Importance of Emotional Intelligence

Part
01
of one
Part
01

Importance of Emotional Intelligence

The importance of emotional intelligence in businesses can be analyzed through different aspects and how they contribute to the employees' success in the workplace. Reflection enables employees to truly understand who they are, why they make certain decisions, what they are good at, and where they fall short. Motivation helps a business reduce cases of low productivity, absenteeism, presenteeism, and employee turnover. These aspects are further discussed in the sections below.

Emotional Intelligence

  • The emotional intelligence or emotional intelligence quotient (EQ) of a person is the capacity to understand his or her emotions and be able to manage it.
  • For a consulting firm to grow and prosper, it needs technical experts that are able to apply their special knowledge and skills through ongoing valuable relationships with clients.
  • Firms and employees alike always want to differentiate themselves on the level of expertise, a big motivation for employees to be smart, work hard and amass much experience.

Importance of Emotional Intelligence in a Business

  • A firm's success is inevitably connected to how efficient its employees are. This is partly determined by the intelligence and competency they portray.
  • The importance of EQ in businesses is better understood by analyzing the different aspects of EQ and how they contribute to the success of employees at workplaces.
  • The five aspects/skills involved in one's emotional intelligence are self-awareness, self-regulation/self-management, motivation, empathy, and social skills.

Self-awareness

  • One's self-awareness is defined as the ability to recognize his or her own strengths, weaknesses, emotions, drivers and values, and understanding its impact on others.
  • Reflection enables employees to truly understand who they are, why they make certain decisions, what they are good at, and where they fall short.
  • For employees to reach their maximum potential, they need to be confident of who they are, as well as to be able to differentiate between good and bad.
  • Self-awareness amounts to self-confidence and a thirst for constructive criticism.

Self-control/Self-management/Self-regulation

  • In simpler terms, this is called discipline and it involves controlling or redirecting our disruptive emotions and adapting to change circumstances in order to keep the team moving in a positive direction.
  • Managers and employees need to maintain their calmness and avoid panic even during crises. Calmness enables managers and employees to remain positive, think and communicate more effectively.
  • In addition, managers and employees need to be good self-managers in order to control and redirect disruptive impulses and moods.
  • Good self-managers do not allow their emotions to cripple them, instead, they are able to marshal their positive energy and emotions and align them with their passions. This leads to more productivity.
  • Self-management enables managers and employees to withstand the pressure that comes with analyzing complex organizational issues and generate recommendations for improvement.

Motivation

  • Motivation means enjoying one's own achievement and accomplishment.
  • Employees who have the passion, optimism, and energy for the work they do are motivated and emotionally intelligent.
  • Motivation helps a business reduce cases of low productivity, absenteeism, presenteeism, and employee turnover.
  • In addition, employees who are healthy physically and mentally are more effective and engaged, hence, improve the business' bottom line.

Empathy

  • Empathy means the ability to put yourself in someone else's shoes and understand how they may feel or react to a certain situation.
  • People who are empathic have an open capacity to feel compassion. This feeling motivates the desires to help others, which is especially important to a consulting business.
  • Empathy enables employees to effectively consider clients' feelings when making decisions.
  • In addition, this virtue enables a consulting firm to hire and retain top talents, develop other people and be more sensitive to cross-cultural differences.

Social skill

  • Social skill involves building relationships with others to move them in desired directions.
  • Social skills help employees give a good first impression because they know how to positively present themselves and form connections with others.
  • Socially-skilled employees are able to initiate conversations with somebody including new employees in the office as well as clients which can lead to better relations with coworkers and a happier work environment and improved productivity.

