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How to Make Better-Informed HR Decisions: Applying Critical Evaluation

Written especially for HR professionals at small businesses and HR departments of one, Applying Critical Evaluation (Society for Human Resource Management, 2017) by Jennifer Currence, SHRM-SCP, draws from thought leaders' insights and real-life examples to provide ready-to-use recommendations that HR professionals can incorporate into nearly every aspect of the job. The book is the second title in the SHRM Competency Series, which will cover nine behavioral competencies that are critical to effective HR performance.

Currence, president of  OnCore Management Solutions  in Tampa Bay, Fla., and a professor of human resource management at the University of Tampa, is a presenter at the SHRM 2017 Annual Conference & Exposition June 18-21 in New Orleans on Top Five Priorities for an HR Department of One , How to Create a Dynamic Onboarding Experience and Developing Business Acumen as an HR Department of One . 

HR Magazine 's Book Blog recently spoke with her about how HR can make an impact by applying critical evaluation. 

What makes critical evaluation an indispensable tool for the day-to-day work of HR professionals?

Critical evaluation is about going deep instead of wide. In the first book in the SHRM Competency Series, Developing Business Acumen , we talked about how HR can effectively develop business goals, mission and values. HR must be able to create and recommend programs that align with those goals. Critical evaluation is the linchpin between understanding the business and offering consultative solutions for effective people programs.

Why is it important to start the critical evaluation process by assessing the big picture?

Sometimes when confronted with a situation, we try to solve it quickly based on past experience. Or we immediately address what we think is the causation. When we start midway into the process, we miss the opportunity to ask the right questions. That's what enables us to examine all the options.

How has learning about critical evaluation changed your approach to problem-solving and decision-making?

I realized I had an unconscious bias against the very term "critical evaluation." Critical evaluation means a lot of hard work, right? But what I learned was that I gained so much more confidence going through the process, and that's when some magic started to happen. I have learned that following the process is immensely rewarding.

How can HR best evaluate the quality of its decisions?

Decide on three optimal choices or plans of action and measure each of them against what works for your organization [and] what doesn't work, and critically evaluate whether or not there are any unconscious biases or assumptions that are playing a part in your decision.

Not every situation requires a formal critical evaluation process. What advice do you have for making everyday decisions?

Successful solutions invariably derive from an openness to possibilities. If we remain curious, we'll overcome our biases and gather key information and data to make sound decisions. But beware of over-analyzing. One trick I use to move myself from thinking to doing (or deciding) is to schedule a deadline for myself—and promise someone an answer at that time to help hold myself accountable.

What's one thing HR professionals can do today to apply critical evaluation in their decision-making?

Develop this habit: When confronted with an issue or problem, ask yourself "why" five times. Simple, but you'll be surprised how your responses will guide a realistic and manageable approach. Next step? Read Applying Critical Evaluation , naturally!

Matt Davis manages book publishing at SHRM.

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A Short Guide to Building Your Team’s Critical Thinking Skills

• Matt Plummer

Critical thinking isn’t an innate skill. It can be learned.

Most employers lack an effective way to objectively assess critical thinking skills and most managers don’t know how to provide specific instruction to team members in need of becoming better thinkers. Instead, most managers employ a sink-or-swim approach, ultimately creating work-arounds to keep those who can’t figure out how to “swim” from making important decisions. But it doesn’t have to be this way. To demystify what critical thinking is and how it is developed, the author’s team turned to three research-backed models: The Halpern Critical Thinking Assessment, Pearson’s RED Critical Thinking Model, and Bloom’s Taxonomy. Using these models, they developed the Critical Thinking Roadmap, a framework that breaks critical thinking down into four measurable phases: the ability to execute, synthesize, recommend, and generate.

With critical thinking ranking among the most in-demand skills for job candidates , you would think that educational institutions would prepare candidates well to be exceptional thinkers, and employers would be adept at developing such skills in existing employees. Unfortunately, both are largely untrue.

