HARNESSING EI FOR WEALTH

Sanjeewaka Kulathunga pinpoints where emotional intelligence is important

In this era of globalisation, digital transformation and rapidly evolving workplace structures, emotional intelligence or EI has become a vital and strategic asset. It’s essential for businesses that are aiming to maintain adaptability, innovation and a healthy organisational culture.

As businesses confront the challenges of hybrid work environments, multicultural teams and fast-paced change, the ability to understand and manage emotions (personal and interpersonal) has become a core driver of effectiveness and sustainability.

WHAT IS EI? Emotional intelligence is the capacity to identify, comprehend and influence emotions in oneself and others.

Psychologist Daniel Goleman outlines five fundamental components of EI – viz. self-awareness, self-regulation, motivation, empathy and social skills. These attributes collectively support individuals in navigating workplace relationships with insight, compassion and clarity.

Self-awareness involves recognising one’s emotions, strengths and limitations, and the influence these factors have on others. Leaders who are self-aware are typically more grounded, reflective and open to personal growth.

And self-regulation refers to maintaining control over emotional impulses and staying composed under pressure – traits that help professionals remain effective during crises or transitions.

Motivation in the context of EI speaks to an internal drive to achieve goals, and maintain passion and commitment even when facing setbacks. Highly motivated individuals often uplift teams with their enthusiasm and perseverance.

Empathy refers to the ability to grasp and relate to others’ emotional states. This is crucial in building trust, resolving interpersonal challenges and fostering inclusive environments.

Social skills encompass communication, collaboration, and the ability to influence and inspire. These skills are essential for effective leadership and teamwork.

Leaders with strong EI lead more effectively, particularly in times of change. They can foster trust, communicate clearly and motivate their teams through uncertainty.

Emotionally intelligent leaders are also better at managing workplace conflicts, and cultivating environments that encourage openness and innovation – qualities that are indispensable during continual disruption.

ALL-ROUND TOOL EI isn’t limited to those in leadership roles and employees at all levels benefit from such skills. They tend to perform better in teams, handle stress more effectively, and engage more meaningfully with colleagues and clients.

Their ability to read emotional cues and respond with sensitivity leads to improved collaboration and workplace harmony.

From an organisational standpoint, prioritising the development of emotional intelligence can lead to significant business benefits. Entities that invest in emotional literacy often experience improved employee retention, morale and engagement. When managers understand and respond to their team’s emotional needs, they build stronger trust based relationships.

Recognition, feedback and motivation are better when employees are emotionally attuned to creating a workplace where everyone feels respected and encouraged to contribute their best.

Team effectiveness is also greatly enhanced by EI. Such teams demonstrate better communication, quicker conflict resolution and stronger cohesion. They share a sense of purpose and mutual respect, which enables them to navigate internal tensions and external challenges with resilience and adaptability.

Employees often encounter emotionally charged situations such as dealing with complaints or frustrated clients. Those with strong EI can navigate these situations calmly, empathise with concerns and deliver thoughtful responses. This contributes to better customer experiences, builds loyalty and enhances the organisation’s image.

Ethical decision making is another area that’s enriched by EI. Emotionally intelligent leaders are more inclined to make choices that consider the broader human and social impacts, and are more sensitive to fairness, transparency and inclusivity. They help businesses align their strategies with ethical and socially responsible standards.

EMBEDDING EI Building emotional intelligence across a company requires a deliberate and sustained effort. Leadership training, mentorship, team workshops and coaching programmes can help cultivate these skills, and embed EI in the organisational culture.

This process will help transform it from a soft skill into a strategic asset.

Though AI redefines job roles, the uniquely human capacity for emotional understanding becomes a key differentiator. While machines excel at logic and repetitive tasks, they can’t replicate the human ability to connect, empathise and exercise moral judgement.

EI has become a vital and strategic asset