A high IQ (Intelligence Questionnaire) may make a skilled employee or an extraordinary product but a higher EI (Emotional Intelligence) surely makes a good leader. Many CEOs and executives lack soft skills like emotional intelligence and communication skills. Frequently, this lack of emotional intelligence results in outbursts of anger and frustration, creating a negative impact on the leader. Many case studies have proved that emotionally intelligent leaders are far more effective. They tend to have better relationships with their employees and teams.

In 2022, Bob Iger’s lack of empathy and emotional intelligence got him replaced by Bob Chapek as Disney CEO, representing the importance of EI among leaders. As per reports, 70% of employees’ performance directly depends on their relationship with their boss. The team puts out its best if there is a relationship of mutual respect and proper communication.
What is Emotional Intelligence?
Emotional Intelligence is the ability to recognize, understand, and manage emotions as well as to understand other behaviors and your impact on them. It is measured through five major components, self-awareness, self-regulation, empathy, motivation, and social skills. People with high EQ find it easier to handle their emotions during crises or times of conflict which is a crucial quality of a good leader.
There is a fact that 90% of successful leaders of the world have high EI which confirms the correlation between emotional intelligence and professional performance.
Importance of Emotional Intelligence in Leadership
One leadership skill that will be crucial in 2025 is emotional intelligence (EQ). A recent study in the Revista de Gestão Social e Ambiental journal found that leaders with high EQ help create positive work environments, boost job satisfaction, and increase employee engagement. Emotional intelligence, which includes being aware of and managing your emotions, along with strong communication and relationship skills, helps leaders connect with their teams in meaningful ways.
This is especially important in today’s hybrid work environments. While AI is great at handling tasks and boosting efficiency, it can’t replace the human ability to build trust, create meaningful connections, and keep team morale high in virtual spaces. Leaders who use their emotional intelligence well can strengthen team bonds in online work settings and bring the essential human element to processes that are becoming more AI-driven.
How Can Leaders Improve Emotional Intelligence?
Leaders should practice the core values of emotional intelligence to develop their EQ. The leaders should practice these 5 ways to boost their emotional intelligence and enhance their professional skills.
1. Be Self Aware
Self-awareness is an important part of emotional intelligence as it allows you to process your own emotions and actions. Leaders need to have a better understanding of their weaknesses, strengths, and behavioral responses to different situations. Self-awareness allows people to align thoughts and feelings with their professional goals. Developing this trait allows leaders to be sure of their goals and to know what they want.
2. Enhancing Self-Regulation
Self-regulation is the ability to control emotions when overwhelmed by a situation or any other stimuli. This not only helps leaders in handling the situation but also sets an example for other executives and teams. Leaders who can regulate their actions and emotions foster a stable and motivating environment by modeling calm and composed behavior during hard times. This helps employees develop a positive mindset and also enhances the trust of leaders.
3. Practice Empathy
Empathy is understanding others’ emotions to make their feelings and help them understand situations. Leaders can practice empathy by promoting open communication between the team and ensuring everyone feels heard and validated. This helps in creating a relaxed environment where everyone feels the freedom to voice their opinions and emotions.
For instance, leaders can have feedback sessions, which allow employees to express their concerns regarding workload and workplace issues. Leaders should be an active listeners during these sessions and make sure to make decisions with empathy towards the employees and their concerns.
4. Better Social Skills
Social skills are crucial for leaders as they help them build healthy business relationships. People with good social skills can convey their message properly and make it understood. Leaders should be very vocal about their goals and ways to achieve them which creates transparency among the teams and also allows them to give their best. Social skills also help in creating strong financial relations which proves to be beneficial for the business during a crisis.
5. Building Motivation
People who have high emotional intelligence tend to build high motivation for others. It is very important for a leader to motivate their teams, to create a positive mindset and a productive work environment. By fostering a sense of goal and enthusiasm, a team should be motivated to give their best while working in cohesion to drive performance and innovation.
How does Emotional Intelligence affect leadership?
Emotional intelligence is key to understanding, managing, and motivating others. It helps build stronger relationships between employees and their leaders. Research shows that emotional intelligence plays a big role in job satisfaction and performance. While a leader might scold an employee or lash out, these actions only bring short-term results. For lasting success and better performance, emotional intelligence is the way to go.
A leader with emotional intelligence knows how to focus on both the bigger picture and the present moment. This creates an environment where ideas thrive, people feel valued, and businesses can succeed over time.
