New research has found that companies with emotionally intelligent managers not only provide a better working environment but also achieve higher profits.
The study, conducted by Dr. Bilal Zaghmout of York St John University, highlights the significant impact of empathy and social skills on business performance.
Surveying 150 managers and staff across 30 UK companies, Dr. Zaghmout’s research revealed that a 10 percent increase in a manager’s emotional intelligence score correlated with a 7 percent boost in overall business performance, including profitability and customer satisfaction.
Presenting his findings at the British Academy of Management conference at Nottingham Business School, Dr. Zaghmout stated, “Higher levels of emotional intelligence among managers significantly positively affect both individual and organisational performance.” He emphasised that emotionally intelligent managers excel in conflict resolution, teamwork, and maintaining employee morale, which leads to higher engagement, lower turnover, and improved productivity.
Innovation and adaptability drive profits
Companies led by such managers reported better innovation and adaptability to market changes, resulting in happier customers and increased income. Dr. Zaghmout noted, “By systematically exploring this relationship, organisations can gain valuable insights into how emotional intelligence fosters effective leadership and drives success.”
The study included a diverse group of mid-level managers from small, medium, and large UK businesses, all with at least five years of leadership experience. Participants rated their emotional awareness, empathy, emotional management, and influence on a scale of 1 to 7. These scores were then compared with key performance indicators such as revenue growth, profitability, return on investment, employee satisfaction, customer satisfaction, and innovation capacity.
To ensure accurate results, Dr. Zaghmout adjusted for variables such as age, gender, industry sector, and company size, isolating the effect of emotional intelligence on business outcomes.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
