Soft Skills: What Are They and Why Are They Important within Payroll?

When we talk about skills within payroll, technical ability and legislative knowledge tends to dominate the conversation. Can they use the software? Do they understand the regulations? Have they handled a similar remit before? All important questions – but the answers don’t give a complete picture. Because the qualities that really shape performance often have nothing to do with qualifications or tools: they’re harder to define, trickier to measure, but impossible to ignore once you’ve experienced the fallout of a bad hire.

We’re talking about soft skills.

And if you’ve ever worked with someone who was technically brilliant, but their communication skills are poor – or someone who had all the knowledge but couldn’t adapt or cope with stress when things shifted – you already know why soft skills matter.

What Are Soft Skills, Exactly?

Soft skills are the interpersonal, emotional and cognitive abilities that shape how people work with others, solve problems, and navigate change. They’re less about what you do and more about how you do it.

These include:

• Communication – not just speaking clearly, but listening actively and tailoring your tone to different audiences.
  
• Teamwork – the ability to contribute, compromise, and support shared goals without ego.
  
• Adaptability – staying calm and capable when plans change, systems crash or expectations shift overnight.
  
• Emotional intelligence – reading the room, managing your own reactions, and responding to others with empathy.
  
• Time management, resilience, critical thinking… the list is long, and often context-dependent.

Unlike hard skills, soft skills aren’t usually taught in a classroom or verified by certificates. But they show up every day – in how meetings unfold, how teams handle pressure, how decisions are made, and how people feel when they leave work.

Why Are Soft Skills Important Within Payroll??

Put simply: they’re what hold everything together. You can have the best payroll systems, the best processes and a market-leading product, as well as highly qualified staff on paper – but if people can’t communicate clearly and empathically, resolve conflict, or adapt to changing legislation, the wheels come off quickly.

In fact, many of the challenges we see in struggling teams have nothing to do with technical gaps. It’s usually poor collaboration, low engagement, broken communication, or resistance to change. And while those issues look like culture problems, they’re really soft skills problems.

Here’s where it gets more interesting – soft skills aren’t just about avoiding friction, they also actively drive performance. Think about your most reliable employees: they’re probably the ones who stay calm under pressure, support their colleagues, respond well to feedback, and bring others along with them. That’s competence, expressed through behaviour rather than bullet points.

What Employers Are Prioritising in 2025

Across Canada, employers are starting to rethink what “qualified” means. Yes, experience matters. And yes, certain systems experience and legislative knowledge skills remain non-negotiable – especially in compliance-heavy sectors like payroll. But what we’re seeing more and more is a shift in hiring priorities. Companies aren’t just asking “Can they do the job?” but “Can they do it here, with us, in the way we need?”

As teams grow more remote or hybrid, communication and self-management become essential. And as businesses navigate economic uncertainty, agility and resilience rise to the top. Similarly, now that younger employees are entering the workforce with new expectations around collaboration, autonomy and feedback, emotional intelligence is key – and often the difference between retention and churn.

At the same time, as systems automate and streamline processes, the payroll role itself is becoming more customer-service centric. Payroll professionals are often the first point of contact when employees are upset or confused about their pay, which means strong communication skills are vital. Being calm, respectful, and empathetic – and able to explain issues in clear, simple language – can turn a potentially difficult interaction into one that builds trust.

Another soft skill increasingly valued by employers is curiosity and a mindset for process improvement. Rather than simply “doing the job,” the most effective payroll specialists will question and challenge the status quo – whether that’s exploring underused functionality in a system or identifying opportunities to overhaul an outdated process entirely.

That’s why, when we’re supporting Canadian employers with payroll talent, we’re not just assessing CVs. We’re evaluating how someone will show up in your business – not just what they’ll bring, but how they’ll behave when things inevitably get messy, stressful or unpredictable.

Why Employers Struggle to Assess Soft Skills (and What to Do About It)

Here’s the hard truth: most job specs still don’t define soft skills clearly, and most interviews don’t assess them well. Instead, hiring managers rely on gut feel – which is inconsistent at best and biased at worst.

The good news is that soft skills can be evaluated – it just takes a little more intention.

• Structured interview questions can help: “Tell us about a time you received difficult feedback” reveals more than “Are you a team player?”
  
• Work simulations – even simple ones like mock presentations or short writing tasks – can show how someone thinks and communicates under light pressure.
  
• Reference checks should go beyond role duties and dig into how the candidate worked with others, responded to change, and managed competing priorities.

None of this needs to slow the process down. In fact, hiring with soft skills in mind usually speeds things up later – by reducing mis-hires, onboarding time and cultural disruption.

Can Soft Skills Be Taught?

Yes – but only up to a point. Unlike hard skills, which can often be learned relatively quickly with the right training, soft skills tend to develop over time through experience, feedback, and self-awareness. That doesn’t mean they’re fixed. But they are harder to instil if the foundation isn’t there. Workplace environments play a key role here, as does setting an example. If management doesn’t model emotional intelligence, active listening, or openness to feedback, those values won’t trickle down. 

So while soft skills can be nurtured, they shouldn’t be assumed. If someone struggles with conflict or communication, that can absolutely improve – but only with awareness, coaching, and the right environment. Which is why hiring for soft skills from the outset tends to work better than trying to build them later.

Final Thoughts

In an era where payroll roles are shifting, expectations are changing, and adaptability is essential, soft skills – in particular emotional intelligence – are becoming more important than ever. They’re what turn good employees into great ones, and what turn good hires into long-term success stories.

Whether you’re building a payroll team, leading a business through growth, or simply trying to reduce turnover, the message is clear: don’t underestimate the power of soft skills. And if you’re unsure how to factor them into your hiring strategy, we can help. 

At Portfolio Payroll Canada we provide expert recruitment solutions that connect top-tier professionals with businesses of every size, across every province. Reach out today to learn more about how we can help streamline, strengthen and support your organisation.