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In today’s dynamic work environment, emotional intelligence stands out as a critical skill for business leaders to navigate the complexities of the workplace and ensure individual and organizational success. A magnitude of benefits come with having a strong footing around how to exhibit emotional intelligence as an organizational leader, which extends beyond just having strong social skills. Instead, its ability equips individuals to better guide others through conflict resolution, decision-making, adaptability and team-building by thoroughly understanding how to manage emotions effectively. This proves invaluable when addressing challenges (such as the evolving market conditions and economic volatility), facilitating meaningful relationships and building trust by helping to contribute to a more positive and open work environment, even during tough times.
While technical skills are critical to succeeding at any job, it’s imperative for leaders to recognize the importance of soft skills as well — particularly emotional intelligence. In fact, according to Harvard Business School, emotional intelligence is one of the most desired interpersonal skills in the workplace, with 71% of employers valuing it more than technical skills when evaluating candidates. Data also reveals that 90% of top performers have above-average emotional intelligence, and individuals who work with leaders with a higher level of emotional intelligence feel 0% more inspired than those who work with a leader lacking emotional intelligence.
Related: 4 Ways Emotional Intelligence Makes You a Better Entrepreneur
Throughout my career trajectory, I’ve had the opportunity to lead teams of various sizes, backgrounds and experience levels, which has afforded me a profound understanding of individuals and how varying personal experiences and levels of emotion impact team dynamics. Because of this, I’ve strived to create a workplace that prioritizes empathy and understanding — recognizing that triggers look different for every teammate and, in turn, influence their behaviors and emotional reactions to situations in different ways.
As a proud member of the LGBTQ+ community, my candor about my personal experiences — including the journey of coming out and navigating the journey of conception with my husband — has added an essential layer to my emotional intelligence and approach to leadership. By being straightforward and honest about various layers of my personal and professional life, I’m able to build trust, reliability and more open lines of communication within my teams. At the convergence of my personal and professional journey, I’m strongly positioned to utilize my learnings and experiences to bring forward better emotional intelligence, leadership and inclusivity in the workplace.
Why emotional intelligence is critical in the workplace
Emotional intelligence in today’s dynamic work environment takes on heightened significance due to external factors that may add pressure or stress to individuals’ personal lives. A critical factor of emotional intelligence is the capacity to understand and manage not only your own emotions but also being able to adeptly read the emotions of others. Given the current climate, personal emotions around volatile markets, labor market concerns and political unrest require a level of empathy from leaders; they must be able to interpret and empathize with varying feelings and perspectives on external situations and understand that they may also impact performance and participation (sometimes a hard pill to swallow).
Having a thorough understanding of the differing viewpoints and perspectives of teams and fostering an environment where diverse perspectives are both respected and encouraged are vital elements to strengthening psychological safety: an environment where individuals feel comfortable voicing information about personal challenges, triggers or workplace concerns. According to McKinsey, 89% of employees believe psychological safety is essential in the workplace, and workers who feel their identity and perspectives are valued by leadership feel higher rates of it, effectively contributing to team effectiveness, learning, employee retention and better performance.
In my experience, psychological safety helps to bind high-performing teams together, creating an environment that encourages open communication and makes it easier to resolve conflicts. It also makes individuals more comfortable taking risks, which can help them learn from and more readily admit to potential mistakes that may result from risk-taking. By embracing and acknowledging the current environment and potential challenges individuals may be facing, leaders can better navigate them and create a more open and emotionally inclusive workplace culture.
How to achieve greater emotional intelligence
As we know, the integration of generative AI into many workflows is reshaping the landscape of jobs and technical skills. It also highlights the deep need for human touch and associated soft skills. A new study found that in the AI age, employers expect to increasingly value soft skills that foster rich, people-centric company cultures, and 92% of companies say human capabilities or soft skills matter just as much as hard skills, emphasizing the crucial role emotional intelligence still plays during the AI revolution. While AI can help to optimize processes, increase efficiency and analyze complex datasets, emotional intelligence, decision-making based on human interactions, and effective leadership are areas where humans excel and are irreplaceable in the face of AI.
That said, while technical expertise is critical in any leadership role, it shouldn’t overpower or take precedence over the skills needed to be an emotionally intelligent leader. Focusing on the development of these soft skills is a pivotal step to empowering leaders to better navigate complexities, understand personal emotions, and build unwavering trust within teams. Below are a handful of skills that contribute to the broader emotional intelligence puzzle and should be top-of-mind for any leader.
Demonstrate adequate social awareness by fostering strong communication and empathy
Clear and concise communication is critical to fostering a team that values trust, understanding, and active engagement. In order to be an effective leader, it’s crucial to find a delicate balance of self-awareness and social awareness. Self-awareness is recognizing how your words or actions may emotionally impact other team members, while social awareness describes your ability to recognize the emotions and perspectives of other team members. What might be a challenge or distraction for one teammate may not hold the same value or level of consideration for another.
