Emotional Intelligence & Business: How they go hand in hand

Emotional Intelligence in Business: The Key to Better Teams, Stronger Leadership & Lasting Success

Mackenzie Rashid / 1 week
May 9, 2025
0
4 min read

In the fast-paced, data-driven world of business, technical skills and IQ often take center stage. But there’s another form of intelligence that’s quietly driving success in today’s top organizations: emotional intelligence (EI). Once dismissed as a “soft skill,” emotional intelligence is considered one of the most valuable traits a professional, especially a leader, can develop.

Whether you’re managing a team, launching a startup, or climbing the corporate ladder, understanding and cultivating emotional intelligence in the workplace can unlock stronger collaboration, higher employee satisfaction, and more resilient leadership.

What Is Emotional Intelligence?

Emotional intelligence refers to a person’s ability to recognize, understand, and manage their own emotions, as well as recognize and influence the emotions of others. It’s typically broken down into five core components:

Self-awareness
Self-regulation
Motivation
Empathy
Social skills

Unlike technical knowledge, these traits aren’t learned through textbooks or training modules alone – they’re developed through practice, reflection, and interpersonal experience.

Why Emotional Intelligence Is a Business Superpower

As Hunt Scanlon highlights, EI is becoming a must-have for modern executives. In an era where adaptability, empathy, and communication are mission-critical, leaders with high emotional intelligence are better equipped to inspire teams, navigate conflict, and make human-centered decisions.

This isn’t just about being “nice” at work – it’s about being effective. Executives and managers who understand the emotional landscape of their teams create psychologically safe environments where innovation and collaboration thrive. In contrast, low-EI leaders often breed distrust, low morale, and high turnover.

Entrepreneurs and Emotional Intelligence: A Growth Catalyst

Entrepreneurship has a way of fast-tracking emotional growth. As Forbes explains, the entrepreneurial journey requires constant adaptability, communication, and emotional resilience – all key pillars of EI. Business owners are often forced to confront self-doubt, handle rejection, and lead through uncertainty. The best ones learn not only how to manage their own emotions but how to create emotionally aware cultures in their companies.

EI also helps founders build stronger client relationships, attract top talent, and maintain alignment across teams, especially in high-growth, high-stress environments.

The Shift Toward Softer Skills

Even industry titans are taking note. In a recent Business Insider interview, the billionaire co-founders of KKR emphasized how “softer skills” like empathy, listening, and humility are critical to long-term success – not just for individuals, but for the organizations they build.

This is a cultural shift. Businesses are no longer just measuring success by shareholder value or productivity. They’re looking at engagement, trust, retention, and culture – metrics that are deeply tied to how emotionally intelligent their leadership is.

Empathy: The Heart of Great Teams

At the center of emotional intelligence is empathy – the ability to put yourself in someone else’s shoes. According to University of St. Thomas, empathy strengthens team performance by fostering understanding, reducing conflict, and encouraging diversity of thought.

When employees feel heard and understood, they’re more likely to contribute ideas, ask for help, and support one another. Empathy isn’t just a “nice to have” in teams anymore – it’s a competitive advantage.

Emotional Intelligence in Action: Video Insights

Want a more dynamic perspective on this topic? These two videos break down how emotional intelligence shows up in real leadership scenarios:

https://youtu.be/7ngIFlmRRPQ?si=Zj1_6w6LMPnH-zsK
Goleman, the psychologist who popularized EI, explains how leaders who manage emotions effectively outperform those who don’t, by as much as 90%.
https://youtu.be/4hD0X3psDGA?si=Rau-6gLXaCIoTIwM
This video explores how EI can turn confrontation into constructive dialogue – crucial for workplace harmony and problem-solving.

Final Thoughts: The Business Case for Emotional Intelligence

Emotional intelligence isn’t just a buzzword or leadership trend – it’s a core skill that drives modern business success. From building trust and boosting employee morale, to leading with empathy and navigating change, emotionally intelligent professionals are better equipped to create environments where both people and profits thrive.

In the age of automation and AI, the human side of business matters more than ever. And the more emotionally intelligent your team, the better your business will be.

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