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Why Emotional Intelligence Matters More Than Ever for Leaders

In recent years, emotional intelligence has become a critical component of leadership. It's now considered as important as other traditional leadership skills. But what's behind this growing emphasis on emotional intelligence? Let's explore this trend to gain a better understanding of what makes a leader effective today.

Leadership trends

Leaders in 2025 are not just authority figures—they also encourage growth and collaboration. They communicate openly and create a supportive work environment where team members feel valued and motivated. Effective leaders are accountable, empathetic, and skilled at managing conflicts in a way that strengthens team bonds rather than weakening them.

As Goleman emphasized, while IQ and technical skills are important, they are merely the entry-level requirements for executive positions. Emotional intelligence is essential for leadership, and even the most skilled people may struggle without it.

What is emotional intelligence?

Emotional intelligence, or EQ, is the ability to understand and manage your own emotions and recognize and influence others' emotions. This idea was first introduced by John Mayer and Peter Salovey in 1990, and Daniel Goleman popularized it. In his article "What Makes a Leader" for the Harvard Business Review, Goleman wrote, "The most effective leaders are all alike in one crucial way: They all have a high degree of what has come to be known as emotional intelligence."

Emotional intelligence is not just about being aware of your emotions. It involves using this awareness to make decisions, build strong relationships with others, and deal with complex social situations. This skill helps leaders handle challenges calmly and make decisions that consider both logic and feelings.

What are the signs of low emotional intelligence?

When emotional intelligence is lacking, it can lead to misunderstandings and conflicts. This often happens because people struggle to understand and manage emotions.

A key sign of low emotional intelligence is difficulty handling and expressing emotions. You might find it hard to listen actively or respond to coworkers' or peers’ concerns in a helpful way.

To see if you need to work on emotional intelligence, think about how you interact with others. Ask yourself these questions:

Are your conversations tense?
Do you always blame others when projects don't go as planned?
Are you prone to outbursts?

These behaviors can indicate a lack of emotional intelligence.

You can improve your relationships and create a better work environment by learning more about empathy and emotional intelligence.

Components of emotional intelligence

EQ has several main parts that help leaders deal with complicated situations and make strong relationships.

1. Self-awareness

Self-awareness is understanding your strengths and weaknesses. When leaders understand themselves, they can grow on a personal level and help their organization grow. They often ask others for feedback to improve their self-awareness.

According to research by organizational psychologist Tasha Eurich, 95 percent of people believe they are self-aware, but only 10 to 15 percent actually are. This lack of self-awareness can hurt team success, leading to more stress and less motivation among employees.

To improve self-awareness, leaders can use tools like 360-degree feedback. This process involves evaluating your own performance and comparing it with feedback from your boss, peers, and direct reports.This self-reflection is essential for bringing out the best in yourself and, consequently, in others.

2. Self-management

Self-management refers to the ability to control one's emotions, especially in stressful situations, and to maintain a positive outlook despite setbacks. Leaders who lack self-management tend to react impulsively, which can lead to poor decision-making.

Emotional intelligence helps you shift from automatic responses to thoughtful ones. Pausing to collect your thoughts and manage your emotions—whether that means taking a walk or calling a friend—can help you respond more intentionally to stress and adversity.

This ability to manage emotions is very important for having a good work environment. Leaders who can control their own emotions well can keep their teams motivated and focused. This helps create a work environment where everyone can work together to be productive.

3. Social awareness

Social awareness is the ability to understand the emotions and needs of others, both inside and outside an organization. It involves recognizing others' emotions and the dynamics in play within a company. Leaders who are good at social awareness practice empathy, try to understand their colleagues' feelings and perspectives.

Many organizations rank empathy as a top leadership skill. For example, DDI reports that leaders who master empathy perform more than 40% better at coaching, engaging others, and making decisions. Through empathetic communication, you can better support your team and improve your individual performance.

4. Relationship management

This is where leaders use their emotional intelligence to build strong relationships. They act as coaches, helping their teams work together smoothly, resolving conflicts, and motivating them to achieve their goals. Good communication is central here, as leaders need to clearly share their vision and inspire their teams to work collaboratively.

Addressing conflict in a timely manner is also critical. Research shows that each unresolved conflict can waste up to eight hours of company time in gossip and other unproductive activities, draining resources and morale. Leaders who can effectively manage these challenges create a respectful and productive work environment, which is key to job satisfaction and team happiness.

In a survey by the Society for Human Resource Management, 72% of employees ranked "respectful treatment of all employees at all levels" as the most important factor in job satisfaction.

How to improve emotional intelligence?

To increase EQ, you need to understand yourself and others better. Here are some ways to do that:

1. Keep a journal

Write down how your emotions affect your interactions and decisions each day. This helps you see patterns in your behavior and learn from both good and bad experiences.

2. Get feedback

Ask your manager, colleagues, and peers for feedback on your leadership style. Compare their comments with your own thoughts about yourself. This helps you find areas where you can improve.

3. Listen carefully

When talking to others, focus on what they say and show you're interested. Repeat back what you heard and use gestures like nodding. This shows respect and helps you understand their feelings.

4. Understand your emotions

Notice when you feel strong emotions and think about why. It will help you control emotions and understand others better.

5. Learn more

Take an online course on emotional intelligence. Such courses often include assessments to help you identify areas for improvement. The more you learn, the better leader you can be to inspire and motivate others.

If you use these strategies every day, you will create a strong emotional intelligence plan. This is important for being a good leader. One day it will help you inspire, motivate, and guide your future team to be their best.