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FINN BLOG

Soft Skills VS Hard Skills – Striking The Right Balance


The skills of your team underpin the success of your business today and in the future. A successful business will grow in size and require more team members to manage customers and operations, so how can you achieve an appropriate skills balance that avoids skill gaps and creates a cohesive team?

soft skills

There’s not one straight answer, as the skills you require to support your business will be different depending on what you’re selling, what service you provide, and even if you’re a bricks-and-mortar retailer vs a store that only sells online.

Whether you’re a new business owner looking to build out your initial team, or you’re working on transitioning the business and addressing a skills imbalance you’ve located, you can start with the baseline of soft skills vs hard skills.

What are soft skills?

Soft skills, also known as ‘human skills’ or ‘core skills’ are a set of skills that covers everything from communication skills, listening skills, collaboration and creative thinking, problem solving and even empathy and critical thinking. In the past, these kinds of skills were often overlooked, and thought of as less important than hard skills, but in recent years it’s become apparent that excluding these skills in your business and your team can lead to problems later down the line, including your ability to retain staff.

What are hard skills?

Hard skills or ‘technical skills’ are those most often associated with specific roles and disciplines, for example, an accountant will have completed an accounting degree. A computer programmer will have coding skills, and a graphic designer will use specific programs and technologies to execute their role. Hard skills are mostly developed in courses and accredited programs or university degrees, and are often highly valued as the base for hiring talent – the right hard skills will mean a person can execute on their role, right? Well, the shift in value of soft skills vs hard skills is changing as the work landscape continues to shift post-COVID.

What skills are in demand?

There’s no question that the appropriate hard skills on a resume will stand out to you as a business owner and employer, but be aware that some employees have relied on their hard skills and neglected to develop key soft skills that enable successful business operations, growth, innovation and harmony within the business.

CNBC recently reported that “93% of employers want to see soft skills” on resumes, highlighting the shift for employers in valuing these human skills alongside a core of technical expertise. Not only does someone component in soft skills often align with an employee who is able to communicate with you as a boss as well as the rest of their team, but they are likely to be more capable of operating the hybrid world of work, where many employers are needing to offer at-home work schedules (part time at minimum).

So, what are some of these skills that employers are searching for, that you can apply for your own business?

Communication Skills

The ability to communicate means that someone will feel confident and comfortable writing emails and maintaining a professional but approachable tone, they will be able to handle calls with ease and will speak up and have their voice heard on a Zoom call. Introverted employees who lack these skills can be difficult to manage long term, and may cause bottlenecks of work if they are reluctant to speak up or ask for help.

Whether it’s presenting to a stakeholder or an initial meeting with a new client, communication skills are key.

Project Management

Project management skills come in handy across all roles, and enable you to manage tasks efficiently, track progress, delegate and stay on time and on budget – in other words, who wouldn’t want a team skilled at project management?

Customer Service

For many business owners selling a physical product or service, customer service is essential and will impact your bottom line. Today, customer service isn’t about the hard sell, it’s about employees who want to connect and engage on an authentic level with the customer, go the extra mile and manage themselves professionally and personably at all times. Memorable customer service is often the reason for repeat clients.

So, what skills is your business lacking in? Just as you would your business plan, track the capabilities and strengths of the team – you’ll find that soft skills will come up heavily on your radar, so consider refreshing job descriptions to attract the talent you need, and of course, consider your own personal upskilling and development.

As we’ll explore within further blogs, soft skills can always be learnt and developed!

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