7 Tips to Improve Communication Skills in Finance

Know what all great leaders have in common?

They’re great communicators.

And that’s no different for finance pros. You lead people and you often need to great communication skills to get your point across, connect with others and get the job done.

Great Talkers Don’t Have Great Communication Skills

But notice we didn’t say “great talkers.” Just because someone can talk a good game doesn’t mean he or she is a great communicator. Often it’s the opposite!

In Finance, you probably know a lot of great talkers. But do you consider any of them great leaders? Not likely.

In fact, researchers at Johns Hopkins Carey Business School find great leaders are great communicators, but they don’t all have the style of communicating … and they all aren’t great talkers.

Consider these differences: The quiet moving style of President Volodymyr Zelensky; the openness and accessibility of Sheryl Sandberg; and the authenticity and humor of Michelle Obama.

We won’t get into the characteristics that make great leaders — we’ve covered them before. Instead, we’ll look at the not-so-obvious characteristics and qualities that make a difference when it comes to communicating like a pro.

Great leaders are great communicators because they:

1. Leverage Silence

Most people talk, even if they have nothing worthwhile to add to a conversation, so they can avoid silence, which makes many people uncomfortable.

And if they do use the silence, most of the time they’re focused on what they’re going to say next. And that means they aren’t listening. So how could they possibly add anything vital to the conversation.

Great leaders, on the other hand, aren’t afraid of silence. They leverage it by listening to and processing what’s being said, and then they organize their thoughts before responding.

And voilà, this leads to a productive conversation.

2. Seek To Understand Others And Establish A Connection

To effectively communicate with someone, you have to understand them and where they’re coming from. People have different cultures, beliefs and experiences that affect their point of view.

And since these things tend to be invisible and are different for just about everyone, truly understanding someone is difficult.

A lot of people in management positions don’t take the time to get to know people because:

• they’re too busy, or
• they just don’t care

Great communicators, however, take the time to ask questions, get clarification and listen. That way they can understand where others are coming from.

Knowing what these differences are makes it easier to connect with someone — whether it’s an employee, vendor, your boss or another finance pro. And that enhances the conversation and your ability to be heard.

3. Are Authentic

Great communicators don’t put on airs or pretend to be someone they’re not. They’re genuine. That’s why people gravitate to them.

Most employees see right through a finance pro who’s putting on an act. People don’t have to love a leader to follow them, but they do have to believe in that leader and what they say.

Part of being authentic is being honest. When it comes to being a leader and a great communicator honesty’s the best policy. If people are picking apart every word that’s said, there’s no trust there. And without trust, people won’t follow.

So if you can’t share certain information, say so. Even if your people don’t like it, they’ll appreciate the honesty.

4. Take Responsibility And Apologize

One characteristic great leaders/communicators all share is they take responsibility for their actions and words. And the best part is they do it without any drama or without false humility.

Even if they could easily get away with something, they don’t. They ‘fess up to it and apologize.

They live by a code of accountability, which garners respect.

5. Don’t Take Themselves Too Seriously

Sure, people who we think of as great leaders/communicators take what they do seriously, but they don’t take themselves too seriously. They display confidence, but not arrogance. A subtle difference many in management need to learn.

They check their egos at the door, realizing they are just one person and not a superhero.

Showing others that you can’t do everything by yourself and are open to their ideas conveys respect. And people will be much more open to communicating and working with you when you show them a little R-E-S-P-E-C-T.

6. Get Personal

When you think of the best leaders, most use an easy, conversational, personal tone. They forget “corporate speak” and convoluted sentences, and keep their messages simple.

Every industry — and most especially Finance — has its own jargon, and that’s fine when speaking to people in your industry. But when speaking to the public or people who may not be as savvy as you are, it’s best to keep your tone conversational and your words simple and clear.

It makes you more likable. You’ll notice that great communicators regularly use this strategy.

Personal and engaging conversations are more effective. They help create meaningful relationships, which is important if you want to know what’s really on your employees’ minds.

7. Watch For Misunderstandings

In any communication, there’s always the chance for misunderstanding. Great communicators know this and watch for it.

They look for differences in how a person typically reacts, or misalignment in what a person is saying compared to their tone and body language.

It’s easily overlooked. And guess what? If someone misunderstands what you’re saying, you’re not going to have a lot of success communicating with or influcening them.

However, leaders who pick up on these cues get the opportunity to fix these misunderstandings.