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Why Problem-Solving Skills Are Essential for Leaders in Any Industry

• 17 Jan 2023

Any organization offering a product or service is in the business of solving problems.

Whether providing medical care to address health issues or quick convenience to those hungry for dinner, a business’s purpose is to satisfy customer needs .

In addition to solving customers’ problems, you’ll undoubtedly encounter challenges within your organization as it evolves to meet customer needs. You’re likely to experience growing pains in the form of missed targets, unattained goals, and team disagreements.

Yet, the ubiquity of problems doesn’t have to be discouraging; with the right frameworks and tools, you can build the skills to solve consumers' and your organization’s most challenging issues.

Here’s a primer on problem-solving in business, why it’s important, the skills you need, and how to build them.

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What Is Problem-Solving in Business?

Problem-solving is the process of systematically removing barriers that prevent you or others from reaching goals.

Your business removes obstacles in customers’ lives through its products or services, just as you can remove obstacles that keep your team from achieving business goals.

Design Thinking

Design thinking , as described by Harvard Business School Dean Srikant Datar in the online course Design Thinking and Innovation , is a human-centered , solutions-based approach to problem-solving and innovation. Originally created for product design, design thinking’s use case has evolved . It’s now used to solve internal business problems, too.

The design thinking process has four stages :

• Clarify: Clarify a problem through research and feedback from those impacted.
• Ideate: Armed with new insights, generate as many solutions as possible.
• Develop: Combine and cull your ideas into a short list of viable, feasible, and desirable options before building prototypes (if making physical products) and creating a plan of action (if solving an intangible problem).
• Implement: Execute the strongest idea, ensuring clear communication with all stakeholders about its potential value and deliberate reasoning.

Using this framework, you can generate innovative ideas that wouldn’t have surfaced otherwise.

Creative Problem-Solving

Another, less structured approach to challenges is creative problem-solving , which employs a series of exercises to explore open-ended solutions and develop new perspectives. This is especially useful when a problem’s root cause has yet to be defined.

You can use creative problem-solving tools in design thinking’s “ideate” stage, which include:

• Brainstorming: Instruct everyone to develop as many ideas as possible in an allotted time frame without passing judgment.
• Divergent thinking exercises: Rather than arriving at the same conclusion (convergent thinking), instruct everyone to come up with a unique idea for a given prompt (divergent thinking). This type of exercise helps avoid the tendency to agree with others’ ideas without considering alternatives.
• Alternate worlds: Ask your team to consider how various personas would manage the problem. For instance, how would a pilot approach it? What about a young child? What about a seasoned engineer?

It can be tempting to fall back on how problems have been solved before, especially if they worked well. However, if you’re striving for innovation, relying on existing systems can stunt your company’s growth.

Related: How to Be a More Creative Problem-Solver at Work: 8 Tips

Why Is Problem-Solving Important for Leaders?

While obstacles’ specifics vary between industries, strong problem-solving skills are crucial for leaders in any field.

Whether building a new product or dealing with internal issues, you’re bound to come up against challenges. Having frameworks and tools at your disposal when they arise can turn issues into opportunities.

As a leader, it’s rarely your responsibility to solve a problem single-handedly, so it’s crucial to know how to empower employees to work together to find the best solution.

Your job is to guide them through each step of the framework and set the parameters and prompts within which they can be creative. Then, you can develop a list of ideas together, test the best ones, and implement the chosen solution.

Related: 5 Design Thinking Skills for Business Professionals

4 Problem-Solving Skills All Leaders Need

1. problem framing.

One key skill for any leader is framing problems in a way that makes sense for their organization. Problem framing is defined in Design Thinking and Innovation as determining the scope, context, and perspective of the problem you’re trying to solve.

“Before you begin to generate solutions for your problem, you must always think hard about how you’re going to frame that problem,” Datar says in the course.

For instance, imagine you work for a company that sells children’s sneakers, and sales have plummeted. When framing the problem, consider:

• What is the children’s sneaker market like right now?
• Should we improve the quality of our sneakers?
• Should we assess all children’s footwear?
• Is this a marketing issue for children’s sneakers specifically?
• Is this a bigger issue that impacts how we should market or produce all footwear?

While there’s no one right way to frame a problem, how you do can impact the solutions you generate. It’s imperative to accurately frame problems to align with organizational priorities and ensure your team generates useful ideas for your firm.

To solve a problem, you need to empathize with those impacted by it. Empathy is the ability to understand others’ emotions and experiences. While many believe empathy is a fixed trait, it’s a skill you can strengthen through practice.

When confronted with a problem, consider whom it impacts. Returning to the children’s sneaker example, think of who’s affected:

• Your organization’s employees, because sales are down
• The customers who typically buy your sneakers
• The children who typically wear your sneakers

Empathy is required to get to the problem’s root and consider each group’s perspective. Assuming someone’s perspective often isn’t accurate, so the best way to get that information is by collecting user feedback.

For instance, if you asked customers who typically buy your children’s sneakers why they’ve stopped, they could say, “A new brand of children’s sneakers came onto the market that have soles with more traction. I want my child to be as safe as possible, so I bought those instead.”

When someone shares their feelings and experiences, you have an opportunity to empathize with them. This can yield solutions to their problem that directly address its root and shows you care. In this case, you may design a new line of children’s sneakers with extremely grippy soles for added safety, knowing that’s what your customers care most about.

Related: 3 Effective Methods for Assessing Customer Needs

3. Breaking Cognitive Fixedness

Cognitive fixedness is a state of mind in which you examine situations through the lens of past experiences. This locks you into one mindset rather than allowing you to consider alternative possibilities.

For instance, your cognitive fixedness may make you think rubber is the only material for sneaker treads. What else could you use? Is there a grippier alternative you haven’t considered?

Problem-solving is all about overcoming cognitive fixedness. You not only need to foster this skill in yourself but among your team.

