We frequently discuss the positive impacts of EI on leadership, but we rarely confront its darker side. When leaders don’t regulate their emotions, the effects extend far beyond individual performance, creating what I call the “emotional contagion effect”. In my opinion, it is the most unnoticed and unaddressed leadership crisis in today’s workplace culture.
The Neurological Chain Reaction
There’s a biological reality that makes emotional irregularity so dangerous. Emotions spread from person to person. Research from the Yale Centre for Emotional Intelligence found that employees are 53% more likely to mirror their leader’s emotional state than those of their peers. We’re wired to catch feelings like we catch colds.
The Organisational Ripple Effect
When leaders don’t regulate their emotions, and consider it a norm, the result is cascading organisational costs that keep increasing in impact:
- Lower Decision Quality
Decision quality is the first and foremost victim. Under emotional strain, the pre-frontal cortex responsible for complex reasoning becomes less active. McKinsey research indicates that teams experiencing chronic stress make decisions with 31% less analytical rigour than their counterparts.
- More Stress and Anxiety
The psychological safety of teams is the next victim. When leaders exhibit unpredictable responses, team members become risk-averse. They withhold feedback and creative ideas. According to Deloitte’s workplace trust index, 67% of employees under volatile leaders report withholding important information from senior management.
- No Innovation
Innovation stagnates as a direct consequence of the above. The creative risk-taking of the teams drops to an all-time low as they hesitate to share contradicting or breakthrough ideas. They usually need emotional security to think outside the box. What could’ve been your organisation’s next market-changing idea remains hidden.
- Toxic Culture
The overall culture of the organisation deteriorates too. What begins as an individual’s dysregulation gradually turns into a toxic workplace norm. Team members either adopt similar behaviour or leave if they have better choices. If the practice continues for months, the bottom line of a company suffers greatly as a result.
- Poor Customer Experience
Customer experience suffers greatly too. Perhaps most concerning is how internal dynamics leak into customer interactions. Teams develop defensive communication styles that focus more on self-protection over authentic customer connection. And customers rarely identify the root cause – they simply sense something is “off” and quietly take their business elsewhere.
The Bottom Line
Successful leaders know that managing emotions isn’t about suppressing authentic feelings. It’s choosing how and when to express them.
We at Isabella Shedrack Consulting help leaders develop personalised regulation strategies for their unique triggers. We offer one-to-one and group coaching programmes where leaders learn how to recognise emotional contagion patterns in themselves – and within their teams. You’re more than welcome to reach out to us if you want to navigate high-stakes situations confidently.
