hen it comes to finance leadership, technical expertise and strategic thinking have always been essential. But in today’s fast-changing business environment, one skill is quietly becoming just as critical: emotional intelligence (EI).

In 2025, Canadian finance leaders are expected not only to deliver accurate reporting and sound strategy, but also to inspire teams, manage change, and influence stakeholders. Emotional intelligence is what enables them to do all three — making it the secret skill that sets apart great leaders from good ones.

What Is Emotional Intelligence?

Emotional intelligence is the ability to recognise, understand, and manage emotions — both your own and those of others. Psychologist Daniel Goleman breaks it into five key areas:

• Self-awareness – Knowing how your emotions affect your thoughts and actions.
• Self-regulation – Staying calm and in control under pressure.
• Motivation – Maintaining focus and resilience, even when challenges arise.
• Empathy – Understanding and relating to the perspectives of others.
• Social skills – Building strong relationships and leading effectively.

Why Finance Leaders Need Emotional Intelligence

1. Leading Through Uncertainty

Finance teams are often at the centre of organisational change — from budget shifts to mergers and acquisitions. Leaders with high EI can communicate with empathy, reduce anxiety, and keep morale steady when the future feels uncertain.

2. Building High-Performing Teams

Numbers don’t work without people. Leaders with emotional intelligence know how to recognise stress, prevent burnout, and create an environment where their teams thrive.

According to the ADP Canada Happiness@Work Index (2025), 51% of Canadian workers cite work-life balance as a top priority, yet nearly one-third report experiencing burnout. Leaders who can spot the warning signs and support their teams stand out in today’s competitive market.

3. Strengthening Stakeholder Relationships

Finance leaders often present to boards, manage investor relations, and work cross-functionally with other departments. Emotional intelligence enables them to adapt their communication, foster trust, and influence outcomes more effectively.

4. Making Better Decisions

Finance is data-driven, but decisions always involve people. Leaders with strong EI can balance hard numbers with human context  ensuring strategies are practical, sustainable, and aligned with both business and employee needs.

How to Develop Emotional Intelligence as a Finance Leader

The best part? EI can be learned and strengthened over time. Here’s how:

• Seek regular feedback from peers and team members.
• Practise active listening — focus on understanding before responding.
• Reflect on your reactions to challenging situations.
• Invest in leadership training that incorporates EI coaching.
• Model openness and empathy to encourage a culture of trust.

Bottom Line

In a world where automation and AI handle more of the technical work, emotional intelligence is the distinctly human skill that will define tomorrow’s finance leaders.

Technical skills may open the door  but emotional intelligence is what keeps leaders at the table.

If you’re a finance professional in Canada looking to grow into leadership, it’s time to put EI at the top of your development list.