by Ryan H. Law
In Part I of this 2-part series on essential (or soft) skills we discussed how a 100-year old Engineering Education report concludes that that 85% of success is based on soft skills and only 15% is based on technical knowledge.
If this is true in Engineering, I submit that it is also true in financial planning, counseling, and coaching.
In this post we are going to dig a bit deeper into why these skills are so important, and what some of the research says about which soft skills are important.
![](https://ryanhlaw.com/wp-content/uploads/2021/03/linkedin-logo.png)
LinkedIn has done some interesting research around soft skills. They report that, “92% of talent professionals reported that soft skills are equally or more important to hire for than hard skills. And 89% said that when a new hire doesn’t work out, it’s because they lack critical soft skills1.”
LinkedIn also compiled a list of the top 10 soft skills that employers are looking for2:
- Communication
- Organization
- Teamwork
- Punctual
- Critical thinking
- Social skills
- Creativity
- Interpersonal communication
- Adaptability
- Friendly
Two more examples.
![](https://ryanhlaw.com/wp-content/uploads/2021/03/southwest-airlines-logo-1024x462.png)
Southwest airline often wins awards for being one of best places to work, and their employees often say that working at Southwest is a calling, not a job or a profession. Southwest’s CEO said that they look for the following soft skills (he also prefers the term “essential skills”) in hiring and promoting3:
- Communication
- Teamwork
- Leadership
- Relationship-building
- Reliability
- Dependability
![](https://ryanhlaw.com/wp-content/uploads/2021/03/Google-logo.jpg)
And as one final example, Google put together a list of the top 10 traits of good managers, and only one of the ten are technical skills4. Their list includes:
- Coaching
- Empowerment
- Inclusive
- Productive
- Communication
- Career development
- Clear vision/strategy
- Decision maker
- Collaborative
- Technical skills
Even the way the “technical skills” trait is worded looks more like a soft skill: “Has key technical skills to help advise the team.” Yes, they need key technical skills, but it is about advising a team.
What would a list look like for financial advisors?
Many of the same skills that LinkedIn, Southwest, and Google list would be on our list as well.
I’ve thought quite a bit about this and wrote out what I expect of my Financial Coaches in the counseling center I run. These also serve as our Core Values:
- We are trustworthy. We exhibit trustworthiness by following the MMRC Code of Ethics.
- NOTE: Our Code of Ethics discusses confidentiality, objectivity, competence, and professionalism.
- We exhibit excellent listening, verbal, and written communication skills.
- We show respect for our clients and other Coaches by being nonjudgmental and showing compassion and empathy.
Soft skills will be a primary topic on my blog. I feel that if financial planners, counselors, and coaches can learn and improve on these key skills our profession will grow.
ACTION STEP:
- Choose one soft skill that you want to work on improving, and make a plan to work on that skill this week. For example, you could order a book, look up articles online, or look for a TED talk on that subject.
![](https://ryanhlaw.com/wp-content/uploads/2017/06/Ryan_signature-e1615231225436.jpg)
References and Resources:
(1) LinkedIn: Candidates’ Soft Skills are Notoriously Hard to Assess, But Following These 6 Steps Will Help
(2) LinkedIn Talent Blog: Data Reveals The Most In-Demand Soft Skills Among Candidates
(3) Why Southwest Says Soft Skills Reign Supreme
(4) Google Project Oxygen revisited: What it takes to be a great manager
Communication image licensed by Ingram Image – Stock Photo Secrets (AFF)
Leave a Reply