Project timelines stretch. Client relationships strain. Communication breaks down. If this sounds familiar, emotional intelligence — or a lack of it — could be the reason.

A new survey from Lumenalta found that 40% of IT leaders say low emotional intelligence (EQ) is at the root of workplace challenges. And in an industry defined by deadlines, innovation, and high-stakes collaboration, the cost of overlooking EQ can be more than a bruised ego — it can tank a project.

For Arizona’s fast-growing tech, construction, finance, and healthcare sectors — all increasingly reliant on digital systems and distributed teams — these findings are a wake-up call. Soft skills are no longer optional. They’re infrastructure.

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What Exactly Is EQ?

Emotional intelligence is the ability to recognize, manage, and express your emotions while navigating the emotions of others. It shows up in feedback conversations, team meetings, conflict resolution, and even how we present ideas to clients.

When EQ is high, teams move with trust and clarity. When it’s low, even the best-laid plans unravel.

How Low EQ Plays Out on Tech Teams

According to the Lumenalta whitepaper, one IT manager shared how poor communication and infighting caused their team to miss critical updates — delays that eventually killed a major deal. Another cited a team that, while technically proficient, lacked the emotional skills to accept feedback or pivot. The result? Outsourcing, budget overruns, and client frustration.

These aren’t isolated stories. They’re red flags.

When EQ is missing, here’s what often follows:

  • Missed handoffs and breakdowns in cross-functional work
  • Inappropriate reactions to feedback or roadblocks
  • Escalated conflict between team members
  • Poor client communication that erodes trust

And for companies juggling multiple priorities — say, a tight construction schedule or the rollout of a new digital platform — those misfires cost real time and money.

The Arizona Context

With Arizona’s booming tech corridor and expanding business hubs in Phoenix, Tucson, and beyond, companies are rapidly scaling teams, often across time zones and cultures. This makes communication and interpersonal awareness even more critical.

But EQ hasn’t always kept pace with growth. In fact, 40% of leaders in the Lumenalta study said remote work makes EQ harder to practice — not impossible, but more complex. Direct Slack messages, delayed responses, and lack of nonverbal cues can all make even small misunderstandings feel larger.

EQ Is More Than Just Being Nice

It’s easy to conflate emotional intelligence with being agreeable. But EQ is about effectiveness, not just kindness. Can your team express concerns without escalation? Can a project lead take feedback from a client and relay it to the team without throwing anyone under the bus? Can a junior developer ask for help without fearing backlash?

These moments define how a team works together — and how clients perceive your business.

In fact, 87% of IT leaders said EQ directly improves client satisfaction. That’s a statistic worth noting for firms focused on reputation, retention, and recurring business.

What Businesses Can Do About It

The good news? EQ can be trained. And it doesn’t require massive investment.

Lumenalta, for example, integrates regular coaching into their developer workflow. Through quarterly sessions, employees reflect on team dynamics, recognize their emotional blind spots, and develop strategies for clearer communication. One developer realized their tendency to overthink was creating unnecessary friction. That insight transformed how they collaborated and gave feedback.

For companies looking to follow suit, even simple steps can help:

  • Incorporate soft-skill questions in interviews.
  • Train managers on how to give — and receive — feedback.
  • Create space for informal check-ins, not just status updates.
  • Encourage recognition of emotional wins, not just technical ones.

EQ Is a Risk Management Strategy

For industries like construction or IT services — where one delayed decision can ripple across vendors, budgets, and customers — strong EQ isn’t a luxury. It’s protection.

Lumenalta’s report found that 58% of IT leaders blame strict deadlines for deprioritizing EQ. But ironically, when EQ is sidelined, those deadlines often get harder to meet.

Projects move faster when teams feel safe, respected, and aligned. Clients stick around longer when communication is clear, empathetic, and proactive. And innovation flows more freely when people trust each other enough to share imperfect ideas.

Final Word

Whether you’re building software, managing infrastructure, or leading a cross-functional team, the takeaway is simple: ignore emotional intelligence at your own risk.

EQ is no longer the soft skill we once thought it was. It’s the system that keeps your projects — and your people — running smoothly.