In today’s volatile business landscape, leaders face relentless demands — from managing high-stakes decisions to fostering engagement in hybrid teams. While technical skills and strategic thinking are critical, research consistently shows that emotional intelligence (EQ) is the defining factor in leadership success.

What is Emotional Intelligence?

A TalentSmart study found that EQ is responsible for 58% of job performance across industries and that 90% of top-performing leaders possess high emotional intelligence. Despite this, many leaders fail to develop or prioritize it.

Daniel Goleman, the psychologist who popularized the concept of emotional intelligence, identified four core components that influence leadership: self-awareness, self-management, social awareness, and relationship management.

By strengthening the four key components of emotional intelligence — leaders can navigate challenges more effectively, improve team engagement, and drive organizational performance.

Let’s take a look at the four key components:

1. Self-Awareness: The Foundation of Leadership Growth

Great leaders know themselves. They understand their emotions, strengths, and weaknesses and how these factors impact their teams. Unfortunately, while many of us believe we are self-aware, true self-awareness is hard to come.

In her work, Dr. Tasha Eurich, one of the world’s leading researchers on self-awareness found that while 95% of people believe they are self-aware, only about 15% (in her research study) were actually self-aware.

Where Do Leaders Need Self-Awareness?

• Receiving critical feedback from executives or peers — Leaders must regulate emotional responses and view feedback as an opportunity for growth.
• Navigating high-pressure decision-making — Recognizing personal biases and stress responses helps leaders make strategic, objective choices.
• Leading cross-functional teams — Understanding how one’s leadership style impacts diverse team members fosters better collaboration.

How Can Leaders Can Strengthen Self-Awareness?

• Regularly reflect on leadership style — Assess how actions and decisions affect team morale and performance.
• Seek constructive feedback — Proactively ask colleagues and employees for input on strengths and areas for improvement.
• Recognize emotional triggers — Identify recurring emotional reactions (e.g., frustration in meetings) and develop strategies to manage them.
• Be honest about strengths and weaknesses — Acknowledge gaps in expertise and delegate effectively.

2. Self-Management: Leading with Composure and Resilience

Leadership is filled with challenges — unexpected setbacks, high-stakes decisions, and competing priorities. Emotionally intelligent leaders control their impulses and manage stress effectively.

A leader’s day is filled with many interpersonal interactions, not to mention, many digital interactions, communications and engagements. It can be easy, especially under pressure, duress, or stress, to react at the first emotion. But leaders who practice emotional intelligence demonstrate emotional regulation to manage their emotions and thoughts in the moment, before identifying how they want to respond or engage.

This can be doing anything from holding off on firing off an email response, to asking for some time to respond to a criticism in a meeting just so you can collect your thoughts and respond most effectively.

Where Do Leaders Need Self-Management?

• Handling unexpected project setbacks or failures — Leaders must regulate emotions to maintain team morale and focus on solutions.
• Balancing multiple competing priorities and deadlines — Managing stress effectively prevents burnout and maintains clarity.
• Dealing with interpersonal conflicts — Keeping emotions in check allows for professional and constructive resolution.

How Leaders Can Strengthen Self-Management

• Stay calm in crises — Develop emotional self-control to make thoughtful decisions rather than reacting impulsively.
• Practice mindfulness and stress management — Engage in techniques like deep breathing or meditation to regulate emotions.
• Adapt to change with a positive mindset — Frame challenges as opportunities and lead by example in demonstrating flexibility.
• Manage conflict constructively — Approach disputes with solution-oriented thinking rather than avoidance or defensiveness.

3. Social Awareness: Understanding and Motivating Others

Leadership is not just about individual performance — it’s about understanding, motivating, and influencing others. Socially aware leaders are attuned to the emotions of their teams and can read between the lines of what employees need.

A study by the Center for Creative Leadership found that leaders who demonstrate empathy outperform their less empathetic counterparts by 40% in job effectiveness.

Where Leaders Need Social Awareness

• Engaging with diverse teams and stakeholders — Leaders must recognize different perspectives to navigate organizational complexities.
• Supporting employees during personal or professional challenges — Being attuned to emotional cues allows leaders to offer the right support.
• Leading through organizational change — Understanding employee sentiments helps leaders manage transitions effectively.

How Leaders Can Strengthen Social Awareness

• Actively listen to team members — Ensure employees feel heard by summarizing key concerns and responding with empathy
• Recognize and value team contributions — Regularly acknowledge employees’ efforts and achievements to boost engagement.
• Be attuned to team dynamics — Observe interactions within the team and address issues before they escalate.
• Support employee well-being — Check in on team members, offer resources, and foster a psychologically safe work environment.

4. Relationship Management: Driving Collaboration and Performance

Building strong relationships is not just a ‘soft skill’ — it’s a performance driver. High-EQ leaders cultivate trust, resolve conflicts constructively, and create an environment where employees thrive.

Connection isn’t just about bringing people together in-person in the office to see one another or sit next to one another. It’s about intentionally building trust and engagement with people individually through all of your interactions, and cultivating that trust in that relationship so that when you do have to work together you can do so collaboratively.

It also means, when it makes sense, encouraging and modeling collaboration and cooperation to be able to achieve shared goals.

Where Leaders Need Relationship Management

• Managing cross-functional projects with competing priorities — Strong relationship-building skills help align stakeholders and drive collaboration.
• Navigating difficult conversations with employees or executives — Leaders must balance assertiveness with empathy to achieve productive outcomes.
• Building trust in remote or hybrid teams — Maintaining engagement and open communication is essential when working across distances.

How Leaders Can Strengthen Relationship Management

• Communicate clearly and transparently — Set clear expectations, provide direct feedback, and ensure alignment on goals.
• Mentor and coach team members — Invest in employee development through regular coaching sessions.
• Foster a collaborative environment — Encourage teamwork through open dialogue and shared decision-making.
• Handle difficult conversations with empathy — Address performance issues with kindness, keeping discussions constructive.

The Future Belongs to Emotionally Intelligent Leaders

As organizations navigate increasing complexity, leaders who prioritize emotional intelligence will stand out. By strengthening self-awareness, self-management, social awareness, and relationship management, they will drive higher engagement, inspire performance, and create workplaces where employees thrive.

For leaders — especially those stepping into leadership roles for the first time — emotional intelligence is not just a nice-to-have; it’s a foundational skill that determines long-term effectiveness.

The ability to understand emotions, regulate reactions, and build strong relationships directly impacts how well leaders can navigate challenges, motivate teams, and drive performance.

While some leaders may naturally excel in certain aspects of EQ, the good news is that emotional intelligence is a skill that can be practiced and developed over time.

By intentionally reflecting on their leadership style, seeking feedback, managing emotions under pressure, and honing their ability to connect with and inspire others, leaders can build the emotional intelligence necessary to lead with confidence and impact.

As organizations continue to evolve, those who commit to strengthening their EQ will not only become more effective leaders but will also create teams that are more engaged, resilient, and high-performing.