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Companies need to cultivate an environment in which most workers can thrive and unleash their potential, and leaders play an integral role in their development. Discrepancies between the subjective reality of employees and the organizational climate can lead to a number of inadaptable behaviors, such as low frustration tolerance, diminished self-esteem and lost ability to manage stress, which are often part of the unmeasured costs of diminished worker performances. Job-related stress is estimated to cost only U.S. companies more than $300 billion a year in health costs, absenteeism and poor performance. Research suggests that emotional insight can play an active role in growing capacity and can drive positive organizational outcomes. Harvard Medical School psychologist and Founder of the Institute of Coaching at McLean Hospital Dr. Susan David argues that by expanding emotional capacity, we can achieve greater success. At an organizational level and in environments where leaders are reportedly more in tune with their emotions, demonstrate components of self-esteem and show an ability to relate in a conscious manner to others’ feelings, employees feel better heard of, cared for and organizations do significantly better in employee engagement scores holistically. How we feel at work is equally about us as it is about the demonstrated leadership behaviors and the culture in which it is deemed appropriate to feel that way. There is a deep interdependency there that is often overlooked. Emotional insight can be strengthened and developed by regular practice and through a cycle of reflection, which entails an acceptance of others’ thoughts, feelings and value of their persona; a defined and clear context and limits enforced in a fair, non-oppressive and negotiable manner; respect for dignity; established common standards for coaching; and role modeling the values cherished by the organization.

Read the full article on Forbes.com.