• Matt Plummer (@mtplummer) is the founder of Zarvana, which offers online programs and coaching services to help working professionals become more productive by developing time-saving habits. Before starting Zarvana, Matt spent six years at Bain & Company spin-out, The Bridgespan Group, a strategy and management consulting firm for nonprofits, foundations, and philanthropists.  

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  Critical Thinking in HR 

Although we may not have been aware of it, critical thinking has always played an important role in business. Have you ever been in a meeting with senior management making a business case for a HR policy only to find your sound case was derailed? Someone in the room may relate it to something that didn’t work in the past, causing your valid arguments to be lost? If this sounds familiar, that person may have applied their critical thinking skills to the situation to your detriment. 

Opportunities to share ideas with senior management or outside stakeholders may not present themselves regularly. To make the most of them it is important people professionals can identify and employ critical thinking skills. 

It is also an area employers surveyed by the World Economic Forum identified as essential to the future of work across many industries. Critical thinking and analysis topped a list of ten skills  employers believed would be required in 2025. 

What are critical thinking skills?

Before we delve into why critical thinking matters for people professionals and how you can develop your critical thinking skills, it is important to define the term. Critical thinking is a process of conceptualising, analysing and evaluating information gathered from observation, experience or communication to guide belief or action. For people professionals there are three key areas relating to the skill:  

• Critiquing the ideas and arguments of others
• Constructing our own ideas and arguments
• Identifying when others are using critical thinking 

Critical thinking helps people professionals make decisions in a more reflective way. These decisions are less likely to be biased , crucial for HR leaders.

Why is critical thinking important in HR?

HR and People management involves solving a multitude of problems for your business. Critical thinking is important in people management because it helps us avoid making decisions based on:

• Incorrect assumptions
• Unreliable sources
• Unconscious biases 

Having strong critical thinking skills enables HR professionals at all levels to collect and process information in a structured way aiding the problem solving process. 

Critical thinking also helps people managers engage in strategic conversations with internal business partners from professions where critical thinking is a central part of their role like legal professionals, engineers or C Suite management. HR teams are often asked to facilitate meetings around complex or difficult strategic issues amongst other parts of the business. With critical thinking knowledge you are likely to be in a better position to do this but also to facilitate stakeholder thoughts in a more structured way.

How to develop critical thinking skills?

Fortunately, critical thinking skills are not inherent, it is something that can be learnt or improved upon. If you feel your skills need some improvement we have found 6 ways HR professionals can improve critical thinking skills :

1. Question your own thinking

It is natural for all human beings to develop a pattern of thinking that we use to navigate life and work. As a HR leader it is easy to believe something must be correct because it has ‘always been done that way’. Critical thinking helps us to break out of those patterns of passive thinking where little changes. Instead, it asks us to question how we think and look for problems that could be solved to make a situation or process better. 

2. Discern relevant data

The digital age means we are often overwhelmed by data. It is important that people managers remember that not all data is useful or relevant. As critical thinking skills improve it should become easier for you to divide information into what to ignore and what to pay attention to.

3. Explore new ideas

It can sometimes be intimidating or threatening when you are faced with new ideas, especially in such a regulated area. In order to grow as a professional, it is important to explore new ideas. Speak to colleagues or people in other departments for input on how things could be done. Take a professional development course in an area of interest or read up on new developments in the industry that your business might be able to employ.

4. Encourage alternative views

Often businesses get stuck in a cycle of short-term thinking. Getting things done to reach immediate goals at the expense of the bigger picture. Developing an organisational culture that is open to alternative views is an important part of facilitating critical thinking. Don’t just wait for colleagues to challenge the status quo, actively encourage it through:

• Informal conversations
• Brainstorms

When provided with the space to do so, you and your colleagues may come up with many alternative ideas that challenge existing processes and procedures across the organization.

5. Take time to decide

A quick decision is the enemy of critical thinking. If you regularly make decisions on the fly, take time to reflect on whether with the benefit of hindsight they were always the right one. As a people manager it is important to take time to think about important decisions. Particularly those that are going to impact the entire organisation.

