Why soft skills are just as important as hard skills in treasury
In the rapidly evolving world of treasury management, the role of treasury professionals in the Netherlands is becoming increasingly multifaceted.
Hard skills such as financial modelling, cash management and risk management remain crucial – but soft skills like communication, adaptability and emotional intelligence are now equally in demand.
This shift underscores the growing importance of soft skills in ensuring treasurers excel in their roles and contribute effectively to their organisations.
Understanding the importance of soft skills in treasury
Soft skills refer to the interpersonal skills and abilities that enable treasury professionals to work effectively with team members, stakeholders and senior leadership such as Chief Financial Officers (CFOs).
In the context of treasury departments, these skills include communication, adaptability, problem-solving and emotional intelligence. As the treasury function becomes more integral to overall business strategy, these soft skills are essential for managing relationships and driving successful outcomes.
The changing landscape of treasury
Several factors are contributing to the increased emphasis on soft skills in treasury roles.
Collaborative approach
Modern treasury teams must work closely with other departments such as finance, operations and even IT. Effective communication skills are crucial for treasurers to build strong internal relationships, foster teamwork and align treasury objectives with broader organisational goals.
For instance, collaboration between the treasury and IT departments is essential when implementing new technology or automation initiatives that streamline cash management and forecasting processes.
Strategic involvement
Treasurers are increasingly involved in high-level decision-making processes that impact the entire organisation. This requires a blend of technical skills and soft skills, such as emotional intelligence and adaptability, to influence outcomes and manage stakeholder expectations.
Treasurers must understand not only the numbers but also the strategic objectives of the business, ensuring that treasury decisions support long-term goals.
Digital transformation
With the rise of automation and new technology, treasury professionals must balance technical expertise with interpersonal skills to ensure that digital initiatives enhance (rather than hinder) communication and collaboration.
For example, automation can handle routine tasks, but treasurers still need strong communication skills to explain the implications of automated data to CFOs and other decision-makers. The integration of technology in treasury management also demands continuous learning and adaptability as professionals need to stay updated with the latest tools and platforms.
Globalisation
As Dutch companies expand globally, corporate treasurers must navigate cultural differences and manage international relationships. Soft skills like emotional intelligence and adaptability are key to thriving in a global treasury environment.
Understanding and respecting different cultural norms can make or break cross-border transactions, making these soft skills invaluable in global treasury operations.
Key soft skills for treasury professionals
Communication skills
Effective communication is the cornerstone of successful treasury management. This involves not only the ability to articulate complex financial information clearly but also the skill to listen and respond to the needs of various stakeholders in the work environment.
For instance, a treasury professional must be able to explain complex financial models or risk assessments to non-financial stakeholders – ensuring they understand the implications of financial decisions.
Adaptability
The financial landscape is continually evolving, and treasury professionals must be able to adapt to changes in regulations, market conditions and organisational priorities. Flexibility and the ability to pivot strategies quickly are crucial for businesses that want to stay relevant and effective.
Companies are increasingly looking for treasury professionals who can demonstrate agility in adjusting their strategies in response to unexpected changes, such as sudden shifts in market liquidity.
Problem-solving
Treasury professionals often face complex challenges, such as managing liquidity and optimising cash flow. Strong problem-solving skills enable them to address these issues creatively and effectively, demonstrating reliability and foresight.
For example, treasurers must be able to develop contingency plans during periods of financial uncertainty that ensure the organisation maintains sufficient liquidity.
Emotional intelligence
Emotional intelligence (EI or EQ) involves recognising, understanding and managing your own emotions as well as those of others. High EI helps treasury professionals build strong relationships, handle stress and navigate the subtleties of business interactions.
This skill is particularly important when working in high-pressure environments, where treasurers must manage not only their own stress but also that of their team members and other stakeholders.
The impact on treasury recruitment
The shift towards valuing soft skills has significant implications for treasury recruitment in the Netherlands. Traditional hiring criteria (which focused heavily on technical expertise) are now being supplemented with a strong emphasis on interpersonal skills.
Here’s how this trend is shaping the recruitment process:
Behavioural interviews
Recruiters and hiring managers are increasingly using behavioural interview techniques to assess soft skills. This involves exploring past experiences and hypothetical scenarios to gauge a candidate’s ability to communicate, collaborate and adapt to changing circumstances.
For example, candidates might be asked to describe a situation where they had to manage a conflict within a team or adapt to a significant organisational change. Learn how to prepare for interviews.
Soft skills assessments
Incorporating assessments that measure emotional intelligence, communication styles and problem-solving abilities gives a more comprehensive view of a candidate’s potential. These assessments can help identify individuals who possess the right balance of hard and soft skills necessary for thriving in a treasury role. They also help in pinpointing candidates who might excel in leadership roles within treasury departments.
Emphasis on cultural fit
It’s now a priority to ensure that a candidate’s values and behaviours align with (or add to) the company culture. A good cultural fit enhances team cohesion and improves overall performance, which is especially important in the Netherlands.
Cultural fit assessments are becoming a key part of the recruitment process, helping organisations build teams with diverse ranges of experience that work well together and share common goals.
Training and development
Recognising the importance of soft skills, many companies are investing in training and development programmes to enhance these abilities among their treasury teams. Continuous learning opportunities not only improve performance but demonstrate a commitment to employee growth and development.
For instance, workshops on emotional intelligence, communication skills and adaptability can prepare treasury professionals to take on more strategic roles within their organisations.
As the treasury landscape in the Netherlands continues to evolve, the importance of soft skills cannot be overstated. Communication skills, adaptability, problem-solving and emotional intelligence are now essential components of a successful treasury strategy. For treasury professionals, honing these skills can open doors to new opportunities and greater success.
Employers are prioritising these skillsets in the hiring process to build strong, dynamic and effective treasury teams capable of thriving in today’s competitive market. By investing in both technical skills and soft skills, organisations can ensure that their treasury functions are operationally efficient and strategically aligned with the broader business goals.
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