Emotional Intelligence: Key to Retaining New Generations in Companies

May 15, 2024

 

“71% of employers value emotional intelligence more than technical skills when evaluating candidates,” according to a 2024 Harvard Business School article titled: Why Emotional Intelligence is Important in Leadership. Diane Garza, iCatalyze CEO, states that “Today, companies face a significant challenge: high talent turnover, especially among new generations like millennials and Gen Z. These groups not only seek stable employment but also a work environment that values their emotional well-being and personal development. This is where emotional intelligence (EI) plays a crucial role in employee retention.”

Why is Emotional Intelligence Important?

Emotional intelligence refers to the ability to identify, understand, and manage our own emotions and those of others. In a corporate setting, this skill translates into more effective communication, better conflict resolution, and a healthier organizational culture. Leaders with high EI can better connect with their teams, leading to greater job satisfaction and, consequently, lower staff turnover.

We offer 5 recommendations for incorporating emotional intelligence into your company:

  1. Foster a culture of constructive feedback: Regular and constructive feedback helps employees continually improve. A leader with high EI knows how to provide feedback in a way that inspires and motivates, rather than discourages.
  2. Offer personal and professional development programs: New generations value growth opportunities. Implementing training programs in soft skills, such as emotional intelligence, not only improves individual performance but also team cohesion.
  3. Promote emotional well-being and mental health: Including wellness policies, such as psychological assistance programs, mental health days, and mindfulness activities shows employees that their well-being is a priority for the company.
  4. Practice empathy in leadership: Empathetic leaders can better understand their employees’ concerns and motivations. Fostering empathy helps create a work environment where employees feel valued and heard.
  5. Encourage diversity and inclusion: An inclusive and diverse environment is not only fair but also enriches the work experience. Emotional intelligence helps leaders manage diverse teams effectively, leveraging different perspectives and skills.

Integrating emotional intelligence into business management is not just a trend but a necessity to meet the expectations of new generations. Companies, both corporate and startups, that invest in the emotional development of their leaders and employees will see a significant improvement in talent retention, job satisfaction, and ultimately, organizational success.

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