4. Creating a Psychologically Safe Environment

As a leader, it’s your job to create an environment conducive to problem-solving. In a psychologically safe environment, all team members feel comfortable bringing ideas to the table, which are likely influenced by their personal opinions and experiences.

If employees are penalized for “bad” ideas or chastised for questioning long-held procedures and systems, innovation has no place to take root.

By employing the design thinking framework and creative problem-solving exercises, you can foster a setting in which your team feels comfortable sharing ideas and new, innovative solutions can grow.

How to Build Problem-Solving Skills

The most obvious answer to how to build your problem-solving skills is perhaps the most intimidating: You must practice.

Again and again, you’ll encounter challenges, use creative problem-solving tools and design thinking frameworks, and assess results to learn what to do differently next time.

While most of your practice will occur within your organization, you can learn in a lower-stakes setting by taking an online course, such as Design Thinking and Innovation . Datar guides you through each tool and framework, presenting real-world business examples to help you envision how you would approach the same types of problems in your organization.

Are you interested in uncovering innovative solutions for your organization’s business problems? Explore Design Thinking and Innovation —one of our online entrepreneurship and innovation courses —to learn how to leverage proven frameworks and tools to solve challenges. Not sure which course is right for you? Download our free flowchart .

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Interview Questions

Comprehensive Interview Guide: 60+ Professions Explored in Detail

26 Good Examples of Problem Solving (Interview Answers)

By Biron Clark

Published: November 15, 2023

Employers like to hire people who can solve problems and work well under pressure. A job rarely goes 100% according to plan, so hiring managers will be more likely to hire you if you seem like you can handle unexpected challenges while staying calm and logical in your approach.

But how do they measure this?

They’re going to ask you interview questions about these problem solving skills, and they might also look for examples of problem solving on your resume and cover letter. So coming up, I’m going to share a list of examples of problem solving, whether you’re an experienced job seeker or recent graduate.

Then I’ll share sample interview answers to, “Give an example of a time you used logic to solve a problem?”

Problem-Solving Defined

It is the ability to identify the problem, prioritize based on gravity and urgency, analyze the root cause, gather relevant information, develop and evaluate viable solutions, decide on the most effective and logical solution, and plan and execute implementation. 

Problem-solving also involves critical thinking, communication, listening, creativity, research, data gathering, risk assessment, continuous learning, decision-making, and other soft and technical skills.

Solving problems not only prevent losses or damages but also boosts self-confidence and reputation when you successfully execute it. The spotlight shines on you when people see you handle issues with ease and savvy despite the challenges. Your ability and potential to be a future leader that can take on more significant roles and tackle bigger setbacks shine through. Problem-solving is a skill you can master by learning from others and acquiring wisdom from their and your own experiences. 

It takes a village to come up with solutions, but a good problem solver can steer the team towards the best choice and implement it to achieve the desired result.

Watch: 26 Good Examples of Problem Solving

Examples of problem solving scenarios in the workplace.

• Correcting a mistake at work, whether it was made by you or someone else
• Overcoming a delay at work through problem solving and communication
• Resolving an issue with a difficult or upset customer
• Overcoming issues related to a limited budget, and still delivering good work through the use of creative problem solving
• Overcoming a scheduling/staffing shortage in the department to still deliver excellent work
• Troubleshooting and resolving technical issues
• Handling and resolving a conflict with a coworker
• Solving any problems related to money, customer billing, accounting and bookkeeping, etc.
• Taking initiative when another team member overlooked or missed something important
• Taking initiative to meet with your superior to discuss a problem before it became potentially worse
• Solving a safety issue at work or reporting the issue to those who could solve it
• Using problem solving abilities to reduce/eliminate a company expense
• Finding a way to make the company more profitable through new service or product offerings, new pricing ideas, promotion and sale ideas, etc.
• Changing how a process, team, or task is organized to make it more efficient
• Using creative thinking to come up with a solution that the company hasn’t used before
• Performing research to collect data and information to find a new solution to a problem
• Boosting a company or team’s performance by improving some aspect of communication among employees
• Finding a new piece of data that can guide a company’s decisions or strategy better in a certain area

Problem Solving Examples for Recent Grads/Entry Level Job Seekers

• Coordinating work between team members in a class project
• Reassigning a missing team member’s work to other group members in a class project
• Adjusting your workflow on a project to accommodate a tight deadline
• Speaking to your professor to get help when you were struggling or unsure about a project
• Asking classmates, peers, or professors for help in an area of struggle
• Talking to your academic advisor to brainstorm solutions to a problem you were facing
• Researching solutions to an academic problem online, via Google or other methods
• Using problem solving and creative thinking to obtain an internship or other work opportunity during school after struggling at first

You can share all of the examples above when you’re asked questions about problem solving in your interview. As you can see, even if you have no professional work experience, it’s possible to think back to problems and unexpected challenges that you faced in your studies and discuss how you solved them.

Interview Answers to “Give an Example of an Occasion When You Used Logic to Solve a Problem”

Now, let’s look at some sample interview answers to, “Give me an example of a time you used logic to solve a problem,” since you’re likely to hear this interview question in all sorts of industries.

Example Answer 1:

At my current job, I recently solved a problem where a client was upset about our software pricing. They had misunderstood the sales representative who explained pricing originally, and when their package renewed for its second month, they called to complain about the invoice. I apologized for the confusion and then spoke to our billing team to see what type of solution we could come up with. We decided that the best course of action was to offer a long-term pricing package that would provide a discount. This not only solved the problem but got the customer to agree to a longer-term contract, which means we’ll keep their business for at least one year now, and they’re happy with the pricing. I feel I got the best possible outcome and the way I chose to solve the problem was effective.

Example Answer 2:

In my last job, I had to do quite a bit of problem solving related to our shift scheduling. We had four people quit within a week and the department was severely understaffed. I coordinated a ramp-up of our hiring efforts, I got approval from the department head to offer bonuses for overtime work, and then I found eight employees who were willing to do overtime this month. I think the key problem solving skills here were taking initiative, communicating clearly, and reacting quickly to solve this problem before it became an even bigger issue.

