Why having a high EQ is a strategic necessity in today’s small and mid-sized businesses
Discover why Emotional Intelligence in leadership is the underrated skill driving trust, engagement, and long-term team success. Learn how empathetic leaders are outperforming the rest in today’s small and mid-sized companies.
The Hidden Skill That Separates Good Leaders from Great Ones
Leaders are most often recognized or praised when they have the traditional skills needed to run a successful business, such as financial, technical or operational expertise. However, a leader’s long-term effectiveness often hinges on a quieter skillset—one that’s felt more than seen.
A high IQ (Intelligence Quotient) may help solve problems, but it doesn’t always predict leadership success. More often, it’s leaders with a high EQ (Emotional Quotient) who succeed by understanding people, not just numbers. This ability to recognize, interpret, and manage emotions—known as Emotional Intelligence (EI)—is what sets apart good leaders from great ones.
While EI is often viewed as a “soft skill,” in workplaces with many different roles and communication styles, it has become essential for getting work done effectively. It helps to motivate, retain, and engage teams across a variety of complex factors.
So, what exactly is Emotional Intelligence?
Leadership that Listens First
At its core, EI is about being attuned. The best leaders succeed not by being the loudest voice in the room, but by reading the room altogether.
A highly emotionally intelligent leader observes before they speak, recognizes emotional cues and communication preferences, and then shifts their tone to fit the moment or the audience accordingly. For example, Caliber Homes operates in the construction and home building world, which means there are a ton of different expertise and communication styles to work with. Switching between speaking with technical, administrative, and trade-based teams requires a certain level of flexibility and nuance.
And it goes far beyond simply garnering favour; it’s about building trust. A one-size-fits-all approach risks confusion—or worse, alienation—which can get in the way of building a productive team environment.
Why Emotional Intelligence Matters in Every Company
In many industries, leaders manage people from a variety of specialties and backgrounds, such as accountants, lawyers, contractors, project managers, communications specialists, and customer-facing or administrative staff.
Emotional Intelligence allows leaders to shift gears quickly—knowing when a conversation should take a direct approach driven by numbers, or a softer approach driven by rapport-building. For example, knowing an engineer might prefer a short call to quickly get to the root of the problem, while a bureaucrat might want an in-person meeting over lunch to discuss long-term solutions.
No matter the size of the company, owners and managers who prioritize and champion unique engagement strategies for each audience will see the benefits as well: from increased morale to a newly fostered sense of safety and trust within the company.
It’s the Little Things: How Low EI Causes Missed Cues and Misalignment
Leaders who work across various teams or industries must demonstrate the ability to understand, appreciate, and communicate with those from different backgrounds and work cultures. The consequences of leadership without EI are often unseen until it’s too late—resulting in high employee turnover, miscommunications across teams, and difficulty managing interpersonal conflicts.
While it seems innocuous, even planning a formal corporate-style party for on-site construction crews who would rather have an informal gathering can cause issues. If employees don’t feel seen and understood, it can lead to feeling alienated, underappreciated, or unheard by leadership, resulting in dissatisfaction and disengagement.
It’s critical to foster a culture of communication, understanding, and respect—no matter how big or small the touchpoint.
What Owners Can Do This Quarter
Emotional Intelligence is often mistaken for an innate ability rather than a teachable skill that can be cultivated and strengthened over time. While it’s true that some people may be born with a head start in understanding how to read different people and situations, like all things in life, practice makes perfect.
EI develops most naturally in supportive environments that give employees space to learn from experience. A big part of that is cross-functional exposure—something that can massively help employees build interpersonal and problem-solving skills they might not develop otherwise.
When employees understand the challenges their peers or counterparts face, they gain empathy and, in turn, the tools to communicate more effectively. For example, planners who walk construction sites with tradespeople, review policy with city officials, or sit down with bankers gain well-rounded, hands-on experience that builds both context and empathy.
Leaders and business owners who encourage hands-on experience across specialties or departments—through shadowing, onboarding, or job rotation—often see stronger and more adaptable teams.
Table Stakes for Building a Business That Lasts
Emotional Intelligence in the workplace is no longer a luxury; it’s table stakes for organizations looking to succeed in the long run.
In a time when workplaces are more diverse and complex than ever, leaders are expected to bridge communication gaps, inspire loyalty, and foster cohesion across teams. It’s critical for businesses to set a strong foundation of respect, create tailored engagement strategies, and foster a culture of empathy from the top down—and that all starts with EI.