Especially in today’s ever-changing and uncertain environment, leaders who display empathy are better able to navigate challenges by having a more thorough understanding of their team’s diverse emotional needs. Data points to the success of an empathetic leadership approach, as the majority (86%) of employees believe empathetic leadership boosts morale, and 87% say it’s an essential component to fostering an exclusive environment.
To become a more empathetic team lead, it’s critical to practice empathy in everyday interactions with team members. Take the time to slow down and be deliberate in your own actions and motivations, questioning whether there are alternative ways to approach situations that could enhance the well-being of everyone involved. This is especially important when difficult situations that involve problem-solving are apparent. Proactively thinking about how situations could impact individuals, either positively or negatively, can help to avoid surprises or negative reactions whenever possible.
When proposing approaches to problem-solving, consider assessing whether a collaborative effort involving various perspectives from different team members would be more effective than solely relying on individual input. A team approach to problem-solving can be very beneficial in many scenarios as it invites a range of viewpoints from diverse backgrounds and areas of expertise within the business. This approach grants team members a sense of belonging and empowerment and encourages innovative thinking and risk-taking. Allowing for alternative viewpoints in a team setting helps to foster a culture of openness and autonomy, which often encourages individuals to more readily voice their opinions and propose new ideas. Additionally, demonstrating empathy in these collaborative efforts can inspire others to lead with the same intentions, which helps to create a more empathetic and collaborative workplace.
To get a sense of where you fall as a leader, try practicing active listening to better understand the concerns and stresses of your team members. This not only gives you a more holistic view into how you can adjust your leadership style to fit the needs of your team but also demonstrates genuine interest in the varying perspectives of your team members. To bring this to light, I initiate regular check-ins with team members to discuss their concerns, challenges, excitements, and anything else they’d like to discuss to emulate an environment where open dialogue is valued. When meeting with subordinates, ask them if they have any worries or concerns about current or future projects and allow them to propose solutions and offer support wherever possible to help instill a greater level of trust. I’ve also found that being vulnerable about my experiences with my colleagues, both personally and professionally, helps cultivate an environment that encourages open dialogue, trust and better collaboration.
Regarding more complex topics, it’s helpful to establish ground rules for respectful conversations in individual and group settings and provide educational resources to enhance understanding of more intricate topics. These elements help create a team culture that values diverse viewpoints and encourages open dialogues about external issues.
Related: These Are the 4 Emotional Intelligence Characteristics All Business Leaders Need
Exhibiting strong self-awareness by leading by example and building trust
In my career, I’ve found that one of the key ways to foster a healthy work environment is to lead by example. A workplace that prioritizes organizational success and employee well-being doesn’t just have open lines of communication; it also demands consistent actions by leaders.
Leading by example can be as simple as avoiding multitasking or checking your emails during team meetings, attending workshops to learn new skills alongside your team, or recognizing the achievements, both big and small, of all team members. Another area I prioritize leading by example is allowing myself to take time off from work for mental resets or personal ventures. I’ve found taking time off to be invaluable in improving well-being, enhancing creativity and increasing productivity. As a leader of various teams, I utilize my time off to lead by example and to create an environment where individuals may feel more comfortable doing so as well, which lends itself to healthy boundaries between work and personal lives.
I also prioritize leading by example in the areas I’m passionate about to set a standard for a positive workplace culture where employees feel empowered to take risks, express themselves freely and advocate for what they believe in. In my own career, I’ve utilized my voice and position of leadership to not only make positive changes that would benefit the organization but also as a way for individuals to instill trust in myself and the broader corporation. A few years ago, I was involved in establishing the first Employee Resource Group (ERG) for women at Xero to improve our workplace’s overall inclusivity. This initiative was aimed at breaking down barriers for women in various roles within the organization and allowed me to demonstrate my approach to inclusive leadership and devotion to creating a culture that values and supports diversity.
This ERG’s continued success — along with my ongoing commitment to creating an environment that values and respects the diverse perspectives of team members — has earned me greater trust from my colleagues. Despite this initiative falling outside of day-to-day responsibilities, participating in initiatives aimed at improving the workforce has broadened my perspective and equipped me with skills to understand and address the challenges or biases other team members may experience.
One way to ensure your leadership style and approach are well-received by team members is to solicit regular feedback from colleagues. By acknowledging that empathy and emotional intelligence are skills that can be learned and strengthened, leaders can view feedback and challenges as growth opportunities. Additionally, consider indulging in external content focused on leadership development, such as books, podcasts or working with an executive coach (I do all three). These resources can offer valuable insights into professional leadership and personal growth to create a positive impact on the workplace.
Reflecting on the important pillars of a modern leader through my experiences leading a diverse set of teams, I’ve been able to witness the value of emotional intelligence in leadership. By weaving emotional intelligence into organizational cultures, instilling psychological safety and practicing social and self-awareness, the workplace can evolve as a landscape that values empathy and collaboration.