Why Emotional Intelligence is Important for Business

Businesses today need to stay ahead of their industry to succeed, from real estate to tech and beyond. Emotional intelligence is one of the most desirable traits in leaders. Many studies have shown that individuals with a high EI can be much more effective in leadership positions such as management. Below we will discuss why understanding emotional intelligence is essential for business.

1. What is Emotional Intelligence?

In short, EI is the ability to identify and manage your own emotions. This ability also allows you to do the same with those of others. Ever met someone with a short temper who flies off the handle at the smallest thing? They would most likely not do well on an EI test. However, someone who can remain calm and poised during difficult times or with difficult people would do well. Someone with a high EI is very conscious of their emotional state, whether positive or negative. They are also sensitive to emotional signals from those around them. It can make them better spouses, friends, parents, and even business leaders.

You may read more on Psychology Today.

2. How do You Measure Emotional Intelligence

Experts have divided the criteria for EI into five distinct categories:

1. Motivation – This refers to your passion for work that can also be a desire for money or status. Are you motivated to do good things with your work? Do you fight for justice? To provide superior goods and services? What amount of energy and persistence do you apply to your work or other items?
2. Self-awareness – This is the ability to recognize and understand your own emotions, moods, and what drives you.
3. Self-regulation – It is the ability to redirect or control unproductive impulses and to be able to think effectively before acting.
4. Awareness of social surroundings- This is the ability to recognize and understand the emotions, moods, and what drives others.
5. Regulation of social surroundings – It can redirect or control unproductive impulses in others.

3. Start With Motivation

We all do our work, daily tasks, and even leisure activities for a reason. The better the reason (from your point of view), the more productive and enjoyable your actions are. Think about a salesman looking to close a big deal. What would motivate them to close it more:
1. Being named “Employee of the Month.”
2. A percentage of the profits.

For most of us, it’s the latter. But someone with a high EI would know what would best motivate their salespeople on a team basis and an individual one. We recommend beginning all EI tests with motivation, even if others do not. This approach makes it easier to train someone with a high motivation to control their emotions than the other way around. You may remember the Cost of a Bad Hire.

4. How Can I Measure Emotional Intelligence?

There are tons of tests out there for EI including for business purposes. We enjoy the testing done by TTI Success Insights in Phoenix, AZ. They offer a special report, a multi-science approach, and more for those interested in emotional intelligence for business. They were also the first to combine EI with the popular DISC profile in their assessment. The DISC process measures preference of behavior and emotional intelligence and reports how effectively a person applies the emotional intelligence principles and behavior in their tasks. The DISC assessment is ideal for strategy and management, training and development, and well as personal goals.

5. How Can I Improve Emotional Intelligence?

The good news is you may improve your emotional intelligence with a few simple tasks. For example, you may begin a daily journal to reflect on how your emotions impact your goals, be it positively or negatively. Be completely honest with yourself. It’s a journal. No one is going to get a hold of it. Write down when you felt the best that day. Please write down the worst moments and describe how you dealt with them. Afterward, how did you feel? How can you improve during the next instance?

As the days go by, you will find you can identify times when you shine and times when your emotions get the best of you. You can also try out new coping techniques and single out which are the most effective. You will also find other methods that can be useful, such as exercise, yoga, vision boards, and the like. As with anything else, the more you do it, the better you get at it.

Conclusion on Why Emotional Intelligence is Important for Business

These are just a few of the steps to identify the benefits of emotional intelligence and improve on them. Remember that you can improve your EI on your own or with the help of a professional.

Anything worthwhile needs time and guidance; remember your EI is the same. Even only a little improvement each day can add up to impressive results.

Building a highly productive team is difficult. Fortunately, KM Consulting can provide tools and expertise to help privately held companies. Here is the first step.