Analytical Thinking is the No. 1 Core Skill Employers Want, Here's Why

The number one skill that employers want their workforce to have is analytical thinking, according to the World Economic Forum's Future of Jobs Report. In fact, the past two editions of the biannual report share the same findings.

The latest data, though, shows 69% of employers say analytical thinking is an "essential" skill. In particular, the industries that place the greatest value on this skill are education, supply chain and transportation, automotive and aerospace, telecommunications, and consumer goods production. However, virtually every industry would benefit from employing staff who demonstrate exceptional analytical thinking skills, and here's why.

Analytical thinking is about solving problems. It's about looking at a situation, understanding the risks and rewards based on the data available, and making a call or otherwise finding a solution.

In the workplace, this skill is invaluable. Organizations of all kinds come up against challenges that can be overcome by well-informed, rational decision-making. Without it, professionals become mired, which may lead to longer project times or lesser solutions.

Best of all, it's a skill that anyone could and should develop. It's highly transferable and applies broadly.

But what exactly is it and how do you develop it?

Find out more below.

Analytical thinking is the ability to gather information, evaluate what it means, and make an informed decision. Chris Brandt, an associate at the Center for Assessment and who holds a doctorate in education psychology, defines analytical thinking this way: 

Analytical thinking is a cognitive process that consists of (1) identifying and decomposing a complex concept, problem, system, or process into parts, (2) examining those parts and their distinct characteristics or functions, and (3) communicating or articulating how the parts relate to the whole.

Definitions vary depending where you look, but what's common is that analytical thinking deals with understanding, problem-solving and decision-making.

You don't have to be an engineer or scientist to develop and use this skill. Anyone who faces a challenge benefits (and that's to say, everyone). 

Think about an issue that comes up at work. How do you solve it? You might ask what happened, gathering as much information as possible. Consider how all the information fits together. Then, you think about possible fixes, assessing the risks and rewards. Finally, you decide which path is best and see how it pans out. 

This is analytical thinking. 

You're gathering information, analyzing it, and then making an informed decision. As analytical thinking is honed over time, people become adept at anticipating problems, putting measures in place to prevent or expeditiously deal with them as they pop up.

Analytical thinking complements and overlaps with problem-solving, critical thinking, creative thinking, pattern recognition, data literacy and others. This skill applies to virtually any job, likely a leading reason why most employers want their staff to have it. 

What's the difference? Analytical Thinking vs. Critical Thinking vs. Creative Thinking

Depending on the taxonomy you review, the definitions for each of these skills may vary. What's more, they often overlap but each has distinctions worth mentioning: 

Analytical Thinking refers to the ability to visualize, articulate, and break down complex problems or concepts into smaller, manageable components. It involves systematically processing information, interpreting data, recognizing patterns, and drawing logical conclusions to inform decisions.

Critical Thinking is the disciplined process of actively and skillfully analyzing, synthesizing, and evaluating information gathered from observation, experience, or reasoning. It emphasizes questioning assumptions, identifying biases, and considering alternative perspectives to arrive at well-reasoned and objective conclusions.

Creative Thinking involves generating innovative, original, and unconventional ideas or solutions by thinking outside the box. Creative thinkers rely on their imagination, curiosity, and flexibility, encouraging exploration of new possibilities and approaches that go beyond traditional thought processes.

Employers want people who excel at thinking analytically because they're good at solving problems. They break up problems into manageable pieces. They dig into what can be done and implement it. Test and repeat.

Employers want staff who think like this because they're self-starters, productive and innovative. They actively search for ways to improve how work gets done. They back their claims with evidence. It's mutually beneficial. Employees improve how they work. Employers see productivity gains, cost savings, lower risk and myriad other benefits. 

Think about a scenario like this: 

A team adheres to an outdated approach to project management. Tracking is spread across different files, decentralized and unorganized. Projects move slow. 

These inefficiencies add up. 

The team wants to know why projects aren't moving faster. They dig into the problem. Bring together evidence and discuss it as a team. Together, they decide the old way isn't working and research new solutions. They land on Agile, bring on software and enjoy the benefits of this new method. Projects speed up. They complete more work.  

These efficiencies add up.

Analytical thinking comes into play throughout this scenario — but most importantly, it helps dissect the issue: Inefficient project management. Why aren't we completing more work? Why are we missing deadline? Is there a better way? 

This type of thinking helps people break down challenges and solve for them methodically.

Jobs that Require Strong Analytical Thinking Skills

Analytical thinking is a critical skill across many professions, helping professionals solve problems, interpret data, and make informed decisions. Here are five careers where strong analytical skills are essential:

1. Data Analyst/Scientist: Interprets complex datasets to identify trends and provide actionable insights.  
2. Engineer (Civil, Mechanical, Software): Solves technical problems and designs efficient systems through data-driven analysis.  
3. Financial Analyst: Assesses investments, manages risks, and guides strategic decisions using data-driven reasoning.  
4. Healthcare Professional (Researcher/Diagnostician): Evaluates patient data to develop accurate diagnoses and effective treatment plans.  
5. Marketing Professional: Uses analytics to measure campaign performance and refine marketing strategies for better results.

The jobs above are likely what come to mind when "analytical thinking" comes into conversation. Roles that encounter data and spreadsheets and the like on a daily basis. But this skill isn't just for number-crunching professions. 

