Understanding the significance of problem-solving skills for organizations

Whether it is an entry-level job role or a senior management post, every employee will come across challenges at some point in their career. Therefore, problem-solving skills at the workplace are critical for employees to deal with complex challenges, strict deadlines, and multiple variables.

Problem-solving skills are a set of abilities that allow individuals to identify, assess, and resolve problems or challenges effectively. Critical thinking and logical reasoning are examples of problem-solving skills that assist in finding solutions to complex problems. Some problems may even require individuals to make several smaller decisions to reach the final solution, so the ability to make the right decisions quickly is also essential for effective outcomes.

Having strong problem-solving skills at the workplace also contributes to innovation, which helps come up with creative solutions to complex challenges, providing the organization with a competitive advantage.

Listening skills

Active listening is one of the top problem-solving skills that are important in the workplace. Good problem solvers are active listeners who listen to those around them for the information they need to solve a problem. They value the opinions and experiences of others and understand how those insights can help them reach the root of the problem and define the best way to solve it.

Communication skills

Organizations working in fast-paced environments require good problem solvers who can relay complex information effectively and succinctly.

Teamwork

Reaching the best solution to a challenge may require collaboration, so employees who can work well with others and stay focused on finding and implementing solutions are always a strong asset for organizations.

Emotional intelligence

Emotional intelligence refers to the ability to recognize, understand, and manage one’s own and others’ emotions. High emotional intelligence is crucial for being able to solve problems in a calm and systematic manner, yielding better results.

Analytical thinking skills

Analytical thinking helps individuals identify logical reasons behind problems and their long-term effects and determine the efficacy of different possible solutions to the problem.

Creativity

It is important to balance analytical skills with creativity when approaching challenges, as creative thinking can help individuals develop innovative and progressive solutions for even the most complex problems.

Decision-making

The ability to make effective decisions and have confidence in them is also one of the most important problem-solving skills individuals should have. Most problem-solving situations require individuals to make strong, firm decisions to reach desired outcomes.

Improved time management

Employees with strong problem-solving skills are generally also great at effectively managing their time. Time management skills and the ability to focus on top-priority tasks important for the organization lead to better decision-making and business impact, which drive organizational success.

Enhanced strategizing

Effective problem-solving skills also allow employees to thoroughly assess the requirements of clients, customers, and the organization. They can use their inferences to put together a plan to prioritize, develop, and implement strategies that meet these needs. They can also take the initiative to respond efficiently to the evolving needs of customers.

Thinking outside the box

Strong problem-solving skills offer employees the ability to identify hidden opportunities within problems and challenges. Further, it helps find ways to fix problems dynamically and in creative ways, allowing organizations to stay ahead of the competition and improve the overall efficiency of the workforce over time.

Better stress management

Another great benefit of problem-solving skills in the workplace is the ability to work well under pressure, whether it is about sudden changes in an ongoing project’s requirements or while dealing with short deadlines. Applying analytical skills to complex workplace challenges or approaching deadlines allows employees to understand if the problem requires a quick fix or it requires a complicated but long-term solution. It also helps guide and calm down other team members in stressful situations.

Enhanced risk management

Organizations need employees who react quickly to short-term issues that may come up without losing sight of the long-term. They also have a positive attitude towards learning agility, which helps them anticipate potential problems that may occur in the coming times based on past patterns, current events, and industry trends.

Conflicts

Lack of team spirit or poor team dynamics can lead to workplace conflicts occurring regularly.

What can problem-solving skills do? Teamwork is essential for conflict resolution. Coworkers should share an understanding of the team’s goals, and they should be willing to work towards achieving them, even if they do not agree on the approach. Understanding the perspective of others, analyzing the available information, and proposing different solutions is important for finding common ground.

Process inefficiencies

Outdated, inefficient processes, like multi-step approval processes, can frustrate employees and reduce productivity.

