In brief: Psychometric tests are standardised tests designed to measure mental performance and behavioural style, covering interests, personality differences and aptitude. They are used in recruitment, individual and career development, team building and employee progression. To be effective a test must be valid, meaning it measures what it is intended to measure, and reliable, meaning it produces consistent results each time it is used.

What psychometric tests measure

Psychometric tests are generally standardised tests designed to measure mental performance and behavioural style.

They can include tests for interests, personality differences, and aptitude.

How employers use them

They are often used in support of recruitment, individual and career development, team building, as well as employee progression.

Validity and reliability

For tests to be effective, they need to be valid and reliable.

This means they must test what they intend to test, and test it consistently each time.

Update (November 2026): The evidence on how well selection tools predict performance has shifted since this was written. A re-analysis of the classic meta-analytic estimates (Schmidt and Hunter, 1998) found that earlier work had ‘resulted in substantial overcorrections for range restriction’, so most predictors ‘exhibit lower operational criterion-related validity with regard to overall performance than has previously been reported’; structured interviews ‘emerged as the predictor with the highest mean validity’ and ‘cognitive ability is no longer the stand-out predictor that it was in the prior work’ (Sackett et al., 2022; 2023). For employers, the practical lessons are to treat any test as one input alongside a structured interview, to use ‘valid procedures’ interpreted by people qualified to do so, and to report results ‘in language that the recipient can understand’ (Australian Psychological Society, 2007).

Linq HR provides fractional employee relations support to Australian employers and operates Workforce Directory, Australia’s HR services marketplace. Ph 1300 234 566.

Further reading:The role of HR professionals in purchasing HR products and services and Does a high performance culture lead to higher performing employees?.

References

Australian Psychological Society (2007) Code of Ethics. Melbourne: APS. Available at: https://psychology.org.au/about-us/what-we-do/ethics-and-practice-standards/aps-code-of-ethics (Accessed: 6 November 2026).

Sackett, P.R., Zhang, C., Berry, C.M. and Lievens, F. (2022) ‘Revisiting meta-analytic estimates of validity in personnel selection: addressing systematic overcorrection for restriction of range’, Journal of Applied Psychology, 107(11), pp. 2040–2068. doi:10.1037/apl0000994.

Sackett, P.R., Zhang, C., Berry, C.M. and Lievens, F. (2023) ‘Revisiting the design of selection systems in light of new findings regarding the validity of widely used predictors’, Industrial and Organizational Psychology, 16(3), pp. 283–300. doi:10.1017/iop.2023.24.

Schmidt, F.L. and Hunter, J.E. (1998) ‘The validity and utility of selection methods in personnel psychology: practical and theoretical implications of 85 years of research findings’, Psychological Bulletin, 124(2), pp. 262–274. doi:10.1037/0033-2909.124.2.262.

In brief: Identifying workplace training needs starts with the direction of the business, then defining what each role must do, using existing evidence such as performance reviews, asking managers and employees, prioritising gaps and measuring how new skills are applied on the job. According to the Australian Bureau of Statistics (2026), work-related training participation fell from 23% to 19% between 2020–21 and 2024–25, with 44% of those facing barriers citing too much work or not enough time.

Organisations need to train their employees continually: to teach new skills, develop leaders, meet legal and safety obligations, and remain competitive. The harder part is working out which training is needed, by whom, and in what form. This article sets out a practical way to identify workplace training needs, and what the Australian data says about how much training is actually happening.

What the data says about training in Australia

The Australian Bureau of Statistics reports that in 2024–25, 34% of people aged 15–74 (6.8 million) participated in study or training in the previous 12 months, down from 39% in 2020–21. Participation in work-related training specifically fell to 19% from 23%. Among people who faced barriers to work-related training, the main barrier, reported by 44%, was having too much work or not enough time (ABS, 2026).

For employers, the lesson is that training has to compete with the day job. Training that is targeted to a real need, delivered close to the work and scheduled realistically is far more likely to happen than a generic annual calendar.

On the job, near the job, or offsite: the 70:20:10 guideline

Training can be described as on the job, near the job, or offsite. A widely used guideline is the 70:20:10 model from the Center for Creative Leadership’s Lessons of Experience research: roughly 70% of development comes from challenging on-the-job assignments, 20% from developmental relationships such as managers, mentors and peers, and 10% from formal coursework and training (Center for Creative Leadership, n.d.). CCL describes it as a guideline rather than a formula, and notes that the formal 10% amplifies the other 90% when it is applied back at work.

The practical implication is that most training needs are met through how work is designed and supervised, not through courses alone. The best value from developmental and offsite training is captured when the employee has an immediate opportunity to use the new skills on return to the workplace.

How to identify workplace training needs

1. Start with the direction of the business. New products, systems, customers, sites or regulatory changes each create skill requirements. All employee training must be relevant to where the organisation is heading.

2. Define what each role must be able to do. Up-to-date position descriptions and competency requirements are the baseline for any training needs analysis. If the role is not clearly described, the gap cannot be measured.

3. Use the evidence you already hold. Performance reviews, probation outcomes, safety incidents, customer complaints, rework, system errors and exit interviews all point to capability gaps.

4. Ask managers and employees. Supervisors usually know where their teams struggle; employees usually know what they need to do the job well. A short structured conversation or survey is often enough.

5. Prioritise and match the delivery method. Rank gaps by business impact and compliance risk, then decide whether each is best addressed on the job, through coaching or mentoring, or through a formal program, including online learning.

6. Measure application, not attendance. Agree in advance how the new skill will be used and checked on the job, and follow up within weeks of the training.

Choosing a training provider

Once the needs are clear, the choice of provider becomes much simpler: accredited or non-accredited, in-house or external, face-to-face or online. Australian training providers, registered training organisations and learning platforms can be compared on the Workforce Directory.

Further reading:Benefits of Online Learning in the Workplace and The High Costs of Neglecting Employee Induction.

Linq HR provides fractional employee relations support to Australian employers and operates Workforce Directory, Australia’s HR services marketplace. Ph 1300 234 566.

References

Australian Bureau of Statistics (2026) Work-Related Training and Adult Learning, Australia, 2024-25. Canberra: ABS, 9 April. Available at: https://www.abs.gov.au/statistics/people/education/work-related-training-and-adult-learning/2024-25 (Accessed: 5 November 2026).

Center for Creative Leadership (n.d.) The 70-20-10 rule for leadership development. Available at: https://www.ccl.org/articles/leading-effectively-articles/70-20-10-rule/ (Accessed: 5 November 2026).