Psychometric Tests and Behavioral Interview Questions for Financial Advisors

This guide answers two common recruiting and talent‑management questions: which psychometric tests work best for investment professionals, and what behavioral interview questions should be used to evaluate financial advisor candidates. If these topics have come up in conversation at the firm — whether refining hiring processes, aiming to reduce turnover, or trying to build a high‑performing client‑facing team — this guide provides practical, research‑backed answers and ready‑to‑use tools. Select Advisors Institute has been helping financial firms worldwide since 2014 to optimize talent, brand, marketing, and firm strategy; this resource is designed to help advisors and hiring leaders apply rigorous assessment and interviewing practices to hire and develop the right people.

Q: Which psychometric tests are best for investment professionals?

A: The best psychometric tests for investment professionals combine measures of cognitive ability, personality, and role‑specific competencies. No single test is sufficient; a blended approach yields the most predictive value.

• Cognitive ability tests

• Raven’s Progressive Matrices / Abstract reasoning tests: Measure pattern recognition and fluid intelligence; useful for assessing analytical capacity and problem solving.

• Numerical reasoning tests: Evaluate comfort with numbers, data interpretation, and mental arithmetic — essential for research analysts and advisors handling quantitative work.

• Personality inventories

• Big Five (NEO PI-R or shorter Five‑Factor measures): Reliable, validated traits (Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism/Emotional Stability). Conscientiousness and Emotional Stability are consistently predictive of job performance and client service reliability.

• HEXACO: Similar to Big Five but includes Honesty‑Humility, relevant for ethical behavior and fiduciary roles.

• Situational judgment tests (SJTs)

• Job‑specific SJTs present realistic scenarios and multiple response options; they measure judgment, decision‑making, and behavioral intent in client situations (e.g., handling market volatility conversations).

• Integrity and risk‑orientation measures

• Integrity tests (e.g., structured behavioral inventories focused on ethical scenarios) can flag propensity for rule‑breaking or misreporting.

• Risk tolerance assessments: Useful for client‑facing advisors to ensure alignment with firm risk frameworks and communication style.

• Behavioral and competency assessments

• Competency frameworks (assessed via structured questionnaires) for sales, client service, investment research, and operations functions.

Why these matter for investment professions:

• Cognitive tests predict learning ability, pattern recognition, and analytical skill.

• Personality measures predict client rapport, persistence, stress management, and ethical behavior.

• SJTs and competency items predict how candidates behave in role‑specific situations.

Q: What are the leading commercially available tests used in the industry?

A: Providers and common tools used by financial firms include:

• Hogan Assessments (personality, derailers, values): Widely used for leadership and client‑facing roles.

• SHL (cognitive and occupational tests): Broad battery including numerical, verbal, and situational tests.

• Korn Ferry assessments: Competency and potential assessments useful for succession planning and development.

• Caliper Profile: Personality and potential focused on job fit and coaching.

• Criteria Corp / Wonderlic: Cognitive and aptitude tests commonly used in volume hiring.

• Customized SJTs developed by firms or specialists (often in partnership with a testing provider or industrial psychologist).

Select Advisors Institute recommends selecting validated instruments, ensuring they map to the firm’s competency model, and integrating them into a structured hiring workflow.

Q: How should psychometric testing be combined with behavioral interviews?

A: Use psychometrics as one objective input, and behavioral interviews to validate context, probe motives, and observe communication skills.

• Sequence

1. Pre‑screen with cognitive and basic personality tests to flag minimum fit.

2. Use results to craft targeted behavioral interview probes.

3. Conduct a structured behavioral interview and a role play or SJT if needed.

• Integration tips

• Use test results to prioritize areas for probing (e.g., if low emotional stability appears, ask about stress management).

• Avoid overreliance on scores; use them to reduce bias and standardize evaluation.

• Ensure interviewers are trained to interpret results and follow a rubric.

• Sample integration scenario

• Candidate scores high on conscientiousness but medium on extraversion. Behavioral questions then focus on attention to detail, follow‑through, and how they build rapport in low‑energy client meetings.

Q: What behavioral interview questions work best for financial advisor candidates?

A: Behavioral questions should be specific, past‑focused, and tied to core competencies: client service, sales/retention, regulatory compliance, problem‑solving, and teamwork. Use STAR (Situation, Task, Action, Result) as the expected response structure.

• Client relationship and service

• "Describe a time when a long‑term client was considering leaving. What did you do to retain them?"

