What Is Emotional Quotient and Why Does It Matter? Isn’t Intelligence Quotient Enough?
We all know what Intelligence Quotient is, and society values people with high IQs. If a person possesses more than average IQ, they’re deemed intelligent – someone who understands even relatively complex concepts faster than the average Joe. So, it makes a lot of sense to consider someone’s IQ for specific roles, especially the ones with critical responsibilities.
However, there’s something else that has come to the limelight in recent years, and despite being talked about to great lengths in all forums, its significance still seems to fall in a grey area – something many believe they can do without. Emotional Quotient. Despite what the term might suggest, it’s not as much about emotions as it’s about empathy.
Emotional Intelligence and Leadership
If you’re past the stage of entry-level roles, then just being good at your technical or hard skills wouldn’t cut it anymore in this day and age. If you want to be a leader or want to progress effectively in your career, you should consider this emotional element. It enables you to effectively coach teams, manage stress, provide feedback, and cooperate with others in a relatively better, healthier and more efficient manner.
Unlike popular belief, great leadership isn’t just about making smart decisions—it’s about understanding, truly understanding people. Emotional intelligence (EQ) is the missing link between leaders who are inspiring and resilient and those who struggle with communication, conflict resolution, and handling teams well.
Is Emotional Intelligence Truly Needed in Leadership Roles?
We empathise with this question. EQ seems an entity that’s too intangible to feel significant enough to focus on. Try this: think about the best leader you’ve ever worked with. More often than not, chances are, they not only were skilled at their job, but they made people feel heard, motivated, and supported. That’s the essence of emotional intelligence, and that’s why it’s important.
Also, leaders with high EQ are more than just effective decision-makers. They:
- Stay calm under pressure, setting the tone for their teams.
- Navigate difficult conversations with empathy and tact.
- Inspire trust and collaboration, reducing workplace conflicts.
- Adapt to change and lead teams through uncertainty.
On the other hand, leaders who lack emotional intelligence may cause or poorly handle conflicts, which might even lead to high turnover and/or toxic work environments: and these problems turn into financial liabilities fast – sometimes even costing companies millions.
This is why organisations should, and are understanding the value of leadership competency assessments, especially when hiring for leadership roles. But how do they measure something as intangible as emotional intelligence? That’s where leadership assessments come in. These tools go beyond technical expertise and cognitive ability and thus help them identify potential leaders – people who have demonstrated that they can handle pressure, motivate teams, and commit to success.
How Leadership Skills Assessments Measure EQ
It’s logical that emotional intelligence can’t be assessed merely by asking candidates if they’re empathetic or good communicators. Anyone can respond a yes to them, and that doesn’t mean they are empathetic. Hence these EQ tests are developed with scenarios testing how they react to real-world leadership challenges.
1. Situational Judgment Tests (SJTs)
Candidates are given workplace scenarios, which can be managing a team conflict or responding to a crisis. They are asked to choose a response they feel is the best. These choices reveal their approach towards handling a real-life crisis and how well they balance logic with empathy.
2. 360-Degree Feedback
As the term suggests, this method takes in anonymous feedback from peers, managers, and direct reports, offering a well-rounded view of a leader’s emotional intelligence in play.
3. Behavioural Interviews
Hypothetical questions don’t serve well in these kinds of assessments. Hence candidates are asked about real experiences—like a time they had to give tough feedback or resolve a misunderstanding. Their answers show whether they can handle emotions well in high-stakes situations.
4. Self-Assessment Tools
Reflective EQ test helps leaders evaluate their own strengths and blind spots, encouraging self-awareness—a trait that’s highly valuable and not that common. It shows how aware they are of their own strengths and weaknesses and how they think they can progress towards being their better versions.
Case Study: How an IT Firm Transformed Leadership with EQ Assessments
A leading IT services company was facing a leadership crisis. Employee engagement was at an all-time low, and teams lacked motivation. Despite hiring managers with impressive technical expertise, projects were falling apart due to poor communication and conflicts that went unresolved.
The company decided to integrate EQ-based leadership assessments into its hiring and promotion processes. Within a year, they saw a dramatic shift:
- Employee satisfaction scores increased significantly, thanks to improvements in communication and conflict resolution.
- Project efficiency improved, as choosing emotionally intelligent leaders meant healthier and more transparent team dynamics.
- Turnover rates dropped substantially, saving the company millions in hiring and training costs for replacements.
By prioritising emotional intelligence in leadership selection, the company built a more engaged, motivated team—proving that EQ isn’t just a good-to-have appetiser anymore, it’s the star entrée.
Developing Emotional Intelligence in Future Leaders
The road doesn’t end with conducting these tests and calling it a day. Identifying emotionally intelligent leaders is just the first step. Organisations must also invest in EQ development through leadership coaching, scenario-based training, and regular feedback loops. The best leaders aren’t just born with high EQ—they develop it over time. It’s a learnable skill.
By adopting emotional intelligence assessments for leadership roles, companies can future-proof their leadership pipeline, ensuring that the crème de la crème is not just smart—but emotionally aware, adaptable, and people-first in their approach.
FAQs
- How does EQ impact business performance?
Leaders with high EQ improve team morale, boost productivity, and reduce turnover—directly impacting a company’s culture and even revenue.
- Can emotional intelligence be improved?
Absolutely! With coaching, self-awareness exercises, and real-world practice, leaders can develop stronger EQ over time.
- Are EQ assessments relevant across industries?
Yes! Whether it is IT, healthcare, finance, or manufacturing, leaders with strong emotional intelligence foster better workplace cultures and drive stronger business results across industries.
If your organisation is looking for a well-rounded leadership assessment, then your search ends here. MeritTrac helps companies identify and develop emotionally intelligent leaders. We strongly believe that great leadership isn’t just about IQ. It’s about understanding, inspiring, and leading with empathy. Schedule a free demo to learn more – no strings attached.
