The opinions expressed by Entrepreneur contributors are their own.
Strategic planning, forethought, and technical know-how are no longer sufficient for leadership in today’s fast-paced, technology-driven corporate environment. While these are essential, the emerging characteristics of effective leaders are the ability to establish emotional connections with colleagues, build trust, and face adversity with empathy. Emotional intelligence (EQ) comes in handy in these situations.
Leaders with emotional intelligence are able to balance seeing the big picture with focusing on the present moment, which allows ideas to flourish, people to feel appreciated, and business to thrive. This creates an atmosphere for long-term success. Leaders who can leverage emotional intelligence will spearhead the transformation of their companies in the face of rising employee demands, technological upheaval, and hybrid teams.
This article explores the importance of emotional intelligence for modern leaders, how it relates to financial performance, and how leaders can motivate employees to achieve more. Learn more about how you can develop your EQ.
Related: Mastering emotional intelligence is the key to effective leadership and team building
What is emotional intelligence and why is it important?
The ability to identify, understand, and control one’s own emotions, as well as the ability to observe and influence the emotions of those around us, is known as emotional intelligence, a term popularized by psychologist Daniel Goleman. It is being
In leadership, EQ consists of five key elements.
Self-awareness: Understand your emotions and how they affect your behavior.
Self-regulation: Managing emotional responses in a way that is consistent with goals and values.
Motivation: Remains motivated to pursue excellence even in difficult circumstances.
Empathy: Understand and share the feelings of others and foster deeper connections.
Social Skills: Effectively manage relationships, conflict resolution, and team dynamics.
Even in the face of complex challenges, leaders with high emotional intelligence are able to guide their teams through tough conversations, gain stakeholder trust, and maintain motivation. In fact, research shows that leaders with high levels of emotional intelligence perform better than average. The fact that 90% of successful people have high EQ shows that there is a strong correlation between emotional intelligence and professional performance.
The relationship between EQ and influential leadership
1. Build trust and engagement
Trust is built through emotional intelligence. Employees appreciate when leaders are self-aware and empathetic. High-performing teams are built on trust, allowing members to express their opinions freely, take calculated risks, and work collaboratively without worrying about what others think. .
For example, leaders with high EQ can identify when colleagues are feeling anxious or uncertain during periods of organizational transition and alleviate their concerns through open and honest communication. This increases team buy-in and reduces resistance to change.
2. Align your goals and motivations
Leaders who establish emotional connections with their employees are able to understand what motivates them. These executives motivate their teams from within by showing how their work contributes to the company’s larger mission. EQ-driven leaders focus on purpose rather than performance measures and demonstrate how each contribution fits into the larger context.
Consider Satya Nadella, your boss at Microsoft. We accomplished this by redefining Microsoft’s culture to prioritize growth, collaboration, and empowerment, and by integrating an empathetic and emotionally intelligent approach with strategic leadership. So what were the results? A re-energized staff and a dynamic, successful business.
3. Surviving conflict and building resilience
Conflict is inevitable in any organization. The ability to control one’s emotions and empathize with others are tools that leaders with high EQ use to constructively deal with conflicts and find solutions. These can help your team communicate better, calm tense situations, and move forward as one.
Additionally, leaders can benefit from emotional intelligence by building resilience in themselves and the people they lead. A culture of tenacity and creativity is fostered when leaders demonstrate optimism and emotional control in the face of challenges, thereby turning obstacles into opportunities for progress.
Related: 11 signs that you lack emotional intelligence
How leaders can improve their emotional intelligence
The good news is that emotional intelligence is not an innate trait, but a skill that can be developed and honed over time. Here’s how leaders can cultivate emotional intelligence to be more influential.
1. Develop self-awareness
Regularly reflect on your emotional triggers and how they influence your behavior.
Seek honest feedback from your colleagues and team members to better understand your strengths and blind spots.
Practice mindfulness or journaling to increase your awareness of your thoughts and feelings.
For example: Leaders who reflect regularly are able to adjust their approach, remain calm, and focus on solutions in high-pressure situations.
2. Practice self-regulation
React or don’t react. To stay calm, pause before reacting to emotional situations.
Manage stress effectively through healthy habits such as exercise, deep breathing, and time management techniques.
Lead by example: Demonstrate consistency, reliability, and fairness in behavior.
For example: A leader facing a tight deadline can manage stress by setting clear priorities rather than projecting frustration onto the team.
3. Develop empathy
Practice active listening. Give your team members your full attention without interrupting or criticizing them.
Put yourself in other people’s shoes and understand their perspectives and challenges.
Always be present during difficult conversations and show genuine care and support.
For example: When an employee faces burnout, an empathetic leader recognizes the signs early and provides solutions, such as adjusting workloads and resources for support.
4. Improve your social skills
Foster meaningful relationships by engaging authentically with your team.
Focus on clarity of communication and make sure your message aligns with your team’s needs.
Build a culture of gratitude by celebrating team wins and recognizing individual contributions.
For example: Leaders who cultivate positive relationships experience higher levels of collaboration, engagement, and retention.
The impact of emotional intelligence on business
Investing in emotional intelligence pays off. Organizations led by leaders with high EQ see measurable improvements in key areas.
Increased retention: Employees are more likely to stay in a supportive and emotionally aware environment.
Improve team performance: Trust and open communication foster collaboration and innovation.
Stronger customer relationships: Leaders with high EQ understand customer needs and build lasting partnerships.
Increased resilience: Teams led by emotionally intelligent leaders recover faster from setbacks and adapt seamlessly to change.
The role of EQ in the digital age
As a result of the digital revolution, the importance of emotional intelligence in the workplace has increased. Leaders of hybrid and remote teams must show empathy and connection to their teams, even if they are physically separated. Even as technology enhances operations, emotional intelligence helps teams stay engaged, collaborative, and purpose-driven.
As AI begins to automate more jobs, emotional intelligence will also become a determining factor for leaders to stand out. Empathy, imagination, and emotional connection prove to be invaluable assets when driving development and innovation.
Related: 4 emotional intelligence skills every business leader needs
Lead with EQ to achieve lasting impact
Emotional intelligence is not a “soft skill.” Core leadership competencies that foster trust, engagement, and long-term success. Leaders who master emotional intelligence are better able to inspire their teams, overcome challenges, and create a positive, purpose-driven work environment.
In today’s evolving business world, the most influential leaders are those who combine strategic vision with emotional awareness and leave a legacy of growth, resilience, and relationships.
Whether you’re leading a start-up, scaling a business, or guiding an established organization, the keys to unlocking your team’s full potential and achieving sustainable success. This is emotional intelligence.
Final Thoughts: How do you use emotional intelligence to inspire and empower your teams? The path to high-impact leadership begins with a commitment to self-awareness and connection .