The Importance of Emotional Intelligence in Finance

July 23, 2019by Michael Kelfer0

Employers in every industry – even tech – say they’re now hiring for emotional intelligence. But what exactly is emotional intelligence? Why exactly is it so crucial? And perhaps most importantly, how do you hire for it? Today we’ll take a look at the issue and provide tips for finding finance candidates that have the right mix of hard and soft skills. What is emotional intelligence? Emotional intelligence (EQ) is a term created by Peter Salovey and John Mayer and popularized by Daniel Goleman in his 1996 book of the same name. EQ is the ability to recognize, understand and manage one’s own emotions — along with the emotions of others. According to the Institute for Health and Human Potential (IHHP), “In practical terms, this means being aware that emotions can drive our behavior and impact people (positively and negatively), and learning how to manage these emotions – both our own and others – especially when we are under pressure.” Why is hiring for emotional intelligence important? When creating job descriptions, it’s natural for employers to look for candidates with the educational training, experience, industry qualifications and technical skills needed to fulfill a role’s responsibilities. However, if you focus solely on hard skills, you might overlook perhaps the most essential hiring question: is this person a good cultural fit for the team? People with high EQ work well wither others because they are able to maintain an even-keeled demeanor. They understand their own emotions and the emotions of others and can express them in a socially acceptable manner. Hiring someone with high EQ can help ensure your newest team member will work well with others, manage clients effectively and help foster a welcoming and inclusive company culture. How to hire for emotional intelligence Hiring people with high EQ is a challenge. Candidates put their best foot forward during interviews and in the first few months on the job. The problem is, if a positive demeanor doesn’t come naturally, it wears off once they settle in. Searching for candidates who possess the personality qualities your company values is easier said than Read More »

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