Emotional Intelligence: The Key to a Thriving Finance Team
In today's challenging economic climate, the role of emotional intelligence (EQ) in building and maintaining a high-performing finance team cannot be overstated. According to Vanessa Druskat, an associate professor at the University of New Hampshire’s Peter T. Paul College of Business and Economics, fostering a culture of emotional intelligence is pivotal for retaining top talent. This involves creating an environment where team members feel supported and valued, which requires CFOs to enhance their soft skills. Druskat emphasizes that as leaders navigate macroeconomic pressures and technological advancements, cultivating strong emotional connections within teams can significantly boost collaboration and innovation. Furthermore, such a supportive culture not only aids in talent retention but also mitigates burnout by ensuring employees feel recognized and appreciated.
In recent years, there has been a growing recognition of the importance of soft skills in leadership roles. As artificial intelligence continues to reshape the workforce, a LinkedIn study from March revealed that 70% of job-related skills will shift by 2030. Among the key competencies identified were conflict resolution, adaptability, and innovative thinking. However, Druskat argues that these skills should not merely be viewed as individual attributes but as cultural norms that foster teamwork and communication. She believes that establishing clear habits and norms that connect team members can lead to a cohesive and high-performing team, even if all members are not individually exceptional.
Druskat’s research over two decades at UNH has focused on the concept of "team emotional intelligence." In her upcoming book, The Emotionally Intelligent Team: Building Collaborative Groups that Outperform the Rest, she delves deeper into this subject. Her findings suggest that strengthening emotional relationships within a team enhances both collaboration and innovation. Moreover, she highlights that leaders often face challenges due to a lack of transparent communication. Employees may withhold critical information or sugarcoat issues, leaving executives unaware of looming problems until it is too late. To combat this, Druskat advises leaders to build trust with their teams, encouraging open dialogue and early identification of potential obstacles.
Burnout remains a significant concern among finance executives, who increasingly shoulder more responsibilities. A supportive work environment, however, can bolster resilience against stress and exhaustion. Druskat notes that when individuals feel valued and supported, they are less prone to burnout. This underscores the necessity for CFOs to prioritize emotional intelligence in their leadership approach, ensuring their teams remain motivated and engaged.
As organizations strive to attract and retain top talent, the integration of emotional intelligence into corporate culture offers a promising solution. By focusing on soft skills and fostering an atmosphere of mutual respect and understanding, CFOs can create teams that not only endure but excel amidst today's complex business landscape. Ultimately, nurturing emotional intelligence within finance teams is not just beneficial—it is essential for long-term success.