If you love a proposal, take some time to think about potential negative implications. Try to look at it from a number of different viewpoints, put yourself in the shoes of someone of a different:

• Level in the organisation

How will your decision impact each of them? If it is a very significant change, it might be worth interviewing a spectrum of people for their opinion before you make a final decision. Take a similar approach to decisions you don’t like, just because you don’t like an idea does not mean it is not the right thing for the wider team or organization as a whole. 

6. Avoid assumptions

The old adage making an assumption makes an ass out of you and me is most certainly true when it comes to critical thinking. Before you unintentionally jump to a conclusion ask yourself:

a.            What are the facts?

b.            Is there a relationship between cause and effect?

c.            Is the language used to describe the issue is ambiguous or clear?

          These questions will help you avoid falling back on something you believe to be true without any proof. 

TedTalks to improve your critical thinking skills

Prefer to learn by watching or listening? The experts at TED have created some useful talks on the subject of critical thinking:

1.  5 tips to improve your critical thinking

Samantha Agoos takes us through a five step process we can apply to decision making in any area of life.  

2.  Encourage critical thinking with these 3 questions

Eric Wilberding shared the Socratic Method of critical thinking developed by Socrates one of the founding fathers of philosophical thought.  

3.  How can you change someone's mind

Hugo Mercier demonstrates how critical thinking skills can be used to change the minds of others. Particularly useful for people managers who have to influence others within the business. 

The most important thing to remember when it comes to using critical thinking effectively is there is no one right answer. You can use this skill to create a number of options, all of which may work well.  Although people management may be fraught with difficult decisions. International health insurance for your expat employees does not have to be one of them. We offer tailor made solutions for businesses of all sizes. Get in touch with us today to discover more. 

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Critical Thinking

Developing the right mindset and skills.

By the Mind Tools Content Team

We make hundreds of decisions every day and, whether we realize it or not, we're all critical thinkers.

We use critical thinking each time we weigh up our options, prioritize our responsibilities, or think about the likely effects of our actions. It's a crucial skill that helps us to cut out misinformation and make wise decisions. The trouble is, we're not always very good at it!

In this article, we'll explore the key skills that you need to develop your critical thinking skills, and how to adopt a critical thinking mindset, so that you can make well-informed decisions.

What Is Critical Thinking?

Critical thinking is the discipline of rigorously and skillfully using information, experience, observation, and reasoning to guide your decisions, actions, and beliefs. You'll need to actively question every step of your thinking process to do it well.

Collecting, analyzing and evaluating information is an important skill in life, and a highly valued asset in the workplace. People who score highly in critical thinking assessments are also rated by their managers as having good problem-solving skills, creativity, strong decision-making skills, and good overall performance. [1]

Key Critical Thinking Skills

Critical thinkers possess a set of key characteristics which help them to question information and their own thinking. Focus on the following areas to develop your critical thinking skills:

Being willing and able to explore alternative approaches and experimental ideas is crucial. Can you think through "what if" scenarios, create plausible options, and test out your theories? If not, you'll tend to write off ideas and options too soon, so you may miss the best answer to your situation.

To nurture your curiosity, stay up to date with facts and trends. You'll overlook important information if you allow yourself to become "blinkered," so always be open to new information.

But don't stop there! Look for opposing views or evidence to challenge your information, and seek clarification when things are unclear. This will help you to reassess your beliefs and make a well-informed decision later. Read our article, Opening Closed Minds , for more ways to stay receptive.

Logical Thinking

You must be skilled at reasoning and extending logic to come up with plausible options or outcomes.

It's also important to emphasize logic over emotion. Emotion can be motivating but it can also lead you to take hasty and unwise action, so control your emotions and be cautious in your judgments. Know when a conclusion is "fact" and when it is not. "Could-be-true" conclusions are based on assumptions and must be tested further. Read our article, Logical Fallacies , for help with this.

