The Importance of Soft Skills and How Skills-Based Hiring Can Help

In today's fast-paced and evolving job market, the traditional approach to hiring is undergoing a significant transformation.

In the past, educational degrees and job titles were the standard for candidate selection. More recently, there’s been a shift that places a greater emphasis on skills-based hiring and the importance of soft skills. In other words, the current focus is on a candidate's actual abilities and competencies over more traditional qualifications.

While a candidate’s technical abilities are vital and always will be to perform effectively if offered a position, those skills can only take them so far. When hiring, it’s equally important to evaluate candidates for their soft skills. This shift from traditional qualifications to a greater focus on skills and competencies not only opens up the talent pool but also ensures candidates are evaluated for their ability to accomplish the actual demands of a job.

What Is Skills-Based Hiring? 

When candidates apply for a job, the applicant tracking system (ATS) scans their application to find qualities and experiences that match the job requirements. These criteria might include a certain number of years of experience in a specific role or a college degree. 

While an ATS scan may narrow down the applicant pool to those who check certain boxes, it may fail to showcase what candidates are truly capable of beyond the experience or education they put on their resume. In other words, other credentials or characteristics vital for strong workplace performance may be overlooked when evaluating resumes and applications. 

Those who are hired because of their credentials might be able to get the work done, but a strong candidate possesses soft skills that guide how they do their work and interact with others. This is where skills-based hiring comes into play.

Skills-based hiring is an approach to recruitment that focuses on the specific abilities and competencies a candidate possesses rather than traditional criteria such as educational background, previous job titles, or years of experience. 

This method emphasizes practical skills, knowledge, and performance, aligning the pre-employment process more closely with the actual requirements of the job.

By prioritizing skills over more traditional qualifications, employers can tap into a more diverse range of candidates, including those who may have acquired their skills through non-traditional routes such as self-study, online certification courses, or vocational training. 

This can lead to a more diverse and inclusive workforce and better opportunities for individuals who have historically been overlooked by conventional hiring practices.

Skills-based hiring, essentially, helps teams hire a workforce of individuals who are not only able to complete the technical requirements of a job, but also contribute to the overall productivity and success of an organization. 

What’s the Difference Between Soft Skills and Hard Skills?

In the context of skills-based hiring, understanding the distinction between soft skills and hard skills is crucial as it shapes how candidates are evaluated and selected for positions.

Hard skills are specific, teachable abilities or knowledge sets that can be objectively defined and measured. These skills are often acquired through formal education, training programs, certifications, or on-the-job experience. 

Some examples of hard skills include proficiency in a programming language, the ability to operate machinery, data analysis, financial modeling, and foreign language fluency. In skills-based hiring, hard skills are typically evaluated through pre-employment assessments, technical interviews, or practical demonstrations to ensure that candidates have the necessary technical capabilities to perform the job.

Soft skills, on the other hand, are interpersonal and intrapersonal abilities that affect how candidates interact with others and approach their work. These are often referred to as “people skills” and are frequently more abstract and harder to quantify than hard skills.

These skills are critical for workplace success because they influence how well a candidate will fit into the company culture and collaborate with others. During the hiring process, soft skills can still be evaluated through screening, assessing, and interviewing. 

In a well-rounded skills-based hiring approach, both hard and soft skills are considered to ensure that candidates are not only technically proficient but also capable of thriving in the workplace environment. This balanced focus helps in selecting candidates who can perform their duties effectively and contribute positively to the organization's culture and goals.

The Importance of Soft Skills at Work

Though we often highlight the pre-employment process, we also need to discuss the implications once a candidate is offered a role. That means we need to talk about hiring for soft skills, as these skills impact the workplace environment and productivity. 

Enhanced Collaboration and Teamwork

Soft skills such as communication, empathy, and teamwork are essential for working effectively with colleagues. These skills facilitate smooth interactions, help resolve conflicts, and enable employees to work together towards common goals. And, good interpersonal skills contribute to a positive work environment and foster a sense of camaraderie among team members.

Improved Problem-Solving and Innovation 

Critical thinking, creativity, and adaptability are key soft skills that drive problem-solving and innovation. Employees with these skills can think outside the box, develop new solutions, and adapt to changing circumstances. This is especially important in fast-paced and dynamic industries where flexibility and creative problem-solving are crucial for success.

Enhanced Leadership and Management

When filling leadership roles, leaders with strong soft skills can inspire and motivate their teams, manage stress and conflict, and create a supportive and productive work environment. These skills help build trust and respect between managers and employees, leading to higher engagement and productivity.

Boosted Employee Satisfaction and Retention

Hiring the right people contributes to a positive workplace culture, and those individuals need to have soft skills that allow them to mesh well with their new coworkers and even customers. Soft skills such as empathy and patience contribute to positive work environments and customer relationships. 

Plus, happy employees are more likely to be productive and loyal. They will contribute positively to the company’s success. One study from Harvard University, the Carnegie Foundation, and Stanford Research Center found that soft skills are attributed to 85% of job success. When employees feel understood, respected, and valued, job satisfaction increases, leading to higher retention rates. 

Increase Overall Productivity

Not only is a person's ability to complete tasks vital to their work, but so is how they get that work done. This ability requires effective time management, attention to detail, and self-motivation. 

Employees who can manage their time effectively, stay focused, and take initiative are more likely to meet deadlines and produce high-quality work. This benefits individual performance and contributes to the overall efficiency and success of the organization.

