How Important Is Emotional Intelligence In Leadership?

Leadership today looks a little different from what it used to. While experience and technical skills still matter, there’s something else that has become just as important, if not more: emotional intelligence. 

So, just how important is emotional intelligence in leadership? 

Put simply, emotional intelligence includes several key components, including self-awareness, self-management and empathy. These play a vital role in shaping leaders who can truly connect and drive a team forward. 

It’s not just about hitting targets or managing tasks anymore. The leaders who are really making a difference know how to connect with people, handle pressure, give thoughtful feedback, and build collaborative relationships. 

We’ll break down what emotional intelligence is and why it’s becoming such a key requirement for the modern leader below. 

What Is Emotional Intelligence In Leadership?

Emotional intelligence, often shortened to EQ, is all about how we manage and understand emotions, for ourselves and those around us. It’s not just about ‘being in touch with your feelings’, it’s a powerful skill that influences how we communicate, handle stress, and lead others.

To truly understand emotional intelligence and why it’s such a big deal for leaders, it helps to break it down into its key components. Each one plays a unique role in shaping how a leader shows up, connects with others, and leads their team effectively. 

1. Self Awareness

Self-awareness is the foundation of emotional intelligence. At its core, it’s about understanding your own emotions, knowing what triggers them, and recognising how your behaviour impacts the people you lead.

Leaders with strong self-awareness aren’t just tuned into their strengths and weaknesses, they’re also honest about them. 

Rather than reacting on impulse, they pause and reflect before responding thoughtfully. This kind of emotional insight helps leaders make better decisions, especially under pressure, and sets the tone for a more open team environment. 

Interestingly, while 95% of people believe they are self-aware, only 10-15% genuinely are. This lack of awareness can be costly. Teams led by someone who lacks self-awareness can experience more stress, lower morale, and less collaboration.

A simple way for leaders to improve in this area is by seeking regular, honest feedback from colleagues and direct reports. This can reveal blind spots and help leaders understand how they’re really being perceived. 

Self-awareness helps leaders make better decisions, especially under pressure, and sets the tone for a more open team environment.

2. Self-Management

If self-awareness is about recognising your emotions, then self-management is what you do with that knowledge. It’s the ability to stay in control of your reactions, especially when things get stressful or unpredictable.

Leaders who practice strong self-management don’t let tough moments throw them off course. Instead of reacting impulsively, they respond with intention. That might mean choosing to stay calm and focused when a project hits a snag. It’s about creating a pause between feeling and action, and that pause is powerful. 

Self-management doesn’t involve ignoring emotions or pretending that everything is fine. In fact, acknowledging your feelings is an important part of managing them. The difference lies in choosing how you express those emotions in a way that supports, rather than disrupts, your team. 

Good self-management also helps leaders set the emotional tone for the rest of the group. If a leader can stay level-headed during chaos, it gives the team a sense of stability and confidence. It shows resilience, which can inspire the same strength and calm in others.

3. Empathy

Understanding your own emotions is one thing, but great leaders also know how to tune into what others are feeling. That’s where empathy comes in. It’s the ability to pick up on emotional cues, read group dynamics, and respond with social awareness.

Empathy isn’t just about being kind, it’s about genuinely trying to see things from someone else’s perspective. Empathetic leadership helps build deeper trust with teams, creating a setting where people feel valued and heard.

Research has even shown that empathy isn’t just a ‘nice to have’ quality; it’s a performance booster. A study from 2022 notes that leaders who show empathy are better at coaching, decision-making, and engaging their teams. This emotional connection helps people feel seen and supported, which naturally drives motivation and collaboration.

Imagine a team member who’s been quieter than usual in meetings. Instead of brushing it off, an empathetic leader checks in privately, offering a space to talk and understand what’s going on. 

That small act of awareness can lead to stronger relationships, improved performance, and a healthier team culture overall. In environments where pressure runs high, empathy gives leaders the edge as they remain human, which is what makes people want to follow them.

Empathetic leadership helps build deeper trust with teams, creating a setting where people feel valued and heard.

4. Building Connections

Leadership is as much about people as it is about performance. That’s why building strong relationships is a key part of emotional intelligence in leadership. This involves communicating clearly, resolving conflicts respectfully, and creating a positive team environment where people feel valued.

Leaders who master this skill know when to step in, offer support, or have the tough conversations others might avoid. They don’t shy away from challenges, they use them to strengthen trust and collaboration.

The cost of ignoring these moments is bigger than many realise. According to CIPD survey data, workplace conflict is estimated to cost UK organisations a staggering £28.5 billion per year, that’s over £1,000 per employee. Beyond the financial hit, unresolved conflict also chips away at morale, fuels stress, and can lead to resignations and dismissals.

That’s why emotionally intelligent leaders don’t let issues fester. They address problems early, helping to defuse tension before it escalates. In doing so, they create a culture of trust where people feel safe to speak up and collaborate freely. 

Building connections involves communicating clearly, resolving conflicts respectfully, and creating a positive team environment where people feel valued.

How I Can Help

To sum up, how important is emotional intelligence in leadership? Ultimately, emotional intelligence isn’t optional for effective leadership; it’s essential.

Core elements like self-awareness, empathy, and emotional regulation are what set impactful leaders apart. These qualities allow leaders to handle challenges with composure and motivate teams to perform at their best.

If you’re looking to improve your leadership skills, personalised coaching can help you meet your goals. Through one-to-one coaching, I help those in leadership roles build resilience, sharpen executive presence, and lead with confidence. 

Whether in person or online, each session is tailored to your goals, leading to practical strategies that you can apply immediately. 

Contact me today to explore what leadership coaching could do for you.