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OCTOBER IS EMOTIONAL INTELLIGENCE AWARENESS MONTH #2 :WHAT IS THE ROLE OF EMOTIONAL INTELLIGENCE IN CORPORATIONS AND WHY SHOULD ORGANIZATIONS CARE?

Writer's picture: Sarah BlakeSarah Blake

Emotional intelligence (EI) plays a crucial role in corporations, influencing various aspects of organizational success and effectiveness. Here are some key roles that EI plays in corporate settings:


1. Leadership and Management


- Effective Leadership: Emotional intelligence is a critical skill for effective leadership. Leaders with high EI can manage their own emotions and understand the emotions of others, which helps in making informed decisions and leading teams effectively.

- Conflict Resolution: High EI enables leaders to resolve conflicts effectively by understanding different perspectives and managing emotions, leading to a harmonious work environment.


2. Employee Performance and Retention


- Performance Enhancement: Emotional intelligence is strongly linked to job performance. Employees with high EI are better at self-regulation, empathy, and maintaining calm under pressure, which enhances their performance.

- Employee Retention: EI contributes to higher employee retention rates as emotionally intelligent leaders create supportive and empowering work environments that encourage employees to stay longer with the company.


3. Organizational Effectiveness


- Collaboration and Teamwork: Emotional intelligence fosters a collaborative work environment by enhancing empathy and compassion among employees, which is crucial for teamwork and achieving group tasks.

- Operational Effectiveness: EI influences organizational citizenship behavior and transformational leadership, both of which are essential for operational effectiveness and achieving organizational goals.


4. Business Success and Growth


- Relationship Building: In business, emotional intelligence helps in forging strong relationships, which are often more important than technical skills alone. This is vital for networking and business development.

- Predictive of Success: Emotional intelligence is a strong predictor of business success, often more so than IQ. It accounts for a significant portion of the competencies that differentiate top performers.


WHY SHOULD ORGANIZATIONS CARE ABOUT EMOTIONAL INTELLIGENCE?


As # 4 above stated, “Business Success and Growth” as a benefit, here are some key statistics regarding company leadership with high emotional intelligence:


- Companies with high EQ senior leaders outperformed those with low EQ leaders by 127% in terms of organizational growth.


- A study by Hay Group found that managers with high EQ generated 78% more productivity and added nearly $4 million in revenue.


- Emotionally intelligent leaders have teams with 63% higher performance ratings and 58% higher employee engagement scores.


- Companies with high EQ leaders have 90% better talent retention rates compared to companies with low EQ leaders (90% vs 67% retention).


- High EQ leaders are able to increase the productivity of their teams by up to 20%.


-  Approximately 67% of the competencies that contribute to people's success in leadership roles are related to emotional intelligence competencies. 


- Top-performing leaders score 90% higher in EQ competencies compared to bottom performers.


These statistics underscore the significant impact that emotional intelligence can have on leadership effectiveness, employee retention, and overall organizational success.

perplexity.ai helped with this article



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