What Is Emotional Intelligence in Leadership? Using EQ to Become a Better Leader
Technical expertise is no longer enough to lead effectively, but emotional intelligence is. With automation and AI taking over many hard skills, what sets great leaders apart is something no machine can replicate. Being sensitive, empathetic, and kind.
Once considered a "soft skill," EQ has now become one of the most in-demand leadership qualities, recognized by organizations worldwide. This article will cover what emotional intelligence is in leadership, how it affects leadership, and practical steps to strengthen EQ to become a more effective, compassionate leader.
What Is Emotional Intelligence in Leadership
Emotional intelligence is the ability to recognize, understand, and manage one's own and others' emotions. The concept was first introduced by psychologists Peter Salovey and John Mayer in 1990 and was later popularized by Daniel Goleman, who identified the five core components:
Self-awareness
Self-regulation
Motivation
Empathy
Social skills
An influential leader will know their own strengths and weaknesses in EQ, but will also accurately assess their team members. As an assistance in this, online EQ tests are used frequently, such as https://breeze-wellbeing.com/emotional-intelligence-test/, which is based on Goldman's approach. Online evaluations rooted in psychology are often more accurate and objective, making them an integral part of a leader's toolset.
Research consistently shows that emotionally intelligent leaders drive better performance, higher engagement, and stronger team cohesion [1]. Why? A self-aware leader makes fair decisions because they're more impartial, while an empathetic leader has more insights into the teamwork because coworkers trust them.
Why Emotional Intelligence Is So Important in the Workplace
Emotional intelligence has become one of the strongest predictors of success in today's workplace. The numbers are more convincing, so here are a few that will show the importance of emotional intelligence in leadership:
EQ accounts for 58% of performance in all job types and is a key differentiator between average and exceptional employees [2].
90% of high achievers also have highly developed components of emotional intelligence [2].
In 2018, 42% of all workers in the US held jobs where social skills were the most critical skill [3]. Social skills are not only component of emotional intelligence, but also it's outcome as Goldman would say.
For leaders, high EQ helps create an environment where employees feel valued and understood, which reduces turnover and increases productivity. The world is in the middle of a recession right now, so emotional intelligence in leadership is to build resilience within teams: help them adapt and thrive, even during change or uncertainty.
How Emotional Intelligence Affects Leadership
The five components of emotional intelligence aren't abstract. Each component has a set of practical skills behind it that directly shape how leaders inspire, guide, and support their teams. Let's break down how each component of emotional intelligence affects leadership in real-world settings.
Self-Awareness
Self-awareness in leadership is the ability to recognize and understand emotions, triggers, and patterns, and to see how they influence decisions and interactions. A self-aware leader notices when stress is clouding their judgment and stays grounded in their/company's/team's core values when making choices.
Skills behind self-awareness in the workplace:
Emotional recognition. Identifying emotions as they arise, such as frustration or anxiety, and the ability to prevent escalation.
Accurate self-assessment. Understanding strengths and weaknesses, and being willing to seek input where expertise is lacking.
Alignment with values. Making decisions that are consistent with personal and organizational principles.
One way how self-awareness affects leadership is through improved communication. Understanding emotions and people's motivation = finding approaches that would fit their thinking. Leaders who consistently practice self-reflection create more engaged, innovative, and loyal teams, driving both performance and morale.
Self-Regulation
Self-regulation in leadership is the ability to manage emotions, impulses, and reactions, especially under pressure. A self-regulated leader remains calm during a crisis and avoids making decisions out of anger or fear. For example, a self-regulated leader wouldn't terminate employees who have been with the company for 5+ years, even during a financial crisis, because they would act out of logic and not out of fear of losing money by keeping another person in a team.
Skills behind self-regulation for leaders to develop:
Impulse control. Not making important decisions because they seemed "balanced" in the moment. 3As rule: Analyzing, advising, and approving as a reaction to challenges or criticism.
Adaptability. Staying flexible and solution-focused during change or uncertainty.
Consistency. Responding to problems according to the guidelines and values. Even when situations seem tense, and values seem non-applicable.
Benefits of self-regulated leadership:
Improved decision-making. Clear thinking replaces impulsive reactions, leading to better long-term outcomes.
Increased trust. Teams value leaders who stay steady and loyal to the team's decisions in challenging times.
Healthier workplace culture. By modeling calmness and balance, leaders encourage respectful communication and collaboration.
Motivation
Motivation in leadership is about having a clear sense of purpose and drive that goes beyond external rewards like salary or status. It's the most obvious way how emotional intelligence affects leadership. A motivated leader sets the tone for the team, inspiring people to stay committed and engaged not only by monetary rewards (which are also important), but also by contributing to the bigger company's mission.
Skills that motivation includes:
Goal orientation. Setting clear, meaningful objectives and staying focused on them. The goal of a motivated leader would be "Increase positive PR presence by 20%" instead of "Increase trust for our brand."
Intrinsic drive. Finding satisfaction in progress and improvement. Having a desire to be creative and savvy. Try and fail until something better is born.
Commitment. Not giving up after the first fail. Showing consistency and perseverance, even when results take time. Seeing progress even in achieving small goals.
It's not news that motivation in the workplace matters. What is not so obvious is how important it is for a leader to be motivated. They set the tone for the team's morale, driving others to be enthusiastic. Have you ever spoken to a person who sparks when talking about their job? Have you ever felt that it's contagious (in a good way)?
