We all have emotions, but great leaders know how to harness them for productive outcomes. They have self-awareness, empathy, and social awareness — the key traits of emotional intelligence — and their teams are stronger for it.
If you’ve ever had a manager who liked to “shoot first, ask questions later,” you probably know how much uncontrolled emotions can impact a team’s morale.
Sure, everyone gets emotional — we are human, after all. But it’s how we handle those emotions that matters. You don’t have to deny them, but you do have to deal with them.
Great leaders recognize this. They have emotional intelligence, which enables them to be more collaborative, make better decisions, and build more trust within their teams.
Here’s what that looks like and how you can foster more emotional intelligence in your own workplace.
What is emotional intelligence in leadership?
Emotional intelligence (often referred to as EQ) is the ability to understand, regulate, and respond to emotions — both in yourself and in others.
It’s a highly sought-after trait in today’s workplace. After all, no matter how practical or impartial we think ourselves to be, emotions can be a messy beast. Being able to connect with our own emotions as well as others’ makes that mess more manageable.
Emotionally intelligent leaders are simply better equipped to influence, connect with, and motivate their teams. And the result is a high-trust workplace with better retention, engagement, and even business performance.
There are five key components to emotional intelligence:
- Self-awareness
- Self-regulation
- Empathy
- Social awareness
- Relationship management
The five key components of emotional intelligence
Self-awareness: The foundation of strong leadership
When someone is self-aware, they’re able to recognize their own emotions and the impact they have on others.
But self-awareness is more than just knowing how you feel throughout the day. People who are self-aware can objectively assess their own strengths and weaknesses.
Let’s say you’ve noticed increased tension and growing turnover on one of your teams. After collecting feedback from team members, you realize that their line manager’s perfectionist approach during busy times feels like criticism rather than guidance.
If the manager is emotionally intelligent, rather than becoming defensive, she’ll take that feedback on and use it to adjust her communication style to best support her team in those high-stress moments.
Self-regulation: Managing emotions under pressure
Self-regulation is the ability to control your emotional reactions and remain composed under stress. When leaders demonstrate emotional intelligence, they avoid reactive decisions and foster a calm, productive work environment.
There are several mindfulness techniques we all can use to improve our self-regulation in times of stress, such as:
- Pausing before responding. Before reacting, take a deep breath or count to five, allowing your rational mind to engage before emotions take over.
- Perspective-taking. Ask yourself, "How will I feel about this situation in one week?" You’ll give yourself distance from immediate emotional reactions.
- Taking a body break. Brief physical activity (even just a quick walk) can release tension and give you a reset when emotions run high.
- Checking in with your values. When facing difficult situations, pause to consider which response best aligns with your core leadership values.
Empathy: Understanding and connecting with others
Empathetic leaders are able to understand and share in other people’s emotions. They can recognize what it feels like to stand in someone else’s shoes, even if that person is going through something the leader hasn’t experienced themself.
When leaders demonstrate empathy, they’re able to build stronger relationships, foster collaboration, and improve employee engagement. They’re also more skilled at conflict resolution, since they can help both sides feel heard.
For example, maybe a manager notices that two team members are becoming hostile with one another. Rather than just issuing an order to “get along,” the manager sits down with each employee individually.
The first employee says he feels like the other is being too overbearing, while the second employee says her teammate doesn’t respect her ideas or enthusiasm. An emotionally intelligent manager would acknowledge both employees’ feelings and help them to appreciate one another’s point of view.
Social awareness: Recognizing team dynamics
Social awareness is the ability to perceive emotional undercurrents within a team or organization.
Leaders who are socially aware can navigate team tensions, proactively address concerns, and create inclusive workplaces.
Here are some ways to practice social awareness within your own team:
- Practice active listening. Too often, we hear but don’t listen. Active listening is completely focusing on the speaker without planning your response — maybe even paraphrasing what you heard to confirm you understand.
- Conduct pulse surveys. Regular employee experience surveys can help you read the emotional climate and identify concerns.
- Look for non-verbal cues. People don’t always speak up when they’re unhappy. Consider body language and tone during meetings and consider silent factors like absenteeism (or presenteeism).
- Hold psychological safety check-ins. Create opportunities for team members to share concerns anonymously or without fear of judgment.
- Be culturally aware. Learn about the cultural backgrounds of your team members, to better understand different communication styles and expectations.
Relationship management: Leading with emotional intelligence
The last component, relationship management, is the application of all the emotional intelligence skills — self-awareness, self-regulation, empathy, and social awareness.
