Does Emotional Intelligence in Business Really Matter?

In recent years, emotional intelligence in business has become a major talking point. You’ll see it featured in leadership books, workplace training programs, social media conversations, and even as part of hiring and professional development strategies. At EFBC, emotional intelligence (EI) is more than a trend, it’s the foundation of how our community of leaders operates. So while the rest of the world is catching on, we’ve always known how powerful emotional intelligence can be for business owners, their teams, and the overall success of an organization. Still skeptical? Keep reading.

What Is Emotional Intelligence in Business?

The Institute for Health and Human Potential defines emotional intelligence as the ability to recognize, understand, and manage our own emotions, while also recognizing, understanding, and influencing the emotions of others. In a business setting, this skill set translates into stronger leadership, healthier workplaces, and more effective teams.

At EFBC, we often remind our members that it’s not about being emotional, it’s about being intelligent with your emotions. That distinction is crucial when leading a company. Leaders with strong EI are better equipped to:

• Give and receive feedback constructively

• Resolve conflicts before they escalate

• Motivate and inspire employees

• Navigate periods of change with confidence

• Collaborate with their teams instead of just directing them

Why Emotional Intelligence in Business Isn’t Just a “Soft Skill”

Some still dismiss EI as a “soft skill,” but the research paints a different picture. Traits like empathy, self-awareness, and active listening directly affect how employees respond to leaders. This is particularly important for attracting and retaining younger talent.

For example, a 2017 study from the Levo Institute found that 87% of millennials are motivated by leaders who display emotional intelligence, and 80% said their own EI is critical for career growth. Emotional intelligence in business doesn’t just build better leaders—it creates a ripple effect that strengthens entire organizations.

The ROI of Emotional Intelligence in Business

Measuring the return on emotional intelligence isn’t as straightforward as tracking sales numbers, but the impact is undeniable. Consider these insights:

• Team members often leave organizations because of poor leadership or toxic cultures. What does high turnover cost your company? Emotional intelligence helps retain top talent.

• American Express found that Financial Advisors who completed EI training increased business by 18.1%, compared to 16.2% in a control group. Even a small percentage increase can mean significant revenue growth.

• In a 2020 survey of entrepreneurs, more than 95% agreed that EI in leadership is more important than IQ. Especially in times of change, emotionally intelligent leaders can be the difference between a business that thrives and one that closes its doors.

How EFBC Builds Emotional Intelligence in Business Leaders

At EFBC, emotional intelligence isn’t a buzzword, it’s a core value. Our members practice EI in Forums, Roundtables, and even casual conversations. These safe environments allow leaders to sharpen their listening skills, empathy, and self-awareness. Then, they take those skills back into their businesses and families, where the impact multiplies.

Emotional Intelligence in Business During Times of Crisis

The COVID-19 pandemic highlighted just how essential EI is for leaders. Those who could manage their own emotional responses while showing empathy to their teams were far more effective in guiding organizations through uncertainty. Emotional intelligence in business isn’t just about everyday leadership—it’s about resilience in moments of crisis.

Curious about your own EI skills? Try this quiz from UC Berkeley’s Greater Good Science Center. Then, connect with EFBC to learn how we can help you strengthen your leadership through emotional intelligence.

Ready to Grow Your Emotional Intelligence?

At EFBC, emotional intelligence is more than a theory, it is a practice. Our members build EI skills every day through peer support, honest conversations, and real-world application. If you are ready to strengthen your leadership, deepen your connections, and create a healthier business culture, join EFBC today and start working on your emotional intelligence alongside like-minded leaders.