Most Valuable Career Skills for 2024 - Investopedia
Healthcare is a field offering tremendous opportunities in terms of job growth. · Sustainable energy and statistics are also fields where jobs are expected to ...
Soft skills
While technical skills are important, employers don’t have tunnel vision when considering which workers to hire. <anchor>Soft skills</anchor>, which are often influenced more by personality than by education or training, are still a priority in the workforce.
What Are Soft Skills? Definition, Importance, and Examples
- SearchSearch

Please fill out this field.

SearchSearch

Please fill out this field.

Investing

Simulator

Banking

Personal Finance

Economy

News

Reviews

Follow Us

Table of Contents

Expand

Table of Contents

# What Are Soft Skills? Definition, Importance, and Examples

By

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School for Social Research and Doctor of Philosophy in English literature from NYU.

Updated August 26, 2024

Reviewed by

Reviewed byDavid Kindness

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning. David has helped thousands of clients improve their accounting and financial systems, create budgets, and minimize their taxes.

Fact checked by

Fact checked byRyan Eichler

Ryan Eichler holds a B.S.B.A with a concentration in Finance from Boston University. He has held positions in, and has deep experience with, expense auditing, personal finance, real estate, as well as fact checking & editing.

Soft Skills:max_bytes(150000):strip_icc()/TermDefinitions_Template_softskills-c1bde5691d3144468cf8c4db69beb737.jpg)

Tara Anand / Investopedia

Close

## What Are Soft Skills?

Soft skills are character traits and interpersonal skills that characterize a person's ability to interact effectively with others. In the workplace, soft skills are considered to be a complement to hard skills, which refer to a person's knowledge and occupational skills. Psychologists may use the term "soft skills" to describe someone's emotional intelligence quotient (EQ) as opposed to intelligence quotient (IQ). In a competitive labor market, individuals who demonstrate that they have a good combination of hard and soft skills often enjoy a greater demand for their services.

### Key Takeaways

- Soft skills include attributes and personality traits that help employees effectively interact with others and succeed in the workplace.
- Examples of soft skills include the ability to communicate with prospective clients, mentor co-workers, lead a team, negotiate a contract, follow instructions, and get a job done on time.
- Hard skills are measurable and usually obtained through formal education and training programs.
- Workers with good soft skills can help companies achieve higher levels of efficiency and productivity.
- In contrast to hard skills, soft skills are more difficult to acquire through formal training.

## Understanding Soft Skills

Many employers look for a balance of hard skills and soft skills when making hiring decisions. For example, employers value skilled workers with a track record of getting jobs done on time. Employers also value workers with strong communication skills and a good understanding of company products and services. When communicating with prospective clients, workers with soft skills can put together compelling presentations even if their specific job is not in sales or marketing. Another valued soft skill is the ability to coach co-workers on new tasks.

Company leaders often are most effective when they have strong soft skills. For example, leaders are expected to have good speaking abilities, but great leaders are also good at listening to workers and to other leaders in their fields. As an article in the Harvard Business Review put it, "Employers who fail to listen and thoughtfully respond to their people's concerns will see greater turnover. Given that the highest rates of turnover are among top performers who can take clients and projects with them, and the frontline employees responsible for the customer experience, the risk is clear."

Negotiation is also a big part of the job for many company leaders. When negotiating with employees, clients, or associates, leaders need to be skilled in staying considerate of what others want while remaining focused on achieving what they want. Good leaders also need to know how to effectively assign tasks to other team members.

Companies often like to hire employees who possess soft skills that mesh well with those of the rest of the staff, considering them to be a good cultural fit for the company.

## Hard Skills vs. Soft Skills

Workers acquire hard skills through formal education, training programs, and concentrated effort. Hard skills are the quantifiable skills that workers need to successfully perform a specific job. Employers often test or evaluate a candidate's hard skills before hiring. Examples of hard skills include computer programming, writing, web development, and graphic design. Some hard skills are more in demand than others, and employers may need to hire recruiting agencies or headhunters to fill jobs that require specialized, high-level hard skills.

Hard skills can be learned and perfected over time, but soft skills are more difficult to acquire and change. For example, the soft skills a doctor might need are empathy, understanding, active listening, and a good bedside manner.

Alternatively, the hard skills a doctor requires include a vast comprehension of illnesses, the ability to interpret test results and symptoms, and a thorough understanding of anatomy and physiology.

Coaching is one of the most effective methods for improving soft skills.

## Valuable Soft Skills for Employees

Soft skills benefit businesses when they are practiced on a company-wide basis. For example, a collaborative spirit among workers is important. Team members who are able to work well with people of different generations and backgrounds are generally more productive and better able to focus on common priorities. Efficiency and output improve when workers collaborate by sharing knowledge and tools to get jobs done. The ability to learn new methods and technologies is also a desired soft skill for all workers.

