The rise of AI seems to dominate all conversations about the world of work. So, jobseekers are understandably eager to tout their knowledge of the latest technology. But as important as AI is, employers still tout the value of communication, leadership, empathy, adaptability, and other soft skills.
Holding Back AI?
Can a lack of human skills hold back employers’ ability to get the most out of AI? A recent study from workplace solutions provider International Workplace Group (IWG) says it absolutely can.
IWG surveyed 510 U.S.-based HR, recruitment, and hiring managers in April and found 90% of HR leaders believe failing to prioritize human capabilities is a risk to innovation. IWG says the results of the research show a new “human skills economy” in which empathy, judgment, creativity, and leadership are core to business performance.
IWG reports that most hybrid teams are already using AI tools, and organizations are providing AI training. But less than half of the HR leaders surveyed say they’re effectively closing the skills gap, meaning many organizations are lagging in effective use of AI.
The rapidly changing and tightening labor market leads employers to rethink the skills that drive performance. The IWG research identifies where HR leaders think humans remain essential:
- 65% say AI will never replicate human empathy.
- 64% say it falls short in complex decision-making.
- 53% say leadership will remain uniquely human.
The IWG report adds human skills are becoming the most durable source of competitive advantage. Two-thirds of the HR leaders surveyed say applicants’ ability to demonstrate human skills matters most in hiring—more important than experience, technical skills, and education.
So, what should employers take from the research? IWG says companies need to integrate AI while building environments where human skills thrive. Strengthening human capabilities will help technology and humans work as a team.
Most Needed Skills
The National Association of Colleges and Employers reported in 2025 that almost two-thirds of employers use skills-based hiring, and soft skills are among those most valued. A survey of 1,005 hiring managers from résumé platform Resume Templates released in December 2025 found that communication, professionalism, and time management topped the list of soft skills employers were seeking for 2026.
Resume Templates called communication the No. 1 currency in the workforce and what makes teams, projects, and decisions work. Employers want professionalism, the report says, because they need “adults in the room” who are reliable and mature and know how to handle themselves. Time management, the report says, is a “top differentiator, not just a basic expectation.”
Other sought-after soft skills on the Resume Templates list are accountability, resilience, problem-solving, critical thinking, attention to detail, collaboration, and adaptability.
Tips for Employers
Because soft skills are so important, employers have an interest in learning how to develop them within their workforces. Workforce Essentials, a Tennessee-based business consulting firm, identifies strategies employers can use to identify and strengthen workers’ soft skills:
- Use behavioral interview questions and onboarding processes to identify communication and teamwork gaps early.
- Use performance evaluations and feedback to highlight areas for improvement.
- Offer mentorship and coaching.
- Create opportunities for team-based work and cross-functional collaboration.
- Build a culture that encourages accountability, feedback, and continuous improvement.
- Provide soft skills training programs focused on communication, teamwork, and problem-solving.
Employers can improve workers’ soft skills through training. Skill development platform Growthspace offers advice, including to:
- Identify training needs by analyzing skills gaps currently being experienced and for future needs;
- Choose the right training methods; and
- Measure effectiveness and return on investment.