What can problem-solving skills do? Analytical thinking skills can help organizations identify inefficiencies across their operations and established processes, which is the first step in building better procedures.

Challenges in communication

Ineffective communication can create misunderstandings and a lack of clarity or direction, which can prove to be detrimental to the team’s overall performance.

What can problem-solving skills do? Listening skills are crucial for solving communication challenges as they help employees recognize, understand, and acknowledge the point of view of others. One-on-one meetings can help improve communication, and planning team-building activities for remote employees can help improve team cohesion.

Technological advancements

Technological advancements prove to be great for the overall progress of an organization, but in the beginning, they often cause disruptions in work.

What can problem-solving skills do? Cognitive flexibility and creative thinking are among the top examples of problem-solving skills that are required for seamless transitions. Such skills are essential for the successful adoption of any new technology as they allow employees to find new ways to make the most of each technology or tool to improve their productivity.

Lack of proper onboarding resources

Employees may struggle to perform at their best if they do not receive proper training or access to the necessary resources.

What can problem-solving skills can do? The analytical thinking and decision-making skills of the leadership are crucial here, which will allow them to establish SOPs for the distribution of resources in a manner that gives teams the best chance to succeed.

• Step 1: Identifying and defining the problem: Define the problem clearly, take time to analyze it, and gather as much information as possible. Identifying the cause of the problem and the impact it may have on the organization is also important.
• Step 2: Developing possible solutions: Brainstorm all possible solutions. Get creative and come up with as many solutions as possible.
• Step 3: Evaluating the options: Evaluate all the solutions based on their potential, feasibility, and cost. Consider the pros and cons of each solution.
• Step 4: Selecting and implementing a solution: After selecting the most viable solution, the next step requires careful planning and execution. Define the responsibilities of everyone involved clearly and outline exactly how the solution is to be implemented.
• Step 5: Evaluating the results: Assess the efficacy of the solution. Has the problem been addressed? If not, evaluate whether the solution needs to be modified or if a new solution is required.

• Logic: Maintain rationality.
• Objectivity: Understand the situation should be based on facts, free of assumptions, misconceptions, and biases.
• Time: Do not rush into decisions.
• Results and the process: Give both equal importance and focus.
• Synthesize, distil, and visualize: Understand and communicate in the best possible way.
• Aligned solutions: Build consensus for innovative solutions that are mutually agreeable.
• Consistency: Maintain coherence across all problem-solving solutions and decisions.

• Include problem-solving skills in job descriptions: The importance of problem-solving skills cannot be ignored, which is why it is important to assess candidates for the right problem-solving skills at the time of recruitment itself.
• Encourage self-management: Instead of micromanagement, which reduces productivity and employee morale, employees should be offered the opportunity to manage their workflow and productivity of their own.
• Set goals, not instructions: Instead of giving employees step-by-step instructions on completing individual tasks, limit the instructions and provide them with goals to achieve.
• Promote innovation and collaboration: Successful organizations have a workplace culture that supports and promotes innovation and collaboration, which helps employees hone specific problem-solving skills.
• Provide access to resources: Employees should have access to necessary tools and resources that can help them identify problems and develop impactful solutions.
• Offer training opportunities: Problem-solving skills are not necessarily innate skills. Purposeful training opportunities can help employees foster problem-solving skills such as creative thinking, analytical thinking, communication skills, etc.

Organizations can use online assessments to evaluate the problem-solving skills and capabilities of candidates and existing employees. Mercer | Mettl offers a range of online assessments and skills tests, including a comprehensive problem-solving skills test, that can assist organizations in identifying the right candidates for open positions. The test can also be used to assess the strengths and areas of improvement for existing employees, which can help tailor targeted training programs to improve their problem-solving abilities.

Organizations with a workforce with strong problem-solving skills are set for success. Whether it is through recruitment or through employee development programs, problem-solving skills foster innovation and collaboration, contributing to organizational growth.