Use creative problem solving to balance cold logic. By thinking outside of the box you can identify new possible outcomes by using pieces of information that you already have.

Self-Awareness

Many of the decisions we make in life are subtly informed by our values and beliefs. These influences are called cognitive biases and it can be difficult to identify them in ourselves because they're often subconscious.

Practicing self-awareness will allow you to reflect on the beliefs you have and the choices you make. You'll then be better equipped to challenge your own thinking and make improved, unbiased decisions.

One particularly useful tool for critical thinking is the Ladder of Inference . It allows you to test and validate your thinking process, rather than jumping to poorly supported conclusions.

Developing a Critical Thinking Mindset

Combine the above skills with the right mindset so that you can make better decisions and adopt more effective courses of action. You can develop your critical thinking mindset by following this process:

Gather Information

First, collect data, opinions and facts on the issue that you need to solve. Draw on what you already know, and turn to new sources of information to help inform your understanding. Consider what gaps there are in your knowledge and seek to fill them. And look for information that challenges your assumptions and beliefs.

Be sure to verify the authority and authenticity of your sources. Not everything you read is true! Use this checklist to ensure that your information is valid:

• Are your information sources trustworthy ? (For example, well-respected authors, trusted colleagues or peers, recognized industry publications, websites, blogs, etc.)
• Is the information you have gathered up to date ?
• Has the information received any direct criticism ?
• Does the information have any errors or inaccuracies ?
• Is there any evidence to support or corroborate the information you have gathered?
• Is the information you have gathered subjective or biased in any way? (For example, is it based on opinion, rather than fact? Is any of the information you have gathered designed to promote a particular service or organization?)

If any information appears to be irrelevant or invalid, don't include it in your decision making. But don't omit information just because you disagree with it, or your final decision will be flawed and bias.

Now observe the information you have gathered, and interpret it. What are the key findings and main takeaways? What does the evidence point to? Start to build one or two possible arguments based on what you have found.

You'll need to look for the details within the mass of information, so use your powers of observation to identify any patterns or similarities. You can then analyze and extend these trends to make sensible predictions about the future.

To help you to sift through the multiple ideas and theories, it can be useful to group and order items according to their characteristics. From here, you can compare and contrast the different items. And once you've determined how similar or different things are from one another, Paired Comparison Analysis can help you to analyze them.

The final step involves challenging the information and rationalizing its arguments.

Apply the laws of reason (induction, deduction, analogy) to judge an argument and determine its merits. To do this, it's essential that you can determine the significance and validity of an argument to put it in the correct perspective. Take a look at our article, Rational Thinking , for more information about how to do this.

Once you have considered all of the arguments and options rationally, you can finally make an informed decision.

Afterward, take time to reflect on what you have learned and what you found challenging. Step back from the detail of your decision or problem, and look at the bigger picture. Record what you've learned from your observations and experience.

Critical thinking involves rigorously and skilfully using information, experience, observation, and reasoning to guide your decisions, actions and beliefs. It's a useful skill in the workplace and in life.

You'll need to be curious and creative to explore alternative possibilities, but rational to apply logic, and self-aware to identify when your beliefs could affect your decisions or actions.

You can demonstrate a high level of critical thinking by validating your information, analyzing its meaning, and finally evaluating the argument.

Critical Thinking Infographic

See Critical Thinking represented in our infographic: An Elementary Guide to Critical Thinking .

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Why critical thinking is so important.

Updated: Oct 16, 2020

What Is Critical Thinking

Critical thinking is the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication, as a guide to belief and action. In its exemplary form, it is based on universal intellectual values that transcend subject matter divisions: clarity, accuracy, precision, consistency, relevance, sound evidence, good reasons, depth, breadth, and fairness.

