The End of ‘Soft Skills’? Why Human-Centered Leadership is the Future

By Heather Snow Sheldon, Human Potential & Well-Being Strategist

For years, leadership conversations have been dominated by discussions of efficiency, performance, and technical expertise. The skills that make workplaces function—communication, adaptability, emotional intelligence—have often been dismissed as “soft skills,” as if they were optional rather than foundational. But as companies navigate retention crises, engagement struggles, and an uncertain economic climate, these essential skills are now among the most irreplaceable.

A 2023 study by McKinsey found that 67% of executives believe emotional intelligence is just as important as technical skills for leadership effectiveness—yet only 18% of companies actively invest in developing these capabilities. Meanwhile, widespread layoffs and economic shifts have left employees craving stability, trust, and transparency from leadership more than ever. Leaders who fail to prioritize these needs risk losing not only talent but also the engagement and innovation necessary to move forward.

The Myth of ‘Soft’ Skills

The term ‘soft skills’ itself is a misnomer. Emotional intelligence, conflict resolution, and interpersonal communication are not just nice-to-haves—they drive business outcomes. According to a 2022 report by the World Economic Forum, companies that prioritize human-centered leadership see a 30% increase in employee engagement and a 22% boost in productivity. These skills impact bottom-line results, yet they continue to be undervalued in many workplace cultures.

This misalignment is costly. Gallup reports that 70% of the variance in team engagement is directly tied to the manager, meaning that the way leaders interact, communicate, and support their teams has a profound effect on retention and performance. When leaders lack the ability to create psychological safety, employees disengage, productivity drops, and turnover rises.

Why Human-Centered Leadership is the Future

As the workplace landscape continues to evolve—amid economic uncertainty, return-to-office tensions, and shifting workforce expectations—organizations need leaders who can navigate complexity with empathy and clarity.

Human-centered leadership isn’t about being ‘nice’—it’s about being effective. It’s about recognizing that the highest-performing teams aren’t driven by fear or micromanagement but by trust, purpose, and belonging. Research from the Center for Creative Leadership shows that organizations with high-trust cultures outperform their competitors by up to 400% in market value.

Additionally, with AI automating more tasks and hybrid work models continuing to shift team dynamics, the human side of leadership is more critical than ever. Leaders who understand how to build connection—whether in person or across digital spaces—will be the ones who keep teams engaged and thriving.

Companies that invest in leadership training focused on emotional intelligence and relational skills report higher levels of innovation, collaboration, and employee well-being. For example, after implementing empathy-based leadership training, Cisco reported a 48% reduction in employee burnout and a measurable increase in productivity and engagement.

The Role of Connection in Leadership

One of the most overlooked but critical aspects of human-centered leadership is connection. Leadership isn’t just about managing tasks—it’s about creating an environment where people feel seen, heard, and valued. Yet, many leaders struggle with fostering genuine relationships in the workplace.

As Baily Hancock 🤝 Professional Friend-Maker and connection strategist, shared in our conversation on Begin Here, connection is a leadership skill, not just a personal one. Many leaders unintentionally create distance with overcomplicated communication or an overly formal leadership style, leaving employees feeling disengaged. But when leaders prioritize simplicity, directness, and warmth, teams feel safer to contribute, innovate, and collaborate more effectively.

Baily also pointed out how disconnection shows up in subtle but damaging ways—ghosting in professional settings, leadership teams making decisions in silos, and employees feeling unseen in their day-to-day work. The result? A workforce that feels transactional rather than inspired. Leaders who make a habit of checking in, listening intentionally, and fostering workplace friendships create teams that are not only more productive but also more resilient in the face of uncertainty.

Actionable Strategies for Leaders

So how can leaders shift from traditional models of authority to human-centered leadership? Here are three immediate strategies:

1. Redefine Performance Metrics – Move beyond outdated productivity metrics that focus solely on output. Instead, measure success through collaboration, engagement, and the ability to drive sustainable performance.
2. Invest in Emotional Intelligence – Leadership training shouldn’t just focus on strategy and operations. Prioritizing EQ development—through coaching, feedback loops, and real-world application—builds stronger teams and long-term organizational resilience.
3. Foster Real Connection – Connection doesn’t happen by accident. Leaders should actively create moments for relationship-building, whether through casual check-ins, team rituals, or simply being present and available for their people.

The Future Belongs to Human Leaders

The workforce is evolving. Employees expect more from their leaders—more transparency, more empathy, more purpose. The next generation of thriving companies will be the ones that treat these skills as business-critical—not optional.

The question isn’t whether human-centered leadership matters. The question is: Can businesses afford to ignore it?

Listen to the Full Conversation with Baily Hancock

If you’ve ever wondered why some leaders effortlessly inspire trust while others struggle with engagement, this conversation with Baily is for you. We explore:

• Why overcomplicating leadership communication creates disconnection
• How leaders can foster meaningful workplace relationships (without forcing it)
• The role of psychological safety in preventing workplace ghosting and disengagement

🎧 Hear the full conversation on how connection transforms leadership in my latest Begin Here episode with Baily. Listen to the episode here.

📌 Connect & follow Baily Hancock 🤝 Professional Friend-Maker ly on LinkedIn and be sure to visit her website for more insights on the power of connection in leadership.

About the Author

I'm Heather Snow Sheldon, a Human Potential & Well-Being Strategist and Enterprise Sales Leader at Hustle, where I help organizations strengthen human connection at scale. With a background in social impact, leadership development, and workplace well-being, I specialize in guiding professionals through burnout recovery, leadership growth, and creating cultures of trust and engagement. My work spans across coaching, strategy, and technology solutions that enable businesses to invest in people-first leadership that drives real results.