Emotional intelligence of leaders as a factor of enterprise profitability

Abstract

The article examines the impact of leaders' emotional intelligence on enterprise profitability in the context of the digital transformation of the economy. The relevance of the study is determined by the growing role of intangible factors in competitiveness, particularly managerial soft skills, in ensuring business efficiency. Digitalisation, the automation of production and management processes, increased emotional stress on staff, and changing labour values highlight the need to develop leadership grounded in emotional intelligence. The purpose of the article is to substantiate the impact of leaders' emotional intelligence on labour productivity and financial results of the enterprise. The methodological basis of the study comprises systemic and interdisciplinary approaches, as well as methods of theoretical analysis and synthesis, including correlation and regression analysis. Emotional intelligence is considered not only a psychological characteristic of a manager's personality but also an economically significant management resource that shapes the quality of management decisions, the organisational climate, and staff engagement. The empirical part of the study was conducted using the example of the large industrial enterprise, Metinvest Group. The analysis utilised indicators of net profit, staff size, staff turnover, absenteeism, employee training intensity, and the proportion of positive and negative employee feedback. The results of the correlation analysis showed a close, direct relationship between the enterprise's profitability and indicators of staff development and a favourable organisational climate, as well as an inverse relationship between financial results and staff turnover, absenteeism, and negative employee feedback. Regression analysis generally supported the hypothesis that leaders' emotional intelligence impacts company profitability. The practical significance of the results lies in demonstrating the feasibility of integrating emotional intelligence development into management training systems, corporate training, and corporate HR strategies to improve management efficiency and the business's financial stability.