Example Answer 3:

In my current marketing role, my manager asked me to come up with a solution to our declining social media engagement. I assessed our current strategy and recent results, analyzed what some of our top competitors were doing, and then came up with an exact blueprint we could follow this year to emulate our best competitors but also stand out and develop a unique voice as a brand. I feel this is a good example of using logic to solve a problem because it was based on analysis and observation of competitors, rather than guessing or quickly reacting to the situation without reliable data. I always use logic and data to solve problems when possible. The project turned out to be a success and we increased our social media engagement by an average of 82% by the end of the year.

Answering Questions About Problem Solving with the STAR Method

When you answer interview questions about problem solving scenarios, or if you decide to demonstrate your problem solving skills in a cover letter (which is a good idea any time the job description mention problem solving as a necessary skill), I recommend using the STAR method to tell your story.

STAR stands for:

It’s a simple way of walking the listener or reader through the story in a way that will make sense to them. So before jumping in and talking about the problem that needed solving, make sure to describe the general situation. What job/company were you working at? When was this? Then, you can describe the task at hand and the problem that needed solving. After this, describe the course of action you chose and why. Ideally, show that you evaluated all the information you could given the time you had, and made a decision based on logic and fact.

Finally, describe a positive result you got.

Whether you’re answering interview questions about problem solving or writing a cover letter, you should only choose examples where you got a positive result and successfully solved the issue.

Example answer:

Situation : We had an irate client who was a social media influencer and had impossible delivery time demands we could not meet. She spoke negatively about us in her vlog and asked her followers to boycott our products. (Task : To develop an official statement to explain our company’s side, clarify the issue, and prevent it from getting out of hand). Action : I drafted a statement that balanced empathy, understanding, and utmost customer service with facts, logic, and fairness. It was direct, simple, succinct, and phrased to highlight our brand values while addressing the issue in a logical yet sensitive way.   We also tapped our influencer partners to subtly and indirectly share their positive experiences with our brand so we could counter the negative content being shared online.  Result : We got the results we worked for through proper communication and a positive and strategic campaign. The irate client agreed to have a dialogue with us. She apologized to us, and we reaffirmed our commitment to delivering quality service to all. We assured her that she can reach out to us anytime regarding her purchases and that we’d gladly accommodate her requests whenever possible. She also retracted her negative statements in her vlog and urged her followers to keep supporting our brand.

What Are Good Outcomes of Problem Solving?

Whenever you answer interview questions about problem solving or share examples of problem solving in a cover letter, you want to be sure you’re sharing a positive outcome.

Below are good outcomes of problem solving:

• Saving the company time or money
• Making the company money
• Pleasing/keeping a customer
• Obtaining new customers
• Solving a safety issue
• Solving a staffing/scheduling issue
• Solving a logistical issue
• Solving a company hiring issue
• Solving a technical/software issue
• Making a process more efficient and faster for the company
• Creating a new business process to make the company more profitable
• Improving the company’s brand/image/reputation
• Getting the company positive reviews from customers/clients

Every employer wants to make more money, save money, and save time. If you can assess your problem solving experience and think about how you’ve helped past employers in those three areas, then that’s a great start. That’s where I recommend you begin looking for stories of times you had to solve problems.

Tips to Improve Your Problem Solving Skills

Throughout your career, you’re going to get hired for better jobs and earn more money if you can show employers that you’re a problem solver. So to improve your problem solving skills, I recommend always analyzing a problem and situation before acting. When discussing problem solving with employers, you never want to sound like you rush or make impulsive decisions. They want to see fact-based or data-based decisions when you solve problems.

Next, to get better at solving problems, analyze the outcomes of past solutions you came up with. You can recognize what works and what doesn’t. Think about how you can get better at researching and analyzing a situation, but also how you can get better at communicating, deciding the right people in the organization to talk to and “pull in” to help you if needed, etc.

Finally, practice staying calm even in stressful situations. Take a few minutes to walk outside if needed. Step away from your phone and computer to clear your head. A work problem is rarely so urgent that you cannot take five minutes to think (with the possible exception of safety problems), and you’ll get better outcomes if you solve problems by acting logically instead of rushing to react in a panic.

You can use all of the ideas above to describe your problem solving skills when asked interview questions about the topic. If you say that you do the things above, employers will be impressed when they assess your problem solving ability.

If you practice the tips above, you’ll be ready to share detailed, impressive stories and problem solving examples that will make hiring managers want to offer you the job. Every employer appreciates a problem solver, whether solving problems is a requirement listed on the job description or not. And you never know which hiring manager or interviewer will ask you about a time you solved a problem, so you should always be ready to discuss this when applying for a job.

Related interview questions & answers:

• How do you handle stress?
• How do you handle conflict?
• Tell me about a time when you failed

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How to List Retail Skills on a Resume: Best Skills and Examples

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Why employers want to see retail skills on a resume

How to list retail skills on a resume, best retail skills to add to a resume, how to improve retail skills.

Creating a great resume for a retail position involves listing great customer service and problem-solving skills. You should also add skills that show your ability to work under pressure in fast-paced environments. Knowing where and how to put retail skills on your resume can help you stand out from other candidates. This article shows you the best retail skills to put on your resume, how to add them and how to improve them.

Retail positions are high-pressure, multipurpose jobs. They require dynamic, adaptable employees who have a diverse set of skills, including retail-specific skills like customer service and teamwork abilities. 

These skills are necessary for various retail jobs, including buyer, store manager, retail sales merchandiser, retail manager, retail buyer, retail associate, cashier and more. Listing retail resume skills not only shows an employer that you have these skills but also provides specific examples of how you use them in real-life situations. 

