New research from York St John University finds that companies with emotionally intelligent managers not only provide a better workplace environment but also see higher profits.

The study surveyed 150 managers and staff at 30 UK companies, examining how management style influenced business performance. The results showed that a 10% increase in a manager’s emotional intelligence was linked to a 7% rise in overall business success, including profitability.

“Higher emotional intelligence in managers had a clear positive impact on both individual and organizational performance,” the researcher explains.

Better managers

Managers who were more emotionally intelligent were better at resolving conflicts, encouraging teamwork, and keeping employee morale high. This led to more engaged employees, lower turnover rates, and increased productivity. Companies with these managers also saw higher innovation rates and better adaptation to market changes, resulting in happier customers and higher profits.

By understanding the connection between emotional intelligence and leadership, businesses can uncover key insights to improve management practices and boost success.

The study focused on mid-level managers with at least five years of leadership experience, selected from a mix of small, medium, and large companies to ensure a broad representation of UK businesses. Participants rated their own emotional intelligence on a scale of 1 to 7, considering factors such as emotional awareness, understanding others’ emotions, and their ability to influence teams. These scores were compared to business metrics like revenue growth, profitability, employee and customer satisfaction, and innovation capacity.

The researcher controlled for variables like age, gender, industry, and company size to isolate the effect of emotional intelligence on performance.