Analytical thinking also benefits these roles: 

1. Designer: Leverages analytical thinking to solve creative challenges, balance composition, and effectively communicate ideas through their work.  
2. Educator: Uses analytical skills to assess student progress, adapt teaching methods, and develop effective lesson plans tailored to diverse learning needs.  
3. Chef: Employs analytical reasoning to balance flavors, troubleshoot culinary issues, and innovate new recipes that appeal to a wide audience.  
4. Event Planner: Analyzes logistics, budgets, and timelines to coordinate seamless events while problem-solving unexpected issues.  
5. Author: Applies analytical thinking to structure narratives, create compelling characters, and ensure clarity in their work.  

Developing analytical thinking requires purposeful practice and a commitment to lifelong learning. Core to thinking analytically is a healthy sense of curiosity. To develop this skill, you're constantly searching for answers to questions you or others have. 

That why the first step to developing this skill is...

1. Ask Questions and Seek Clarity

To think analytically, begin by asking probing questions. Adopt the mindset of an investigator who queries every detail to uncover the root causes behind a situation. At minimum cover your five Ws: who, what, when, where and why. 

• Who's involved, or who isn't involve and should be?
• What's the source of this information? What's the impact? What's the risk/reward?
• When did XYZ occur? What's the deadline?
• Where did the incident happen? Is there a relevant location or place?
• Why is this prioritized over that? 

Whatever the question, the idea to dig deeper to seek information. For example, if you're kicking off a new project, you may ask what the goal is, who should be involved, when must it be completed by and so on. More information, more informed decisions. 

2. Break Problems into Smaller Parts

Large, complex problems can be overwhelming. Analytical thinkers break them into smaller, manageable components. This technique, often referred to as decomposition analysis, allows you to isolate components or tasks and address the most critical aspects of a challenge.

Take the example of launching a new product. Instead of viewing the entire launch as a single task, divide it into distinct stages—market research, production, marketing, and evaluation. This not only makes the project more manageable but ensures that nothing is missed and that every aspect receives the attention it deserves.

3. Cultivate Data Literacy

A strong grasp of data is crucial for analytical thinking. Data literacy involves understanding how to collect, analyze, and interpret information accurately. It helps to know about different types of data and their sources. And by no means must you be a technologist to build this skill. In fact, it's beneficial to anyone interacting with technology in any capacity, especially generative AI.

To help strengthen this skill, start by familiarizing yourself with tools commonly used by your company. That could be Excel, Google Analytics, Power BI, Salesforce, Tableau and countless others. Take a course on how to become familiar with them and how they function. Then, practice.

For example, looking at performance metrics can help sales teams identify underperforming areas and tailor strategies to meet revenue goals.

4. Improve Your Critical Thinking Skills

Critical thinking complements analytical abilities by focusing on logic and reasoning. Developing this skill involves:

• Challenging assumptions to prevent biases from influencing your decisions.
• Evaluating arguments for strength and validity.
• Considering alternative perspectives and outcomes.
• Assessing the credibility of sources. 

A practical example is resolving conflicts. Instead of attributing blame, critically evaluate the root cause of the disagreement, such as miscommunication, overlapping responsibilities, or clashing work styles. Then, think of potential resolutions that are based on the facts.

5. Practice Pattern Recognition

Identifying patterns and trends is at the heart of analytics. Pattern recognition helps professionals anticipate changes and make proactive decisions. 

One way to develop this skill is by observing recurring behaviors and results in your tasks. For instance, a manager noticing a consistent downturn in productivity during specific months might anticipate this and adjust workload, project timelines and more. Recognizing these patterns early can lead to more effective planning.

6. Take Relevant Training

By participating in relevant training or courses, you can learn more about analytical thinking, its application and relevant to your role. Additionally, attending workshops and collaborating with analytical experts can expand your understanding and inspire new approaches.

To get started, here are training resources to consider: 

Skill Benchmark - Analytical Thinking: Test your current analytical thinking skills by taking this assessment. At the end, you'll receive recommended training. 

Journey - Critical Thinking: A series of courses focused on building critical and analytical thinking skills. 

Book - How to Be a Brilliant Thinker: A book that teaches different ways of thinking to improve memory, presentation, and creative output. 

Additional activities to improve analytical thinking skills:

• Practice Problem-Solving: Do puzzles, strategy games, or coding to enhance logical reasoning.  
• Be curious: Question assumptions and seek deeper understanding of topics.  
• Read Diverse Materials: Explore books, articles, or journals on various subjects to broaden perspectives.  
• Reflect on Decisions: Regularly review past decisions to identify patterns and areas for improvement.

Developing analytical thinking isn’t just about advancing your career — it’s about cultivating a mindset that enables you to approach challenges with confidence and precision. By asking the right questions, mastering data analysis, and sharpening your critical thinking, you can become a more adept problem-solver and leader in your field. 

And as the World Economic Forum found, analytical thinking is an essential skill to have. It's because employers stand to benefit greatly from employing staff with this skill. And Skillsoft is here to help. 

Skillsoft is at the forefront of helping employers develop future-focused skills, including analytical thinking, through executive-level coaching engagements, AI simulated conversations, and leadership training. It's all delivered through an AI-driven learning platform, Percipio, that's helping organizations of all kinds build a culture of learning. 

Check out Percipio to see how it works.