Did you know that Emotional Intelligence (EQ) scores predict performance twice as well as IQ scores? EQ is also a better predictor of performance than knowledge, expertise or skill. Higher EQ leaders consistently produce better business results. Studies show that executive EQ scores correlate with increased company profitability as well as improved retention and a better organizational climate. EQ is not just a buzzword, or touchy-feely fluff. It’s increasingly recognized as a core skill-set that is based on science and differentiates world-class organizations from the rest of the pack.
Here are a few concrete examples:
- Sales people with higher EQs at L’Oreal brought in $2.5 million more in sales.
- PepsiCo found that executives selected for EQ generated 10% greater productivity.
- Sheraton increased their market share by 24% through an EQ-based initiative.
- And the U.S. Air Force saved $190 million by using EQ to screen pararescue jumpers.
(Source: Center for Innovative Management, “The Business Case For Emotional Intelligence,” 2010)
The bottom line is that EQ yields bottom-line results. In any situation where people need to connect with others, make complex decisions or lead, EQ is important.
So what, exactly, is EQ? It’s really a constellation of skills that include communication, empathy, self-awareness, understanding and the ability to recognize and regulate your own emotions and the emotions of others.
The good news is the EQ is learnable and measurable as well as necessary. If you’re interested in improving