Identifying Tomorrow’s Leaders Today

What Emotional Intelligence Reveals about Leadership Potential

Identifying and developing leadership potential is one of the most important, yet often complex, challenges facing organisations today. This is especially crucial in a landscape where retention, engagement, and hybrid working place new demands on leaders. Traditional approaches often focus narrowly on technical expertise, qualifications, or tenure, potentially overlooking the crucial emotional and social skills necessary for effective leadership.

As the saying goes, people don’t leave bad organisations; they leave bad leaders.

Recently, the team at Psysoft delivered a webinar in collaboration with MHS and the HR Director about what emotional intelligence can reveal about leadership potential. Click here to view a recording of this webinar. 

Here are the top three takeaways from the session:

1. Move Beyond Technical Skills

When individuals recall the best leaders they have ever worked with, they typically remember their characteristics or soft skills, not their technical expertise or position. People remember not what you say, but how you make them feel. The soft skills that define great leaders are also forms of emotional intelligence.

For example:

• Supportive leaders demonstrate Empathy (understanding how others feel) and build strong Interpersonal Relationships (fostering trust and psychological safety).

• Inspiring leaders demonstrate Optimism (maintaining a positive outlook) and Self-Actualisation (personal drive and passion that motivates others).

As employees progress to more senior positions, research has found that emotional intelligence becomes increasingly important compared to traditional IQ or technical competency. High-performing leaders understand their own emotions and are aware of how their actions affect their team and those around them. In fact, multiple studies indicate that a high level of emotional intelligence is linked to the traits needed for effective, transformational leadership.

2. The Advantage of an Evidence-Based Framework

The EQ-i 2.0 is a scientifically validated model of emotional intelligence, built on 30 years of research. Using an evidence-based framework provides trust and credibility, ensuring that the insights gained are accurate and meaningful. This consistency allows organisations to create a shared understanding of what effective leadership looks like and track development in a clear, measurable way.

To demonstrate the strong validity of the tool, research has consistently highlighted the link between emotional intelligence and strong work-related outcomes:

• Recruitment & Retention: A case study of an organisation facing high turnover found that using the EQ-i 2.0 in their selection process led to a 92% increase in retention.

• Performance: Meta-analyses show that emotional intelligence is a significant positive predictor of job performance, accounting for nearly a fifth of the variance in performance.

• Revenue: Organisations that take the steps to measure and track emotional intelligence are 16% more likely to report positive revenue growth compared to organisations that value emotional intelligence but do not measure it.

These statistics showcase the return-on-investment of using emotional intelligence, but also demonstrate how evidence-based tools such as the EQ-i 2.0 & EQ 360 can have real, reliable, and valid impacts.

3. Uncover Leadership Derailment Risks Before They Become Problems

Just as high emotional intelligence predicts success, low emotional intelligence scores can signal potential concerns. The EQ-i 2.0 is a powerful tool for assessing leadership potential and pinpointing areas that research has shown to be linked to a passive leadership style, known as ‘derailers’. Leadership derailment often stems from lower scores on four EQ-i 2.0 subscales:

• Impulse Control: Leadership requires focus and deliberate planning, not impulsivity.

• Stress Tolerance: A low tendency to withstand stress can impair a leader's ability to think clearly under pressure.

• Problem Solving: Leaders must navigate problems where emotions are involved and understand how those emotions impact decisiveness.

• Independence: Leaders need to think and work on their own, as those with lower scores may tend to be swayed by popular opinions.

Identifying these potential derailers early allows organisations to provide targeted support helping leaders build the skills they need to succeed.

So, when guiding leadership development conversations and supporting succession planning, data from the EQ-i 2.0 & EQ 360 can be used to address two key questions:

1. What are individuals already doing well?

2. What do they need to do more of to be ready for the next step?

The focus on emotional intelligence is not merely a trend, it is a crucial organisational priority supported by decades of research. By incorporating scientifically validated tools like the EQ-i 2.0 and EQ 360, organisations can confidently recruit, develop and select potential leaders. These leaders are not only technically proficient, but also equipped with the emotional and social skills needed to inspire, engage, and drive tangible organisational success.

To explore how the EQ-i 2.0 and EQ 360 can support your recruitment, leadership development, or succession planning processes, you can learn more on our website or download a sample Client EQ-i 2.0 Leadership Report here.

Please feel free to contact us today and discuss how we can support the potential leaders in your organisation.