Remember when organizational culture crept into boardroom conversations decades ago? What began as a peripheral topic blossomed into a top priority as leaders began to understand the profound impact culture had on their businesses.
Now the term “emotional intelligence” (EQ) is getting the same kind of attention as an increasing number of articles and studies detailing the subject are opening eyes and swaying opinions. Many experts explain the effect EQ has on the workplace and how it dovetails with company culture. Most conclude that an organization can’t create a healthy culture without helping employees develop a higher EQ.
While it’s currently a hot-button topic in the business world, emotional intelligence isn’t a new idea. Peter Salovey and John Mayer defined the term in 1990 in an academic journal. And Daniel Goleman wrote the seminal book on the topic in 2015, bringing the concept from the backwaters of psychology and neuroscience into the mainstream.
In Emotional Intelligence: Why It Can Matter More than IQ, the Pulitzer Prize nominee and former New York Times reporter distilled oceans of research into language a layperson could grasp. EQ is broadly defined as a person’s ability to recognize and understand emotions in oneself and others and then use this awareness to manage their behavior and relationships.
Goleman breaks the EQ model into four sections:
People with a high EQ have focused on and developed proficiency in each of these areas.
People’s conduct is largely driven by their perceptions of themselves and those around them. Since organizational culture is the sum of a staff’s behaviors, it is greatly influenced by the level of people’s personal and social awareness and ability to manage their actions and interactions.
A Harvard Business Review report states that companies that prioritize EQ maximize the impact of their culture. The study concludes that these organizations are better equipped to engage and empower their teams and facilitate interpersonal skill development. And high employee EQ leads to increased customer loyalty because team members interact with people so effectively.
A focus on EQ also strengthens retention because employees feel seen and heard. Conversely, a Hubspot survey found that the opposite is true: 82 percent of workers would consider leaving their jobs for a more empathetic organization.
Criteria CEO Josh Millet further explains EQ’s importance in Forbes:
“Emotional intelligence addresses employees’ most fundamental needs and concerns, from the desire for their voices to be heard to the ability to solve problems collaboratively and creatively. It is at the center of healthy relationships between colleagues because it helps them listen to one another, recognize and address problems when they arise and approach every interaction with genuine concern for the feelings of others.”
Employees’ interpersonal skills are critical for organizations to compete in the marketplace. High EQ allows staff to deepen professional relationships and form an environment where they’re comfortable and motivated to innovate, solve problems, and deliver outstanding service.
It only takes one low-EQ person to disrupt a team. To maximize the positive impact it can have, everyone at every position in a company should hone their emotional intelligence. And it starts at the top.
EQ FOR LEADERS
Daniel Goleman states in his book on the topic: “Leadership is not domination, but the art of persuading people to work toward a common goal.” Instead of using top-down intimidation tactics, leaders with a high EQ understand how to get the best out of their team members.
Eastward Partners CEO Joe Carbone offers several tips in Forbes on how leaders can improve their EQ.
Everyone recalibrates differently, whether via meditation, exercise, focusing on a hobby, or just spending quality time with family and friends. The key is acknowledging the need and making room for these therapeutic activities so they can recharge and have the energy to exercise their EQ.
As with every aspect of a company’s culture, employees emulate their boss. So if a CEO or owner demonstrates emotional intelligence, their team members are inspired to follow suit. The same is true if leaders show poor self-awareness and don’t control their emotions.
EQ FOR EMPLOYEES
Emotional intelligence is a personal trait, but it is also a key component of a healthy organizational culture. A company’s culture affects every aspect of the business, and the staff’s collective EQ level largely determines the efficacy of the culture.
Like their leaders, employees must commit to doing the work to build their personal EQ. But organizations can encourage their development by creating an environment for them to succeed. Since culture is formed by the dominant actions and attitudes in a workplace, leaders can intentionally define and coach behaviors that enhance EQ.
Promoting the following behaviors will help cultivate an emotionally intelligent staff.
Managers can underscore the importance of good listening by actively demonstrating these techniques. Team members need to know they are being heard.
These behaviors may not come naturally to everyone, but people can become adept at them through practice and reinforcement. Managers can use techniques like role-playing, asking people to share how they would respond in specific scenarios, establishing a mentor program, and one-on-one coaching to strengthen these skills.
Leaders can also cultivate a more emotionally healthy workplace by being transparent, acknowledging people’s contributions, and creating a safe atmosphere where people can respectfully and openly share their thoughts and opinions to move things forward.
Having an emotionally intelligent staff can lead to countless improvements throughout an organization. The primary benefits include:
A high-EQ staff is a valuable asset that can help businesses be more effective, improve communication and increase trust. But improving emotional intelligence takes time and commitment from leaders and isn’t something that can be forced on people or taught overnight. EQ can have a positive and lasting impact when prioritized in organizational culture and regularly practiced and supported.
By investing in emotional intelligence, leaders will develop a better-connected workforce that feels appreciated, respected, and motivated to succeed.
What will be the role of EQ in an increasingly digitalized world? Daniel Gorman predicts, “As AI gains momentum and replaces people at every level, there will be a premium placed on people who have a high ability in EQ.” Technology can’t compete with this very human and needed commodity.