September 15, 2025

Why EQ Needs to Remain a Leadership Priority

Every few years, the pendulum of desired leadership characteristics seems to shift. During the pandemic, leaders’ empathy and compassion helped shepherd remote workforces through months of uncertainty. During the financial crisis of 2008, leaders’ decisiveness and assertiveness were pillars of stability amid economic volatility. And today? Leaders who prioritize AI proficiency.

In a recent Korn Ferry survey of 250 CEOs and board directors, nearly 70% of respondents said AI/tech proficiency was the number one skill to prioritize across the workforce in the next three years. It’s not surprising, of course, that leaders need employees to get comfortable with the game-changing technology. But the intense focus on AI has led to an unintended consequence: Soft skills, such as empathy and courage, are taking a back seat. Fewer than four in 10 respondents rated emotional intelligence as a priority skill, and only 20% said driving engagement was a priority these days. “Now is not the time to neglect your people,” says Elise Schroeter, global head, organization and talent strategies in the Board and CEO Services practice. “Those are the people who will help you weather the storm.”

Indeed, experts note that in times of geopolitical and economic uncertainty, being able to connect and communicate with people is of paramount importance. Studies show that when people are highly engaged, they’re more productive and make better decisions. “If you hire a CEO with low emotional intelligence, that’s going to backfire,” says Jane Edison Stevenson, global vice chair of Korn Ferry’s Board and CEO Services practice. “People aren’t as productive when they don’t feel engaged.”

It can be tempting to deprioritize engagement and EQ when the race to stay up to speed on AI is intensifying. After all, about 80% of survey respondents expect up to 20% of their workforce to be replaced by AI in two to three years; such a development would put a lot of pressure on both employees and their leaders. But “if you’re asking more of people—which companies are doing today—then it makes sense that you need to be making sure people are engaged,” says Ed Brady, a Korn Ferry senior client partner.

What’s more, innovation requires emotional intelligence and engagement, and experts say no amount of tech fluency will compensate for the absence of some of the softer skills. “It’s not an either-or situation, but one where these skills reinforce each other,” Stevenson says. 

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For leaders seeking to upskill in AI without a loss of engagement, experts emphasize the importance of emotional intelligence. Because technology is changing so quickly and can intimidate employees, EQ can be highly effective in culture building by rallying teams and quelling some fears about AI. “If anything, the momentum around AI strikes me as the right time to be more engaged,” Brady says.

Explore more of Korn Ferry’s CEO and Board Survey findings.

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