5 key skills for business leaders 

The following five skills can help you excel in any industry. While each one is essential for employers, they can be equally valuable when adopted by employees at every level of an organization. 

1. Self-awareness

Successful leaders must determine their strengths and weaknesses, identify where their business fits in their chosen industry, gauge their performance against their competition and forecast future success. Accurately reflecting upon their skills helps them use their strengths to find success. 

2. Communication 

For a business to be profitable, workers need to communicate effectively. Strong communication skills enable you to express your business’ mission and market your products or services. 

Good communication can also improve interpersonal relationships with team members and clients. Developing communication strategies can help establish a workplace culture where every team member feels heard and accepted. 

3. Management skills

Good management skills are important for defining roles, delegating tasks and managing resources. This skill can take many forms, such as: 

• Delegation: Delegating effectively enables you to focus on tasks that generate revenue for your business.

• Management: Depending on the size of your business, you may have to manage a large team. This includes thoughtfully and carefully responding to employees.

• Accounting: Even if you delegate the responsibility to other employees, you must be aware of the business’ finances, track its progress and understand the basics of accounting. 

• Time management: Prioritizing tasks helps you make the most of your time each day, which can boost productivity. 

4. Emotional intelligence 

Emotional intelligence is the ability to recognize emotions in yourself and others and manage your responses. High emotional intelligence can help you establish healthy relationships and be an effective leader. It also enables you to navigate situations and maintain interpersonal bonds, which can lead to greater job satisfaction and improved team productivity.

5. Decision-making 

As a leader, you may be tasked with making complex decisions. Accurately weighing the pros and cons of each situation can help you guide your company to success. Decision-making skills can support your long-term goals, even when faced with unexpected challenges. 

Hiring for business skills 

Expanding your business knowledge is important, but building a team of employees who possess business skills can be just as vital. With a skills-based hiring approach, strengthening your workforce begins during recruitment. 

The next time you add a new professional to your team, consider the following tips to boost business skills company-wide. 

1. Consider your company’s vision

Think about how you’d like to position your company in your chosen industry and the business skills needed to succeed. For example, if you want to build a strong business network, seek professionals with the skills to attain this vision. 

2. Allow room for growth 

Part of your vision includes how you want to grow your business, and that involves management, financial and organizational skills. Create a plan for expanding your company, and consider ways each professional can contribute.

3. Identify your strengths and weaknesses

Effectively developing your business skills requires a self-assessment. Reflect on the skills listed for the previous steps and how well you exhibit them. For example, you may have excellent financial skills but could improve your organizational skills. When hiring, look for professionals who might help you bridge existing skills gaps. 

4. Put skills at the center of each job description 

While educational history and professional background are important considerations, they typically shouldn’t solely guide your hiring decision. Depending on the role, transferrable skills may be more valuable than other factors. Keeping an open mind can introduce you to candidates who may have unexpected professional backgrounds but be suited for the role.

Consider viewing the qualifications on your job description as recommendations rather than requirements to attract more quality candidates to your open roles.

Frequently asked questions about business skills 

How can I improve my business skills?

As you identify which business skills are most important for your business, here are several things that may help:

• Ask for feedback from team members. Your employees can be a valuable skills-building resource. Consider informing them about your desire to improve, and ask for feedback to gauge your progress.  

• Read industry publications. Many industries have print publications, websites and blogs. Purchase helpful magazines and books to develop crucial skills. You may find free resources at your local library and online. 

• Follow industry social media accounts online. If you’re already on social media, follow the accounts of important organizations in your industry. Often, organizations use social media to point followers to helpful, informative articles. 

• Use your network. If you have friends, colleagues or a mentor in your industry, meet with them and discuss your business skills. Your contacts may give you an honest assessment and offer advice for improvement.

• Get practical experience. Take what you’ve learned from various sources and your experiences. Often, the best way to learn is through reflection. 

How can I help my team strengthen their skills? 

External hires aren’t the only way to bring new skills into your workforce. Investing in your existing team can help employees hone their skills and develop new ones. 

Providing developmental opportunities, creating a mentorship program, offering tuition reimbursement, providing networking opportunities and conducting regular performance evaluations are actionable steps that can make your team more skilled. 

What’s the difference between hard and soft skills? 

Hard skills are technical abilities necessary for performing specific roles and are typically acquired through education or on-the-job training. Soft skills are abstract traits that influence how a professional approaches their work and interacts with others. 

Soft skills, such as active listening, can be applied to any industry and are largely transferrable from one role to the next.