Use these steps as a guideline for listing your retail skills on your resume: 

1. First, keep your skills relevant to the required skills listed in the job posting

Customize each part of your resume for the particular position you are applying for. Carefully read the job description to determine which skills are relevant to the position. For example, if the job description lists attention to detail as a skill needed, try to add it to your resume. 

2. Second, list your strongest skills first

Take time to think and list the skills you have gained over time. Compare your list with the skills necessary for the retail position you are applying for and identify your strongest skills that align with the role. 

3. Third, divide your retail skills into a subsection

Select three or four skills, or create a ‘Retail Skills’ category to act as a subheading. This makes your skills section look visually appealing and organized. 

4. Fourth, show examples of your skills

In your work history section, you can give specific examples of how you use your retail skills. For example, if you want to demonstrate your problem-solving skills, a work history detail could be, ‘Suggested new storage method that reduced time spent finding goods, increasing customer satisfaction.’

5. Fifth, organize your bullet points

If you have a ‘Skills’ section longer than two or three bullet points, make sure they’re in a logical order. Add your best skills at the top, or you could list the skills that most closely align with those in the job description. 

To stand out among other candidates, you want a resume that is easy to read and clearly identifies your skills. You can list your skills and provide specific examples to showcase how you can apply them to an open position.

You can include these retail resume skills:

Interpersonal skills

Interpersonal skills are traits and behaviors you rely on when building relationships and communicating with others. They can help you during the interview process, and assist you as you advance in your career. Sometimes referred to as  ‘people skills,’ these skills often combine how you handle personal interactions in social situations and your innate personality traits. 

In the workplace, strong interpersonal skills can help you navigate day-to-day tasks, complexity and change. Examples of interpersonal skills include teamwork, dependability, motivation, patience, active listening, flexibility and empathy. 

Communication skills

Communication skills allow you to give and receive various types of information, including feelings, ideas and events happening around you. There are several ways to communicate, including phone conversations, social media, email and in-person interactions. Other communication skills include empathizing, speaking, listening and observing. 

Customer service skills

Customer service skills are behaviors you use when interacting with consumers. This can include greeting customers as they enter the store, assisting them in locating items and answering any questions they may have. Customer service skills can also include following up with customers about their shopping experience and troubleshooting any problems they may have encountered during their visit. 

Leadership skills

Leadership skills are one of many soft skills employers value. These skills are important throughout your career and usually incorporate various communication abilities and personality traits. Leadership skills help you motivate others on your team to complete tasks, stay on schedule and achieve goals. 

Problem-solving skills

Problem-solving skills help you handle unexpected or stressful situations. Employers look for individuals who can consider these situations and identify solutions while remaining calm. Problem-solving skills include team-building, dependability, creativity, analysis, decision-making, research and active listening.  

Computer skills

Almost every job requires some level of computer skills, with many employers looking for candidates with intermediate to advanced level abilities. You should be able to use computer applications and programs like specific POS systems and Microsoft Office. Typical computer skills can include email, social media, spreadsheets and analytics. 

Many of these skills are closely related, meaning you may be able to group the skills you have so they’re logical on your resume. 

Here are some ways you can improve your retail skills:

1. First, ask a coworker or manager for constructive feedback

It can be challenging to evaluate your own retail skills, so ask someone you trust for their honest opinion. Knowing areas you need to improve on can help you identify skills to focus on.  

2. Next, establish SMART goals

Many retail skills are ones that develop over time, and you can improve them with practice. This can include greeting each customer as they enter the store, asking questions to assist them better or learning how to develop social media campaigns. Goals can help you create a plan for improving skills and know when you have achieved it. 

3. Finally, attend relevant classes or workshops

There are various in-person and online classes, seminars and workshops that can assist you with improving many skills. These workshops may include open discussion, written assignments and practicing real-life scenarios.

18 retail skills candidates should have (and how to test for them)

Retail is the sale of goods to customers in a small quantity, usually for consumption rather than resale.

Malls, shops, and stores are all part of the retail sector, and the employees who work there need to have a certain skill set to be able to sell goods to customers and provide high-quality service. 

Table of contents

What are the top retail skills that every candidate should have, what are the top retail skills, the best candidate assessments for retail skills , using testgorilla to hire candidates with strong retail skills, find and test the candidates with the best retail skills.

Retail jobs are high-pressure positions that require employees who can serve customers, increase sales, and provide a good customer experience.

The top 18 retail skills that your candidates should have are the following: 

Perseverance

Attention to detail

Business intelligence

Communication skills

Customer service skills

Trustworthiness

Conflict resolution skills

Numerical skills

Sales skills

Time management skills

Ability to work well under pressure

Leadership skills

Organizational skills

Ability to take the initiative without direction

Problem-solving skills

Accountability

In this article, we will explore why these skills are important in retail and how to test for them so that you hire the most qualified candidates. 

Your candidates for retail jobs should display the following skills: 

1. Perseverance

Retail isn’t an easy job—employees need to walk a thin line between being helpful and supportive to customers and pushing for a sale. A great candidate should display perseverance and work ethic when working in retail, and they should try to close the sale by helping the customer pick the best product/service for them. 

2. Attention to detail

Retail workers need to be detail-oriented . This means being aware of what’s going on in the shop and noticing any shortcomings, minor problems with the products displayed, or a customer who clearly needs help but is hesitant to ask for it. A good retail employee needs to be detail-oriented to close more sales and increase profits for the company and the store. 

3. Business intelligence

Candidates who want to work in retail need to have a business “sixth sense” and understand how the business operates. This means that they need to have extensive knowledge about the product, understand who the ideal customer is, know how to approach them, and have a clear vision of how to sell the product to the customer. 

The greater the employee’s understanding, the easier it will be for them to make the sale, provide a good customer experience, and ensure that the business keeps on profiting. 

4. Communication skills

A great retail employee will know how to communicate with his peers and managers in the shop, as well as with the customers who come to the store.