Emotionally intelligent leaders create great workplaces by being transparent in their communication, recognizing people for their efforts, and encouraging personal and professional growth through employee training and development.
This kind of relationship-building fosters a sense of trust, which in turn creates more engaged and loyal teams.
Why emotional intelligence is crucial for effective leadership
Great leaders create great workplaces. And great leaders demonstrate emotional intelligence, whether that’s by thanking a stressed-out employee for their dedication or recognizing an employee who wants to grow and guiding them
Our Great Place To Work research shows that emotional intelligence improves leadership effectiveness, fostering better team engagement and long-term business success.
That’s because at the heart of a great workplace is trust — and high-trust leaders demonstrate the same traits that define emotional intelligence, including listening with vulnerability and empathy, and caring about people’s individual experiences.
The result? Turnover rates that are approximately 50% lower than industry competitors and stock market returns that are 2x to 3x greater than the market average.
Emotional intelligence improves team morale and motivation
When employees feel supported and valued, they’re more likely to do their best work. Emotionally intelligent leaders recognize this and create a positive work culture where employees feel appreciated.
For example, KPMG introduced “Energy Check-ins,” a data-driven initiative to help managers better support their team members’ well-being. Quarterly check-in reports calculate total hours worked per day, personal time off taken, and time spent in virtual meetings to assess whether an employee might be experiencing significant work pressures.
Managers can then connect with those employees who’ve been flagged with high-stress indicators to see how they’re doing and to guide them in focusing on their well-being.
Emotional intelligence enhances communication
Sometimes, we need to have tough conversations in the workplace. Emotional leaders don’t shy away from them. They encourage open, honest, and constructive communication.
At CarMax, a “Care and Connection” initiative encourages meaningful, two-way dialogues between associates and their managers. The aim is to help associates to feel more supported by management, connected with the company, and engaged in their careers.
The company also offers an Associate Care and Connection Skills Certification program, designed to help people managers build the critical skills they need to create supportive and trusting relationships with their teams.
Emotional intelligence strengthens conflict resolution
Since emotionally intelligent leaders are able to recognize both their own and others’ emotions, they’re ideal mediators for conflicts. They can appreciate where both sides are coming from and avoid inserting their own emotional reactions to the situation.
This is something that Mastercard has prioritized in its leadership training. In addition to business courses, the company offers in-person workshops that focus on building authentic connections, driving purposeful conversations, and handling tough questions and objections.
Emotional intelligence leads to better decision-making
Lastly, emotionally intelligent leaders are able to make more well-rounded decisions, since they consider both logical and emotional factors.
Hotel chain Marriott realized that frontline associates often hold negative views of what it means to be in management — longer hours, heavier responsibilities, and conflicts, all of which are emotionally taxing.
The company introduced its Elevate program to give a more well-rounded view of what management means. Associates get to hear stories and career lessons from leaders from across the business, so that they can better envision themselves in such a role making their own business decisions.
They’re also taught soft skills such as coaching, listening, building trust, and developing their own emotional intelligence.
How leaders can develop emotional intelligence
Thankfully, emotional intelligence isn't something you're simply born with. Anyone can develop it, whether by working with a coach or simply building more mindfulness into your day.
What works best is combining some structured learning with plenty of real-world practice and getting honest feedback along the way.
Here are some tactics anyone can use to enhance their own emotional intelligence:
- Regular self-reflection: Set aside 10-15 minutes daily to journal about your emotional responses to challenging situations. This can help you to identify patterns and growth opportunities.
- Peer learning groups: Set up sessions where you and your peers can provide honest feedback to one another and share strategies for navigating emotionally complex situations.
- Mindfulness meditation: Practice being present in the moment for even just a few minutes. Doing this regularly will help with regulating your emotions.
- Role-playing difficult conversations. Rehearse challenging interactions with a trusted colleague. This can help you to better understand your impact on others.
- Seek diverse feedback. Don’t just get feedback from your superior. Collect 360 input from team members at all levels.
For more tips on leveling up your people management skills, Great Place To Work has a rich library of leadership resources to help leaders grow.
Emotional intelligence is the key to great leadership
Great leaders don’t just manage teams — they build trust, foster connection, and inspire performance. Emotional intelligence (EQ) is at the heart of effective leadership and a great company culture, but how do you measure and improve it at scale?
With the Trust Index™ Survey and Manager Access feature, leaders gain real-time insights into their own teams' experiences, helping them identify strengths, address blind spots, and take action to build a high-trust culture.
New to Great Place To Work®? Discover how trust insights drive leadership effectiveness and business success. Learn more about our Trust Index Survey.
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