The missing ingredient: Why interpersonal skills drive business success

When Lisa joined our company as a project manager, she had an impressive CV—top qualifications, extensive experience, and a track record of delivering results. Yet, three months into the job, her team was struggling. Deadlines were missed, meetings were tense, and collaboration felt forced. It wasn’t long before feedback started pouring in: Lisa was knowledgeable, but she lacked interpersonal skills. 

Interpersonal skills, often referred to as “people skills” or “soft skills” are the abilities that help us interact effectively with others. These include communication, emotional intelligence, teamwork, adaptability, and conflict resolution. While technical expertise is essential, it’s often interpersonal skills that determine success in the workplace. 

Why interpersonal skills matter 

For an individual, strong interpersonal skills foster trust and collaboration. They enable employees to express ideas clearly, listen actively, and manage workplace relationships with ease. A leader with emotional intelligence, for example, can navigate complex team dynamics, while an employee with strong communication skills can influence stakeholders effectively. 

Within teams, interpersonal skills create an environment where ideas flow freely and conflicts are managed constructively. When team members understand and respect each other’s perspectives, they work together more efficiently, leading to higher innovation and productivity. Without these skills, misunderstandings arise, morale dips, and teamwork deteriorates. 

The cost of poor interpersonal skills 

Now, let’s imagine an organisation where employees lack interpersonal skills. Meetings are filled with miscommunication, emails are passive-aggressive, and collaboration feels like a constant battle. Employees may avoid confrontation, leading to unresolved conflicts that damage productivity. Clients too feel the impact—poor communication from employees can result in dissatisfaction and loss of business. In the long run, a company that neglects interpersonal development will face higher turnover, lower engagement, and reduced profitability. 

How to develop strong interpersonal skills 

Fortunately, interpersonal skills can be learned and strengthened. Here are a few ways to get started: 

• Practice active listening: Focus on understanding rather than responding. Use body language, nodding, and summarising to show that you’re engaged. 

• Develop emotional intelligence: Recognise your own emotions and learn to manage them effectively. Understand how your behaviour impacts others. 

• Enhance your communication skills: Be clear and concise in your speech and writing. Adjust your communication style based on your audience. 

• Seek feedback: Ask colleagues and mentors for honest feedback on your interpersonal interactions and act on it. 

• Engage in team activities: Participate in team-building exercises to enhance trust and collaboration. 

• Learn conflict resolution: Address issues directly but professionally. Aim for solutions rather than blame. 

Resources for growth 

For those looking to improve their interpersonal skills, here are some useful resources: 

Coursera. (2025, February 6). 8 Ways you can improve your communication skills. https://www.coursera.org/articles/interpersonal-skills 

Forbes. (2025, January 3). 19 Skills employees will need in the next five years. https://www.forbes.com/councils/forbeshumanresourcescouncil/2025/01/03/19-skills-employees-will-need-in-the-next-five-years/ 

Indeed. (2025, February 20). 14 Ways to improve your interpersonal skills at work. https://www.indeed.com/career-advice/career-development/how-to-improve-interpersonal-skills 

Final thoughts 

Lisa eventually turned things around. Through coaching and practice, she honed her interpersonal skills, and soon, her team became more engaged and productive. The truth is, no matter how skilled or experienced we are, our ability to connect with others determines our success. 

In today’s fast-paced business world, technical skills get you in the door, but interpersonal skills help you thrive. So, as we move forward, let’s invest in the one skill set that can make or break our success—our ability to build meaningful workplace relationships.