Value of Critical Thinking

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Best Critical Thinking Examples to Help You Improve Your Critical and Analytical Skills

Critical thinking has been studied since ancient times. Greek philosophers such as Aristotle and Plato provided us with good critical thinking examples and the foundations for this field. Socrates is widely regarded as one of the fathers of critical thinking and deductive reasoning, a valuable skill in a world plagued with fake news and overwhelming amounts of information.

However, what is critical thinking? How can we use it in everyday life? In this article, we will explain what critical thinking is and why it is important, provide tips for improving your critical thinking skills, and offer the best examples of critical thinking.

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What is critical thinking.

Critical thinking is the ability to think clearly and logically about what to do or believe. To do so, you must establish logical connections between ideas, evaluate arguments, approach problems systematically, and reflect on your values and beliefs. Logical thinking and scientific thinking are types of thinking that depend on these skills.

Additionally, the critical thinking process involves challenging knowledge to discover the truth. It involves reviewing knowledge and information to make an informed decision. You can improve your critical thinking skills by becoming more adept at analyzing problems, identifying biases, practicing active listening and inductive reasoning, and avoiding emotional reasoning.

Where Is Critical Thinking Used?

• Progressive education
• Risk assessment
• Programming
• SAT standardized tests

Why Is Critical Thinking Important?

Critical thinking is important because it allows you to better synthesize, analyze and interpret information. Other critical thinking skills like problem-solving , observation, and communication, can help you advance in your career. All of these skills can enable you to understand yourself better and make better life decisions.

Many people believe they are critical thinkers. However, when drawing conclusions in real life most people rely on common sense and numerous fallacies. To avoid this, we must have critical thinking dispositions to gain more insight, learn to identify a weak argument, and make better decisions. Understanding critical thinking concepts is crucial if you want to understand your thoughts, emotions, or live a better life.

Real-World Examples of Critical Thinking

People live their lives based on the choices they make. As a result, they require critical thinking skills and a constructive approach to problem-solving to make their lives easier. For example, if you need to deliver to multiple locations, don’t just go there by chance.

To save time, determine which location is closest and devise an efficient pattern for the next locations you will need to visit. This is just one of many examples of critical thinking for the following section. Below are more critical thinking examples.

• Self-evaluation of your actions
• HR manager resolving conflict between staffs
• A military officer working on tactical plans
• Professor guiding students to fresh ideas with creative questioning
• Student defending a master’s thesis
• Basketball coach seeking out new tactics during a timeout
• Writer organizing content ideas
• Applicant preparing for a job interview
• Using a disciplined process to look for a job
• A detective using their observational ability to analyze a crime scene

10 Great Examples of Critical Thinking

Critical thinking example 1: self-evaluation of your actions.

Self-evaluation is essential for improving your overall performance. When you use reflective thinking or try to evaluate yourself, you analyze what went wrong and how you can improve in the future. You attempt to understand what happened and figure out what you need to change to get different results.

Many universities and schools use special questionnaires that test critical thinking abilities. For example, Cambridge, a school with over 20 years of experience in assessing critical thinking, uses a student self-assessment critical thinking questionnaire .

Critical Thinking Example 2: HR Manager Resolving Conflict Between Staffs

Employees have disagreements in every organization. In many cases, it is the HR manager who steps in to solve the problem. However, the HR manager must first listen to both sides, determine the source of the problem, assess the situation, and decide how to proceed. As a result, a soft skill such as problem-solving or management is essential for HR.

Critical Thinking Example 3: A Military Officer Working on Tactical Plans

A military officer working on tactical plans for extracting fellow soldiers in a dangerous military zone is another example. In this case, the military officer must find an effective way to get the soldiers out of the danger zone while minimizing casualties, which requires logical thinking.

Critical Thinking Example 4: Professor Guiding Students to Fresh Ideas With Creative Questioning

Creative questioning is an interesting process because it can promote critical thinking. By asking creative open-ended questions, the professor makes students think more deeply about a subject. Therefore, they need to discern what information to pick and share. Analysis of arguments is another way to foster analytical thinking among students.