They will understand the concept behind the “duck effect.” In a well-functioning store, it appears to customers that everything is flowing smoothly, easily, and without any hiccups. But in the background, you and your team are actually working hard to maintain that perception (just as a duck flaps its legs underwater but doesn’t appear to be doing anything from above the water’s surface). 

A retail candidate will need to know how to communicate respectfully to candidates. Additionally, they should be aware of when and how to provide feedback to their team members and also be willing to receive feedback to improve their own skills. 

5. Customer service skills

The customer is always right—that’s the hallmark of many of today’s successful retail stores. Great customer service can be your unique value proposition in saturated markets, and the better your service is, the more the customers will come back and buy again from your store. 

Companies like The Ritz-Carlton and Zappos have built their entire brands on their impeccable customer support.  

6. Trustworthiness

Your retail employees work directly with your customers, so you need to have trustworthy people who can represent your company in the right way. This doesn’t just mean representing your company’s brand—your employees are often the first thing that your customers see and interact with when they want to buy your product. This makes retail employees the lifeblood of your company, as they are the frontline workers who make or break your business. 

7. IT skills

Digital transformation has impacted every facet of today’s business operations, and retail isn’t an exception. Technology has impacted everything from feedback systems that companies use to garner feedback from customers to the way products are presented. 

This means your retail employees need to be up to date with technology , know how to use it, and improve their sales and presentation skills by using tech and apps. 

8. Conflict resolution skills

The question isn’t if problems will occur but when—and how your employees will handle them. Will they “ pull a Dale Carnegie ” and create a friend in the process, or will they behave in a way that will spiral the conflict out of proportion? Conflict resolution skills are a must-have for retail employees not only because they can be useful for calming down a frustrated customer but also because they will help them handle problems affecting their colleagues. 

9. Numerical skills

Numeracy is yet another critical skill in retail. Your employees will need to be able to add up discounts on products, calculate prices on the spot, count inventory, give change to your customers, and perform other tasks involving numbers. 

Retail managers should possess Excel competency , too, to ensure they can accurately analyze and interpret numerical store data. Cash management and cash accountability skills are essential, and your employees will need to be able to work well with numbers if they want to be successful retail workers. 

10. Sales skills

Every retail employee will have at least one metric in their measure of success that’s related to sales. It’s one of the most crucial skills for any retail employee. Good sales skills will allow the employee to sell more goods, accomplish sales goals, advise customers, explain the benefits of a product, create rapport, and close sales. 

11. Time management skills

A good retail employee will need to know how to manage their time. Time management skills help employees accomplish the following: 

Be on time for their shifts

Understand how much time to spend with a single customer

Know how to use time management software

Follow the schedule laid out in the employee scheduling software

12. Ability to work well under pressure

Retail employees need to be able to work well under pressure. There will be plenty of dates during the year when a “swarm” of customers will come to your store, such as on Black Friday or throughout the Christmas season. During these times, your employees will need to handle a large number of customers in a short amount of time. 

Therefore, your retail employees will need to be able to work well under pressure, not crack under it, and manage their expectations to provide the best possible service with a smile on their faces. 

13. Leadership skills

Whether you’re hiring for a retail manager or a retail employee, leadership skills are a major differentiator. Leadership skills will benefit employees greatly during hard and stressful times at the store. A retail manager needs leadership skills to lead their team members by example and motivate them to achieve the set goals. 

14. Durability

Working in retail often involves long hours and changing shifts, which require dedication from employees for quite a long time. Not to mention that the retail jobs themselves require employees to stand most of the time and interact with the customers as if they are at rest. That’s why durability is an important trait for all retail employees. 

15. Organizational skills

Retail employees need to be organized if they want to be successful at their job. Organizational skills will help retail workers deal with inventory, manage cash, handle scheduling, and successfully multitask.

16. Ability to take the initiative without direction

Retail employees have quite a lot of autonomy on the shop’s floor, and they need to show initiative when dealing with problems and customers. They can’t just wait around for the manager to tell them what to do—they need to be proactive and serve the customer (and the store) in the best way possible.  

17. Problem-solving skills

Your employees will inevitably face problems in the store, whether they are with a product, a customer, colleagues, or a manager. And they will need to figure out how to solve these problems as soon as possible to achieve the best possible outcomes. 

That’s why problem-solving is such a valuable skill when it comes to retail employees. 

18. Accountability

Retail workers need to be responsible and accountable. First of all, they need to be accountable to your company’s values, mission, vision, and brand and represent them in the best possible way. 

Secondly, they need to be respectful to customers to close sales in order to take accountability for their jobs and your company’s success.

Your candidates must have the 18 retail skills described above. Did you know that skills-based hiring is ideal for these job roles ? We have many pre-employment tests to help you hire retail staff with these essential retail skills.

1. Situational judgment

Your retail employees need to have great situational judgment to work at your store. Skills such as negotiation, leadership skills, and business ethics fall under the situational judgment umbrella. 

The tests you should give to your candidates to evaluate their situational judgment are: 

Negotiation test

Leadership & People Management test

Business Ethics and Compliance test

2. Communication skills

Your retail employees need to be able to communicate with customers, peers, and managers in a respectful way that will solve problems. It is critical for them to have skills in communication, problem-solving, and customer service.

Use these tests to assess your candidates’ communication skills: 

Communication test

Problem Solving test

Customer Service test

3. Emotional intelligence

Employees working in retail need to be aware of their environment and people’s emotional states so that they can navigate through them to close sales, solve problems, and resolve conflict. 

The following tests will give you a sense of your candidates’ emotional intelligence: 

Attention to Detail test

Critical Thinking test

16 Types test

4. Culture add

An employee needs to have the crucial skills required to work in retail, but they also need to have the right values so that they can be integrated into your company’s workplace. 

You can use these tests to find out if a candidate will benefit your company culture: 

Culture Add test

Understanding Instructions test

Big 5 (OCEAN) test

5. Conflict resolution

Retail employees need to know how to resolve conflict, whether it involves a customer or a member of their own team. 

