Leaders faced fresh challenges in 2020. Running an organization and leading a team has never been easy. Yet, those in leadership positions were asked also to pivot creatively, perhaps to save jobs and preserve people’s health and safety in a more urgent way than ever before.

Emotional Intelligence in Leadership: Why EQ Matters Today

Q: What is Emotional Intelligence?

Emotional Intelligence (EQ) was coined in 1990 by psychology professors John D. Mayer and Peter Salovey. Per Mayer, the scientific definition of “emotional intelligence is the ability to accurately perceive your own and others’ emotions; to understand the signals that emotions send about relationships; and to manage your own and others’ emotions.

Our understanding of emotional intelligence is 30 years old. The question now is, “What is the importance of emotional intelligence in leadership today?” This article examines how, at this current moment in time, emotional intelligence can have an added impact on successful leadership.

What Is Emotional Intelligence (EQ)? Definition & Key Traits

The term, “emotional intelligence” (EQ), was coined in 1990 by psychology professors John D. Mayer and Peter Salovey. Per Mayer, the scientific definition of “emotional intelligence is the ability to accurately perceive your own and others’ emotions; to understand the signals that emotions send about relationships; and to manage your own and others’ emotions.”

In 1998, another psychologist, Daniel Goleman, connected emotional intelligence with leadership in business. He argued in the Harvard Business Review, “without [emotional intelligence], a person can have the best training in the world, an incisive, analytical mind, and an endless supply of smart ideas, but [he or she] still won’t make a great leader.”

There are five key attributes that constitute emotional intelligence:

Self-awareness
Self-regulation
Motivation
Empathy for others
Social skills

Mayer later tempered Goleman’s opinion saying that “emotional intelligence isn’t the only way to attain success as a leader.” Yet, the importance of making strong connections with people remains. We consistently hear (and see!) the value of empathy touted in building strong relationships, employee experience platforms, and customer experience platforms, too. Someone who “gets it” is more likely to keep everyone on the same page.

The importance of leadership and emotional intelligence today

Leaders faced fresh challenges in 2020. Running an organization and leading a team has never been easy. Yet, those in leadership positions were asked to pivot creatively, perhaps save jobs, and preserve people’s health and safety in a more urgent way than ever before.

As Johns Hopkins University psychologist Laura K. Murray observed in April, “there is no doubt that leadership will be one of the most heavily tested skills throughout the coronavirus pandemic.” And it was.

The global pandemic saw employees moving to remote work, or a hybrid mix of office-based and virtual work. Research from the Adecco Group shows three in four employees appreciated the increased flexibility and autonomy, and 75% of them wanted those to persist.

As they navigated the newly flexible work environment, while worrying about their wellbeing, these employees were looking for leaders that care. In the Adecco Group survey:

74% of employees want their managers to demonstrate a leadership style focused on empathy and a supportive attitude.
70% of respondents said that feeling they have “the right support available for their mental wellbeing is important to their working life.”

News cycles are hitting us with an endless bombardment of anxiety-inducing headlines. In an age of economic upheaval, we are craving a sense of safety, stability, and feeling valued. Emotional intelligence in leadership can help meet these needs.

Why Emotional Intelligence in Leadership Matters Today

Those who have high emotional intelligence are “able to easily build relationships, possess personal integrity, can be inspiring, and have excellent communication skills, among other positive traits.” It’s easy to imagine how these attributes would resonate, particularly in the midst of a global economic uncertainty.

Emotionally intelligent leaders are able to better rally the troops and encourage more efficient and productive teams, regardless of the economic upheavals. Here are some ways emotional intelligence in leadership can transform your business culture:

Better conflict resolution
Improved communication
Higher employee engagement and productivity
Makes employees feel valued and heard
Better work culture
Increased innovation

How Emotionally Intelligent Leaders Impact Team Performance

Not sure how the emotionally intelligent leader does all of this? Are these folks simply superheroes or did they take some kind of emotional intelligence training for leaders? One thing is for sure: Emotional intelligence in leadership can truly transform your work culture.

The emotionally intelligent leader is more likely to successfully manage many relationships in a crisis. Inspiring others and managing conflict, for instance, is easier for those leaders who can connect on a deeper level, i.e., emotionally.

Leaders with a high EQ know themselves. They can effectively self-regulate and self-motivate through a difficult, uncertain time. Coming from a solid self-foundation, these leaders are able to engage effectively with others. They see staff as people, not just producers of outcomes. They also put in the extra effort needed to check in with themselves to manage how they come across in their interactions with employees.

By practicing empathy, the high EQ leader can imagine how their direct reports are experiencing challenges. Rather than simply thinking that “everyone has it hard”, specific challenges like remote work and the ever-changing work environments require leaders to think deeply about how each challenge impacts their team members. Emotional intelligence helps create “psychological safety.” Connecting with staff through empathy can foster increased engagement. This, in turn, improves focus and productivity.

