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When it comes to succeeding in today’s environment, Canadian business owners and managers cannot rely solely on technical expertise or industry knowledge.  While financial literacy, strategic planning, and operational efficiency are essential, the ability to work effectively with people is equally - if not more - important.

As a result, improving their people skills, often referred to as ‘soft skills’, can be vital to enabling leaders to build stronger teams, foster innovation, and enhance customer relationships. In turn, this can greatly assist the bottom line of a business since employees who feel heard, respected, and valued are more likely to be productive and committed to their organization’s goals.

But fostering that type of environment can take time and effort, providing business leaders are willing to embrace potential new approaches to the way they have may previously managed.

“I think for some people, it comes naturally to create those spaces for others to thrive and grow and the transparency for them to feel ownership and pride in what it is they're accomplishing,” says Andrew Leith, President of Octant Executive Advisory Group, a local consultant group that specializes in leadership, coaching and sales. “But I always use the analogy there are some leaders who only know how fast their horses go with a whip but might be surprised how fast they would go for some sweet oats instead.”

Employees expect transparency

He says the former business mentality of ‘How much can we get out of someone before we burn them out?’ has now transformed to ‘How much more can we get out of someone when we invest in them?’.

“Many sales departments have a high level of turnover. And they don't stop and realize that when you must onboard a new salesperson, unless you have a fully developed sales enablement department, which most companies don't, you're taking another salesperson out of the field to train that person,” says Andrew, noting today’s younger workforce often require a different approach when it comes to being managed.

“We have to be more understanding that each person brings with them a unique skill set, but also unique capabilities and abilities that we need to be conscious of so I believe in a very individualized leadership strategy to help leaders, rather than just manage a department, manage the individual people within them and therefore they can maximize their productivity or capabilities.”

Employees expect transparency, feedback, and opportunities for growth so managers who can coach, mentor, and inspire their teams create a culture of continuous improvement. This is especially important in knowledge-based industries, especially ones where employee creativity and initiative help drive success. 

Feedback good for leaders

Leaders with strong people skills can motivate teams to adapt to change, embrace innovation, and remain resilient in uncertain economic conditions. Additionally, remote and hybrid work environments require even stronger communication and relationship-building abilities since without regular face-to-face interaction, misunderstandings can occur more easily.

“I think the first step in being a great people leader is to be honest, and to have an understanding of yourself,” says Andrew. “I think there's a lot of leaders out there that don't take that introspective look by taking an assessment to understand where they fit in into that dynamic of the people in their work culture. Once you understand the people around you and how you prefer to absorb information or communicate externally, you can start to pinpoint how to communicate with other people better.”

Effective leaders take time to reflect on how their words, tone, and actions affect others which can be done through regular self-evaluation or by getting feedback from employees, peers, and mentors. When managers understand their communication style and emotional triggers, they are better equipped to respond thoughtfully rather than react impulsively.

“Even as leaders, think of the best athletes in the world, they still have coaches and still have mentors, and they still have people that guide them and nurture them and hold them accountable,” says Andrew. “To some people, it comes naturally and that's great. But other people, you must learn it. It's a muscle.”

He notes that people are one of the three ‘pillars’ of organizational culture, followed by process and product.

“It’s all about how those things interplay in order to affect the bottom line, but ultimately manifest themselves as a negative people culture,” says Andrew.

Steps to strengthen people skills

Develop self-awareness

The first step toward improving people skills is understanding oneself. Leaders should reflect on their communication style, emotional triggers, strengths, and weaknesses. Self-awareness allows managers to recognize how their behaviour affects others. 

Practise active listening

Instead of interrupting or thinking about a response while someone else is speaking, effective leaders focus fully on the speaker. This demonstrates respect and ensures clear understanding, which strengthens trust within the team.

Improve verbal communication

Business leaders should aim to express ideas in a straightforward manner while being mindful of tone and word choice. Avoiding jargon and adapting language to suit the audience can make communication more inclusive and effective.

Strengthen nonverbal communication

Leaders should be aware of their nonverbal cues and ensure they align with their message. For example, crossed arms or lack of eye contact may signal disinterest, even if unintended. Positive nonverbal communication supports credibility and approachability.

Build emotional intelligence

Leaders can strengthen this skill by practicing empathy and responding calmly under pressure. When managers acknowledge employees’ feelings and respond thoughtfully, they create a supportive work environment.

Seek and accept feedback

Leaders should invite honest input from colleagues and team members about their leadership style and communication effectiveness. Accepting feedback without becoming defensive demonstrates maturity and a commitment to improvement.

Provide constructive feedback 

Managers should offer feedback that is specific, balanced, and solution focused. Recognizing achievements while addressing areas for improvement encourages development without damaging morale. Timely feedback prevents small issues from becoming larger problems.

Improve conflict resolution skills

Effective leaders address conflicts promptly, listen to all perspectives, and remain neutral. They focus on solutions rather than blame and aim to restore positive working relationships. Learning mediation techniques can significantly improve this ability.

Invest in professional development

Business leaders can attend workshops, enroll in leadership courses, read relevant books, or work with a coach. Training in communication, diversity, and team dynamics provides practical tools and strategies that can be applied in the workplace.

Practise empathy and inclusivity

Leaders should strive to understand diverse perspectives and create environments where everyone feels respected and valued. This includes being culturally aware, encouraging open dialogue, and recognizing individual contributions. Inclusive leadership fosters collaboration and innovation.