Personality Assessment Solution Market Size, Trends and Growth Analysis by 2027

The global market for personality assessment solutions is projected to expand significantly, increasing from US$ 7,421.59 million in 2021 to US$ 16,461.43 million by 2028. This growth represents a compound annual growth rate (CAGR) of 12.1% during the period from 2021 to 2028.

Implementing personality assessment tests among current employees and sharing the outcomes can enhance mutual understanding among team members. When employees grasp how their colleagues and supervisors prefer to communicate, they tend to become more efficient and adapt more comfortably to their work environment. Additionally, personality assessments for employee development provide human resources (HR) professionals with valuable insights into how to nurture an employee's potential for future roles by identifying key personality traits. For example, an individual exhibiting strong critical thinking skills, a high level of presence of mind, and effective stress management could be considered for a strategic leadership position.

These assessments can also evaluate employee adaptability, preferred learning styles, and responses to change. Such insights are crucial for making informed decisions regarding organizational planning, promotions, appraisals, and leadership development. The COVID-19 pandemic has accelerated the shift towards remote work, leading to online hiring processes that may not fully assess an employee's capabilities. However, personality assessments can reveal essential skills and highlight areas needing improvement, allowing supervisors to provide targeted training. Aon plc., for instance, offers personality assessments tailored for employees.

The personality assessment solutions market is categorized based on delivery model, end-user, and geographical region. In terms of delivery model, the market is divided into in-house and outsourced segments, with the outsourced segment holding a larger share of the market in 2020. Regarding end-users, the market is segmented into corporate/enterprise, academic/education, and government sectors, with the corporate/enterprise segment representing a significant portion of the market in 2020. Geographically, the market is divided into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM), with Europe accounting for a substantial share in 2020.

The impact of the COVID-19 pandemic varied across Europe, with countries like France, Spain, and Italy experiencing a surge in confirmed cases, leading to extended lockdowns and social isolation. Conversely, Western European nations such as Germany, France, Russia, and the UK faced a relatively moderate decline in growth activities, thanks to their robust healthcare systems. To mitigate the virus's spread, European governments invested heavily in technology to enhance their healthcare systems and identify virus symptoms. By 2021, as lockdowns were lifted and vaccination efforts progressed, offices began to operate more smoothly.

At the onset of 2020, many sectors saw a dramatic slowdown in economic activity, with numerous businesses struggling to meet financial obligations. The uncertainty prompted many companies to consider workforce adjustments, putting millions of jobs at risk through reduced hours, pay cuts, temporary furloughs, or permanent layoffs. According to data from McKinsey & Company in April 2020, the COVID-19 crisis threatened up to 59 million jobs in Europe, representing a staggering 26% of total employment across the 27 EU member states and the UK. By mid-2020 and into 2021, businesses increasingly adopted online recruitment processes due to remote work, leading to a surge in the use of personality assessment solutions. Thus, the pandemic has inadvertently fostered growth in the personality assessment solutions market.

The overall size of the personality assessment solutions market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the personality assessment solutions market across all segments. Furthermore, primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the personality assessment solutions market.

Key players in the global personality assessment solutions market include Criteria Corp., Hogan Assessments, Development Dimensions International, Inc., Persona Labs, SHL, SIGMA Assessment Systems Inc., Paradox, Inc., TTI Success Insights, Aon plc., and Mercer LLC.