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Why Soft Skills Will Outperform Technical Skills in 2026-27

Belinda Huckle 20 July 2026
Why Soft Skills Will Outperform Technical Skills in 2026-27

The Future of Work Needs More Than Technology

As artificial intelligence reshapes the workplace, organisations are asking an important question: what skills will matter most in the years ahead? While investment in AI and digital transformation continues to accelerate, technology alone doesn’t determine organisational success. The real differentiator is how effectively people use it.

The organisations gaining the greatest advantage from AI aren’t simply those adopting the latest tools. They’re the ones with people who can interpret information, communicate ideas clearly, make sound decisions and lead others through change. As technology takes on more routine and analytical tasks, the skills that remain uniquely human become increasingly valuable.

The latest workforce research supports this shift. According to the World Economic Forum’s Future of Jobs Report 2025, almost 39% of employees’ core skills are expected to change by 2030, driven largely by advances in AI and other emerging technologies. While demand for technical capabilities such as AI literacy and data skills continues to grow, employers are placing equal or greater emphasis on human skills including analytical thinking, communication, leadership, resilience and creative problem-solving. These are the capabilities that enable people to work alongside AI, applying technology with confidence, judgement and purpose.

For HR and L&D professionals, the implications are significant. Building technical capability will remain essential, but it is increasingly human skills that help organisations adapt, innovate and realise the full value of their technology investments. As technical knowledge evolves at an ever-faster pace, communication, leadership and critical thinking are becoming enduring sources of competitive advantage.

Throughout this blog, we’ll explore what the latest research tells us about the future of work, why human skills are becoming more valuable in the AI era, and how L&D teams can build the capabilities that will help their organisations thrive in 2026 and beyond.

What Employers Are Prioritising in the AI Era

Much of the conversation around AI focuses on the technology itself. Yet when employers are asked what they need from their workforce, the answer is consistently about people.

The World Economic Forum’s Future of Jobs Report 2025, based on insights from more than 1,000 employers representing over 14 million workers worldwide, identifies analytical thinking as the most important core skill for the future workforce. Alongside it, creative thinking, resilience, flexibility, leadership and social influence are all expected to grow significantly in importance through 2030. These capabilities enable people to solve complex problems, adapt to change and work effectively with AI, rather than simply relying on it.

This growing emphasis on human capability is reflected in recruitment trends too. LinkedIn’s Global Talent Trends research found that 92% of hiring managers and talent professionals consider human skills to be as important as, or more important than, technical expertise when assessing candidates. Perhaps even more tellingly, 89% believe that when a new hire doesn’t succeed, it’s usually because they lack critical human skills rather than technical knowledge. Together, these findings suggest that communication, collaboration and leadership are becoming increasingly important indicators of long-term success.

The value of these skills extends well beyond recruitment. Decades of workforce research have consistently shown that career success depends not only on technical expertise, but also on the ability to communicate ideas, build relationships and influence others. While the exact figures differ between studies, the conclusion remains remarkably consistent: technical knowledge may open the door, but human skills determine how far people and organisations can go.

Australian employers are already experiencing the impact of capability gaps. Research from the Australian Human Resources Institute (AHRI) found that 57% of employers say skills shortages are affecting productivity, highlighting the importance of developing the capabilities organisations need for the future, not just those they need today. As AI continues to reshape the workplace, investment in communication, leadership and other human skills is increasingly being recognised as an investment in organisational resilience and performance.

Why are human skills becoming more valuable in the AI era?

The common thread linking these capabilities is communication. Analytical thinking helps people reach sound conclusions. Creative thinking generates new ideas. Leadership inspires action, while resilience helps teams navigate uncertainty. But none of these skills creates value in isolation. People still need to communicate ideas clearly, influence decisions, build trust and bring others with them.

In many ways, communication is the skill that enables all the others to have an impact.

Action tip

Use evidence like this to strengthen your next L&D budget discussion. Position investment in human skills not simply as employee development, but as a practical way to amplify the investment in technical training. 

Expertise Is Changing – Not Disappearing

Artificial intelligence isn’t making technical expertise less important. It’s changing what expertise looks like.

