Emotional Intelligence (EQ) is good for business for many reasons, but the ability of leaders to inspire discretionary effort in employees to go ‘above and beyond the call of duty’ is one of the most important. Need employees to work overtime when the machines break down? Well, you are going to need a leader with strong EQ to rally the troops.

Quite simply, employees are much more inclined to go the extra mile when asked by a leader that they respect and admire. Although discretionary effort is not endless, managers with low EQ will have much less to draw on. 

Being a traditionally smart leader is no longer enough to earn the respect of team members, however a leader that takes the time to say hello and ask about the progress of your renovation will build much needed ‘good will’ in the bank. Too often, leaders will fail to connect with employees and wonder why they aren’t willing to burn the midnight oil when the chips are down. 

What are the differences between EQ and Intelligence Quotient (IQ)? 

Employees will join and leave an organisation because of a leader, so it is vital that this skill is developed and nurtured. Furthermore, if an organisation has a leadership team with strong EQ, discretionary efforts multiply across the business.

The table below illustrates some differences between IQ and EQ:

Intelligence Quotient (IQ) Emotional Intelligence (EQ)
Ability to think Ability to feel
Measures cognitive intelligence Measures emotional intelligence
Ability to apply knowledge Ability to adjust
Gets through school Gets through life
Convincing using facts alone Convincing using facts and emotions 
Relying solely on cognitive skills Relying on cognitive and emotional skills
Less to do with success and happiness More to do with success and happiness
Refers to knowing what Refers to knowing what and how
Not possible to raise IQ Possible to raise EQ
Cannot be learned Can be learned
IQ is the brain EQ is the heart

How do I know if a leader has strong EQ?

Leaders with strong EQ are easily picked by their direct reports. They inspire and engage their teams, effortlessly ignite discretionary effort to boost productivity, and achieve better results and greater levels of employee engagement.  

EQ has become a permanent fixture in the workplace however it can be misunderstood. Some employees believe EQ is all about ‘social skills’ or ‘being good with people’. Whilst these skills are important to EQ, they are not the whole picture. EQ is about perceiving, using, understanding and managing emotions. When done well EQ can be a strong advantage in a person’s work and home life.  

Leaders that struggle with demonstrating EQ will usually be guilty of the following characteristics or actions:

  • Walking into the office or warehouse without saying good morning
  • Failing to ask employees how they are and lacking the ability to authentically listen
  • Not being able to connect personally with employees or remember employee names
  • Forgetting key milestones and events e.g. 20 years of service
  • Possessing low self-awareness
  • Poor ability to control personal emotions e.g. stress and frustration
  • Placing high demands on employees, such as working back late without considering the impact to employees’ family
  • Having direct reports that don’t feel confident enough to speak up in meetings for fear of the leader’s reaction
  • Inability to handle difficult situations with sensitivity (e.g. redundancy or a death in the family) 
  • Making comments that appear insensitive or inappropriate
  • Only approaching employees when they want something.

Leaders that have strong EQ will usually demonstrate the following characteristics or actions:

  • Walking into the office or warehouse and acknowledging other workers by saying good morning
  • Asking employees how they are going in general, and specifically what they need to meet their work objectives
  • Connecting with other employees by name and knowing the names of children or partners
  • Remembering and acting on key milestones and events
  • Being acutely aware of strengths and weaknesses and using them accordingly
  • The capacity to regulate emotions in times of high stress
  • Not putting unreasonable demands on employees and considering the impacts of requests for extra hours or working late
  • Being authentic by sharing some of their own world with employees. This could be as simple as communicating excitement when the leader’s child starts school. This sort of simple share helps employees to ‘normalise’ leaders.
  • Successfully generating work environments where employees feel that they can be open about their thoughts and ideas
  • Handling difficult scenarios with care and sensitivity, and demonstrating a personal brand that supports this
  • Not making comments that are insensitive or inappropriate, and demonstrating a strength in knowing what to say and when to say it
  • Building relationships with employees that is authentically motivated and not just because the leader wants something.

The secret to leadership success

EQ is a proven differentiator in the competitive climb up the corporate ladder and employees who are unable to demonstrate this superpower may miss out on career opportunities. There is mounting evidence that when technical competencies are equal, EQ separates those who win positions from those who don’t, with many organisations testing candidates’ EQ as part of the recruitment process.

Leaders who can build EQ are able to connect to their feelings, manage stress, turn intention into action, and make informed decisions about things that matter most. The ability to read the signals of others and to react appropriately has become a fundamental and highly sought-after workplace skill. While IQ is undoubtedly a core requirement to make key business decisions, EQ is quite possibly the secret to executing those decisions with success. Could this superpower be the skill that will set you apart from your peers?

Further information

For assistance with your workplace matters, Members of Ai Group can contact us or call our Workplace Advice Line on 1300 55 66 77 for further information. Find out more about our leadership training here.

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Georgina Pacor

Georgina is Senior Content Writer and HR Specialist – Publications at Ai Group. She is an accomplished Human Resource professional with over 25 years of generalist and leadership experience in a broad range of industries including financial services, tourism, travel, government and agriculture. She has successfully advised and partnered with senior leaders to implement people and performance initiatives that align to business strategy. Georgina is committed to utilising her experience to create resources that educate and engage and is passionate about supporting members to optimise an inclusive workforce culture that drives performance.