Companies that value learning as a soft skill recognize various learning styles and encourage workers to pursue the methods that work best for them. Good troubleshooting is another soft skill that companies value. For example, companies can operate more efficiently and increase productivity when all workers know how to troubleshoot software problems instead of relying on the information technology (IT) department for every fix.

Soft skills can also be thought of as people skills. These can include good communication and interpersonal skills, leadership, problem-solving, work ethic, time management, and teamwork. These are characteristics that can be carried over to any position.

## Soft Skills and Emotional Intelligence

Emotional intelligence is one specific soft skill worth talking about on its own. It involves the ability to recognize, understand, and manage your own emotions. Unlike traditional intelligence, which focuses on logic, problem-solving, and technical elements related to an industry, emotional intelligence is about navigating social situations and building strong relationships. According to McKinsey, the demand for emotional skills with grow by 26% from 2016 to 2030.

A major part of emotional intelligence is self-awareness. This means being aware of your emotions, strengths, and weaknesses, and understanding how they affect others. By recognizing your emotional triggers, you can control your reactions more effectively, avoiding hasty decisions or misunderstandings. Self-aware people are also better at receiving feedback and making personal improvements because they can objectively assess their behavior and attitudes.

Empathy is another important aspect of emotional intelligence. It’s the ability to understand and share the feelings of others, which helps you connect with colleagues, clients, and customers on a deeper level. Empathetic leaders can better support their teams by recognizing their needs and motivations, leading to a more engaged and productive workforce. Employers do tend to realize and recognize the benefits of those who have emotional intelligence; according to TalentSmartEQ, people with high EQs make $29,000 more per year than people with low EQs.

## How to Develop Soft Skills

There's no one single way to best develop soft skills. However, a combination of the methods below may help you gain social and interpersonal skills that could help you across a variety of jobs or industries.

- Practice Active Listening: Focus on truly understanding what others are saying without interrupting. This helps in building empathy and stronger relationships.
- Seek Feedback Regularly: Ask colleagues, managers, or mentors for feedback on your communication, teamwork, and other soft skills. Use their insights to make conscious improvements.
- Work on Emotional Intelligence: Develop self-awareness and learn to manage your emotions. This will help you navigate complex social situations and be able to connect with others more easily.
- Improve Time Management: Prioritize tasks and set realistic goals. Effective time management reduces stress, increases productivity, and helps you stay better organized.
- Engage in Team Projects: Collaborate with others on group tasks to improve your teamwork and interpersonal skills. This also enhances your ability to work with diverse personalities.
- Enhance Communication Skills: Practice clear and concise communication in both written and verbal forms. This will help avoid miscommunication and help you become a better leader.
- Develop Problem-Solving Abilities: Break down problems into smaller parts and explore multiple solutions. This will help you tackle different issues in the future, regardless of your job or industry.
- Cultivate Empathy: Put yourself in others’ shoes to understand their perspectives. Empathy strengthens collaboration and helps in building trust.
- Practice Public Speaking: Engage in activities like presentations or Toastmasters to build confidence in speaking.
- Learn Stress Management Techniques: Practice mindfulness, exercise, or other relaxation techniques to handle stress better. Managing stress helps maintain productivity and may help with focus.

## What Is the Difference Between a Soft Skill and a Hard Skill?

Hard skills are the measurable skills acquired through training, education, and practice. They are the abilities needed to perform a specific task or job. Soft skills are behavioral and interpersonal skills that relate to how effectively people interact with others and handle situations.

## Why Are Soft Skills Important?

How well you interact and treat others is crucial for career success. Trust develops through positive interactions and relationships, and productivity increases in environments where soft skills flourish.

## How Do You Improve Soft Skills?

Although not customarily acquired through formal training, soft skills can be learned. To improve soft skills, an individual must be open to feedback and willing to change behaviors. Training can provide tips and strategies for developing better practices, such as active listening and empathizing with others. And practicing can strengthen areas where deficiencies exist.

## What Is Soft Skills Training?

Soft skills training is training to help develop or improve interpersonal skills. It consists of lessons to improve communication, increase active listening, resolve conflicts, and more.

## The Bottom Line

While hard skills are highly valued in today's economy, many employers recognize the importance of soft skills as well. For that reason, workers with both hard and soft skills may find it easier to get hired and rise through the ranks.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our
editorial policy.

Related Terms

International commercial terms (Incoterms) clarify the rules and terms that buyers and sellers use in international and domestic trade contracts.

Mandatory binding arbitration requires parties to resolve disputes before an arbitrator rather than through the court system. Individuals may be better served by a trial.

A fee is a fixed charge for a service. Fees can also be additional charges related to a good or service. Hidden fees cost consumers billions of dollars every year.

A takeover bid is a corporate action in which an acquiring company presents an offer to a target company in attempt to assume control of it.

A material weakness is when one or more of a company's internal financial and/or operational controls is ineffective, resulting in errors in the company's financial reports.

A cost-plus contract is an agreement to reimburse a company for expenses plus a specific amount of profit, usually stated as a percentage of the contract’s full price.

Related Articles

Partner Links