How Personality Tests Predict Employee Retention and Attribution

For decades, personality assessments have played a supporting role in recruitment strategies, often used to complement more "objective" metrics such as cognitive ability or skills-based testing. Critics of personality testing in selection contexts often cite one recurring issue: relatively low correlations between individual traits and job performance. They’re not wrong—when assessed in isolation, single traits like conscientiousness or extraversion typically show only modest predictive power for job success.

However, this critique misses a key point. While the predictive power of individual traits may be low in isolation, their value increases when considered in combination. Moreover, job performance isn’t the only—or even the most important—outcome to consider. Increasingly, personality is proving to be an even stronger predictor of employee retention, engagement, and burnout risk than it is of performance.

Problem-solving refers to the ability to identify and resolve problems in an effective and efficient manner. An example of problem-solving can be seen in the role of a customer service representative. A customer service representative is responsible for handling customer complaints and issues, and finding a solution that will satisfy the customer.

This research suggests that focusing solely on job performance in hiring and promotion decisions may be short-sighted. After all, what’s the value of a brilliant hire who leaves after a few months? Talent acquisition professionals must begin to think in terms of total employee lifetime value—how well an individual performs, and for how long they remain in the role.

From this perspective, hiring a high performer who stays for one year may be far less valuable than hiring a moderately good performer who remains engaged and growing over five years. In both cases, performance and tenure must be considered jointly—not in isolation. The real win is securing someone who performs well and fits well, both behaviourally and culturally.

Emotional stability (the inverse of neuroticism) is a cornerstone of the Five Factor Model of personality. Individuals high in emotional stability tend to remain calm under pressure, manage stress effectively, and bounce back quickly from setbacks. In leadership roles, this trait becomes even more critical, as emotionally stable leaders are more likely to maintain team morale, make clear-headed decisions, and model resilience.

But emotional stability isn’t the only trait that matters. When combined with others—such as conscientiousness (dependability, discipline), agreeableness (cooperation, empathy), and openness (adaptability, curiosity)—the predictive power of personality assessments increases significantly. These multidimensional profiles offer a nuanced view of a candidate’s likely job behaviour, potential challenges, and long-term fit within the organisation.

The concept of "behavioural fit" refers to how well an individual’s natural tendencies align with the demands and culture of their role.

Imagine a highly competent analyst with high neuroticism and low openness placed in a fast-paced startup requiring constant innovation and ambiguity tolerance. Despite strong technical ability, this individual may struggle to thrive, quickly becoming overwhelmed or disillusioned. Personality assessments can help avoid these mismatches by flagging misalignments before they result in costly turnover.

While skills and experience are essential, they tell only part of the story. Increasingly, companies are realising the importance of pre-hire and post-hire assessments that focus on soft skills, behavioural traits, and psychological resilience. These assessments provide rich, predictive insights that are difficult to glean from CVs or unstructured interviews.

When implemented correctly, they reduce bias, improve diversity, and dramatically increase the predictive accuracy of hiring decisions.

So how should organisations respond to this research? Here are some practical recommendations:

• Integrate personality assessments into early screening: – Don’t wait until the final interview to assess behavioural fit. Integrating personality insights into early stages of hiring improves shortlist quality and reduces downstream attrition.
• Focus on high-value traits like emotional stability: – Pay attention to indicators of resilience, composure, and emotional control—especially in roles with high pressure or leadership demands.
• Optimise for long-term value, not short-term performance: – Develop a total employee value framework that weighs both output and tenure. Avoid the trap of hiring high performers who are likely to leave.
• Use data to guide development: – For existing employees, personality assessments can identify likely friction points and help tailor personal development plans, improving retention and internal mobility.
• Educate hiring managers: – Ensure your hiring team understands the predictive power of personality traits—not just for performance, but also for longevity and engagement.

The future of talent assessment isn’t just about finding the most qualified candidate—it’s about finding someone who will thrive and stay. While personality assessments may have once been treated as optional or secondary, new research is making it clear: they’re essential tools for predicting not only how people will perform, but whether they’ll remain in the organisation to make a lasting im

In a world where the cost of turnover continues to rise, and engagement is harder to maintain, behavioural fit is no longer a nice-to-have—it’s a strategic imperative. By leveraging personality data at every stage of the employee lifecycle, companies can make smarter, fairer, and longer-lasting hiring decisions. The science is here. The tools are here. The only question is: will we use them?

• The TPAQ-45™ Personality Profile
• The TPAQ-27™ Personality Profile
• The TPAQ™-Competency Profile Assessment
• Ethos™ Behavioural Styles (E): Emotional Intelligence
• Role-Specific Soft Skills Questionnaires
• Ethos™ Behavioural Styles (S): Strengths