Further, with their excellent communication skills, these leaders can really listen. This is especially important to the people who are working virtually and enables a better understanding of what they are thinking and feeling. Strong active listening can help build connections to help staffers struggling with the isolation of working from home feel more engaged and heard at work.

The high EQ leader is also tapped into team dynamics and works to give everyone a voice. This helps improve company culture, which is all the more critical now that people are collaborating predominantly via computer screens.

Benefits of High EQ Leadership for Employees and Organizations

High EQ leaders aren’t simply nice to work with (although they may certainly be nicer than leaders with low EQ!). Beyond smiles and warm fuzzies, their measurable impact is felt at every level.

Here’s a quick list of ten employee and business benefits highlighting the importance of emotional intelligence in leadership:

When employees feel psychologically safe and supported, they are more likely to stick around.
Employees who stick around deepen their expertise and have more to offer and share.
Experienced employees who feel safe are more likely to take a creative approach to problem-solving.
Employees who feel supported are more willing to step up to new challenges because they aren’t as afraid of the risks of failure.
Employees who know their boss “gets it” are more likely to share candid personal experiences, building stronger relationships.
Employees who feel better connected with their managers are more likely to challenge the status quo and make valuable improvements.
When leaders connect with empathy, employees are more interested to learn from them and grow professionally.
Leaders with high emotional intelligence foster a culture of respect, setting a positive example for others to follow.
Employees who feel supported are more likely to serve as brand ambassadors, supporting your employee advocacy efforts.
Those employees who experience positive vibes from their managers are more likely to recruit others in their personal and professional network.

From risk-taking to innovative thinking and from retention to productivity, each employee and business benefits immensely from emotional intelligence in leadership team members. While “being nice” seems a little too mushy for many to conceive of as important to business success, it’s hard not to see what is the relevance of emotional intelligence in leadership today. EQ leadership is essential in an era when businesses quickly adapt to new market demands and customer needs and employees face the brunt of the changes, both professionally and personally.

Low EQ Leaders: Negative Impacts on Culture, Retention & Morale

Just for fun — although the stress is real! — consider the impact of those who think of emotional intelligence in leadership as a sign of weakness. Sad to say, but if you’re wondering how to identify a lack of emotional intelligence in leaders, it’s super easy.

Low EQ leaders have a few things in common…

They rarely listen to others. This suggests to the speaker that the leader considers their comments irrelevant or unworthy of attention.
Even if they appear to listen, they do not follow up appropriately. This creates the impression that the speaker was not heard.
They fail to sufficiently acknowledge the work of others. This can range from complete disregard for those getting the job done all the way to taking credit for work done by someone else.
They don’t give or receive feedback well. As a result, their team members may be on edge as they try to navigate uncertain expectations.
It’s clear that they’re mainly looking out for themselves. This means that most “relationships” they build are focused on maximizing some personal benefits, like promotion or more favorable assignments.
Their direct reports are less likely to stick around. Even in an organization with a strong culture, the manager/employee relationship is so important that a single low-EQ leader can drive employee churn.

If this list sounds familiar, you’re not alone! Most of us have encountered leaders who see emotional intelligence as not a “need to have” or even a “nice to have” asset, but more of a “rather not have” liability.

If you’re a leader who feels that any of these hit a little too close to home, though, don’t give up hope! There’s still time to develop emotional intelligence and put it to work for you — and your team!

Conclusion: Emotional Intelligence Is Essential to Leadership Success

EQ research suggests, “80 percent of employees with poor manager relationships are disengaged, and 50 percent of former employees left to get away from their manager.” The last thing an organization wants to be dealing with right now is attrition. High employee turnover is costly at the best of times. Right now, organizations are trying to streamline operations to directly impact profitability.

Emotionally intelligent leadership brings many benefits to the business bottom line. It’s already been connected with improved productivity, increased profitability, and reduced employee attrition. As businesses rapidly adapt to the ever-changing world around us, high EQ leaders will prove to have the core characteristics needed to help employees adapt and even thrive amidst uncertainty.

Further good news: Emotional intelligence can be learned and developed. We’ll discuss how in the next article in this series. Then, we’ll share some cautions for EQ leaders to make sure they’re using their attributes effectively.

FAQs

Q1: What is emotional intelligence in leadership?

A:Emotional intelligence in leadership refers to a leader’s ability to recognize, understand, and manage their own emotions, as well as empathize with the emotions of their team members.

Q2: Why is emotional intelligence important for leaders today?

A: EQ helps leaders connect with employees, resolve conflict, foster psychological safety, and improve communication—all critical in hybrid, remote, and uncertain work environments.

Q3: What are the benefits of emotional intelligence in leadership?

A: Some benefits include improved team engagement, higher productivity, innovation, stronger relationships, and better employee retention.

Q4: How does low emotional intelligence affect leadership?

A: Leaders with low EQ struggle with communication, feedback, and empathy, often resulting in higher attrition, disengaged employees, and poor team morale.