How Emotional Intelligence (EQ) Impacts Your Business

Dec 15, 2017

How Emotional Intelligence (EQ) Impacts Your Business

Daniel Goleman says:

“If your emotional abilities aren't in hand,

if you don't have self-awareness,

if you are not able to manage your distressing emotions,

if you can't have empathy and have effective relationships,

then no matter how smart you are, you are not going to get very far.”

What is emotional intelligence?

Emotional intelligence is when wisdom and control meets emotion: you’re emotionally intelligent when you have awareness of who you are as a person, are able to control your emotions, be aware of the emotions of others, and in turn, respond to them with wisdom.

Although some are born with high emotional intelligence, the good news is that with practice, it can be learned. Many people learn it naturally through their environment or circumstances.


Related: Why Strong Leaders Attract Best Talent

Emotionally intelligent people are more successful

People who are emotionally intelligent enjoy more success than people with low EQ. Studies show that EQ is more important for career success than IQ, skill or experience. When executives are derailed, the primary cause is usually due to lack of EQ.

Fast Company reports that the top 3 reasons for executive failure are:

  1. Difficulty in managing change
  2. Not being able to work well in a team
  3. Poor communication

People who have high emotional intelligence are able to work well with others, and leaders who have this trait are more respected and trusted by employees.

Business, after all, is about people. And people would rather do business with people they like and trust over and beyond great service or a good product.

Not only is EQ good for business, but people who are emotionally intelligent, have better relationships with their family and friends too.

Why EQ improves the bottom line

According to Huffington Post, Pepsi reports that executives with high emotional intelligence:

  • Generate 10% more productivity
  • Have 87% less turnover
  • Garner $3.75M more value to the bottom line
  • Increase ROI by 1000%

In addition, L’Oreal reports that sales employees who have high EQ sell $2.5M more than staff who lack EQ.

Sheraton’s market share grew by 24% when the company decided to implement an EQ initiative.

FedEx Express, who’s vision translates to “PSP Philosophy” (People-Service-Profit), says their EQ programs result in 58% more leadership influence.

Why does EQ have such a major impact on business?

Everything in life, including business, revolves around interaction between human beings, which can either be negative or positive, and sometimes explosive…

EQ is the predominant predictor of performance, because it impacts the workspace on a daily basis.

Image Credit: Talentsmart

Entrepreneur states that 90% of top performers boast high emotional intelligence, and throughout the world in any industry, role or level, they make more money than those with low EQ.

People with high emotional intelligence:

  • Handle change better
  • Are able to control their emotions
  • Are resilient and flexible
  • Are able to accept criticism and use it to improve themselves
  • Listen as much as talk
  • Have the ability to consider the emotions of others instead of just their own
  • Think things through instead of flying off the handle
  • Show empathy
  • Are self-aware and understand their strengths and weaknesses
  • Are not easily offended
  • Don’t hold grudges
  • Understand that people make mistakes and don’t take it personally
  • Look after themselves emotionally, spiritually and physically



Related: How to Bounce Back From Adversity



It should now be plain to see the impact of EQ on business, profit and relationships, so it is advisable to select leaders and employees alike who have EQ, or alternatively, your business should aim to institute programs that promote it.

If you would like help with recruiting candidates who have high EQ, contact us for a conversation.







Tags:
Category:

Loading Conversation