Building Business with Soul: Emotional Intelligence and Its Impact on the Bottom Line

By Arliss Dudley-Cash MA, MBA

According to Travis Bradberry, author of Emotional Intelligence 2.0, “Emotional Intelligence is your ability to recognize and understand emotions in yourself and others, and your ability to use this awareness to manage your behavior and relationships.”

Emotional Intelligence is being recognized as a key ingredient to being a successful leader. In 2004, Psychologist Daniel Goleman wrote an article in the Harvard Business Review that highlighted Emotional Intelligence as the main factor that sets high performing leaders apart from their peers who have similar technical skills and knowledge.

Emotional Intelligence, or EQ (as opposed to IQ), is broken down into five main components:

• Self-awareness
• Self-regulation
• Social skills
• Motivation
• Empathy

How can the five components of Emotional Intelligence help in business?

First, self-awareness gives us a clear view of our feelings, needs, and behavior. When we are truly self-aware, it is easier to self-regulate by taking responsibility for our actions and meeting our own needs. We are less likely to blame others or rely on others around us to meet our needs. We become aware of how our actions affect those around us (social skills) and what is and isn’t appropriate in context. By being more aware of our needs and behavior, our excitement to show up and grow our business can improve (motivation). Empathy allows us to understand perspectives outside of our own and see situations from another person’s point of view.

Finally, as we navigate working with others in our business, we are better equipped to set healthy boundaries, respect the boundaries of others, and have productive communication. We waste less energy on conflict and emotional hangovers. The overall work environment is more positive, which improves employee retention and promotes more feelings of fulfillment and happiness at work.

How does EQ impact the bottom line?

Based on a research study done with over 42,000 people, by Dr. Bradberry, individuals with high EQs make an average of $29,000 per year more than people with low EQs. On average, every point increase in Emotional Intelligence adds $1,300 to an annual salary. There is a linear relationship with increase in annual income with an increase in Emotional Intelligence. Why is this? Individuals with higher EQ are better communicators, they bring higher value to their clients and customers, and they perform better in stressful situations. Unlike IQ, which is thought to be a fixed and unchangeable, EQ can be increased through learning self-awareness, self-regulation, social skills, motivation, and empathy.

Ways to increase Emotional Intelligence:

1. Be willing to see the other side—If your actions or choices impact another person or group, be willing to see the impact of that action or choice from their side. Would you want to experience that outcome if you were on their side?
2. Know the difference between intent and impact—Intent is what you thought the outcome would be and impact is the actual outcome that happened. If you impact someone in a negative way, take responsibility for that and apologize. Denying the impact of something because of a positive intent can be more damaging than the initial negative impact.
3. Practice self-evaluation—What areas of Emotional Intelligence are you strong in and what areas could you improve? Are you able to see yourself as not perfect and still be supportive and gentle with yourself as you are learning? Make a plan for the areas you want to grow and improve in.
4. Reactions to stressful situations—How do you react when you are under stress or pressure? Do you go to a place of blame or shame of yourself or others? Do you get upset or angry with yourself or others? Emotional Intelligence is highly valued in the business world because individuals with high EQ can stay calm under stress and make sound decisions.
5. Where are you shining your light?—Are you shining your light on your accomplishments or are you championing others around you? You can be outgoing and confident and allow others around you to shine. This can help in building trust and relationships which are so important in business.

In order to practice Emotional Intelligence in our businesses, we must start on the inside first—with ourselves. You can’t give to others from an empty cup. ❖

For more information: soullutions.com