Evaluate your candidates’ conflict resolution skills using the following tests: 

Verbal Reasoning test

6. Customer support

Retail employees work on the shop’s floor and interact with customers daily. With that in mind, here are the tests you should give to your candidates to evaluate their customer support skills:

Numerical Reasoning test

Zendesk CS test

7. Integrity tests

Though retail employees work directly with your customers, they are also in charge of your inventory and cash, so they need to have integrity and strong ethics. 

Give your candidates these tests to assess their integrity: 

Business Ethics & Compliance test

Basic Double-Digit Math test

Your retail employees will need to have the right skill set to be successful in their jobs. That’s why you should use pre-employment tests to make sure candidates are the right fit for your retail business. 

Pre-employment tests help you decrease time-to-hire, improve your hiring process, quickly remove unqualified candidates from the process, and accurately evaluate your candidates’ skills. 

Here are just a few of the benefits of TestGorilla’s tests:

They are made by a subject-matter expert. Our tests are created by a subject-matter expert, and then another subject-matter expert evaluates the tests to improve them. Afterward, they go through multiple feedback and revision rounds, and only then do we put them up on our Test Library . 

They provide objective scores. The results from our tests are objective and bias-free. All of your candidates get ranked on the same scale, making it easier for you to compare them.

You can set up video responses. Our platform allows customization of tests, including the option to add video responses and have your candidates shoot a video. This can help you see their camera presence, communication skills, and charisma. 

Your retail employees will talk with your customers on a daily basis. You need to know how to evaluate your candidates to ensure they have the top 18 retail skills they’ll need to close sales and represent your business well. 

This is where pre-employment tests can help you— TestGorilla gives you the option to choose from more than 170 scientifically-based tests that help you objectively evaluate your candidates without bias so that you can hire the best possible retail employees. Get started for free today and start making better hiring decisions, faster and bias-free.

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Resume builder

Best Retail Skills for Resume

Are you looking to land a job in the retail industry? Having the right set of skills can make all the difference in showcasing your suitability for the role. In this article, we will explore the best retail skills that can help you stand out on your resume and excel in a competitive job market.

Whether you have previous experience in retail or are just starting your career, these skills will demonstrate your ability to provide exceptional customer service, drive sales, and contribute to the overall success of a retail business.

Table of Contents

What Are Retail Skills?

Retail skills are the special abilities and qualities that you need to excel in the retail industry. They cover a wide range of areas, from serving customers and making sales to managing inventory and working well with a team.

If you have great communication skills, product knowledge, problem-solving abilities, and can easily adapt to new situations, you’ll be a sought-after retail professional. These skills help you engage with customers, meet sales goals, handle different retail tasks, and contribute to the success of a retail business. In short, they’re the secret sauce that makes you a rockstar in the retail world.

Jobs That Require Retail Skills

Retail skills are transferrable and can be applied in sectors such as hospitality, sales, customer support, marketing, and more.

• Retail Sales Associate
• Store Manager
• Customer Service Representative
• Visual Merchandiser
• Inventory Manager
• Retail Buyer
• Retail Store Supervisor
• E-commerce Specialist
• Sales Manager
• Fashion Consultant
• Assistant Store Manager
• Retail Operations Manager
• Sales Associate
• Product Specialist
• Loss Prevention Officer
• Retail Analyst
• Customer Support Specialist
• Visual Stylist
• Store Planner

Best Retail Skills for a Resume

1. customer service.

Providing exceptional customer service is essential in the retail industry. This includes being friendly, attentive, and responsive to customer needs.

• Active Listening: Attentively listening to customers’ concerns and inquiries.
• Conflict Resolution: Effectively resolving customer complaints or conflicts.
• Problem-Solving: Finding creative solutions to address customer issues or challenges.

Example: “Proactively addressed customer concerns and resolve issues promptly, maintaining a high customer satisfaction rate of 95%.”

2. Sales Skills

Being able to effectively sell products or services is crucial for success in retail. As a skilled salesperson, you have the ability to influence and persuade customers, ultimately driving sales and revenue for the business. Here are some key sub-skills that contribute to being an effective salesperson in the retail industry:

• Product Knowledge: Demonstrating a deep understanding of the products or services being sold.
• Persuasion: Convincing customers of the value and benefits of the products.
• Cross-Selling and Upselling: Suggesting additional products or upgrades to increase sales.
• Closing Techniques: Effective closing techniques involve confidently asking for the sale, overcoming any final objections or concerns, and guiding the customer through the purchase process. 

Example: “Employ persuasive selling techniques, such as product demonstrations and personalized product presentations, to close sales and achieve a high conversion rate.”

3. Communication

Strong communication skills are necessary for interacting with customers, colleagues, and managers. Effective communication allows you to convey information clearly, listen actively, and build rapport with others. Here are some key sub-skills that contribute to strong communication in a retail setting:

• Verbal Communication: Clearly and confidently conveying information and instructions.
• Written Communication: Writing clear and concise emails, memos, and reports.
• Interpersonal Skills: Building positive relationships and fostering teamwork.

Example: “Effectively communicated product features, benefits, and promotions to customers, resulting in a 10% increase in upselling and cross-selling.”

4. Retail Operations

Understanding and carrying out various operational tasks and processes within a retail environment involves a bunch of different activities that keep a retail store running smoothly. These tasks are super important because they help ensure that everything runs efficiently and customers have a great experience. Let’s break it down:

• First, there’s inventory management . This means keeping track of what products are in stock, making sure they’re organized on the shelves, and doing regular stock counts. It’s important to know what’s selling well and what’s not, so you can keep the right amount of each item in stock.
• Another important task is working the point of sale (POS) system. This is where you handle customer transactions, whether it’s taking cash or processing electronic payments. You need to know how to use the system and handle different payment methods so customers can pay easily and quickly.
• Creating visually appealing displays is also important. This involves arranging products in an attractive way, using signs and promotions to catch people’s attention, and making the store look inviting and appealing to customers.

