The Future Of Upskilling Is Clear: Get Back To Soft-Skill Basics

Upskilling is shifting towards soft skills as employers prioritize interpersonal skills

By Karen Moore-Jackson, Graziadio School of Business

Asmost HR managers know, companies went on a hiring frenzy well into the pandemic, causing newly minted workers to put their training and post-graduate education plans on hold. This trend was understandable as these workers were being offered opportunities that a year or two prior would have required advanced skills or a degree.

Now that companies have adjusted their staff levels and the economy has cooled, workplaces have settled into a routine workplace model (full in-person, hybrid, fully remote, etc.). In this environment, there is an uptick in interest in post-graduate education across all programs. Some top schools are seeing increases in applications of more than 20 percent for the 2024 class.

This is not an accident. While the new generation of workers is more adept at technical skills than ever, prospective MBA students are looking to sharpen their soft skills. According to the National Association of Colleges and Employers, employers are seeking professionals who can enhance productivity by interacting harmoniously and positively with staff, partners, and customers.

The proliferation of remote work has adversely impacted soft skills for many people, at all levels. As the executive director of recruitment at Pepperdine Graziadio Business School, I’m increasingly seeing applicants looking to join our MBA program to improve their communication, leadership, and problem-solving skills. These are skills that may have eroded or were never developed in the first place due to entering the workforce in a remote state or missing critical years of social development during their undergraduate education.

If you are an HR manager responsible for skill development in your organization, soft skills training has taken on greater importance. There are inherent problem-solving skills that the newer generation of workers has not developed. There is a big difference between working a problem out over Zoom versus problem-solving elbow-to-elbow with colleagues. It is simply time for many professionals to get back to the basics of a functioning, thriving workplace and that starts with cultivating interpersonal skills.

In fact, our corporate partners at Pepperdine Graziadio are specifically seeking these skills out. HR managers are finding problems with their younger workforce, where even constructive feedback to some employees is not met warmly. While of course, the hard skills learned through an MBA program are invaluable, coming into an MBA program where you learn how to be empathetic, how to have effective communication, how to think critically, and how to be creative, will give prospective employees a leg up in interviews. Many of these skills have gone by the wayside and employers want them back.

Luckily, the incoming working generation - Gen Z - is very aware of the soft skills problem. According to a study by Tallo Data based on a survey of more than 2,400 Gen Z workers, 92% of respondents reported that they are able to confidently identify which soft skills they have. However, also according to Tallo, “empathy (8%) and relationship building (7%) ranked much lower on Gen Zer’s list of skills they’ve developed during the pandemic.”

This is not necessarily a cliche “Gen Z problem” either. All generations could use a refresher in collaboration. Employers that work with Graziadio say that it is invaluable for employees to collaborate with fellow students, who are in similar roles or time in their career, while facing the same challenges. This environment cultivates leaders and builds healthy workplaces. HR managers looking to invest in their workforce will find great value in exploring part-time MBA programs for their employees.

To be certain, the need for hard skills will always be in high demand. MBA programs must teach objective, quantifiable skills that are essential to completing technical tasks. But code writers, tax auditors, and actuaries who also have the ability to collaborate, share ideas, and motivate the team are well positioned to write their own tickets.

Overall, given the trends across the business world, these are the top three skills every working professional should be working on:

1. Problem-solving. It doesn’t matter what level you’re at in your career, problem-solving efficiently and harmoniously is paramount. According to recruitment firm Adaface, solving problems is beneficial in almost every job role and can help support verifiable characteristics and skills that enable and improve the employee’s performance and efficiency at a job. Professionals skilled at resolving conflict, troubleshooting, identifying gaps in data, or generating insights to apply to a problem are naturally in high demand.

2. Data decision-making. In the past five years, data has taken over as a major driver of career growth. According to Acumen Research and Consulting, the Global Data Analytics Market Size accounted for $31.8 Billion in 2021 and is projected to occupy a market size of $329.8 Billion by 2030, growing 29.9% from 2022 to 2030. The industry needs workers. Understanding data and how to apply it will increase personal prosperity as well as company growth.

3. Tie the balance sheet to the overall strategy. A balance sheet provides information on a company’s resources (assets) and its sources of capital (equity and liabilities/debt). This sounds like a no-brainer, but too many employees focus on technical or operations at the expense of company finance literacy and strategy. A famous 2009 study from the Business Literacy Network found among a sample of executives taking a basic financial-literacy exam, the average score was only 38% - an F minus-minus. (I doubt it has improved much since that time). The balance sheet along with research and novel insights should inform the framework for how a company makes decisions.

Hard technical skills will be the prerequisite for joining any serious business organization, but it’s the soft skills that create leaders and advancement in the workplace. For HR managers who are looking to enhance workforce training, reskilling with a set of soft skills will aid the overall company in prioritizing, planning, and performing. No matter the work setting, tasks needed, or professional level, thoughtful upskilling will have top-level and bottom-line impacts.

Karen Moore-Jackson currently works for Pepperdine University as the Executive Director of Recruitment at the Graziadio School of Business. In this chief enrollment position, Karen oversees their recruitment superstructure: full-time, part-time, executive programs, engagement and recruitment operations and partnerships.

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