Originally published on June 4, 2024, as part of The Business Journals Leadership Trust.

Is emotional intelligence a silver bullet for business growth? Daniel Goleman’s 1998 book Working With Emotional Intelligence describes a 40-year-long study out of the University of California, Berkeley, that found that “emotional intelligence abilities were four times more important than IQ in determining professional success and prestige.”

In other words, those who have the highest IQs may not be those who are the most successful, as higher levels of emotional intelligence are a significant asset. Success is not solely determined by academic intelligence but also by factors like self-awareness, empathy and social skills that help people build strong relationships and communicate effectively.

The question now becomes, if leaders recognize that building emotional intelligence within our teams is beneficial for employee wellness and company strength, how do businesses understand it deeper and cultivate it further?

Personifying the emotionally intelligent employee

At its core, emotional intelligence is the ability to recognize, understand and manage both a person’s own emotions and those of others. It’s based in self-awareness. Employees who actively seek feedback from their management team and take the time for self-reflection are generally more self-aware.

Emotionally intelligent employees can manage their emotions, impulses and reactions. This means not lashing out at customers for being difficult, for instance, or walking off a job site for a perceived “bad” managerial decision.

The emotionally intelligent employee also seeks to understand the emotions and perspectives of others — colleagues, clients, managers and the like. This is one in the set of their relationship management skills, which improve communication, generally resolve conflicts and build rapport.

Emotional intelligence has many levels

Not everyone with emotional intelligence has the same level of it. Some employees may naturally excel in this area, while others may require more guidance and support to increase their emotional intelligence. As leaders, knowing how to identify these differences and provide the necessary resources for development is core to business growth and employee retention.

For business owners and managers who want to support employees with lower levels of emotional intelligence, try:

• emotional intelligence assessments or personality tests to identify areas for improvement,

• tailored training and development programs focused on these skills, or

• one-on-one coaching or mentorship to help employees navigate challenges and develop their emotional intelligence.

Strategies for business owners

A recent scholarly review of scientific research found that EQ is “a crucial element of the competencies that are necessary for effective leadership and teamwork performance.” Business owners need to recognize the strength of this statement and reflect on it, as organizations that include more emotionally intelligent individuals are likely to produce stronger results.

First, it’s key that business owners lead by example. A leader who does not demonstrate empathy and self-awareness in their own actions and interactions is less likely to cultivate a culture of emotional intelligence.

Second, take the time to provide training and development opportunities. This may mean investing in workshops, seminars and coaching sessions focused on emotional intelligence skills development. While it may be a larger upfront cost that seems unnecessary, failing to develop a team is ultimately a greater cost to a businesses growth trajectory.

Third, make the work environment supportive. At BluXinga, I encourage daily open communication or “vibe checks,” constructive feedback and a culture where employees feel comfortable expressing their emotions and ideas.

Fourth, it’s important to recognize, celebrate and reward employees. Not only does this recognition reinforce positive behavior, but it also boosts morale, motivation, and productivity in the workplace.

The final strategy? Hire better.

How to gauge emotional intelligence in the hiring process

Identifying emotionally intelligent employees before they are hired can be a difficult task. From personal experience, finding this type of new hire involves incorporating specific strategies into the hiring process.

However, many small businesses have less structured interview styles, which can make the process messy. Combine this with CareerBuilder research that shows that 51% of employers “know” within the first five minutes if the employee will be right for the role, and it’s easy to see how the right new hire may slip through the cracks.

How can business owners prevent this from happening and hire better? Start by asking the right questions; make a standard set used across the business. I recommend using the following methods:

• incorporating role-playing into the interview to observe how candidates handle different scenarios that require emotional intelligence (for instance, candidates could give constructive feedback to a hypothetical underperforming team member, allowing you the opportunity to assess their ability to communicate effectively and get the job done);

• behavioral topics that require candidates to provide examples of how they’ve handled challenging situations in the past; and

• culture fit assessments to assess whether candidates align with company values and culture — asking questions related to their ability to collaborate, communicate and work effectively with others.

Importantly, observation during interview interactions is a great way to assess what is going unsaid. Pay attention to their behavior and communication, looking for signs of self-awareness, empathy, adaptability and other related skills. For instance, notice whether candidates share their strengths and weaknesses openly or raise questions about the dynamics of the team; also look for non-verbal cues like body language and facial expressions.

Final thoughts

Achieving greater success, productivity and profit in any industry may be dependent on hiring and developing the right emotionally intelligent staff. Nurturing emotional intelligence within the workplace is a strategic choice, and all business owners have access to proactively take this opportunity if they choose to do so.

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