Critical Thinking Example 5: Student Defending a Master’s Thesis

Writing a master’s thesis requires applying critical thinking. You seek and gather information, conduct research, perform calculations, analyze data, and draw conclusions. You also demonstrate what critical skills you used to create the thesis by explaining all of the steps and methodology you used in the research process.

Critical Thinking Example 6: Basketball Coach Seeking Out New Tactics During a Timeout

In some cases, if the match does not go well, the basketball coach may call a timeout to reassess the team’s strategy. During the timeout, a basketball coach looks for new tactics that reveal the vulnerabilities of the opposing team. The coach needs to find a way to assess the potential risks and provide a new strategy that will lead the team to victory.

Critical Thinking Example 7: Writer Organizing Content Ideas

When writing articles, writers must distinguish between good and bad information. They must also make the article flow. To accomplish this, writers must adhere to the core concept of writing format: title, introduction, body, and conclusion. This means that they have to choose certain information to insert in certain sections of the text.

Critical Thinking Example 8: Applicants Preparing for a Job Interview

If you apply for a job and go to the interview blindly, there is a high chance you will not be hired. It is preferable to arrive prepared and apply critical thinking to the interview. One tip for interview preparation is to ask yourself outcome-based questions about the job. Before going to the interview, practice answering questions and acting quickly.

Critical Thinking Example 9: Using a Disciplined Process to Look for a Job

It can be difficult to find a job. Some stats show that on average it takes 100 to 200 applications to get a job. To improve your chances, you should put your critical thinking cap on. Logical thinking can help you consider how you will approach employers, devote time to updating your resume, skills, and create an effective cover letter .

Critical Thinking Example 10: A Detective Using Their Observational Ability to Analyze a Crime Scene

As a police detective, you must have strong critical thinking skills as well as excellent observational abilities to analyze a crime scene. You need logical inquiry and deduction skills to analyze the evidence. A police detective must have probable cause to obtain a search warrant from a judge to search a suspect’s home, which is another example of critical thinking.

Pro Tips to Boost Your Critical Thinking Skills

• Analyze and Break It Down. Before forming an opinion, conduct extensive research and analysis. Once you have enough information, then you can try to break down all that information and analyze what it means. It is a good idea to break the problem down into smaller pieces so that you can see the bigger picture.
• Deal With Your Biases. Critical thinking requires constant work, as people have biases that they need to deal with throughout their lives. If a person is aware of their biases, they can be aware of their own thought process and make sure they’re not just thinking one way.
• Seek Advice. Develop a strong sense of acquiring knowledge. This means seeking advice when you are not sure about what you know. If you don’t know something, ask someone that knows. The more information you have, the better conclusion you can draw. Deal with the fact that you are not always right.

What Should Be the Next Step in My Critical Thinking Learning Journey?

Your next step in your critical thinking learning journey should be to actively use it in your everyday life. In real life, people encounter many opportunities to solve problems. With critical and careful thinking, you can afford to lead a better life and make more accurate decisions.

Using analytical and objective reasoning are some of the intellectual virtues that critical thinking offers to get a better job. If you use it in self-evaluation you can become a better version of yourself.

Advancing this skill can improve your professional life, problem-solving, and improve in developing and executing solutions. If you want to have well-informed opinions and deal with your biases, advance your critical thinking skills.

Critical Thinking Examples FAQ

Yes, critical thinking is a skill. The interesting part is that critical thinking is a learned skill. If it can be learned then it can be taught. However, the problem is that in many cases an experienced instructor is needed to transfer the skill. It is also one of the 21st-century skills you need to add to your resume.

Developing your critical thinking skills is a gradual process that requires deliberate effort. Changing your thought patterns and practices is a long-term project that you should commit to for the rest of your life.

No, IQ tests don’t measure critical thinking. Intelligence and critical thinking are not the same. If you want to test your critical thinking ability, you need a specialized critical thinking test. One example is the Cornell critical thinking test .

