Why Emotional Intelligence Matters more than IQ in Business

IQ has long been considered the key measure of a person's ability.  However, studies have shown that having a high IQ is not a good predictor of success in life or in the business world.  It is thought that IQ contributes about 20 percent to life success leaving 80 percent attributable to other factors such as emotional intelligence.

Emotional intelligence includes abilities such as being able to motivate oneself; to persist in the face of difficulties; to control impulsiveness and delay gratification; to regulate one's mood so as to keep emotions from blocking the ability to think; and to be able to empathize and to hope.

There is a cost to the corporate bottom line from low levels of emotional intelligence on the job. The consequences for a work group can be severe if a member or leader keeps exploding in anger, or has no sensitivity to the feelings of others.  Emotionally upset people cannot remember, attend, learn, or make decisions clearly.

On the flip side, there are clear benefits to working in a group whose members are skilled in emotional intelligence.  They would be attuned to the feelings of others, able to handle disagreements so they do not escalate, and have the ability to get into flow states while working.

One area that is most affected by the presence or absence of emotional intelligence skills is the ability to air grievances as helpful critiques. This is an important part of managing people.  People need to be able get helpful feedback in order to keep their efforts on track, and it needs to be done in a constructive, not a hurtful manner.

Although criticism is one of the most important responsibilities a manager has, it is also one of the most dreaded. Too often, managers do not have this skill mastered, and yet how criticism is given and received plays a large role in determining employee motivation, energy, and confidence.  When people believe that their failures are caused by some innate personal failing beyond their control, they give up and stop trying. An artful critique focuses on what a person has accomplished, and what they can do to make it better.

Success for both individuals, work teams and for businesses as a whole requires employees who have the kinds of social skills that allow them to get along with others, as well as self-motivation and self-management skills. Improving the way people work together is an important way of leveraging intellectual capital.  Businesses would do well to increase their collective emotional intelligence.

Adapted from Goleman, Daniel. Emotional Intelligence. NewYork: Bantam. 1995.