Personality questionnaires are generally “self-reporting”, meaning that users are required to answer questions about their own personality. Sometimes, if the questionnaire is being used to develop an employee in a role, colleagues may also be asked to complete a questionnaire on eachother, known as a “360” perspective on personality assessment. 360 assessments are resource-intensive and so their use is generally confined to the development of leaders in large organisations.

Unlike aptitude or ability tests, the scores or ratings produced as a result of taking a personality questionnaire are based on self- judgement rather than performance. That is one of the reasons why psychologists disagree on many issues relating to personality questionnaires, particularly on their appropriate use in the recruitment process. 

Recent research has found that HR professionals are often unaware of the literature behind personality testing and other assessments. As a result, the tests that they choose may not reflect the traits they seek in candidates. When it comes to recruiting and selecting candidates, only empirically valid personality questionnaires should be used, and only as a small part of a combined, “multi-measure” approach that involves several measures, including ability tests. 

Given the validity concerns about personality questionnaires some companies opt not to use personality questionnaires to screen candidates. Instead, they use them at a later stage in the selection process to get a deeper understanding of the more successful candidates, and to generate probing interview questions. 

Honesty is the best approach for two reasons. Firstly, some personality questionnaires incorporate internal scales that can reveal if a candidate is 'faking' by distorting their responses line with what they believe the recruiter is looking for. Secondly, employers often use personality questionnaires when deciding where you best fit in their company. For these types of assessments, there is no pass/fail result or right/wrong answers, simply your natural preference. Why lie so that you can end up in a role that you don’t enjoy? So, the best advice is to answer as your true, best self.

https://www.predictiveindex.com/blog/how-to-pass-a-personality-test-and-common-questions-on-faking-assessments/

Trait-based questionnaires are designed to assess the level of a various traits within an individual. A trait is a universal, characteristic pattern of behaviour which is relatively stable over time, e.g. Conscientiousness, Agreeableness. Traits are identified through a statistical process called “factor analysis”. Trait-based questionnaires are designed to measure “how much” of a trait exists within an individual. Users are assigned a score on each trait (as depicted below) that can be used to place them on a normal distribution bell curve.   

Trait-based questionnaires are used in recruitment because they appear to offer recruiters an objective “measure” of desired traits, and a means of comparing the candidate objectively with other candidates, and the general population. They are used by clinical and educational psychologists.

The following are all examples of trait-based questionnaires:  

Big Five; 16PF; OPQ; NEO

Type-based questionnaires are not designed to measure “how much” of a trait is in an individual. They are also not used to competence or psychological problems. The purpose of type questionnaires is to reveal how “healthy,  “functioning” individuals differ from one another.  A type questionnaire can deepen you understanding of how you relate to people, and why. For this reason, type questionnaires are useful in career development, coaching, teamwork and leadership development. 

Type-based Questionaires:

• Reveal inborn preferences, like to a preference to use the right hand when writing, or left foot when kicking a ball.  
• Categorise users in a “bimodal” manner – i.e. the report will show one preference over another (e.g. Extroversion or Introversion). It’s not possible to “prefer” both.  
• Measure preference, not ability. With practice, a yogi who prefers to stand on their left foot could become just as skilled in standing on their right foot. However, the preference to stand on their left foot is likely to remain.  
• Reveal the differences between healthy, functioning adults - so there are no “right” or “wrong” types or preferences.  
• Use terms in a way that may differs in meaning from their everyday use. For example, somebody with a preference for “Introversion” prefers to focus their energy on their inner world. This doesn’t mean that they are timid, shrinking violets who avoid social interaction. Many professionals with roles focused on the outer world, even world leaders, have been shown to have preference for introversion.   
• Are not designed to predict to confine your choices or career mobility.   
• Can provide a greater understanding of how your individual preferences influence your approach to work environments and other people.  

The following are examples of type questionnaires: the MBTI , TDI. 

The Type Dynamics Indicator can reveal your personal preferences based on the same Jungian dichotomies as the MBTI.

The TDI will combine your revealed preferences in each area to create a 4-letter personality “type” as illustrated in the following diagram:

Source: Forsight Corporate Development, 2020