Why Emotional Intelligence Is Critical for Leadership—and How to Develop It
Why Emotional Intelligence is Important for Leaders and How to Build It
When we talk about leadership capabilities, we often talk about book smarts, or IQ. “He’s a sharp guy.” “She’s got a mind for business.” But there’s another kind of intelligence that we don’t emphasize nearly as much, and in many ways, it’s even more important than IQ.
That’s emotional intelligence.
Today, being a good leader means more than just giving orders. Emotional intelligence (EI) is a skill that helps leaders understand and manage their own feelings and the feelings of others. Leaders with EI are better at inspiring their teams, solving problems, and helping their businesses grow. Let’s explore why EI is important for leaders, especially in sales, how it helps businesses, and how leaders can develop this skill.
Emotional intelligence refers to a person’s ability to gauge, control, and express one’s emotions and to handle interpersonal relationships—and all the conflicts and surprises that come with them—effectively and constructively. And, understandably, it’s a critical workplace skill, especially for employees who are climbing the career ladder into leadership positions. In a recent CareerBuilder survey, 71 percent of hiring managers said they valued emotional intelligence over IQ, and 75 percent said they’d be more apt to promote an employee with high emotional intelligence and a lower IQ than one with a higher IQ and lower EQ.
So there’s no denying it: emotional intelligence is critical for leaders and employees who aspire to become leaders. But can it be developed, or is it an X factor that you’re either born with or you’re not?
Before we answer that question, let’s take a look at a few indicators of emotional intelligence, as outlined by emotional intelligence expert Harvey Deutschendorf:
- You can manage your emotions under pressure
- You listen in a way that makes others feel heard
- You’re quick to show empathy
- You take responsibility for your mistakes
- You’re always open to feedback
- You can work through conflicts
Each of these skills deals with the way we handle interactions—conflicts or otherwise—with others, and most of them are related, either directly or indirectly, with the way we listen to and communicate with one another.
Emotional Intelligence in Leadership
Emotional intelligence means being able to recognize, understand, and control our emotions, as well as understand and influence the emotions of others. For leaders, this skill is very important because it affects how they communicate, make decisions, and handle stress.
How Emotional Intelligence Helps Businesses
According to Gallup’s 2023 report, businesses with leaders who have high emotional intelligence are more successful. These companies see a 21% increase in profits and a 22% boost in productivity. This happens because leaders with EI make their employees feel more engaged and motivated, which leads to better work.
The World Economic Forum’s 2023 report also shows that emotional intelligence is one of the top 10 skills needed in today’s job market. As technology and AI change the way we work, soft skills like emotional intelligence become even more important. Leaders with EI can better guide their teams through these changes.
Emotional Intelligence and Keeping Employees
Emotional intelligence plays a crucial role in employee retention, as emotionally intelligent leaders are better equipped to handle the emotional labor that comes with leadership. According to Harvard Business Review, leaders who can effectively manage their own emotions and understand those of their employees create a more supportive and empathetic work environment. This emotional attunement helps reduce employee burnout and increases job satisfaction, making it more likely that employees will stay with the company. When leaders acknowledge and address the emotional needs of their teams, they build stronger connections, which is key to retaining top talent.
Today, losing employees can be costly. Leaders who connect with their teams emotionally are more successful. They are good at resolving conflicts, giving helpful feedback, and building a culture of trust—all of which make employees happier and less likely to leave.
AI and Emotional Intelligence
While emotional intelligence is a human skill, technology, especially artificial intelligence (AI), can help leaders develop it.
How AI Helps Build Emotional Intelligence
Artificial Intelligence (AI) is increasingly being used to enhance emotional intelligence (EI) in leaders. One of the primary applications of AI in this area is through Emotion AI, which analyzes facial expressions, tone of voice, and other non-verbal cues to assess emotional states.
A practical example Receptiviti uses AI to analyze language patterns and provide insights into emotional and psychological states. By giving leaders feedback on their communication styles, Receptiviti helps them understand how their words may be perceived emotionally, enabling them to adjust and improve their interactions with others .
While specific quantitative studies on the exact impact of AI on leadership EI development are still emerging, these tools illustrate the growing role AI plays in providing leaders with actionable insights into their emotional intelligence. Leaders who engage with these AI tools can better understand and manage their emotions, leading to improved team dynamics and decision-making.
Sales Leadership and Emotional Intelligence
Emotional intelligence is especially important for sales leaders. According to research, as much as 75% of careers are derailed for reasons related to EQ, including the inability to handle interpersonal problems, adapt to change, or elicit trust This is because EI helps leaders manage stress and get the best out of their teams.
How Emotional Intelligence Boosts Sales
Sales leaders who use emotional intelligence focus on building strong relationships with clients, handling tough sales situations, and keeping their teams working well together. This ability to connect with people helps them sell more and keep clients happy.
Naturally, people with a high degree of emotional intelligence make more money—an average of $29,000 more per year than people with a low degree of emotional intelligence. EI helps sales leaders manage relationships and improve sales by understanding and guiding the emotions of their team members and clients.
Emotional Intelligence in Business
Emotional intelligence helps in many areas of business. Companies that teach EI to all their employees—not just leaders—see better teamwork, more creativity, and greater success.
For example, businesses with high EI are better at understanding and meeting customer needs. This makes customers more loyal and helps the business stand out from its competitors.
Emotional Intelligence Case Studies
To see how EI works in real life, here are some examples:
Cigna Case Study (2023)
Cigna created a program to help their leaders develop emotional intelligence. This program led to a 15% increase in their leaders’ effectiveness and a 10% boost in employee engagement. This shows that investing in EI can lead to real improvements in the workplace.
Google’s Project Oxygen Update (2023)
Google’s Project Oxygen has studied what makes managers successful. In 2023, they found that emotional intelligence is key. Managers with high EI had teams that were more productive and loyal. As a result, Google now includes EI training in its leadership programs.
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