American psychologist Daniel Goleman was one of the first writers to draw attention to the concept of emotional intelligence in the corporate world. But what is emotional intelligence, why is it an important part of leadership, and is it possible to improve our emotional skills?
Emotional intelligence (EI) refers to our ability to understand and regulate our own emotions, as well as how empathetic we are to the feelings of others. Our ‘emotional quotient’ (EQ) is assessed based upon our score across four components: Self-awareness, self-management, social awareness, and relationship management.
We all rely on our innate EI as we go about our lives, it influences our social interactions and shapes our interpersonal skills. Some people have naturally high emotional intelligence (EQ), while others may need to put more effort into developing empathy and understanding their own emotions. The good news is that it’s entirely possible to strengthen these emotional skills, and we’ve got a few tips on how to do just that later in this article.
Emotional intelligence and leadership go hand-in-hand. Empathetic leaders create stronger team dynamics and are better able to retain employees. 92% of employees are more likely to stay in an organization if their leaders empathize with them. Activating our emotional intelligence skills is great for the bottom line too, with 87% of CEOs agreeing that financial performance is linked to empathy.
Why Is Emotional Intelligence Important For Leaders?
When you think of traditional leadership skills, you might think of desirable abilities like quick decision-making, an understanding of delegation, and good communication, as well as the individual’s technical experience in function and industry-specific needs.
But Goleman considers these technical skills required for specific leadership roles to be the ‘basic entry requirements’. Emotional intelligence, he says, is the real difference between good and bad leaders.
Research has shown the powerful connection between emotional intelligence and leadership effectiveness. Leaders with high EQ can motivate their teams, understand their employees’ needs, and remain attuned to how everyone is feeling, allowing them to respond appropriately in various situations. These leaders are more successful than those with a strong technical background but low emotional intelligence. While technical expertise is important, without emotional intelligence and a commitment to self-awareness, leaders will struggle to truly lead. They may be effective doers and project managers, but true leaders can do more than that.
So, how can you get a measure of emotional intelligence when it comes to the leaders in your organization? You can start by understanding the four components we touched upon earlier: self-awareness, self-management, social awareness, and relationship management.
The Four Components of Emotional Intelligence
Although Daniel Goleman popularized the theory of emotional intelligence, the idea had been discussed among psychologists for several decades prior to Goleman’s writing, building on Abraham Maslow’s idea of ‘emotional strength’ first proposed in the 1950s.
Several models and methods for measuring EI and EQ (emotional quotient) had been trialled in these early conversations on the topic, but Goleman refined it further into four components (sometimes called pillars).
Let’s take a look at each of these components to better understand the relationship between emotional intelligence and leadership.
1. Self-awareness
Self-awareness is essential for navigating the complexities of the modern workplace, where we need to balance diverse needs and expectations. It refers to the ability to not only recognize our own strengths and weaknesses but also understand our emotions, motivations, and reactions in any given moment.
Mastering self-awareness can be difficult—a longitudinal study published in the Harvard Business Review found that while 95% of people consider themselves to be self-aware, only 10 - 15% demonstrably are.
For leaders, achieving this level of self-awareness is crucial. It’s important that they can trust in their instincts and manage team interactions while maintaining a realistic view of why they’re taking certain actions—and if they have the ability to meet their goals.
2. Self-management
Self-management refers to the regulation of emotions. This is a learned skill, with the famous ‘terrible twos’ of toddlerhood being an important milestone in the development of emotional regulation as tiny human beings learn to recognize their emotions, communicate their needs, and learn to manage the big feelings they have.
Most adults came through this as children and can manage their emotions to varying degrees, although some still struggle. When looking at emotional intelligence and leadership, you want to know that your leaders can handle their emotions in high-stress situations. Leaders with good self-management are able to maintain a positive outlook even through difficult setbacks and can continue to motivate those around them. They don’t give in and they’re not prone to emotional outbursts; they can maintain a comfortable working environment for all.
There are strategies available for those who struggle with self-management. Breathing exercises, positive self-talk, and reframing are all proven ways to help regulate in stressful situations. It’s important too that leaders are able to recognize any particular triggers that may dysregulate them so they can be proactive in employing their preferred strategy and adapt to any changes coming their way.
3. Social Awareness
Social awareness is the ability to recognize and understand the emotions of others and respond to them appropriately. For leaders, this skill is essential in building positive relationships and fostering a supportive work environment.
Leaders can develop social awareness by practicing empathy. For example, when an employee approaches a leader with a problem, instead of immediately thinking about how it will impact them personally, the leader should focus on how the employee feels about the issue. By listening attentively and offering guidance without judgment, the leader shows that they care about the employee’s perspective.
By setting this empathetic example, emotionally intelligent leaders improve not only their relationships with individual team members but also enhance collaboration across the entire team. Good leaders inspire others to emulate these relationships, and empathy plays a major role in this. In fact, 9 out of 10 workers believe that empathy is essential for a healthy company culture.
4. Relationship Management
Just like developing emotional intelligence and leadership skills, relationships take work. Relationship management for leaders is all about motivating their team, forging individual connections with each employee, and understanding the delicate team dynamics they’re managing. It can also involve some conflict management.
