This One Leadership Move Will Transform Your Team’s Loyalty and Performance

Opinions expressed by Entrepreneur contributors are their own.

For years, leadership development has focused on hard skills like operations, finance and technical know-how. But today, there’s growing recognition that soft skills — especially emotional intelligence (EQ) — are just as vital, if not more so. EQ isn’t just about being “nice” or managing conflict — it’s about cultivating trust, improving communication and building resilient, high-performing teams.

In a fast-changing workplace where expectations are rising and retention is a top priority, EQ has become a business imperative.

Self-awareness beats spreadsheets

Emotional intelligence starts with self-awareness. Leaders who understand their own emotions are better equipped to manage stress, give feedback and respond thoughtfully in challenging moments. And yet, many overestimate their emotional awareness. In a survey of more than 1,000 professionals, 20.6% of men and 17.1% of women believed they were more emotionally intelligent than their behavior suggested. That gap matters because blind spots in leadership often become pressure points across an organization.

Building EQ involves engaging both verbal and nonverbal communication skills. This means not only listening and adapting but also reading emotional cues, responding empathetically, and modeling openness. It’s less about control and more about connection.

Don’t just know it — practice it

It’s not enough to understand EQ in theory. Like any business skill, it takes action to develop.

Leaders can strengthen their emotional intelligence by:

Participating in coaching or mentoring programs
Joining leadership development cohorts that include peer feedback
Having real, honest conversations with employees about emotional wellbeing

The most effective organizations embed EQ into their culture, starting with hiring. When emotional intelligence becomes a hiring lens, companies reduce mis-hires and build more cohesive teams. Ask candidates how they navigate disagreements, respond to constructive feedback, or bounce back from failure. Their answers reveal more than technical skills ever could.

Emotional intelligence isn’t optional at the top

Leadership isn’t just about setting strategy — it’s about setting the tone. Executives who lack EQ often struggle to inspire trust or connect across teams. They may deliver results in the short term but fail to build sustainable momentum.

In contrast, emotionally intelligent leaders:

Attract and retain top talent
Understand team dynamics and resolve conflicts early
Foster a culture of psychological safety and high performance

These leaders also lead by example. When executives participate in team trainings or feedback sessions, it sends a powerful message: growth is for everyone, not just junior staff.

Empathy is the new currency of culture

Today’s workforce expects more from leadership: more empathy, more flexibility and more humanity. They don’t just want a job — they want to feel seen, valued and supported.

When companies prioritize EQ, employees respond with higher engagement, better communication and deeper loyalty. That’s not just good for morale — it’s good for business.

The result? A workplace where people thrive, performance improves and culture becomes a competitive advantage.

EQ is the edge

Emotional intelligence isn’t a bonus trait — it’s a leadership essential. Developing it takes intention, but the return on investment is exponential. Stronger teams. Smarter hiring. Greater retention. Better results.

When EQ becomes the standard rather than the exception, everybody wins.

In a fast-changing workplace where expectations are rising and retention is a top priority, EQ has become a business imperative.