Example: “Proficiently operated a variety of Point of Sale (POS) systems, accurately processing transactions, applying discounts, and handling cash and electronic payments with precision.”

5. Technology Proficiency

Retail operations often involve using technology, such as point-of-sale systems and inventory management software. Technology proficiency includes familiarity with different software applications, troubleshooting basic technical issues, and data entry accuracy:

• Familiarity with Different Software Applications: Retail environments often rely on various software applications to streamline operations. These may include point-of-sale (POS) systems, inventory management software, customer relationship management (CRM) tools, and e-commerce platforms. Proficiency in using these applications involves understanding their functionalities, navigating the user interface, and utilizing features such as scanning barcodes, processing transactions, or generating reports.
• Troubleshooting Basic Technical Issues: Technology hiccups can occur in any retail setting. Having the ability to troubleshoot basic technical issues can save time and prevent disruptions. This skill involves diagnosing and resolving common problems, such as connectivity issues, printer malfunctions, or software glitches.
• Data Entry Accuracy: Accurate data entry is crucial for maintaining inventory records, customer information, and sales data. Retail employees should possess the skill of entering data promptly and with a high level of accuracy to prevent errors that can lead to inventory discrepancies, order fulfillment issues, or incorrect customer records.

Example: “Utilized CRM software to maintain customer databases, record interactions, and analyze customer preferences, resulting in targeted marketing campaigns and a 20% increase in customer engagement.”

6. Cash Handling

Handling cash is a fundamental skill for any retail position that involves processing cash transactions. Here’s a more detailed expansion on the smaller skills within cash handling:

• Proficiency in Operating Cash Registers: Cash registers are the primary tool used for processing cash transactions in retail. Proficiency in operating cash registers involves being familiar with the functionalities and features of the specific system used in the store. 
• Accurately Counting Cash: Precise and accurate counting of cash is essential to prevent errors and discrepancies. Retail employees should be able to count money quickly and accurately, ensuring that the amounts received match the totals recorded in the system. 
• Ensuring Cash Handling Procedures are Followed: Retail establishments typically have specific cash handling procedures in place to maintain security and minimize the risk of theft or errors. Compliance with cash handling policies helps maintain accountability and minimize the potential for financial discrepancies.

Example: “Processed daily cash sales, averaging $3,000 in cash transactions per shift, with zero discrepancies or errors.”

7. Organization

Being organized is a crucial skill in the retail industry as it directly impacts efficiency, productivity, and overall customer satisfaction.

• Attention to Detail: In a retail setting, this skill is important when managing inventory, conducting stock counts, handling paperwork, and ensuring that products are labeled and displayed correctly.
• Time Management: In a fast-paced retail environment, time management skills enable employees to handle multiple responsibilities, such as assisting customers, restocking shelves, processing transactions, and managing administrative duties, while ensuring that all tasks are completed in a timely manner.
• Maintaining a Clean and Tidy Workspace: This skill involves organizing merchandise, arranging displays, and ensuring that the store environment is neat and presentable. By keeping the workspace clean, retail professionals can easily locate products, enhance visual appeal, and create a pleasant shopping experience for customers.

Example: “Maintained meticulous records of sales transactions, inventory levels, and employee schedules, providing accurate and timely information for reporting and analysis.”

8. Product Knowledge

Product knowledge is a key skill for retail professionals as it empowers them to provide excellent customer service and contribute to sales success.

• Staying Updated on Product Features and Specifications: Retail employees should have a deep understanding of the products they sell, including their features, specifications, and benefits. 
• Understanding Industry Trends: Understanding industry trends allows employees to engage in meaningful conversations with customers, recommend relevant products, and position themselves as knowledgeable experts.
• Being Familiar with Competitors’ Offerings: Knowing about competitors’ products and offerings is essential in a competitive retail environment. By being familiar with what competitors are selling, their pricing strategies, and unique selling points, retail professionals can effectively highlight the advantages of their own products. 
• Effective Communication of Product Information: Having product knowledge is only valuable if retail professionals can effectively communicate that information to customers. This includes the ability to explain product features, benefits, and any technical aspects in a clear and understandable manner. 

Example: “Actively researched and compared competitor products, enabling effective communication of unique selling points and advantages to customers.”

9. Problem-solving

Problem-solving is a crucial skill in the dynamic world of retail. In this fast-paced environment, unexpected challenges can arise, and retail professionals need to be able to think on their feet and find effective solutions:

• Adaptability: Being adaptable means being flexible and open to adjusting to new situations, whether it’s dealing with sudden changes in customer demands, adapting to new policies or procedures, or handling unexpected issues that may arise. 
• Critical Thinking: In a retail setting, critical thinking means carefully assessing problems or issues, identifying the root causes, and considering various possible solutions. 
• Decision-making: When faced with multiple tasks or problems, retail professionals need to assess the urgency and importance of each situation and make decisions accordingly. It’s about weighing the available information, considering potential outcomes, and taking decisive action to address the issue at hand.

Example: “Demonstrated strong problem-solving skills by effectively resolving customer complaints and concerns, resulting in a 25% improvement in customer satisfaction ratings.”

10. Business Acumen

Business acumen is a valuable skill to have when working in retail. It shows employers that you have a deep understanding of how businesses operate and how your role as a salesperson impacts the overall success of the company. Let’s break it down into smaller skills that can impress hiring managers:

• Sales Performance Awareness: This skill allows retail workers to identify areas where you excel and areas that may need improvement. It shows that you’re proactive in maximizing your sales potential.
• Customer Interaction Expertise: Employers look for individuals who can provide exceptional customer service and create positive experiences. Your ability to build relationships, address customer needs, and exceed expectations will showcase your customer interaction expertise.
• Business Growth Initiatives: Highlight any instances where you identified opportunities or implemented strategies to boost sales, improve operational efficiency, or enhance customer satisfaction. This demonstrates your proactive approach and ability to contribute to the company’s success.

