When recruiting for financial services roles, many employers focus heavily on technical expertise—such as proficiency in financial modelling, understanding of regulations, and risk management abilities. However, while these hard skills are crucial, soft skills are increasingly recognised as vital for long-term success in the financial services sector.
Here’s why soft skills are just as important as technical expertise and how to identify them in your recruitment process.
1. The importance of communication skills
Financial professionals need to communicate complex information clearly to clients, colleagues, and stakeholders. Whether they are advising clients on investments, explaining regulatory updates, or discussing financial strategies with team members, strong communication is key.
- Client-facing roles: For roles such as financial advisors or mortgage brokers, the ability to explain complex financial products in simple terms is essential. Candidates must build trust and guide clients through major financial decisions.
- Team collaboration: Internal communication is just as important. Financial services roles often require cross-departmental collaboration, and candidates must be able to work effectively within teams.
How to identify communication skills: During interviews, ask candidates to explain complex financial concepts in simple terms or describe how they handle challenging conversations with clients or colleagues.
2. Adaptability in a changing industry
The financial services sector is highly dynamic, with constant changes in regulations, market trends, and technology. Candidates who can adapt to these changes and respond quickly to new challenges are invaluable.
- Regulatory changes: Financial services professionals must stay updated on ever-evolving regulations. Candidates who are adaptable can quickly implement new policies or systems when regulations shift.
- Technological advancements: As fintech continues to grow, professionals must adapt to new tools and technologies, such as automated trading platforms, AI-driven analytics, and blockchain technology.
How to identify adaptability: Ask candidates about a time they had to adapt to a significant change in their role or work environment, and assess how they managed the transition.
3. Emotional intelligence for client relationships
Emotional intelligence (EQ) is increasingly recognised as a critical skill for financial services professionals, particularly those in client-facing roles. EQ allows individuals to manage their emotions, empathise with others, and handle interpersonal relationships judiciously.
- Client trust: Building and maintaining trust with clients is crucial in the financial sector. Professionals with high emotional intelligence are better able to read clients’ needs, respond to concerns, and provide empathetic service.
- Leadership roles: For leadership positions, emotional intelligence is essential for managing teams, resolving conflicts, and fostering a positive work culture.
How to identify emotional intelligence: Use behavioural interview questions to assess candidates’ emotional intelligence, such as asking how they’ve handled a difficult client interaction or resolved a conflict within their team.
4. Problem-solving and critical thinking
In financial services, problem-solving and critical thinking are essential for navigating complex situations. Whether it’s a financial analyst evaluating a market trend or a compliance officer interpreting a new regulation, these skills are critical.
- Risk management: Financial services professionals often need to evaluate and mitigate risks. Strong problem-solving skills are crucial when dealing with high-stakes decisions that impact the company’s financial health.
- Financial forecasting: Analysts and advisors need to think critically when interpreting data and making financial forecasts. This involves looking beyond the numbers to identify patterns, risks, and opportunities.
How to identify problem-solving skills: During interviews, present candidates with hypothetical scenarios that test their ability to think critically and solve problems relevant to the role.
5. Leadership and team collaboration
Leadership skills are critical for senior roles in financial services, especially for team leaders and managers. Even at junior levels, the ability to work collaboratively within a team contributes significantly to overall productivity and success.
- Team management: Leaders must be able to motivate and guide their teams, especially in fast-paced, high-pressure environments. They need to manage workloads, provide support, and make important decisions in a timely manner.
- Collaboration: For non-leadership roles, teamwork is essential. Whether it’s collaborating with compliance, legal, or finance departments, candidates need to be strong team players.
How to identify leadership and collaboration skills: Use examples from the candidate’s past roles to assess their ability to lead teams, manage conflict, or contribute to collaborative projects.
6. Negotiation and influencing skills
In roles such as investment banking, mortgage advising, or wealth management, negotiation and influencing skills are crucial. Professionals in these roles must advocate on behalf of their clients and negotiate the best deals possible.
- Client representation: Whether it’s securing the best mortgage deal or negotiating investment terms, strong influencing skills are crucial for achieving favourable outcomes.
- Internal negotiations: Even within teams, professionals must often negotiate resources, timelines, and priorities to ensure successful project delivery.
How to identify negotiation skills: Ask candidates for examples of times they successfully negotiated a deal or influenced key stakeholders to achieve a desired outcome.
Conclusion
While technical skills are fundamental in the financial services sector, soft skills like communication, adaptability, and emotional intelligence are equally important. By hiring candidates who possess both hard and soft skills, financial services firms can build strong, well-rounded teams capable of navigating the complexities of the industry. During your recruitment process, use targeted questions and scenarios to assess soft skills and ensure your candidates can excel in a fast-paced and client-focused environment.