Quantitative Data that Show the Importance of EQ in the Workplace

  • Sales people with high emotional intelligence perform better than those with medium to low EQ by 50%. This is according to a study of more than 40 Fortune 500 companies.
  • Technical programmers with 10% of the emotional intelligence competencies create new software three times faster than those with lower measurements.
  • On average, a company with an exceptional communications program delivers a 47% greater return to shareholders than the least communicative firms.
  • For senior managers, an 18% improvement in productivity was seen as a result of emotional intelligence training and this would lead to an increase in pre-tax profit to up to 150%.
  • A series of studies found that approximately 30% of occupational performance is based on EQ.
  • Businesses that implement EQ assessments are able to stop brain drain and increase retention by 67%.
  • A study at Pepsico showed that employees who were identified as emotionally intelligent spurred 10% more productivity.

RESEARCH STRATEGY:

For this request, the most recent articles and studies available discussed the importance of emotional intelligence in businesses in general. Only a few were specific to consulting firms. Even those that covered consulting firms did not have enough data to fully explain the importance of emotional intelligence specifically to consulting firms. Due to this scarcity of specific information, we expanded our research to cover the importance of EQ in businesses in general.

Sources
Sources

Quotes
  • "Developing ‘social capital’ is essential for individuals who want to progress in a consulting firm. Social capital is defined as “the value created by leveraging knowledge that is embedded within social networks and interrelationships"
Quotes
  • "Self-awareness, or the ability to recognize and understand your own emotions, is a critical part of emotional intelligence. Beyond just recognizing your emotions, however, is being aware of the effect of your own actions, moods, and emotions of other people"
  • "In addition to being aware of your own emotions and the impact you have on others, emotional intelligence requires you to be able to regulate and manage your emotions. This doesn't mean putting emotions on lock-down and hiding your true feelings — it simply means waiting for the right time, place, and avenue to express your emotions. Self-regulation is all about expressing your emotions appropriately."
  • "Empathy, or the ability to understand how others are feeling, is absolutely critical to emotional intelligence. But this involves more than just being able to recognize the emotional states of others."
Quotes
  • "The unfortunate trend that has swept western society is the inability to fully understand and tackle human emotions. This trend has spilled into other areas of life - including in the workplace. While emotions are often left at the door when you begin work, this has devastating effects not only on businesses but also employees (all the way from assistant to CEO). After all, we are emotional people. Businesses are changing, however, and are beginning to offer extensive and individual work schedules and new services (for example, some healthcare plans include mental health coverage) to ensure people at work are looked after. This includes hiring psychologists for human resources teams: getting to understand your workforce as best as possible, and offering useful training has direct results on employee/employer relationships"
Quotes
  • "This can be defined as having the ability to recognize one's own emotions, strengths, weaknesses, values and drivers and understanding their impact on others. Without reflection we cannot truly understand who we are, why we make certain decisions, what we are good at, and where we fall short. In order to reach your maximum potential, you must be confident in who you are, understanding the good with the bad. Those that have a strong understanding of who they are and what they want to work on, can improve themselves on a regular basis."
Quotes
  • "If you want to pursue a career in management consulting, you need to manifest this skill even before the start of the recruitment process. If you know yourself, you can easily assess if the job is meant for you. You can also readily answer the interviewer’s questions when asked about your strengths, weaknesses, abilities and limitations. Further, self-awareness is your key to self-development, a very important factor for any kind of job."
Quotes
  • "One of the primary aims of any business is to improve their bottom line. But did you know that low productivity, absenteeism, presenteeism and employee turnover, cost UK businesses nearly £26 billion each year? Likewise, physically and mentally unhealthy employees are less effective and engaged, which impacts your bottom line further."
Quotes
  • "Social skills help you give a good first impression because you know how to present yourself positively and form a connection with others. Social skills help you start a conversation with somebody new in your office which can lead to better relations with your coworkers and a happier work environment"
Quotes
  • "A study of over 40 Fortune 500 companies revealed that sales people with high Emotional Intelligence outperformed those with medium to low EI by 50%."
Quotes
  • "By implementing EI assessments, and including EI topics like stress management, self awareness and social skills, they were able to stop the brain drain and increase retention by 67%. The firm calculated it saved over $30 million by reducing recruiting and training costs and increasing sales through retention. "