Reduced Turnover

• Job satisfaction plays a key role in managerial turnover, and losing a manager because of a personality conflict with company culture is costly. Since replacing a manager can cost at least 150 percent of her salary plus lost productivity from her staff, companies that use personality tests to help determine the best fit between candidate, company and co-workers are more likely to find more loyal and long-term company leaders. For example, St. Luke's Hospital, in Bethlehem, Pa., dropped its managerial turnover rate from 41 percent to 10 percent within two years after incorporating personality assessments into its managerial hiring process, according to Worklife Management.
  
  

Saves Time and Resources

• Since openings for leadership positions can draw scores of resumes from qualified candidates, personality assessments can help save a company's human resources department time and money by helping pre-select candidates with the best chances of thriving with a company's culture. Weeding out candidates who may be highly skilled but ultimately unsuccessful leading a particular team saves interviewing time and recruitment dollars.
  
  

Increased Employee Motivation and Satisfaction

• Companies with motivated employees benefit with increased performance, according to Forbes. How well a manager's communication, leadership and decision-making skills align with his team's needs and ability to perform their job plays a key role in employee motivation and satisfaction. For example, a manager with a participative leadership style will do better with a team of internally motivated, experienced and highly skilled employees. That same manager will face more conflict if asked to lead a team of unmotivated or lower-skilled employees. Knowing more about a manager's personality in advance will help companies find the best manager-follower fit.
  
  

Prevents Leadership Groupthink

• Personality assessments can help prevent leadership "groupthink," by helping strike a balance of styles, behaviors and personas in company leadership. Groupthink, a term coined by Irvin Janis, means faulty or ineffective decision-making because a group is literally too alike or feels too much pressure to conform. As a result, members do not ask the necessary questions or demand the needed debate necessary for better group choices. As long as desired personality traits are identified in advance, personality assessments can help hiring managers choose the best person for the leadership role instead of the most popular candidate or the person who best matches the CEO's style.