Emotional Intelligence: The Hidden Driver of Organisational Performance

In today’s fast-paced and complex business environment, technical expertise and strategy will only take you so far. What truly distinguishes high-performing individuals, teams and leaders isn’t just what they know, but how they connect, adapt, and lead. At the heart of this is emotional intelligence (EI).

What is Emotional Intelligence?

Emotional intelligence is the capacity to recognise, understand, manage, and influence emotions—in oneself and in others. Daniel Goleman, one of the most influential voices on EI, describes it as a set of skills that drive leadership performance, including self-awareness, self-regulation, motivation, empathy, and social skills.

While once seen as a "nice to have," EI is now understood to be foundational to effective leadership, psychological safety, and sustainable performance.

Why EI Matters

People don’t leave companies; they leave cultures, experiences, and relationships that don’t work. Low emotional intelligence in leaders and teams often manifests as poor communication, conflict avoidance or escalation, lack of engagement, and decision-making blind spots. Conversely, emotionally intelligent environments foster trust, agility, and alignment—key conditions for innovation and high performance.

A meta-analysis published in the Journal of Organizational Behavior found that EI is positively associated with job performance across roles and industries (O’Boyle et al., 2011). Another study by TalentSmart showed that 90% of top performers are high in emotional intelligence, and EI accounts for 58% of performance in all types of jobs.

Regardless of sector or industry, in a world where change is constant and relational complexity is growing, EI is no longer optional. It's a strategic advantage.

Nurturing EI

Emotional intelligence is not fixed. Like any capability, it can be cultivated—with intention, feedback, and the right tools. For individuals, this often begins with increasing self-awareness and gaining insight into emotional patterns and triggers. From there, leaders can learn to better navigate pressure, communicate with clarity and empathy, and build more connected teams.

Practical steps a leader can take include:

·         Journaling or reflection practices to increase emotional self-awareness.

·         Seeking 360-degree feedback to identify blind spots in emotional impact.

·         Mindfulness training to build capacity for emotional regulation.

·         Empathy mapping exercises to understand different stakeholder perspectives.

Organisations, too, can create cultures that promote emotional intelligence:

·         Embed EI into leadership development programs with tools like PeopleScape’s Emotional Capital Assessment.

·         Create psychologically safe environments where feedback, vulnerability, and learning are encouraged.

·         Model emotionally intelligent leadership at the top, making empathy and curiosity visible norms.

·         Use pulse surveys to measure relational climate and EI-related behaviours.

The Payoff

Progressive business leaders understand that sustainable performance doesn’t come from squeezing more out of people, but from creating the conditions for people to thrive. Emotional intelligence is central to this. It enables smarter conversations, stronger relationships, and better decisions. It transforms leadership from a role of control to one of connection.

The ROI is clear. A study by the Center for Creative Leadership found that leaders with higher emotional intelligence create climates that drive employee engagement, team performance, and innovation. When leaders lead with emotional intelligence, organisations benefit from reduced turnover, increased resilience, and a stronger, values-aligned culture.

If you're committed to building a people-first culture where performance and wellbeing go hand in hand, emotional intelligence should be on your strategic agenda. Because ultimately, it's not just about how smart your people are. It's about how emotionally intelligent they are in the moments that matter.

Curious to know how emotionally intelligent your leaders are?

 Explore our Emotional Capital Assessment to gain powerful insights into your leadership capability and take your PeopleScape to the next level.

At PeopleScape, we support this through our Emotional Capital Assessment service. This evidence-based tool measures emotional intelligence across ten key competencies that correlate with leadership success. It provides leaders with tangible insights into their emotional strengths and development areas—and offers a roadmap for targeted growth.