The bandwagon fallacy is about creating an opinion based on what the majority thinks. If everyone says the same thing, then it must be true. The problem with this notion is that the opinion of the majority is not always valid or a real form of knowledge. To avoid the bandwagon fallacy, you need to have a critical thinking disposition.

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Becky Frith

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HR must encourage staff to think more critically

HR leaders can and should create the right environments for critical thinking and creative problem solving

It is HR’s responsibility to ensure that employees understand critical thinking, according to Jon Hull, head of resourcing at construction firm Carillion.

“From an organisational perspective, HR can create frameworks and environments for this learning to take place,” Hull told HR magazine. “The most important element is having a coaching-led culture that puts humility and the ability to take risks at its core.”

He added that HR professionals should also ensure their own critical thinking skills are well developed.

“Having a broader understanding of what people are saying or thinking in the business means that an HR professional can engage and challenge assumptions,” he said. “This is a critical part of being a trusted adviser.”

Training platform Macat, which is researching critical thinking skills with Cambridge University, has defined critical thinkers as those who listen to criticism, can expose fallacies, and think for themselves.

Speaking at the Macat Critical Thinking Summit 2015, the company’s chief research and development officer Mike Dash said anyone has the ability to develop these skills. “Critical thinking skills are now almost universally regarded as teachable,” he said.

“It is vital that critical thinking be elevated from its current position as a skill that is either assumed to be taught innately, or if taught explicitly, is not taught well.”

Lancaster University professor and dean Tony McEnery said critical thinking is key to business and technology.

“If business had not engaged with critical and creative thinking the world we live in today may look very different indeed,” he told HR magazine. “Consider speech recognition. This is now commonplace through services such as Siri. But if researchers at IBM in the late 1970s had not thought critically and creatively we would only be talking into, not to, our smartphones today.”

The curriculum of our schools and universities is one of the reasons critical thinking is being stifled, according to McEnery. “In the process of assessing students, we create an aversion to risk,” he said.

To encourage people to think critically organisations and educational institutions must embrace a ‘free to fail’ culture, he added. “It’s about giving people the freedom to make mistakes, and persisting when mistakes are made.”

Further reading

HR must encourage collaboration

Lucy Adams: when hiring HR should consider the 'finished product'

Fear of tech worker exodus puts pressure on HR

E-learning packages must consider different learning styles

HR must understand automation versus digitisation

Focus on 'opportunities' to encourage women into STEM

Ulrich: HR must engage more with the outside world

HR should encourage ethical leadership, says Ian Muir

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12 HR Critical Success Factors for Forward-Thinking Leaders

As a human resources leader, you’re responsible for delivering programs that improve the employee experience and help the organization accomplish its goals. Achieving success in those areas requires meeting the expectations of employees and senior leaders alike. 

As one HR consultant described in a recent SHRM article , “CEOs want HR to hire people more quickly and keep them longer. They want help achieving big goals for growth or turnaround. They want a change agent, someone with ideas and energy and patience to make things happen. They want someone who questions the status quo.” 

With the right tools and support, you can successfully exceed expectations and deliver value along all the stages of the employee lifecycle journey . Here are 12 critical HR success factors to guide you:

Top Critical HR Success Factors

At the heart of every organization is its culture—the attitudes and behaviors defining how things get done. When you incorporate activities to build a great company culture, your employees benefit, and you also attract candidates with similar values and cultural ideals.

You can improve company culture by encouraging team-building activities and clear communication at all levels of the organization. You can also provide employees with tools that make their lives easier at work, for example, human capital management software that features employee self-service access.

2. Talent Acquisition

Good talent is hard to find, particularly in a tight labor market. According to an XpertHR survey , almost a third of surveyed HR professionals named recruiting and hiring as their most critical challenge. Of those, 51 percent said they were “extremely challenged” in finding high-quality candidates.

A well-crafted recruitment strategy and process will help you source, select, and hire the talent required for your organization to succeed. Available HR software provides reporting and data management tools to help you understand the effectiveness of your recruiting activities and keep better track of candidates in your talent pipeline.

