In a recent LinkedIn post, Niluka Kavanagh discusses a significant shift in corporate language and investment, suggesting the term “soft skills” may soon be obsolete. Kavanagh highlights EY’s substantial investment of $100 million in rewarding employees for what the firm terms “human skills,” such as judgment and adaptability, signaling a potential evolution in how essential workplace competencies are valued.
The Evolution from “Soft Skills” to “Human Skills”
Historically, “soft skills” have often been relegated to a “nice-to-have” category, viewed as supplementary rather than core to professional success. However, Niluka Kavanagh argues that this perception is rapidly changing. The investment by EY, a major global professional services firm, underscores a growing recognition of these abilities as critical drivers of business performance.
“Soft skills” might have been the language we used for the last 20 years when they were considered a nice to have. But I suspect it won’t be carrying this name for much longer…
Kavanagh points out that while the rise of artificial intelligence has often led to a focus on technical skills, the increasing capability of technology paradoxically elevates the importance of uniquely human attributes. As Niluka Kavanagh notes, “the more technology can do, the more valuable the things it can’t do become!” This perspective suggests a future where the interplay between human ingenuity and technological tools will be paramount.
The Strategic Importance of Human Skills
The shift in terminology from “soft skills” to “human skills” reflects a deeper strategic understanding of their impact. Niluka Kavanagh emphasizes that these are not merely interpersonal abilities but fundamental competencies that enable individuals to navigate complex challenges, make sound decisions, and drive innovation – areas where AI currently falls short.
Judgment and Adaptability in a Changing Landscape
Kavanagh specifically mentions judgment and adaptability as key examples of these “human skills.” In an era of rapid technological advancement and market volatility, the ability to exercise sound judgment and adapt to new circumstances is crucial for both individual and organizational success. According to Niluka Kavanagh, mastering this combination is the key to thriving:
Knowing when to use the technology AND when to use your own human advantage is the winning mix.
This insight suggests that future-proofing one’s career will involve cultivating these intrinsic human capabilities alongside technical expertise. The strategic allocation of $100 million by EY towards recognizing and rewarding these skills is seen by Kavanagh as a significant indicator of future trends in workforce development and talent management.
A Precedent for Future Corporate Investment?
Niluka Kavanagh concludes by posing a critical question to the audience: Is EY’s move an isolated case, or is it a harbinger of a broader industry trend? The post invites discussion on whether other major corporations will follow suit in redefining and reinvesting in these essential human competencies.
This is a pretty big signal about where the future of work is heading.
As Kavanagh prompts, “Is EY a one off case, or laying the groundwork for other companies to follow?” This question underscores the potential ripple effect of EY’s initiative, encouraging business leaders and professionals alike to consider the implications for their own organizations and career development strategies.
📝 About This Content
This article is based on insights shared by Niluka Kavanagh on LinkedIn.
📅 Originally posted on September 15, 2026 | View original post on LinkedIn →