What is HR Analytics? Meaning, Definition, Types, Benefits, Examples
30/06/2023
How to Use McClelland’s Theory of Needs to Manage Employees
04/07/2023
A study from Harvard Business Review found that teams with greater cognitive skills and diversity were able to solve problems up to three times faster than teams with people who thought in similar ways.
Also, a study from Deloitte revealed that teams with cognitive diversity helped boost innovation by 20 percent. It seems that if you want to have a team that is both productive and innovative, its best to consider bringing together people with diverse ways of thinking.
Having said that, the critical shortage of talent in the market in recent years has made employers realise the importance of cognitive skills in an individual. While previously, their focus was mostly on job-relevant, specific skills of candidates, it is not anymore. Today, employers are picking candidates with strong cognitive skills, who can learn and grasp concepts quickly, and then training them with the technical skills they need to be adept at their jobs.
What are Cognitive Skills?
Cognitive skills are a set of built-in skills that exist in the brain on a neurological level. These skills include listening, perception, and attention. They are often second nature and used without our conscious knowledge. Developing and paying attention to your cognitive abilities can help in a bigger way than you imagine, helping you succeed in your career.
As an individual looking for a job or looking to change careers, understanding how you access memories, process information, apply reason, and do analysis will benefit you during the hiring process. Note that your cognitive skills might also help you narrow down your employment alternatives to areas where you have inherent abilities.
What are the Types of Cognitive Skills?
Cognitive skill types can be classified according to the areas of attention, memory, processing, and logic and reasoning. As these regions are interconnected with one another, a shortfall in any one may indicate a weakness in another. Cognitive skills can be enhanced over time, with practice, after they have been identified. There are six distinct types of cognitive skills:
- long-term memory
- Attention
- Working Memory
- Logic and reasoning
- Auditory processing
- visual processing
In a report by McKinsey, cognitive skills have been listed and recognized as one of the four Distinct Elements of Talent (DELTAs) that would prove significant to be an asset in the future world of work.
Talking about the importance of cognitive skills in the workplace, McKinsey offers brilliant insights as to what skills employees will need in the future world of work via a survey of more than 18,000 people. Research further stated that the following cognitive skills will be essential for employees to make their mark in the workplace in the future-
- Problem solving
- Understanding biases
- Logical reasoning
- Agile thinking
- Time management and prioritisation
- Active listening
- Work-plan developments
- Creativity and imagination
- Adaptability
- Learning ability
McKinsey also found that these particular skills correlate highly with characteristics like- likelihood of being employed, job satisfaction, and income.
For example, individuals who had high proficiency in understanding biases were 10% more likely to be happy at their jobs. The cognitive skill that was the highest indicator of employability was adaptability, which showed people with excellent adaptability skills were 24% more likely to be employed.
What is the Importance of Having Cognitive Skills or Cognitive Diversity in the Workplace?
Cognitive skills are extremely important to have in the workplace because a wide range of perspectives can always contribute to innovative ideas and better solutions. Whether it is interpreting and assessing or analysing data or listening and retaining information during meetings, cognitive skills are invaluable to accelerating team functioning. Not only that, but an environment that is rich in cognitive diversity can also contribute to company culture.
A workplace that has a high energy of cognitive diversity encourages employees to be themselves and share their unique perspectives. This leads to a more positive and productive work environment. It helps to create a sense of community within a company, as employees bond over their shared values and goals.
Cognitive skills manifest in many ways. Take a look at how cognitive skills enable employees to stand out in their workplace-
1. Problem-solving
Cognitive skills enable individuals to analyse complex problems, think critically, and produce innovative solutions. The boom of technological advancements has given rise to new challenges, making employees with exceptional cognitive skills gain traction in the workplace as they are better equipped to navigate and address them effectively.
2. Adaptability
Flexibility, creativity, and the ability to learn quickly are skills that do not come easily to everyone. Remember, technical skills can be taught, but not cognitive skills. An individual with exceptional cognitive skills can survive and thrive in even the most dynamic working environment, as they can acquire new knowledge, adapt to modern technologies, processes, and responsibilities.
3. Decision-making
It is not everyone’s or anyone’s cup of tea to become a successful decision maker. It is not uncommon that when a situation arises where a tough call needs to be taken, no one steps in. To be a decision maker, you need to have a high-risk appetite, think on your feet, reason logically, make sound judgments, weigh alternatives effectively, and make informed decisions. It’s 2025, and there is no dearth of data. Data-driven decisions are highly sought after, and ones that can make them are the ones employers are looking for.
4. Collaboration and communication
An individual with strong Cognitive skills is capable of successfully contributing to effective collaboration and communication in the workplace. Strong cognitive skills facilitate active listening, clear expression of ideas, and understanding different perspectives, enhancing teamwork, enabling effective negotiation, and fostering a positive work environment.
5. Creativity and imagination
To survive and excel in a rapidly evolving business landscape, employees who have a greater sense of imagination, can think creatively, and generate innovative ideas are highly valued at the workplace. Individuals with a higher imagination and curiosity are more likely to produce ideas to develop new products, services, and processes that drive growth and competitive advantage.
6. Emotional intelligence
While technical skills remain important, the significance of emotional intelligence is growing in the workplace. Cognitive skills related to emotional intelligence, such as empathy, self-awareness, and social awareness, enable employees to navigate interpersonal relationships, resolve conflicts, and collaborate effectively with colleagues and clients. A McKinsey Global Survey on reskilling found the proportion of companies addressing empathy and interpersonal skills doubled in 2020.
7. Agile Thinking
Employees who learn and adapt quickly to competencies that do not fall under their area of expertise are most likely to stand out to employers. Agile thinking is thinking laterally at a immediate notice and having a backup plan or two, and being willing to learn from mistakes and grow to become an asset to the organization.
8. Prioritisation and time management
Understanding the skill of managing time and prioritisation is a winning trait for an individual. However, with adaptability and agility at a premium, the capability to juggle and prioritise various tasks, with limited time at hand, will be a sought-after and vital skill to advance in the future world of work.
What we can take from this is that cognitive skills are essential for creating a healthy, thriving workplace and ensuring a successful business. It empowers individuals to solve complex problems, adapt to changing circumstances, make informed decisions, collaborate effectively, drive innovation, and continue learning. As automation takes over routine tasks, cognitive skills provide a competitive edge and are highly valued by employers seeking employees who can thrive in a dynamic and technology-driven work environment.
Contact Us For Business Enquiry
Rajkumar Shanmugam
Rajkumar Shanmugam is the Head of HR at ALP Consulting, bringing over 19 years of comprehensive HR leadership experience across India and international markets. His expertise spans talent acquisition, employee relations, performance management, compliance, and HR transformation. Rajkumar has a proven track record of driving people-centric initiatives, enhancing workplace culture, and aligning HR strategy with business goals. With extensive experience in US staffing operations and global mobility, he continues to lead organizational excellence through innovation and employee engagement.