14 Examples of Soft Skills

So far, we’ve discussed the impact that strong soft skills have on a business and the culture in the workplace. But, hiring teams need to know what to look for when conducting skills-based hiring and evaluating a candidate for more than just their credentials. Here are a few examples of soft skills to look out for:

1. Communication: The ability to convey information clearly and effectively, both verbally and in writing. Effective communication ensures messages are clearly delivered and understood, facilitating collaboration, enhancing relationships, and improving successful project outcomes. Candidates with strong communication skills can articulate ideas clearly, listen actively, and provide feedback constructively, fostering a positive and productive work environment.

2. Teamwork: The ability to work well with others, collaborate effectively, and contribute to group efforts. Teamwork promotes synergy, helps leverage diverse skills and perspectives, and enhances problem-solving capabilities. Candidates with solid collaboration skills contribute to a cooperative work culture by supporting colleagues and actively engaging in collective goals.

3. Problem-Solving: The ability to identify issues, think critically, and find effective solutions. Effective problem-solving skills allow team members to quickly and efficiently overcome challenges. In turn, this helps promote continuous improvement as teams can move on to the next challenge or goal. Candidates with strong problem-solving skills can approach issues logically and quickly develop innovative solutions to complex issues.

4. Adaptability: How a candidate can adjust to new conditions, handle change, and remain flexible in various situations. This is essential in any dynamic and fast-paced environment. Adaptability allows organizations to remain competitive and responsive to shifting demands and needs. Highly adaptive candidates embrace change, learn quickly, and apply new skills easily, making them valuable assets in an evolving workplace.

5. Leadership: The ability to guide, motivate, and manage a team or project, while also setting a positive example. Effective leadership drives team performance, motivates employees, and ensures strategic goals are met while fostering a positive workplace culture. Candidates with effective leadership skills can help manage conflicts, make strategic decisions, and help l others develop their skills.

6. Time Management: The ability to prioritize tasks, manage time efficiently, and meet deadlines. When employees manage their time effectively, it increases productivity, reduces stress, and ensures deadlines are met, ultimately contributing to efficient operations. Candidates who excel in time management prioritize tasks, set realistic deadlines, and effectively balance multiple responsibilities.

7. Emotional Intelligence: The ability to understand and manage one’s own emotions and empathize with others. High emotional intelligence enhances interpersonal relationships, improves communication, and fosters a supportive work environment. Candidates who showcase strong emotional intelligence can manage stress, empathize with colleagues, and handle interpersonal conflicts in order to keep a harmonious and productive workplace.

8. Conflict Resolution: The ability to mediate disputes and offer beneficial solutions, ultimately minimizing disruptions and promoting strong working relationships. Skilled candidates can address conflicts calmly and constructively, find common ground, and implement solutions that satisfy all parties involved, enhancing team cohesion and collaboration.

9. Critical Thinking: The ability to analyze situations, think logically, and make reasonable judgments. This skill supports effective decision making, problem-solving, and strategic planning. Candidates with strong critical thinking skills can assess situations objectively, anticipate potential issues, and develop well-considered solutions to improve strategic initiatives.

10. Creativity: The ability to think outside the box, generate new ideas, and innovate. This is often also related to a person’s problem-solving abilities and their ability to devise original solutions or strategies. Creativity contributes to a culture of continuous improvement. 

11. Interpersonal Skills: The ability to interact positively with others, build relationships, and network effectively. This contributes to a positive work environment and may be displayed through networking abilities, or even the ability to carry a casual conversation and make a connection with someone new. Strong interpersonal skills allow candidates to build rapport, navigate workplace social dynamics, and work effectively with diverse teams.

12. Attention to Detail: The ability to focus on the finer points of tasks to ensure accuracy and quality without frequently needing to adjust or redo previous work. This enhances efficiency and reliability as detail-oriented employees produce high-quality work, catch mistakes early, and maintain high standards.

13. Self-Motivation: The ability to work independently, take responsibility and initiative, and stay driven without constant supervision. Self-motivation contributes to a person's drive to continuously improve on both personal and professional levels. At work, this promotes a proactive culture, potentially motivating others in the process. Self-motivated employees set and achieve their own goals, seek opportunities for growth, and showcase high levels of enthusiasm.

14. Open-Mindedness: The ability to be receptive to new ideas, perspectives, and feedback. This skill promotes innovation, inclusivity, and adaptability, in turn enabling organizations to leverage diverse viewpoints and stay competitive. Open-minded employees accept feedback and are willing to adapt to new situations and ideas.

There are plenty more soft skills to look for, but this list is applicable to all kinds of roles across industries. Understanding the value of these skills will help hiring teams better understand a candidate’s abilities and how they translate as workplace competencies. 

Conclusion 

While on the surface skills-based hiring might seem like a process for understanding the technical skills among candidates in your applicant pool. However, the process can be used to uncover both hard, technical skills as well as soft skills. 

Soft skills are incredibly important to the success of every team, and reflect not what work gets done but how it gets done. A team of employees with strong soft skills is able to help drive business success, experiencing all kinds of benefits like increased productivity, employee engagement, and retention. 

Companies can make sure that candidates have the right soft skills that are needed for the role and team through various points in the hiring process including screening, assessing, and interviewing. 

Want to learn more about skills-based hiring and hiring for soft skills? Check out these 3 Tips to Hire for Soft Skills in the Workplace.