The Intelligence Behind Talent Intelligence

By Louise Varley, Director, Honey & Morgan

In a landscape where talent strategy defines competitive advantage, psychometrics are no longer a nice-to-have – they’re a strategic imperative. But not all tools, and certainly not all applications, deliver value. This article challenges business leaders and HR decision-makers to rethink how psychometric assessments are used: not as diagnostic labels, but as tools for deeper, fairer, more intelligent decision-making. It outlines five guiding principles for using psychometrics to inform – not replace – human judgement, avoid reductive practices, and build ethical, high-impact talent systems. The call to action? Move beyond surface-level workshops and invest in talent intelligence that elevates people, culture, and performance.

In a market increasingly defined by complexity, uncertainty, and shifting workforce expectations, the question is no longer whether to use psychometric data, but how.

Organisations are investing heavily in people data. Psychometric assessments, in particular, promise insight into potential, behaviour, and performance. But not all tools – and certainly not all applications – are created equal. For business leaders and HR strategists, the imperative is clear: we need to move beyond transactional testing towards strategic talent intelligence.

Here are five guiding principles to consider when using psychometric assessments:

Principle 1 – Treat psychometrics as decision intelligence, not diagnostics

When used well, psychometric tools help leaders make better, fairer, and more consistent decisions. Instruments like SHL’s Occupational Personality Questionnaire (OPQ) offer structured insight into work-related behavioural preferences, supporting data-informed decisions across hiring, development, and succession planning. Tools like the MBTI (Myers-Briggs Type Indicator), while not suitable for recruitment or selection, can enhance self-awareness and communication within teams. The goal in both cases is not prediction, but informed dialogue and better understanding.

“Career success is the result of a number of attributes, factors, and events, not of personality type alone.” – Patrick Kerwin, MBTI Master Practitioner

Data-driven organisations understand that good judgement is still the ultimate differentiator. Psychometrics are not about removing human insight – they’re about augmenting it.

Principle 2 – Reject reductionism

Personality is not a box. One of the most dangerous assumptions in people analytics is that psychometrics can deliver a final answer. They can’t. Nor should they.

Psychometric tools should never be used to “type” people into roles or exclude candidates from consideration. For example, the MBTI is a type-based instrument designed to promote understanding and personal development, not to assess suitability for roles. SHL’s OPQ, a trait-based tool, supports recruitment decisions by comparing individual profiles to job-relevant norm groups – but even then, it should be just one part of a broader, contextualised assessment process.

As The Myers-Briggs Foundation states, using these tools in isolation to assess suitability for roles would not only be unethical, but could also be illegal. And SHL echoes this: real intelligence comes from triangulating multiple sources of data across time, context, and goals (SHL – Decisions with People Data).

Used properly, psychometrics raise the standard of hiring, development, and leadership. Misused, they lower it.

Principle 3 – Match the instrument to the intention

Business leaders wouldn’t tolerate misaligned KPIs or financial indicators. So why accept generic or ill-fitting people assessments?

There is no such thing as a “general purpose” psychometric. Some tools are built to reveal learning agility. Others are designed to surface leadership potential. For example, the OPQ helps organisations understand how individuals may behave at work relative to defined competencies. In contrast, tools like the MBTI focus on personality type and are often used to explore team dynamics or communication styles.

SHL’s extensive portfolio (SHL – Resources) makes it possible to design highly tailored assessment frameworks aligned to organisational goals. But the key is intentionality. Know what you’re measuring – and why.

Principle 4 – Prioritise rigour and relevance, and avoid surface-level interventions

Not all psychometric tools are scientifically sound. Some lack validation, fail to keep pace with evolving models of human behaviour, or offer little transparency in how results are generated.

SHL’s tools, including the OPQ, are supported by robust validation and normative data. While the MBTI has been widely used for personal and team development, it is not designed for recruitment or selection and should be applied only in contexts aligned with its purpose.

Indeed, due diligence matters. Strategic investment in psychometrics must include evaluating the science behind the instrument, not just the slickness of its interface. Equally important is the quality of the intervention itself. Too often, organisations settle for low-cost, surface-skimming workshops – tick-box exercises that reduce personality insights to party tricks. These sessions may deliver a temporary buzz, but they rarely drive behaviour change or strategic value. Leaders should demand depth, rigour, and business alignment in any psychometric engagement.

Principle 5 – Build ethical, inclusive, human-centred practices

As talent data becomes more powerful, so too must our principles for using it. Inclusion, consent, transparency and interpretability are not just ethical considerations – they’re business imperatives.

SHL advocates for fairness and accessibility in all its tools (SHL – Decisions with People Data). MBTI’s ethical guidelines are clear that results should be used to empower people, not limit them. The real opportunity lies in creating a shared language of personality and potential that fosters trust, not fear.

Final thought – from data to dialogue

Psychometrics are not the answer. But they can help us ask better questions.

The true ROI of investing in psychometrics comes not from classification, but from conversation. From deeper understanding. From decisions that are not only data-informed, but deeply human.

For business leaders navigating transformation, growth, or cultural change, the opportunity is clear: use psychometrics not to reduce people, but to elevate them.

Louise Varley is co-founder of Honey & Morgan, helping leaders and organisations build smarter, more human-centred strategies for growth and impact.