How long do skills last in today’s market? One study shows that 78% of executives believe hard skills have a shelf life of less than five years. Another study was even bleaker, showing that half of all skills will be outdated within two years. In light of these rapid changes, emotional intelligence (EI) training is becoming that much more important as an enduring skill that will power people and companies through the next several years.
Indeed, studies like Microsoft’s Work Trend Index and the World Economic Forum’s Future of Jobs Report are increasingly putting a higher premium on emotion-powered skills.
In this article, we’ll explore the top five reasons why companies are investing in emotional intelligence training and how it’s transforming the way businesses operate.
1. Driving Successful AI Transformation
One of the primary reasons companies are pouring resources into emotional intelligence training is to enhance their ability to successfully navigate AI transformations. Recent studies, including a widely-cited study from MIT, show that the vast majority of AI projects are failing to deliver desired results.
The missing link? Emotional intelligence to drive change.
Business transformations are inherently disruptive, often causing stress, uncertainty, and resistance among employees. Companies that focus solely on the cognitive and logical aspects of change management miss the mark. Emotional intelligence plays a crucial role in sensing and managing the emotional undercurrents that can make or break a transformation. In fact, a study from Oxford University’s Said School of Business found that leaders that prioritize emotions in transformation are 2.6 times more likely to be successful than those who don’t. And when a transformation is going poorly, the emotional strain on the workforce increases 136%.
HR and L&D teams can play a powerful role in the success of AI by skillfully creating a culture that values emotional awareness and resilience. These tools can help leaders (formal and informal) to identify when emotions are heading south and take corrective actions.
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2. Enhancing Team Performance
Teamwork has always been a cornerstone of business success, but in today’s project-based work environment, it’s more critical than ever. As companies continue to wrestle to find the right approach to remote, in-person, or hybrid work models, one core concern is at the center: team collaboration. As projects become increasingly complex to manage, requiring diverse expertise and skill sets, emotional intelligence is at the heart of team success.
Research from Google’s Project Aristotle found that the most successful teams weren’t necessarily the ones with the most technically skilled members. Instead, they were the teams where members had equal opportunities to contribute, were sensitive to each other’s emotions, and fostered an environment of psychological safety. In other words, emotional intelligence was a stronger predictor of team success than technical expertise.
By investing in emotional intelligence training, companies are empowering their teams to communicate more effectively, resolve conflicts amicably, and build trust. These skills are essential for creating a work environment where team members feel valued, respected, and motivated to contribute their best. In turn, this leads to higher productivity, innovation, and overall team performance.
3. Bridging Generational Gaps
For the first time in history, there are five different generations working side by side in the workplace. This generational diversity brings unique perspectives, but it also presents challenges in communication and collaboration. Emotional intelligence is the key to bridging these gaps and creating a cohesive work environment.
Each generation has been shaped by different experiences and values, leading to varying expectations and communication styles. For example, Gen Z, the newest generation to enter the workforce, places a high value on emotional safety and mental health. They also are more likely to struggle with mental health challenges. In fact, 40% of Gen Z have been diagnosed with anxiety and 45% with depression, rates which are 2-3 times of older generations. Furthermore, 73% of Gen Z workers report loneliness. They are more likely to openly discuss their emotional well-being and expect their employers to prioritize it as well.
Investing in emotional intelligence training helps companies create an inclusive work culture that respects and values the contributions of all generations. It equips employees with the skills to navigate differences, build strong relationships, and work together effectively. This not only improves workplace harmony but also boosts employee satisfaction and retention.
4. Building Leadership Readiness
The business landscape is becoming more complex and ambiguous, making effective leadership more challenging than ever. According to the most recent Global Leadership Forecast by DDI, trust in managers has plummeted from 46% down to 29% in the last two years.
Part of the challenge is that leaders are struggling. In fact, manager engagement is driving a decline in overall engagement, according to Gallup. Managers are tightly squeezed between sky-high executive expectations and meeting the demands of a change-exhausted workforce.
In fact, leadership is becoming so unattractive that Gen Z is largely avoiding management roles.
Emotional intelligence is a critical component of leadership trust. Leaders who possess high emotional intelligence are better able to connect with their teams, understand their concerns, and lead with empathy. This builds trust, fosters a positive work environment, and enhances the overall effectiveness of the organization.
Companies are investing in emotional intelligence training to ensure their leaders are equipped to handle the challenges of today’s business world. By developing self-awareness, empathy, and emotional regulation skills, leaders can inspire confidence and trust in their teams, leading to higher levels of employee engagement and better business outcomes.
5. Managing Change Saturation and "Quiet Cracking"
In addition to radical AI transformations, employees are being hit with change from all angles. Many companies are dealing with massive change from layoffs, geopolitical uncertainty, rapidly changing economic markets, continued return to office, and so much more.
Companies struggle to prepare leaders for this compounding change. According to a study from Gartner, the average employee experienced two significant company-wide changes per year in 2016. By 2022, that number had jumped to 10. While we don't have data yet for this year, we expect that number has exploded even higher.
As we see the effects of compounding change, there's little time for people to recover emotionally. As one of our clients put it: "People don't have time to crawl out of the valley of despair."
The data bears that out. The Gartner study showed that 74% of employees were willing to support change in 2016. By 2022, only 38% said they supported change.
Again, while we don't have data for this year, we expect that number has dropped significantly this year. Currently, engagement rates are at a 10-year low. According to Glassdoor, burnout rates have soared, reaching the highest rate in a decade.
However, because many of these struggling employees are pessimistic about current job opportunities, they aren't quitting. Rather, they are staying, while "quiet cracking."
While some companies are purposely choosing to ignore the warning signs of a struggling employee population, wise organizations are realizing that a highly negative culture will deeply undermine their goals. As a result, they're investing now in resilience and emotional intelligence programs now to avoid a crash of their top talent and overall culture.
The ROI of Emotional Intelligence Training
Emotional intelligence is a core skill that powers every other skill. It enables us to recognize and manage our emotions to make better decisions. It enables us to deeply collaborate with others while leveraging AI to produce an output unsurpassed in the market. Above all, emotional intelligence enables us to build resilience and a learning mindset as the world changes around at a dizzying pace.
In fact, it’s nearly impossible to master the other skills required for success without strong sense of EI. A meta study on the effects of emotional intelligence on career success found a strong correlation between high EQ and job success. The study showed that high-eq people were significantly more engaged at work, had higher job evaluations, experimented more, and engaged in fewer counterproductive work behaviors. And frankly: They were also a lot happier at work.
Because of its foundational nature, it can be challenging to measure the precise ROI on emotional intelligence training. Estimates across the market range from a powerful 1484% return on investment to more modest gains around 200% or 300%.
By prioritizing emotional intelligence, organizations can create a more resilient, adaptive, and high-performing workforce. In a world where change is constant and human connection is more important than ever, emotional intelligence is the key to staying competitive and thriving in the modern business landscape.
Develop a strong foundation of emotional intelligence.
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About the Author: Ryan Heinl, CEO of SIY Global
Ryan Heinl is the CEO of SIY Global and a trailblazer at the intersection of emotional intelligence, neuroscience, and AI-enhanced learning. With over 15 years of experience leading product innovation in the leadership development space, Ryan has scaled multi-million dollar platforms, built award-winning learning solutions, and transitioned entire companies from old-school models to digital-first disruptors. His current mission? To redefine what it means to lead in the age of AI—where human insight is the new power skill. Equal parts strategist and scientist, Ryan brings a research-backed, results-obsessed approach to everything from executive coaching programs to mindfulness-based learning tools. Also: recovering philosopher, relentless rucker, and low-key data nerd.