HomeEmotional intelligence is the foundation of effective leadership. Leaders who recognize and regulate their own emotions, and who empathize with others, create cultures of trust, collaboration, and psychological safety. In environments shaped by change and uncertainty, emotional intelligence is not optional. It is essential for leaders who want to elevate their teams and their organizations.
Emotional intelligence strengthens collaboration and builds trust. It creates environments where employees feel valued, safe, and motivated. Because leaders shape the day-to-day experience, emotional intelligence aligns directly with culture and determines whether teams thrive or slowly absorb stress.
“Emotional intelligence matters because a true leader has to motivate and inspire people to reach their highest potential,” said Paul Marston, Chief Operating Officer of Performance Solutions at CUSG. “Leadership is the work of guiding emotional beings to top performance. To lead people effectively, you need a good understanding of emotions.”
Daniel Goleman, author of Working with Emotional Intelligence, found that nearly 90 percent of leadership success comes from emotional intelligence rather than technical skills or IQ. Emotional competence, skills like empathy, influence, and self-regulation, creates the crucial difference between average leaders and star performers.
Paul sees the impact well beyond productivity metrics. “Emotional intelligence speaks directly to the quality of the relationship between leaders and their team members. It influences the culture and, ultimately, the quality of life for a full-time employee. We spend a large portion of our waking hours preparing for work, working, or decompressing from work. If the work experience is negative, half of life feels negative. Leaders need the emotional intelligence to enhance that experience for their teams.”
Paul noted that leaders often stumble where these components intersect. “Leaders most often struggle with the balance between empathy and accountability. It takes practice to understand someone’s situation and offer mindful accommodation while still maintaining a clear commitment to objectives and goals.”
Adele Lynn, author of The EQ Difference, calls this tension “emotional hijacking,” when emotions override intention, making empathy or accountability feel out of reach. She points out that leaders who pause and cultivate self-awareness are better able to align their responses with their values, even under pressure.
Consistency comes from rhythm, not a single workshop. “Create exposure and frequent informal conversation,” Paul added. “When feedback only appears during problems, it has nowhere to live. In an ongoing, informal dialogue, understanding grows, course correction is easier, and emotional intelligence skills get practiced to proficiency.”
Small, repeatable actions create intentional culture. The same way an accidental culture can emerge from repeated habits, leaders can intentionally shape culture through emotionally intelligent choices in moments of conflict, coaching, and recognition.
Paul shared one story that changed a team’s trajectory. “A team member felt stuck. The leader avoided a development conversation because there were no promotions available. After we talked about empathy, the leader stepped into the employee’s shoes and saw that silence felt like a lack of options. They began a development conversation about skills, stretch tasks, and new objectives, not just titles. The employee responded well, stayed engaged, and reconnected to the organization.”
In Working with Emotional Intelligence, Goleman refers to this as the “arts of influence,” the ability leaders have to shape the emotional climate of an organization through everyday interactions. Every encounter tilts a culture toward nourishing or toxic, and over time those small exchanges accumulate into trust or disengagement.
Paul also recommends one simple habit. “Be intentional with your conversations and talk often. Do not only speak when there is a task or a problem. Some conversations should exist solely to maintain rapport. That is emotional intelligence in relationship management.”
Emotional intelligence fuels psychological safety, which allows team members to feel safe taking interpersonal risks, speaking up with new ideas, admitting mistakes, or questioning the status quo without fear of backlash. The benefit is twofold: employees feel valued and respected, while organizations gain faster problem-solving and more innovation. Paul noted that when leaders show empathy in these moments, employees are more likely to re-engage rather than withdraw. In one case, a team member who felt stuck found new energy after their leader opened the door to development conversations. What started as a risk in voicing frustration became a win for both the employee and the organization.
“You build culture through what you do consistently and what the group comes to believe and identify with,” Paul said. “Leadership without emotional intelligence is closer to management. When you try to manage an emotional being like a process or a thing, you burn people out and create conditions where negative behaviors thrive.”
The parallel is clear. “Your culture is set by the environment you create. If an emotionally intelligent leader is shaping that environment, people feel safe, motivated, and secure enough to accomplish the objectives the culture exists to support.”
Connecting Emotional Intelligence to Growth and Impact
Emotionally intelligent leadership retains talent, reduces turnover, and strengthens engagement. This dynamic plays out at the front line as well. When a member faces something stressful an emotionally intelligent response from staff can completely change the experience. The act of asking, ‘How did this situation make you feel?’ signals care and interest in the relationship. That small moment of empathy fosters emotional loyalty, not just transactional loyalty. In financial services, where trust is everything, these micro-moments directly shape retention, growth, and long-term member advocacy. Frontline interactions are human before they are transactional, and trust is everything in financial services.
“Often people do not leave companies. They leave managers,” Paul said. “Having an emotionally intelligent person in your corner who positions you for success and gives real support is not something people walk away from. When that is present in leader and team relationships, you retain talent at top rates.”
Both Goleman and Lynn emphasize that emotional intelligence is learned and strengthened through practice. Lynn calls it “emotional wealth,” a form of resilience that sustains people and organizations through uncertainty. Leaders who invest in Emotional intelligence build durable cultures that retain talent and inspire loyalty.
Emotional intelligence is a practice, not a one-time training. It requires intentional development and ongoing reflection. Leaders can build these skills through cohort-based programs like the Leadership Forum, by using tools such as learning and development software, and by practicing simple but powerful habits. Seeking feedback, reflecting on interactions, and making active listening part of daily conversations are practical ways to strengthen emotional intelligence over time. These consistent choices turn emotional intelligence from a concept into a core leadership practice.
“Skills are mental muscles,” Paul said. “The ones we work grow. The ones we ignore shrink, and eventually we lose the ability to use them. We need to exercise these muscles so we are strong enough for the challenges of leadership.”
Accountability starts with a simple question. “Regularly review your interactions and ask yourself, would I be successful and enjoy my work if I reported to me,” Paul advised. “If the answer is not yet, adjust your approach and keep practicing.”
Emotional intelligence fuels culture. Leaders who model it foster psychological safety, trust, and collaboration
Emotional intelligence drives results. Emotionally intelligent leadership improves engagement, retention, and performance
Emotional intelligence is intentional. Like culture, it is built through consistent, repeatable behaviors and ongoing practice.