Many technical skills have always evolved alongside new technology, but AI is accelerating that pace. New tools, platforms and ways of working are emerging constantly, meaning today’s specialist knowledge can quickly become tomorrow’s baseline capability. The challenge for organisations isn’t simply keeping up with technology; it’s helping their people adapt as technology continues to change.

HackerRank’s 2025 Developer Skills Report highlights this change. As AI takes on more coding, testing and routine technical tasks, employers are placing greater value on problem-solving, continuous learning and the ability to work effectively with AI. Technical expertise remains essential, but increasingly it’s the ability to apply that knowledge, question AI-generated outputs and make informed decisions that separates high performers.

Human skills operate differently. Communication, leadership, emotional intelligence, active listening and influence aren’t tied to a particular platform or software release. They enable people to build trust, navigate complexity and bring others with them, regardless of how quickly technology evolves.

That’s why the conversation shouldn’t be about technical skills versus human skills. Organisations need both. Technical capability enables people to use new technologies effectively, while human skills ensure those technologies deliver meaningful business outcomes.

AI can generate answers. People create action.

As technology increasingly automates everyday tasks, organisations need people who can interpret information, exercise judgement, communicate recommendations and inspire confidence in the decisions that follow. That’s why communication sits at the heart of so many of the capabilities employers now see as essential for the future workforce.

For L&D leaders, the implication is clear. Technical skills will always need refreshing as new technologies emerge, but communication, leadership and collaboration provide a foundation that remains valuable regardless of which tools the organisation adopts next. Investing in both gives people the confidence and capability to adapt as the workplace continues to evolve.

Common mistake: Expecting people to become better communicators simply by spending more time at work. Experience certainly helps, but communication, leadership and collaboration develop most effectively when people have opportunities to learn, practise, receive feedback and apply new skills consistently in real workplace situations.

Building a Future-Ready Workforce

Rather than presenting technical and human skills as competing priorities, the World Economic Forum’s Future of Jobs Report 2025 makes a compelling case for developing both together. AI can accelerate analysis, generate insights and automate routine tasks, but people remain responsible for interpreting information, making sound judgements, communicating recommendations and bringing others along with them. The organisations that succeed will be those that develop employees who are technically capable and confident communicators.

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This is why communication deserves far greater attention than it often receives. It isn’t just another capability on a development plan; it’s the thread that connects many of the future skills organisations are trying to build. People may have technical expertise, strong analytical thinking or innovative ideas, but unless they can explain those ideas clearly, build trust and influence others, their knowledge is less likely to translate into meaningful outcomes.

How communication strengthens the WEF’s highest-priority skills

When people communicate more effectively, they’re better able to lead, collaborate, influence and apply their technical expertise in ways that create lasting value.

Building Capability That Lasts

As the mix of skills organisations need continues to change, the approach to learning and development needs to change with it.

For many years, communication and presentation skills were often viewed as standalone capabilities for a select few.  

However, leading organisations are now embedding these skills across all roles, including leadership, management, graduate, customer-facing AND technical. 

For L&D professionals, this creates an opportunity to reposition the conversation with senior leaders. Investment in communication and other human skills shouldn’t be viewed as an additional training cost. It should be recognised as the capability that helps organisations get greater value from every investment they make in technology, systems and workforce development.

A good place to start is by understanding where the biggest capability gaps exist. Many organisations assess technical competencies in detail but pay far less attention to communication, presentation and stakeholder engagement. Yet these are often the skills that determine whether technical expertise leads to stronger collaboration, better decision-making and improved business outcomes.

Action tip

Conduct a communication capability assessment across different talent groups, including senior leaders, customer-facing teams, graduates and those in technical roles. The results often reveal that the most significant development opportunities lie in presentation skills, influencing, stakeholder communication and leadership confidence, rather than technical knowledge alone.

SecondNature’s Workplace Communication Culture Scorecard is a practical place to begin. It helps organisations benchmark their current communication capability, identify priority development areas and focus investment where it will have the greatest organisational impact.

