This is a ridiculous concept to me that head hunters are trying to make analysts take these. Does anyone else share the same opinion? I’m working 90+ hours a week the last thing I want to do is take an IQ test on 4 hours of sleep. Doubt it correlates to job performance. PE isn’t rocket science exactly. Wouldn’t even want to work at a shop that puts a high priority on this.
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Based on the most helpful WSO content, your frustration is shared by many in the industry. While IQ or aptitude tests are increasingly used as part of the recruitment process, they are often criticized for their limited correlation to actual job performance. For example, some WSO threads highlight that these tests are merely one data point and not definitive indicators of success.
In private equity (PE) or investment banking (IB), traits like attention to detail, work ethic, and the ability to handle stress often outweigh raw cognitive scores. As one user pointed out, real-life work is more akin to preparing for the SAT or maintaining a high GPA—both of which require consistent effort and preparation, rather than a one-off test score.
Moreover, some argue that these tests are flawed but still serve as a quick filter for employers to reduce the volume of applicants. While they may have "some merit" as proxies for intelligence, they are far from perfect and can overlook strong candidates who excel in other areas. If a firm places excessive emphasis on these tests, it might not align with the culture or values you're seeking in a workplace.
Sources: Bank of America Online Assessment Test and Application Process, London recruitment-can't understand how it works., Is Traditional Finance Dead?, Pymetrics... What the fuck??, Is the SAT important? Wall Street Says Yes.
What are these tests exactly?
Is it the PXT Assessment? I recently had to take that for my new role
It was described as a test to gauge how people work and that "there's no right or wrong answer," but was clearly a test for aptitude
Think they are a good idea. We need more filters based on actual competence in this industry. Too many nepo babies.
Yes because clicking patterns of shapes = competence in the industry. And tbh if you can’t filter out nepo babies by GPA, SAT, deal walkthroughs, resume screens and a 4 hour model test might be a you problem. Nepo babies don’t slip through… they are pushed through.
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