Which SHRM competency is described as interpreting information to make business decisions and recommendations?

• A. CONSULATION
• B. Ethical Practice
• C. Global and Cultural Effectiveness
• D. Communication

Answer: (A)

Interpreting information to make business decisions and recommendations is about using data and evidence to guide stakeholders and advise on the best course of action. In SHRM, this is the Consultation competency: you analyze HR metrics, market or organizational data, and policy implications, then translate that analysis into practical guidance for leaders and decision-makers. This role involves problem-solving, evaluating options, and presenting recommended actions to address business needs. While Ethical Practice focuses on doing what’s right and compliant, Global and Cultural Effectiveness centers on working across cultures, and Communication is about conveying information clearly—none of these emphasize the advisory, decision-support aspect as directly as Consultation. For example, interpreting turnover and engagement data to recommend retention strategies to management illustrates this competency in action.