Leading with Emotional Intelligence
Studies have shown that women, on average tend to score higher in emotional intelligence (EQ) particularly in traits like empathy, interpersonal relationships and emotional awareness.
🙋♀️ A 2020 Harvard Business Review study found that women were rated more highly than men in key leadership competencies during the COVID-19 crisis—especially in empathy and communication.
🙋♀️ Neuroscience also suggests some biological and social conditioning differences - girls are often expected from a young age to be more attuned to their emotions.
However, men are fully capable of being empathetic leaders if they prioritise self-awareness and emotional growth. The problem historically is that men have been discouraged from expressing empathy openly, which can create a perception gap rather than a true difference.
Empathy
Having empathy allows you to manage your people with an understanding of them as individuals which will bring out the best in them. You can discover what motivates them and provide guidance and support in areas where they need development. It can also make the overall team more than the sum of its parts if they all understand the multiplier that empathy brings between them.
Empathy isn't just a “soft skill”—it’s a powerful business asset that drives trust, loyalty, and long-term success. Leading with empathy is the ability to understand and share the feelings of another person.
Impact of Empathy
As a business owner, empathy can have a major positive impact in a number of ways:
1. Stronger Customer Relationships
Empathetic business owners can better understand and anticipate customer needs, which leads to more effective products, services, and support.
2. Effective Leadership
Business owners who show empathy foster trust, collaboration, and motivation among employees; and are able to communicate more clearly.
3. Improved Decision-Making
Empathy helps business owners consider the broader impact of decisions on people—employees, customers, and communities; as well enabling them to resolve conflict fairly.
4. Enhanced Innovation
Empathy helps uncover real pain points and unmet needs, leading to more creative and useful solutions and also encourages diverse perspectives which encourages innovation.
5. Crisis Management
Empathy is essential at these times as it inspires trust and improves morale
What about business empathy?
Surely empathy is a personal characteristic, after all your business isn't really a living thing with emotions and feelings that fluctuate as it deals with its busy life and the demands made upon it......or is it?
The senses that we use when we relate to other people are very human things and you can hardly use them to tell if the business is having a tough time because of the kids exams or your mum's lumbago is playing up; but there may be a parallel that can be applied. Your business can feel like your baby; you care about it enormously and you nurture it with care and attention.
So how do you use your empathy to tell when it isn't on top form or is overwhelmed and in need of support?
Business empathy refers to the ability of a business to understand and share the feelings, needs, and perspectives of its stakeholders—especially customers, employees, and partners—and then act on that understanding. It’s not just about being “nice” or “emotional”—it’s a strategic skill that leads to better decisions, stronger relationships, and long-term success.
Aspects of Business Empathy
Customer Empathy
Understanding customers' pain points, goals, and behaviours
Designing products, services, and experiences that truly meet their needs.
Employee Empathy
Recognising what employees need to feel supported, motivated, and valued.
Creating policies and cultures that reflect real human needs
Market Empathy
Understanding how trends, economic shifts, and cultural movements affect people's decisions.
Using that awareness to create relevant, ethical, and thoughtful strategies.
Organisational Empathy
Fostering interdepartmental collaboration and understanding internal challenges and priorities.
Encouraging open communication and reducing silos.
Why does it matter?
Empathy in business drives:
Customer loyalty: People stick with brands that understand and care.
Innovation: Deeper insights into human needs lead to better products and services.
Retention: Employees are more engaged and committed when they feel understood.
Reputation: Empathetic businesses are more trusted and respected in the market.
Business empathy is not just a "nice to have"—it's a competitive advantage. It enables companies to respond more intelligently, authentically, and humanely to the people they serve and work with.
It is important to be able to measure the things in your business that will tell you how it is feeling today, yesterday and how it may be feeling tomorrow. Although empathy goes beyond data, the human side of the business can still be measured; in order to predict trends and make better decisions.
This is why emotional intelligence is so important as a business owner.
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