Example: “Utilized data analysis and market research to identify customer trends and preferences, leading to the implementation of targeted marketing campaigns that resulted in a 15% growth in customer engagement.”

How to List Retail Skills on a Resume

When listing skills on a resume, it’s important to tailor your skills to the specific requirements of the job you’re applying for. Here are some tips on how to effectively list your retail expertise on your resume:

• Create a dedicated skills section: Start by creating a separate section on your resume specifically for your retail skills. This allows employers to quickly identify your relevant qualifications.
• Review the job description: Carefully read the job description or job posting to identify the key skills and qualifications the employer is seeking. Focus on highlighting the skills that align with those requirements.
• Use bullet points: Present your skills in a concise and easy-to-read format using bullet points. This makes it easier for employers to scan through and quickly assess your qualifications.
• Be specific: Clearly state the skills you possess and provide examples or accomplishments to support them. This helps demonstrate your level of proficiency and the value you can bring to the role.
• Prioritize relevant skills: List your most relevant and important retail skills first. Consider the skills that are most essential to the job you’re applying for and place them at the top of your list.
• Include a mix of hard and soft skills: Retail positions often require a combination of technical/hard skills (e.g., cash handling, inventory management) and soft skills (e.g., customer service, communication). Include a balance of both types of skills in your list.
• Quantify your achievements: Whenever possible, quantify your accomplishments. For example, mention specific sales targets you achieved, customer satisfaction ratings, or any other measurable outcomes.

Example of a Retail Resume

[Your Name] [Address, City, State, ZIP Code] [Phone Number] [Email Address] Objective: Dedicated and results-driven retail professional with 5+ years of experience in customer service and sales. Seeking a challenging position in a dynamic retail environment where I can utilize my strong communication skills, exceptional product knowledge, and proven track record of delivering exceptional customer experiences to drive sales and contribute to the success of the company. Skills: Customer Service Sales Product Knowledge Cash Handling Inventory Management Communication Problem-Solving Teamwork Experience: Retail Sales Associate ABC Retail Store, City, State January 2019 – Present – Provide excellent customer service, assisting customers in selecting and purchasing products based on their needs and preferences. – Exceed monthly sales targets consistently, resulting in a 15% increase in overall store revenue. – Utilize product knowledge to provide detailed information on features, benefits, and specifications, leading to a 10% increase in upselling and cross-selling. – Maintain a clean and organized sales floor, ensuring merchandise is properly displayed and appealing to customers. – Process cash and electronic transactions accurately, handling cash register duties with zero discrepancies or errors. – Resolve customer complaints and concerns promptly and effectively, ensuring high levels of customer satisfaction. – Collaborate with team members to achieve sales goals, sharing best practices and providing support as needed. Retail Associate XYZ Retail Store, City, State March 2017 – December 2018 – Assisted customers with product selection and provided product information, resulting in a 10% increase in customer satisfaction ratings. – Managed inventory and replenished stock to ensure product availability and maintain organized store displays. – Operated Point of Sale (POS) system to process transactions, accurately handle cash, and generate sales reports. – Collaborated with the visual merchandising team to create attractive product displays, leading to increased customer engagement. – Conducted inventory counts and reconciled discrepancies to maintain accurate stock levels. – Responded to customer inquiries via phone, email, and in-person, providing timely and helpful assistance. Education: Bachelor of Business Administration University Name, City, State Year of Graduation

How to Improve Retail Skills

Seek additional training: Look for training programs, workshops, or online courses that specifically focus on retail skills such as customer service, sales techniques, inventory management, or visual merchandising. Here are a few examples:

• “Retail Management: Principles and Practices” on Coursera
• “Customer Service: Soft Skills Fundamentals” on LinkedIn Learning
• “The Art of Selling: Learn How to Sell Anything to Anyone” on Udemy
• “Visual Merchandising and Retail Store Design” on Skillshare

Shadow experienced employees: Learn from seasoned professionals by observing their interactions with customers, their selling techniques, and how they handle challenging situations. Ask questions and seek their guidance to gain insights and improve your own skills.

Stay updated with industry trends: Keep yourself informed about the latest trends, products, and advancements in the retail industry. Read industry publications, follow relevant blogs or social media accounts, and attend trade shows or conferences to stay current and adapt to changing customer preferences.

Practice active listening: Develop strong listening skills to better understand customer needs and expectations. Practice active listening by giving your full attention, paraphrasing what customers say, and asking clarifying questions to ensure you meet their requirements effectively.

Enhance your product knowledge: Continuously educate yourself about the products you sell. Study product specifications, features, and benefits so you can confidently provide accurate information and recommendations to customers.

Embrace technology: Stay updated with the latest retail technologies and systems. Familiarize yourself with point-of-sale (POS) systems, inventory management software, and customer relationship management (CRM) tools. Utilize these technologies to streamline operations, enhance customer experiences, and improve productivity.

What Skills Are Good in Retail?

Good skills in retail include customer service, sales, communication, problem-solving, product knowledge, teamwork, adaptability, attention to detail, and technology proficiency. These skills help provide excellent service, achieve sales goals, resolve issues, collaborate effectively, and adapt to the dynamic nature of the retail industry.

What Are Some Transferrable Retail Skills?

Transferrable retail skills include customer service, sales, communication, problem-solving, teamwork, time management, attention to detail, adaptability. These skills can be applied to various industries and roles, making them valuable assets in different professional settings.

Learn more: The Top 15 Transferable Skills

What Are the Best Skills for a Retail Management Resume?

The best skills for a retail management resume include leadership, team management, sales/business development, operational efficiency, customer relationship management, financial management, analytical skills, communication, problem-solving, and adaptability.

Learn more: 10 Best Finance Skills for Your Resume

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