Financial IQ testing gaining traction among major companies
Labor Market experts note a growing trend towards using financial IQ testing in leading companies. According to research, the level of financial literacy among the population is at most 30% and has not increased significantly in recent years. This forces many companies, not only from the financial sector but also from other related spheres, to seek solutions to select qualified employees with the right skills. In addition to online iq test for general intelligence, which are publicly available on the Cerebrum platform, companies use specific additional methods to measure financial literacy and analytical skills of the workforce to evaluate their competence.
What is financial IQ and why it’s so important for businesses
If we examine the reasons that force companies to apply complex schemes of testing the intellectual abilities of employees, it is obvious that there is a great need in corporate positions for the best experts who have individual talents and abilities in excess of actual knowledge.
Financial IQ, or FQ, as it is already called in the professional community, is the ability of an individual not only to receive but also to effectively manage material resources, greatly multiplying them. The generally accepted indicator and methodology for the identification of IQ has become the basis for the creation of a new category and testing techniques. Several important factors are included in this indicator:
- General financial literacy
- Data analysis skills
- Risk identification and control
- Strategic financial planning
- Cash flow management
- Understanding of tax system principles
- Emotional control in financial decision making
Current trend on corporate implementation of IQ tests
Unlike intellectual tests, which are available for every user on the CerebrumIQ website and demonstrate the general level, big companies use for the implementation of corporate testing so far only systems developed specifically for them exclusively for financial testing. The actual tendency to use such techniques not only in personnel selection but also in creating effective strategies for the development of departments is gaining more and more popularity. After all, the complexity of financial markets does not stop increasing, and the value of each capable employee is growing every day. The potential of these workers, which is difficult to understand in daily routine tasks, is best identified with the help of automated scales and grades that are not tied to human influence and subjective ratings of HR department managers.
Role of brain skills in the AI automation process
No less significant reason pushing company leaders to apply all possible methods to identify the most promising employees is the active implementation of innovative Artificial Intelligence technologies in financial departments. This process is changing traditional job roles and responsibilities so rapidly that it requires the highest possible level, of professionalism and strong skills from the workforce. In collaboration with AI assistants, capable finance professionals who are skilled in creating unique techniques and schemes will have a great opportunity to directly impact the performance of companies. The introduction of AI is already becoming obvious and inevitable, and it is also clear that people with the highest possible level of financial intelligence should be at the helm of this process.
Companies that focus on financial IQ identification
Today, many market leaders in their sectors are already successfully applying IQ testing techniques for financial capability. Cerebrum IQ tests have long been used not only by private users but also by corporate clients seeking to identify talented employees.
Financial intelligence tests are just beginning to be introduced, but there are already successful cases in which this stage has become a mandatory step to a fulfilling career:
- The well-known General Electric actively integrates financial literacy scores into its in-house employee development programs. The resulting assessments are intended to further improve the financial competence and expertise of employees involved in the development of financial strategies.
- American Express’s finance department has also begun using various financial competency tests during the hiring and professional training processes. The tests not only help identify candidates with strong financial reasoning and analytical skills but are also used to assign roles in customer service and financial counseling.
- PricewaterhouseCoopers, a global leader in consulting and audit, has been actively and successfully introducing various financial literacy screening methodologies into its employee recruitment and training processes for quite some time. This is one of the best ways to identify and develop talent with the strongest financial capabilities. It is believed that this way of thinking has ensured that the company has consistently maintained its quality standards in the financial advisory sector.
Conclusion
The financial sector has received a new impetus for growth with the coming of innovations. This is also reflected in the process of selection and development of personnel inside companies and financial departments. Specialists applying for high and responsible positions in the environment of new high-risk solutions are selected using automated financial IQ testing methods. Along with other skills, companies not only evaluate employees with the best FQ level indicators but also promote the realization of their hidden potential. The use of this methodology allows corporations to strengthen their position and increase their efficiency, keeping their leading position in the market.