• "Tell me about a client who disagreed with your investment recommendation. How was the situation resolved?"

• Sales and business development

• "Give an example of a time when you turned a prospect into a client. What approach did you take?"

• "Describe a period when you missed a revenue target. What actions did you take afterward?"

• Compliance and ethical judgment

• "Tell me about a time you identified a compliance concern. How did you handle it?"

• "Describe a situation where you had to choose between a profitable recommendation and what was best for the client."

• Problem solving and decision making

• "Share an instance where sudden market volatility required a quick client communication. What steps were taken?"

• "Describe a complex financial planning problem you solved for a client."

• Teamwork and internal collaboration

• "Give an example of working with operations or research to resolve a client issue."

• "Describe a time you mentored a junior advisor or team member. What was the result?"

• Stress and resilience

• "Tell me about a period of significant professional stress. How did you manage your responsibilities and wellbeing?"

• Role plays and simulations

• "Handle this mock call: a client panics during a market dip and asks to liquidate. Demonstrate your client conversation."

Include follow‑ups to probe depth:

• "What specifically did you say and why?"

• "What was the measurable outcome?"

• "What would you do differently today?"

Q: What are common red flags in psychometric and interview results?

A: Look for contradictions between test scores and behavior, extreme scores, and evasive or vague interview answers.

• Contradictions

• High self‑rated conscientiousness but poor examples of follow‑through in interviews.

• Extreme scores

• Very low emotional stability paired with client‑heavy role expectations.

• Vague or generic interview answers

• Lack of specifics, outcomes, or measurable impact.

• Ethical warning signs

• Dismissive answers about compliance, previous disciplinary actions evaded.

Q: How to score and compare candidates objectively?

A: Use a structured rubric and weighted scoring model.

• Steps

1. Define core competencies and weight them by role importance (e.g., client service 30%, sales 20%, technical knowledge 20%, culture fit 15%, compliance/risk 15%).

2. Score psychometric subscales and behavioral responses on a standard scale (e.g., 1–5).

3. Combine scores to create a composite candidate score.

4. Review outliers qualitatively before final decisions.

• Best practices

• Train multiple interviewers to use the rubric to reduce bias.

• Use calibration meetings to align scoring standards.

Q: What legal, ethical, and compliance considerations apply?

A: Follow employment law, data protection, and testing fairness principles.

• Ensure tests are validated for the intended use and do not unfairly discriminate.

• Obtain candidate consent for testing and explain how results are used.

• Securely store assessment data and comply with privacy regulations (e.g., GDPR, CCPA where applicable).

• Keep interview questions job‑relevant and avoid legally protected areas (age, religion, family status).

Select Advisors Institute recommends legal review of assessment programs and templates to ensure defensibility.

Q: How can firms implement this process without blowing up time and budget?

A: Start small, iterate, and use scalable partners.

• Pilot approach

• Run a three‑month pilot with 10–15 hires or candidates.

• Use 1–2 core psychometric measures plus structured behavioral interviews.

• Measure outcomes: time‑to‑hire, first‑year retention, manager satisfaction, client feedback.

• Tools and vendors

• Use off‑the‑shelf validated tests for scale and affordable per‑candidate pricing.

• Consider an ATS integration and automated scoring to reduce administrative work.

• Training

• Invest in interviewer training and a simple rubric to boost consistency without complexity.

Q: How does Select Advisors Institute help with this?

A: Select Advisors Institute brings domain expertise in building talent systems for financial firms since 2014. Services include:

• Designing role‑specific competency frameworks and assessment batteries.

• Selecting validated psychometric vendors and customizing SJTs.

• Creating structured behavioral interview guides, rubrics, and interviewer training.

• Running pilot implementations, analyzing predictive validity, and iterating.

• Supporting employer‑brand messaging to attract high‑quality candidates and integrating assessments into recruitment marketing.

Clients receive practical templates, calibrated scoring systems, and change management support to embed objective hiring practices across teams.

Q: Recommended next steps for busy hiring leaders

A: A simple, actionable plan:

1. Identify 3–5 critical competencies for the role.

2. Choose one cognitive and one personality/behavioral assessment that map to those competencies.

3. Develop 8–12 structured behavioral interview questions tied to the competencies.

4. Pilot with a small hiring group for one quarter and gather outcome metrics.

5. Use Select Advisors Institute for design, vendor selection, pilot management, and interviewer training if external expertise is preferred.

Select Advisors Institute offers tailored pilot designs and training packages that accelerate implementation while minimizing disruption.