Motivation affects leadership in a way that creates innovation because motivated people are afraid to be create and take risks. All of these besides sustaining performance. That's what others call going beyond and higher.
Empathy
Empathy in leadership is the ability to understand and relate to the emotions, challenges, and perspectives of others. A leader listens to team members. An empathetic leader makes them feel heard and valued through actions, tones, and even body language.
Skills every empathetic leader should have:
Active listening. Paying full attention without interrupting or pre-judging. Don't think in advance what you're going to say, give full attention to your team member.
Perspective-taking. Seeing situations from another person's point of view is important to understand their needs better. It also means analyzing colleagues' mistakes and not judging their performance based on small errors.
Emotional observance. Noticing nonverbal cues like tone, body language, or behavior changes. They should be decisive factors, but helping observation would help recognize the most important takeaways from the conversations.
Compassionate response. Addressing issues with understanding and fairness. Understanding, giving new attainable goals, offering help, but also setting clear boundaries.
Empathy, as a component of emotional intelligence, affects leadership in meaningful ways. First, teammates want to be around an empathetic leader. Together, they communicate better because hierarchy is not felt. Second, the retention of good employees increases. Even if the company navigates a crisis, an empathetic team leader gives hope and an attainable plan of action, making people stick around. Third, people are more committed and engaged. Empathy also transmits motivation.
Social Skills
Social skills in leadership are about the ability to build, maintain, and strengthen relationships within a team and across an organization. According to Goldman, social skills are a top of an emotional intelligence pyramide. That's an outcome of all other EQ components added up together. If foundation is strong, so will be the roof.
What skills are part of social skills?
Effective communication. Delivering messages clearly and respectfully, even in difficult conversations. It doesn't mean only giving effective presentation, and expressing controversial opinions clearly, but also giving honest, yet compassionate feedback.
Conflict resolution. Navigating disagreements in a way that strengthens, rather than damages, relationships. That includes negotiation, finding the middle ground.
Influence and persuasion. Encouraging buy-in for ideas and initiatives through trust and persuasive arguments (shoutout to effective communication).
Benefits of leaders with strong social skills:
Stronger collaboration. Teams work together more effectively and with less tension.
Increased productivity. Smooth communication and trust reduce delays and confusion, boosting efficiency. This also frees the space for creativity and taking new risks.
How to Develop EQ to Become a Better Leader
When you know how emotional intelligence affects leadership, you will already know some ways in which you, personally, can be a better manager. Intentional practice with EQ makes perfect. Leaders who commit to developing their EQ can see measurable improvements in their relationships, decision-making, and team performance. Here are actionable ways to build each component of EQ:
Seek feedback. Ask trusted peers, mentors, or higher management for honest input about your strengths and areas for improvement. Many companies offer anonymous development reviews, ask you HR if this is available.
Find a mentee. Managing a team is one thing, but mentoring a junior specialist is another. When you share your experience with others and open yourself to new experiences, motivation increases. The easiest way to learn is to communicate with others, who can offer unexpected perspectives about your profession, attitude, and worldview in general.
Try cognitive reframing. Cognitive reframing is a practice in cognitive behavioral therapy (CBT). It's used to replace harmful habits or thoughts with positive ones.
If you know about weaknesses or have been criticised, write these things down and write the desired reaction. For example, existing behavior, "I tend to be harsh on Mike," to desired behavior, "Mike is a good specialist because... I should share it with him at least once a day."
Celebrate progress. Every working day, select one thing you feel especially proud of, either what you or your team did. Acknowledge small wins to keep morale high. During weekly meetings, discuss what was done to mark the progress, which increases motivation.
Invest in team building. Encourage collaboration through group projects or informal check-ins. You shouldn't force people to meet outside of work if they don't want to. But you can devote one working day once a month or two to get to know each and learn about hobbies and families. This will make you more empathetic leader in team's eyes.
FAQs
Can you be a leader without emotional intelligence?
Yes, you may achieve some results, but the progress will be delayed. Leaders without EQ find it hard to build trust, navigate conflicts, or inspire loyalty. They might rely heavily on authority rather than influence, which can lead to high turnover and missed opportunities for innovation.
Who is an example of an emotionally intelligent leader?
One example is Satya Nadella, CEO of Microsoft, who transformed the company’s culture by significantly improving inter-department collaboration. Another is Oprah Winfrey, known for her ability to connect deeply with people, listen with understanding, and lead with authenticity.
What are five benefits of practicing emotional intelligence in leadership?
Better decision-making through emotional balance.
Higher team engagement as employees feel valued and supported.
Stronger collaboration driven by trust and mutual respect.
Improved conflict resolution, leading to healthier workplace dynamics.
Sustainable success, as emotional intelligence affects leadership in improving resilience and adaptability in times of crisis or change.
Sources:
Emotional intelligence, leadership, and work teams: A hybrid literature review. https://pmc.ncbi.nlm.nih.gov/articles/PMC10543214/
Why Emotional Intelligence Can Save Your Life? https://www.talentsmarteq.com/emotional-intelligence-can-boost-your-career-and-save-your-life/
Employment is rising most rapidly in jobs most in need of social, fundamental and analytical skills. https://www.pewresearch.org/social-trends/2020/01/30/employment-is-rising-most-rapidly-in-jobs-most-in-need-of-social-fundamental-and-analytical-skills/
