The Soft Skills Imperative 01|2017From attitude to empathy, we explore the power of soft skills in an automated world. The Soft Skill Imperative | White Paper 2 The Adecco Group 3 Soft SK Skills As tasks are automated and job roles and responsibilities Unlocking entrepreneurial evolve, human qualities are the new essential for the work- potential—and perhaps even GDP force and the workplace growth The world is navigating a transition from the What’s driving this rush of enthusiasm? There’s yet knowledge economy to the self-knowledge econ- to be a study conducted that demonstrates in hard Consider the experiences of two groups who, development programs for longer, feel more omy. In every area of operations, automation numbers that soft skills play a direct, causal role in at first glance, could not appear to be less successful, and keep pursuing the small busi- and robotics are remaking the way we manage driving success for either candidates or corpora- similar: participants in a women’s entrepre- ness path.” traditional day-to-day tasks. Virtual collaboration tions. But individual organizations have become neurship training program in Guatemala and platforms are altering how and where we work. attuned to the impact of soft skills deficiencies Major League Baseball’s 2016 World Series Digital access to data is driving unprecedented within their ranks, and pioneering studies suggest champions, the Chicago Cubs. The success of “Women who get soft skills training wind up capacity—and demand—for real-time decision-mak- that training in these areas can contribute to con- each has been attributed in part to soft skills staying in the entrepreneurship or business awareness and development. ing. Yet as we reinvent the way we do business, ditions that strengthen sustained organizational development programs for longer, feel more the real game-changer may prove to be neither performance and financial results. algorithms nor artificial intelligence, but rather hu- Funded by Oxfam America, the Women in successful, and keep pursuing the small busi- man intelligence. Small Enterprise program is the focus of ness path.” Not Strictly Business: Improving Women’s People, it seems, still have one commanding Entrepreneurship Through Soft-Skills Train- competitive advantage over technology: the ability ing and Engagement of Men. The report was to understand other people. To express empathy, co-published by Oxfam America and Value Those results are significant not only for the communicate persuasively, and seek common for Women in October 2016. Author Daina individual women, but also potentially for ground in a manner that allows groups to agree on Ruback was interested in determining which the global economy. An October 2014 BCG an action plan and, more important, to feel col- barriers were preventing women from start- Perspectives article reported: “if women and lectively invested in its success. Throughout the ing businesses and participating fully as men participated equally as entrepreneurs, world, market demand is placing a premium on job entrepreneurs. She also sought to resolve the global GDP could rise by as much as 2 per- applicants who demonstrate these and other “soft question of why women drop out of programs cent or $1.5 trillion, according to research by skills,” and companies are investing in develop- that offer training and support for women in The Boston Consulting Group.” We can’t con- ment programs that strengthen these attributes in entrepreneurship. clude that soft skills training has the power their employees. to be directly responsible for sparking that Her study found that soft skills development increase, but there is evidence to suggest that in areas such as negotiation and communi- it would help position women to launch and cation, along with leadership training, put sustain businesses capable of generating that women on a more level playing field with trillion-plus dollar increase. their male counterparts and strengthened their prospects for long-term success. “Soft skills development empowers them to be able to do better in business and helps them to advocate and make decisions if they’re in a position where maybe they don’t control the money in the household,” Ruback says. “Especially in Latin America, we’ve seen that the women who get soft skills training wind up staying in the entrepreneurship or business The Soft Skill Imperative | White Paper 4 The Adecco Group 5 As for the Chicago Cubs: observers have development. But regardless of the extent to noted that emphasizing soft skills played a key which they can unlock increased profit and role in recruiting and developing a team that growth potential, soft skills are becoming a would win its first World Series championship business imperative because legacy skills since 1908. This October 2016 Quartz article are losing relevance as the nature of work is reveals how managers sought players with disrupted. such qualities as character and ability to cope constructively with failure. They instructed their talent scouts to seek details of instances in which prospects had