The Emotional Intelligence Effect An effective BIZ Experiences and strong leader typically possesses a number of qualities that help them get a business off the ground, keep it growing and thriving.

While many think these qualities are limited to technical expertise, strategic thinking, or market knowledge, there's another crucial component that often sets successful BIZ Experiencess apart: emotional skills. These enable leaders to handle pressure, navigate conflict, and build meaningful relationships that ultimately drive growth and revenue.

At the heart of these skills is emotional intelligence (EI) – the ability to understand and manage emotions in oneself and others. Organisations that invest in EI develop individuals who can nurture trust, inspire loyalty, and deliver strong results, giving them an advantage over competitors – here's how.

Stronger leadership
Leaders shape the work environment for their teams. Those with high emotional intelligence can recognise when to listen and when to step in. They can read the room, adapt their communication style, and stay calm even during tense, difficult conversations. This self-awareness and empathy help them build trust, reduce friction, and make better decisions – all essential traits of strong leadership. At the same time, employees pay close attention to how leaders behave, both during big moments and in everyday interactions, such as giving feedback, handling stress, and reacting to setbacks. This is why leaders should model healthy behaviours, setting the tone for a workplace culture and encouraging their teams to follow suit.

In high-pressure work settings, miscommunication, emotional tension, and reactive behaviour can significantly disrupt productivity. Goleman (2001) found that emotionally intelligent leaders foster more resilient and adaptable teams by cultivating emotional awareness, promoting psychological safety, and facilitating constructive dialogue, even under pressure. All these elements improve culture, boost morale, and increase motivation, having a direct, positive impact on how teams perform. It's clear then that developing EI is a valuable investment for both leaders and their teams.

Relationship building
People high in EI build stronger connections with clients, partners, and stakeholders. Knowing how to respond to the emotions of others with empathy, they can foster long-lasting trust, essential for sustaining good and loyal relationships. Often, the first step in establishing trust is building rapport. When a strong connection is in place, conversations can unfold more smoothly. That's why it's important to set aside time in every meeting for this, as it creates a foundation of mutual understanding.

Rapport building starts in the seemingly small moments, such as greeting a client in the lobby or walking together to the meeting room. These informal interactions before and after meetings play an important role in forming trust and forging relationships. There are several simple ways to begin building rapport with your client, including:

• Using their first name,
• Shaking their hand,
• Finding common ground,
• Using context references – e.g., 'I noticed your team just wrapped up a big project, congratulations,'
• Offering some details about yourself to get information back.

When we are mindful and considerate of the emotions of others, trust grows. Applying emotional intelligence to deepen conversations and strengthen connections shows genuine commitment and helps maintain loyal, lasting relationships.

Boosted sales performance
Importantly, research indicates that emotional intelligence significantly contributes to better sales outcomes, particularly in roles that involve building and maintaining relationships. In a pilot programme conducted with American Express financial advisers, Luskin, Aberman, and DeLorenzo (2005) reported that advisers who completed an emotional competence training averaged 24% more in gross sales than those in a matched control group. The training focused on developing self-awareness, empathy, emotional regulation, and interpersonal effectiveness – all critical skills for motivating clients to take action.

The client decision-making process is rarely straightforward, and becomes even more complex once risk is involved. When people can sense hesitation, pick up on subtle signs of fear, and adapt their communication accordingly, they offer reassurance that helps clients move forward with greater confidence.

Client retention and referrals
While direct data quantifying a retention lift from EI may be limited, the connection is evident: high-EI professionals communicate more effectively, handle client emotions with empathy, and create longer-lasting trust. This translates into stronger client loyalty, especially during periods of uncertainty. Therefore, by paying continued attention to the client's business and emotional needs, organisations are better positioned to retain long-term relationships. But EI goes beyond client retention. It helps firms build a reputation that encourages client recommendations.

When speaking to a client's emotional needs, such as reducing anxiety around retirement or helping them feel more in control, it creates deep emotional value. This makes the employee more memorable and relatable in the client's social circle. For example, a client who once felt anxious about their retirement planning is far more likely to recommend their adviser when a friend shares a similar fear. Why? Because the adviser didn't just offer solutions, they understood.

Clients who feel seen and supported are better able to articulate the value of advice, especially in emotional terms that resonate with others. Emotionally intelligent professionals are more referrable because the client clearly understands their value. Companies often invest in systems, platforms, and strategies designed to drive revenue. But performance, retention, and referrals don't just come from processes; they come from people. Emotional intelligence enhances how people communicate, lead, and respond to pressure, and when that shifts, measurable improvements in overall business results follow.