to work independently, manage multiple priorities, and maintain a high level of professionalism under pressure. Strong interpersonal skills and the ability to build effective relationships with internal stakeholders at all levels of the organization. Ability to handle confidential and sensitive information with discretion. Preferred Experiences Experience supporting operational functions, such as HR, marketing, and compliance, in a corporate setting. Previous experience managing outside counsel and coordinating legal projects. Experience with construction and material supply contracts. Interested in Learning More? 180one is a retained search firm and has been engaged by Forest City Trading Group to manage this search. If interested in learning more about the opportunity, please contact Lisa Heffernan/ 971.256.3076/ lisa@180one.com
