What makes a great leader stand out? Is it a sharp mind, years of experience, or a knack for strategy?
While those qualities are certainly valuable, research consistently shows that one trait rises above the rest: emotional intelligence (often called EQ).
Unlike IQ, which measures cognitive ability, emotional intelligence is about understanding emotions (both your own and those of others) and using that awareness to guide decisions, build stronger relationships, and inspire trust.
For leaders, it can mean the difference between teams that thrive and those that struggle.
What exactly is emotional intelligence?
Emotional intelligence was popularized by psychologist Daniel Goleman in the 1990s, and it typically covers four main areas:
- Self-awareness: Recognising your own emotions and understanding how they affect your thoughts and actions.
- Self-management: Controlling emotional reactions, adapting to change, and staying positive under pressure.
- Social awareness: Sensing and empathising with the emotions of others.
- Relationship management: Building trust, resolving conflict, and communicating effectively.
Put simply, EQ is about being in tune with people.
Why does emotional intelligence matter in leadership?
Think back to a boss or leader you truly respected. Chances are, they weren’t just good at giving instructions. They listened, they understood challenges, and they made people feel valued. That’s emotional intelligence at work.
Leaders with high EQ tend to:
- Create stronger team engagement and morale
- Navigate conflict with less friction.
- Inspire loyalty and trust.
- Make better decisions by considering both facts and feelings.
In today’s workplace, where hybrid teams and diverse cultures are the norm, these skills are even more critical. A 2022 survey from TalentSmart EQ found that emotional intelligence accounts for nearly 60% of job performance in leadership roles. Similarly, a Harvard Business Review study revealed that leaders with high EQ drive higher employee satisfaction, lower turnover, and improved company performance.
Plenty of US companies are beginning to recognize the value of emotional intelligence at the top. Take Microsoft, for example. CEO Satya Nadella is often credited with reshaping the company’s culture since 2014, not through aggressive restructuring, but by championing empathy as a core value.
His focus on listening and fostering collaboration has not only boosted morale but also helped Microsoft become one of the most valuable companies in the world.
How can leaders develop emotional intelligence?
The good news is that EQ isn’t static. It’s a skill that can be practiced and improved. Here are some practical ways leaders can strengthen it:
- Practise self-reflection. Set aside time each day to reflect on how you handled certain situations. Did you react calmly under stress? Did you listen before responding? Awareness is the first step toward growth.
- Learn to manage stress. Leaders often face high-pressure decisions. Breathing techniques, mindfulness, or even short breaks can prevent emotional overload and help you respond more thoughtfully.
- Improve listening skills. Active listening goes beyond just hearing words. It means tuning into tone, body language, and unspoken emotions. Leaders who listen well create space for honesty and innovation.
- Develop empathy. Empathy doesn’t mean always agreeing with someone, but it does mean trying to see the world through their perspective. This skill can transform team dynamics and make employees feel truly valued.
- Seek feedback. Ask your colleagues how they perceive your leadership style. Constructive feedback helps identify blind spots and provides opportunities for growth.
While emotional intelligence is a core leadership trait, it’s also vital in many other fields. For instance, there are many professions where high emotional intelligence is an essential skill, like a therapist with an MA in counseling psychology online.
Therapists, teachers, nurses, and social workers all rely on EQ daily to build trust and guide others through challenges. Leaders can take a page from these professions: empathy, patience, and emotional awareness are just as valuable in boardrooms as they are in counselling sessions.
The risks of ignoring emotional intelligence
Not every leader has mastered EQ, and the results often show. A leader who lacks self-awareness may unintentionally create a toxic environment where employees feel undervalued. Poor communication can lead to misunderstandings, while a lack of empathy may drive top talent out the door.
In fact, Gallup research suggests that managers account for 70% of the variance in employee engagement. Leaders without emotional intelligence risk disengagement, lower productivity, and higher turnover; all of which directly impact the bottom line.
Takeaway
Emotional intelligence is a proven leadership advantage. From navigating conflict to building trust, it touches nearly every aspect of how teams function and succeed.
If you’re looking to grow as a leader, start with self-awareness, practice empathy, and seek feedback. These small steps can transform not only how you lead but also how your team thrives.
After all, in leadership, people don’t just remember what you achieved; they remember how you made them feel.
Tim Williamson, a psychology graduate from the University of Hertfordshire, has a keen interest in the fields of mental health, wellness, and lifestyle.