Emotional Intelligence and Leadership: Non-profits vs. For-profits

There has been a lot of discussion about the links between Emotional Intelligence and leadership. In a new twist on a familiar theme, Michelle Morehouse at the Amherst H. Wilder Foundation in Saint Paul Minnesota decided to compare non-profit leaders with those of for-profit companies. The non-profits included Executive Directors and Senior Managers in health and social service agencies, while the for-profits included Executive Directors and Senior Managers from various business organizations.

Morehouse’s sample included 64 participants from the State of Alaska: 32 non-profit leaders and 32 for-profit leaders. All participants completed both demographic surveys and the Emotional Quotient Inventory (EQ-i^®). These tests revealed some interesting disparities on the demographics of these two groups. First, the non-profit group had a higher percentage of female leaders; second, non-profit leaders also had a higher level of education.

With regards to Emotional Intelligence, the non-profit leaders scored significantly higher than the for-profit leaders on their total EI score, as well as on two of the five factors: stress management and adaptability. Of course, like any good study, this one raises questions as well as providing some answers. For example, do individuals with higher EI gravitate towards the non-profit sector? Or is there a culture in non-profits that is more amenable to encouraging leaders to develop EI?

Morehouse discusses a number of possibilities for the findings. She supports the idea that people’s career choices may be influenced by their overall EI—meaning that people with high EI may lean towards jobs in areas such as social work, psychology, teaching, or human resources.

Regarding the importance of stress management, leaders in these non-profit organizations face workplace stresses equal to those faced by their for-profit counterparts. Leaders of non-profit agencies may be responsible for overseeing the care delivered to hundreds of people—people who are usually in vulnerable life situations. Also, non-profit leaders often have to deal with fiscal uncertainty due to the cyclical, bureaucratic nature of the grant process that their budgets rely on, as well as the service reimbursements they receive through government-related programs.

The non-profit leaders may be forced to be more adaptable as a result of overseeing service delivery to countless people with life situations in turmoil. They are required to grasp and quickly respond to problems and issues with significant consequences, while using a problem-solving modality to achieve some level of satisfaction and closure.

By looking at different types of leaders in a variety of situations we learn more about what effective leadership is about. Some factors may be specific to the context and other factors may work for leaders across situations. Studies like this help us get a better grasp of leadership across situations.

Reference:
Morehouse, Michelle, M. (2007) An exploration of Emotional Intelligence across career arenas. Leadership & Organizational Development Journal, 28 (4), 296-307.