weathered adversity on and off the baseball diamond—a skill that would take on tremendous significance during post-season play. By placing value on these personality traits and not just on batting and fielding skills, the organization assembled a team that won 103 of 161 games during the regular season. The players went on to win the championship by persevering despite having fallen behind in the series by three games to one. With examples like these—even to the extent that they’re anecdotal rather than empirical— it’s no wonder that companies are exploring what they can achieve by making these traits “Soft skills played a key a priority in recruitment and professional role in recruiting and developing a team that would win its first World Series championship since 1908.” The Soft Skill Imperative | White Paper 6 The Adecco Group 7 The new workplace demands “59 percent of hiring managers said an update to old work skills soft skills are ‘difficult’ to find in job applicants.” In January 2016, the World Economic Forum published a Global Challenge Insight Report titled The Future of Jobs Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution. “The accelerating pace of Within this changing dynamic, there is a grow- a subset of facility at problem-solving, which technological, demographic and socio-economic disrup- ing demand for soft skills not only for their can fall within the category of hard skills. And tion is transforming industries and business models, intrinsic value, but also because they give beyond soft skills basics like strength in com- changing the skills that employers need and shortening employees a basis for learning and gaining munication and interpersonal relationships the shelf-life of employees’ existing skill sets in the pro- command of new responsibilities. are more nuanced capabilities that are gain- cess,” the authors wrote. “For example, technological dis- ing importance in an increasingly global and ruptions such as robotics and machine learning—rather When LinkedIn surveyed 291 hiring managers inclusive workplace. When the Pew Research than completely replacing existing occupations and job in the United States, it found that 59 percent Center conducted a review of The State of categories—are likely to substitute specific tasks previ- said soft skills are “difficult” to find in job ap- American Jobs, it found that 85 percent of ously carried out as part of these jobs, freeing workers plicants. The problem is serious enough that respondents ranked “ability to work with up to focus on new tasks and leading to rapidly changing 58 percent of respondents said soft skills defi- those from diverse backgrounds” as a key soft core skill sets in these occupations.” ciencies in the pool of candidates are “limiting skill. But while there may not be unanimous their company’s productivity.” In August 2016, agreement about the way we define soft skills Guy Berger, Ph.D., an economist at the com- or their parameters, there is consensus that “Soft skills are becoming a business imperative pany, published findings of an analysis of soft employees must demonstrate some combi- because legacy skills are losing relevance as skills listed on the LinkedIn profiles of peo- nation of these skills to be assets in today’s the nature of work is disrupted.” ple who had listed a new employer between workplace and to be equipped for continued June 2014 and June 2015. His review identi- productivity throughout their careers. fied communication, organization, teamwork, Professionals will need more than freedom to take on consistent punctuality, critical thinking, social their new responsibilities, and studies suggest that nei- skills, creativity, interpersonal communication, ther employees nor employers have prepared adequate- adaptability, and a friendly personality as the ly for the shift that is already underway. Findings of the ten soft skills most in demand among employ- Workforce 2020 study conducted by Oxford Economics ers. and SAP underscore the depth of the divide. The report, based on a survey of more than 2,700 executives and This is not a comprehensive or universal list of 2,700 employees in 27 countries, found that according to what constitutes soft skills. Critical thinking, more than 50 percent of executive respondents, “prob- for example, is regarded by some experts as lems with talent and key skills are affecting business performance.” At the same time, half of employees said they do not expect their current skills to be adequate just three years from now. Anxieties in that regard are heightened by the fact that according to both executives and employees, only half work at companies that have “a culture of continuous learning.” The Soft Skill Imperative | White Paper 8 The Adecco Group 9 Peru United Kingdom In October 2016, members of the Asia-Pacific Economic A survey conducted by British Gas found that employers Cooperation (APEC) Forum met in Lima for the Inter- actively seek entry-level candidates with communication, national Symposium on Strategies for Strengthening time management, leadership, and other soft skills.