What: Hiring managers in the U.S. are prioritizing both hard and soft skills, with communication and professionalism ranking highly for 2026.

Why it is important:  Balancing hard and soft skills aligns with industry trends toward digital transformation and inclusive workplace culture.

Hiring managers across the U.S. are placing equal value on hard and soft skills for 2026, with a notable emphasis on communication and professionalism. According to a recent survey, 62% of hiring managers view both skill sets as equally important, while a significant portion now considers soft skills even more critical than technical expertise. Desired hard skills include proficiency in software tools, data analysis, and project management, while soft skills such as time management, accountability, and adaptability are also highly sought after. The rise of professionalism as a top soft skill may reflect generational shifts, with younger workers perceived as more relaxed in their approach. Despite the growing importance of these abilities, many leaders believe entry-level employees remain underprepared, particularly in soft skills, which are essential for effective teamwork and customer service. As AI and automation reshape the retail landscape, employers are encouraged to invest in training and upskilling to bridge these gaps and ensure their workforce remains adaptable and competitive. 

IADS Notes: The growing emphasis on both hard and soft skills in retail hiring for 2026 reflects a broader industry transformation, as highlighted by recent research in Harvard Business Review. Foundational abilities like communication, adaptability, and professionalism are now seen as essential for workforce resilience and long-term business success, especially as technology and AI reshape retail operations, according to BCG (September 2025). Despite the rapid adoption of AI, only a minority of retailers have successfully scaled these initiatives, and a significant skills gap persists, with just 36% of workers feeling prepared for AI-driven change, as reported by BCG (July 2025). Generational tensions are also shaping workplace culture, with HR Dive (December 2025) noting that Gen Z employees often feel unsupported and unrecognized, which increases turnover risk and underscores the need for inclusive leadership and upskilling. The rush to automate entry-level roles threatens to undermine talent development and customer relationships, as ERE Media (June 2025) warns, reinforcing the importance of balanced strategies that blend technological innovation with human capability. As retailers navigate these challenges, systematic upskilling and a renewed focus on both technical and soft skills are becoming central to future workforce planning and operational excellence.

Hiring managers name the top hard skills and soft skills for 2026