3. Workforce Planning

Being a forward-thinking HR leader means anticipating future talent needs. A critical part of your success relies on being prepared to help the organization find new talent or reskill existing employees, so they can tackle change and new ways of working. When you have all-in-one HR technology to help you manage your workforce from one convenient location, you can develop a more complete picture of your company’s staffing and skill development needs.

View our ultimate guide to employee management and see how streamlining HR functions provides a competitive advantage. >>

4. Compensation

A recent Achievers study found that 52 percent of employees are looking or would consider leaving their company because of compensation . To engage and retain your employees, you need a competitive mix of salary and other rewards. To understand workforce compensation trends and plan for salary adjustments and incentives, you could benefit from an integrated payroll system that allows you to track employee pay alongside performance and other factors.

5. Benefits and Employee Wellness

The safety and wellbeing of employees are always important, but due to COVID-19, your organization may be facing new challenges in keeping employees healthy and safe. Whether your employees are working remotely or beginning to return to the office , you may need to consider a different or new mix of benefits to support their health and wellness. Some of the benefit changes you may want to consider include:

• Expanded flexible work arrangements
• Additional paid time off and family leave options
• Virtual medical care coverage

6. Training 

Employee training can take many forms, from classroom training to on-the-job learning. Not only do you need to track training participation and costs , but you also want to understand the effectiveness of your existing training . With a clear picture of employee skill levels and prior training attendance, you can identify which new programs and experiences will aid further learning. 

7. Leadership Development

A strong pipeline of company leaders helps ensure a sufficient number of managers for key roles, and it helps your organization prepare for the future. Tracking HR metrics , such as turnover by manager, can help you understand the strength of your managers and where they may need help leading and retaining members of their team. 

The following programs and activities can help you develop leaders in your organization:

• Mentorship programs
• Stretch assignments
• Rotational programs
• Training and coaching

8. Employee Engagement

According to Gallup , only 35 percent of U.S. employees are engaged or highly committed to their work and organization. To improve engagement, you first need to understand which aspects of the employee experience are engaging for your employees, and which are not. Conducting engagement surveys and tracking trends in employee responses over time can help you identify the drivers of engagement in your organization and how to build greater commitment among employees.

9. Employee Relations

If your organization is experiencing issues related to harassment, team communication, or managers who struggle to lead, it can hurt employee retention and satisfaction. The success of your HR function relies on the timely and fair resolution of those issues. Managing employee relations issues helps employees see the value of HR, and also prevents smaller problems from snowballing into bigger ones.

10. Performance Management 

A robust performance management program helps you understand employee effectiveness and productivity. It also helps you identify areas where employees need improvement. By using HR software with a module for performance management , you can keep track of employee ratings, feedback notes, and productivity reports. When it’s time for performance reviews, managers will have easy access to historical performance data for their employees.

11. Diversity and Inclusion 

Creating an environment that brings together different people, experiences, and ways of working supports creative decision-making and a culture of mutual respect. Whether you’re designing a new diversity and inclusion program or you need help with standard EEOC reporting , HR software can help you better understand the demographics of your organization and how to build a more inclusive workplace.

12. Compliance

The SHRM digest of federal labor laws lists 58 distinct federal employment laws covering just about every aspect of HR. There are also state laws and federal agencies that set rules for the workplace. To meet your year-round compliance obligations , it’s essential to keep track of regulations impacting the following areas: 

• Benefits and COBRA administration
• Paid leaves
• Workers compensation

Apply HR Success Factors and Exceed Employee Expectations

Meeting the needs and expectations of your workforce is no easy feat, but the right tools can strengthen your chances of success in the top HR success factors discussed above. All-in-one workforce management software can provide the automation support and reporting capability you need to exceed employee expectations and support their needs. To learn more about how you can build an environment that engages and retains your employees, read our e-book, Exceeding Employee Expectations .