Creating a Workplace People Want to Stay In

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Employees are far more likely to stay with an organisation when they believe it’s investing in their development. And investing in human skills doesn’t just improve individual performance. It also helps create workplaces where people feel supported, valued and motivated to do their best work.

Also, strong communication, leadership and interpersonal skills shape the conversations people have every day with managers, colleagues and customers. When employees feel listened to and have the confidence to contribute their ideas, they’re more likely to feel engaged and committed to the organisation.

The business benefits are significant. Skills shortages continue to affect productivity across many organisations, and every experienced employee who leaves takes valuable knowledge, relationships and expertise with them. Replacing that experience is costly, not only because of recruitment and training, but also because it takes time for new employees to build confidence, understand the organisation and perform at their best.

This is why communication should be seen as more than a professional skill. It helps shape workplace culture. It strengthens relationships, improves collaboration and creates an environment where people feel connected to their colleagues and the organisation’s goals. Over time, those everyday interactions contribute to stronger engagement, better retention and more resilient teams.

Action tip

One practical way to demonstrate the value of communication and leadership development is to estimate its impact on employee retention. Calculate the average cost of replacing a mid-level employee, including recruitment, induction, training and the time it takes for someone to become fully productive, then consider how even a small improvement in retention could affect your organisation. In many cases, the long-term return on investment is greater than organisations first expect.

Turning Technical Expertise into Business Impact

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Throughout this blog, we’ve explored why human skills are becoming more valuable as AI transforms the workplace. But one capability sits at the heart of them all: the ability to communicate. Communication is what bridges the gap between technical expertise and business results.

This is becoming increasingly important as AI becomes part of everyday work. Employees still need to present recommendations, navigate challenging conversations, build relationships with customers and stakeholders, negotiate effectively and lead teams through change. The technology may have changed, but the need for clear, confident communication hasn’t.

Google’s Project Oxygen reached a similar conclusion. The company’s most effective managers weren’t recognised for technical expertise alone, but by their ability to coach, communicate, listen and support the people around them. As technology continues to evolve, these human capabilities are becoming even more important because they help organisations make the most of every other investment they make.

Preparing Your Workforce for What’s Next

Artificial intelligence will continue to transform the way organisations operate, but technology alone won’t determine who succeeds. The greatest advantage will belong to organisations that combine technical expertise with the human skills needed to communicate clearly, think critically, build trust and lead confidently through change.

For HR and L&D professionals, this is an opportunity to shape the future of work within their organisation. Investing in communication, presentation and leadership skills isn’t simply about helping individuals perform more effectively today. It’s about building a workforce that can adapt to new technologies, embrace change and continue creating value as the world of work evolves.

If there’s one message that runs through all of the research, it’s this: as AI becomes more capable, the skills that make organisations successful become increasingly human.

The organisations that thrive won’t necessarily be those with the most advanced technology. They’ll be the ones with people who know how to use that technology to create understanding, build confidence and inspire action.

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Explore how SecondNature can help

Whether you’re developing graduates, supporting emerging leaders or strengthening communication capability across your organisation, SecondNature’s tailored training programmes help people communicate with greater confidence, influence and impact.

Because in the AI era: Technical expertise creates capability. Communication creates impact.

We’ve been coaching people for nearly 20 years, and we’re known as the Business Presentation Skills Experts, training and coaching thousands of people in an A-Z of global and local organisations. We’ve got the experience and expertise to help you and your team become confident, compelling communicators and presenters. View our presentation skills training and coaching reviews to see what they say about our programs. We have a wide range of customised corporate training solutions, both in-person and online, each tailored to your specific business needs.

Written by Belinda Huckle

Co-Founder & Managing Director

Belinda is the Co-Founder and Managing Director of SecondNature International. With a determination to drive a paradigm shift in the delivery of presentation skills training both In-Person and Online, she is a strong advocate of a more personal and sustainable presentation skills training methodology. Belinda believes that people don’t have to change who they are to be the presenter they want to be. So she developed a coaching approach that harnesses people’s unique personality to build their own authentic presentation style and personal brand.

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