Emotionally intelligent leaders know that conflict happens, but they also know that it’s what you do about this conflict that’s most important. It’s impossible to create a conflict-free environment, even little disagreements about the temperature of the aircon and whose turn it is to do a coffee run can fester, so strong leaders work on their conflict resolution skills. They promote open and honest communication, build trust between themselves and their team, and create a sense of psychological safety in which constructive conflict can occur productively with as little impact as possible.
Sometimes, tough conversations need to happen, and emotionally intelligent leaders are equipped to handle that thanks to their relationship management skills.
How to Identify a Lack of Emotional Intelligence in Leadership
There are signs you can look out for that signify a leader lacks emotional intelligence. Employee surveys may show high levels of dissatisfaction with their leadership, the turnover rate may have increased since they moved into a position of leadership, and engagement levels may have dropped.
Leaders with a lower EQ may have poor communication skills, leading to people misinterpreting their intent, being hurt by the way in which the leader speaks, or increased levels of conflict. Looking back at the four components and how they relate to emotional intelligence and leadership, you can start to understand some of the common mistakes that less emotionally intelligent leaders make - they likely overestimate their self-awareness skills and may be prone to emotional outbursts. Their attempts to motivate their teams fall flat as they lack social awareness skills, and you might even see signs that their team is attempting to manage upwards.
The short and long-term consequences of letting leaders continue without developing their emotional intelligence skills can be devastating to even previously successful organizations, as engagement drops and employees move to more empathetic work cultures. It’s vital to recognize the signs of poor emotional intelligence and leadership, but it’s just as important to know that all is not lost. It’s completely possible to strengthen emotional skills, and we’re going to tell you how.
How to Strengthen Your Emotional Intelligence as a Leader
Here are a few things you can do to strengthen your emotional intelligence as a leader:
- Listen closely and withhold judgment – Practice active listening to understand employees’ perspectives, refraining from making any judgments.
- Connect with employees on a personal level – Build trust through genuine interactions about employees’ lives and passions outside of work - learn to value them as complex individuals who aren’t there just to serve you.
- Unlock employee motivations – Learn what drives team members to perform their best. Remember, what works for one won’t work for others, so it’s important to adjust your approach to each person.
- Seek to understand more about others and yourself – Develop self-awareness through feedback and reflection. Be realistic about your strengths and areas for improvement, and take on board the thoughts of others. 360-degree feedback is an effective means of doing this work.
- Practice emotional regulation – Look up techniques to manage stress and remain composed under pressure, such as breathing exercises for in-the-moment stressors and journaling for general wellbeing and processing of more complex emotions.
How Emotional Intelligence Can Make Leaders More Effective
There are many benefits to investing in emotional intelligence and leadership, including:
Improved Job Satisfaction
Empathetic leaders are good at making their employees feel valued for their contributions. Employees who feel recognized in this way are more satisfied with their work life overall and are more likely to stay in their role. Higher retention rates are a win for any business these days, especially when the cost of recruitment may be almost three times as much as the employee’s starting salary.
Better Communication
When leaders and team members have worked on their communication skills and developed a real understanding of one another, they’re able to collaborate more effectively, which is beneficial for overall productivity. Better communication also reduces the chance of misunderstandings, so your leaders won’t need to put their conflict resolution skills to use as much either.
Increased Performance and Productivity
Emotional intelligence and leadership are an excellent pair when it comes to improving performance and output; with teams being led by emotionally intelligent leaders typically being more engaged and motivated. Thanks to feeling valued and listened to, employees of emotionally intelligent leaders are engaged with their work and motivated to do even better, driving the business towards new successes that they will feel recognized and rewarded for.
Less Workplace Conflict
With sharp social awareness and relationship management skills, leaders with high EQs are able to resolve conflicts before they escalate. They recognize the signs and know how to deal with them, maintaining a calm, productive work environment for all of their team. These leaders are familiar with the stressors that can trigger conflict or burnout and can navigate their team through them with a positive approach.
Final Thoughts: The Power of Emotional Intelligence in Leadership
Emotional intelligence in leadership can be the difference between success and failure for your organization. While technical expertise and industry knowledge are crucial, leaders who lack emotional intelligence, including skills such as self-awareness, empathy, and relationship management, may face challenges like poor retention, low employee engagement, and stagnated productivity.
But there’s good news: emotional intelligence is not fixed. HR managers and business leaders can make a significant impact by prioritizing the development of EQ in their leadership teams. You may already recognize the signs of leaders lacking emotional intelligence in your organization, whether through poor communication, dysfunctional teams, or high turnover, and now is the time to take action.
Start by assessing your leaders’ current emotional intelligence with Thomas’s Trait Emotional Intelligence Questionnaire (TEIQue). This powerful tool evaluates 15 emotional traits, offering a comprehensive report of a leader’s strengths and areas for growth. With this data, we can help you create targeted leadership training and development programs that will strengthen emotional intelligence across your leadership team.
Ready to boost retention, improve employee engagement, and increase productivity? Get in touch with our experts to develop emotionally intelligent leaders.
