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EI & Your Bottom Line

EI & Your Bottom Line

Often times, emotional intelligence is dismissed as a soft skill fad that’s too soft and squishy to make a meaningful business impact. The fact is that emotional intelligence drives leadership, team effectiveness, performance, engagement, sales and ultimately your company’s bottom line.
Let’s look a closer look at the bottom line results of emotional intelligence in business.

What is it?

Emotional Intelligence (EI) is a set of emotional and social skills that influence the way we perceive and express ourselves, develop and maintain social relationships, cope with challenges, and use emotional information in an effective and meaningful way. EI the foundation of great leadership, high performance teams, sales, and organizational success.


Up to half of leadership ability is associated with emotional intelligence. This means that in order to be effective in their roles, leaders must possess a built in skill set that helps them navigate a variety of organizational challenges while boosting the performance of their teams.


Leaders with high EQ:

  • Communicate-they are able to listen with empathy and welcome other perspectives at all levels of the organization
  • Handle stress and pressure effectively, including conflict
  • Lead change and positively influence others
  • Make decisions without taking things personally or letting emotion cloud their judgement
  • Hold themselves and others accountable
  • Build trust, respect, and collaboration on the team

So, what does this mean for the bottom line? In a pilot project at PepsiCo. executives selected for EQ competencies far outperformed their colleagues, delivering a 10% increase in productivity, and an 87% decrease in executive turnover equating to a 4 million dollar savings for the company


Naturally, individuals and teams respond to their effectiveness of their managers and leaders. So, when leaders possess high EQ, they are creating an environment that promotes employee engagement and high performing teams.

Teams with high EQ:

  • Communicate-with one another, with others in the organization and with their leaders and managers. They clearly express their needs, ideas and concerns while appreciating other perspectives
  • Trust and respect one another. They are comfortable providing support and constructive feedback to each other
  • Collaborate-high EQ helps team members recognize that the team is the sum total of its parts. Members recognize diverse strengths and leverage those for the advancement of the team
  • Are engaged-Team members understand how their contribution impacts the team and the company. They are passionate about their work and committed the company’s success.

How does impact the bottom line? Cleary increased productivity is a positive outcome. But how about employee engagement? Employee engagement is directly related to retention. Teams with higher engagement are 50% less likely to experience turnover. Given the fact that a single turn over cost half of that employee’s annual salary or more, it makes good business sense to retain talent.


At L’Oreal, sales agents selected on the basis of certain emotional competencies significantly outsold salespeople selected using the company’s standard selection procedure. On an annual basis, salespeople selected on the basis of emotional competence sold $91,370 more than other salespeople did, for a net revenue increase of $2,558,360.36.

So, what part does Emotional Intelligence play in sales success? Customers do business with others that they know, like and trust. This is true weather you are a small business offering consulting services, a car repair shop, a mortgage lender or a non-profit.

  • Emotional intelligence skills like empathy help you uncover your prospects pain points (so that you can help solve them)
  • Sales people with high EQ are not only in tune with their own emotions, but can detect the emotions of others and adjust their approach accordingly
  • EQ helps sales people develop and nurture relationships with customers, clients, their team and those that support their sales activities
  • Sales people with high EQ are more optimistic and seek out opportunities-even if those opportunities initially present themselves as challenges


Emotional Intelligence is more than just a soft squishy people skill. It has real implications in the success of your business and your bottom line.

Want to learn more about Emotional Intelligence and how EQ can enhance your success? Contact our experts at Pathfinder Strategies! or by phone at 888-529-0240.




The Business Case for Emotional Intelligence-Joshua Freedman

EQ and the Bottom Line: Emotional Intelligence Increases Individual Occupational Performance, Leadership and Organisational Productivity-Geetu Bharwaney, Reuven Bar-On and Adele MacKinlay

The Business Case for Emotional Intelligence-Institute for Health & Human Potential

Markus Buckingham thinks your boss has an attitude problem. Fast Company & Gallup Organization

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