In today’s workplace, talent decisions have never carried greater weight. The pandemic reshaped how and where we work, while new generations of employees bring fresh expectations for collaboration, empathy, and purpose. Meanwhile, the automotive industry faces mounting pressure to innovate and adapt, prioritizing teams that can think critically, solve problems, and navigate change.
Yet, traditional talent evaluation methods often fail in the auto industry. Resumes can be embellished, and interviews are subjective and biased. Too often, the wrong hire slows down projects, damages team morale, and disrupts organizational success. In automotive retail, trust is critical for success. Frontline employees must be able to read customers to build trust. Not just in person, but also in remote communication. Hirers cannot assume a sales professional who lists record-breaking sales on their resume is also great at dealing with frustrated buyers. These traits do not always go hand-in-hand.
The stakes are high. The workforce of the future across the automotive industry demands a new approach, one that evaluates not just what job candidates and existing talent can do but how they will thrive. That’s where emotional intelligence comes in.
Importance of Emotional Intelligence
Many organizations say their top performers often leave a trail of trampled roses as they run through the garden leaving management to clean up a lot of their mess. When asked if they’d want to replicate that employee, the answer is a strong and frequent ‘No”. They much rather have an A-performer with high EQ who can contribute in a variety of ways to the organization.
The solution to these problems isn’t a new concept. Leaders in the automobile industry are increasingly acknowledging that emotional intelligence (EQ), also known as soft skills, must be considered alongside skills detailed on resumes. EQ includes empathy, self-awareness, and adaptability—all critical in managing the dynamic internal and external challenges common in high-contact industries.
In fact, research has shown that 85 percent of an employee’s success can be attributed to soft skills, while technical skills account for only 15 percent.
The High Cost of the Wrong Hire
Unfortunately, the automotive industry has become complacent about interviews as the gold standard for hiring decisions. Currently, 69 percent of companies admit their interview processes fail to produce quality hires consistently. Common pitfalls include presentation bias– favoring confident candidates who present well—and affinity bias–favoring candidates who look, sound, or think like themselves.
One automotive industry HR leader refers to this as the halo-horns effect. The first interaction with somebody, whether good or bad, will filter how you think about them in the future.
This is just one element that can lead to bad hiring decisions, costing $17,000 on average. In fact, 75 percent of employers say they’ve hired the wrong person for a position. According to an auto leader I met, the cost can be dramatically higher.
“Typically, it’s double the cost of the hire. If a poor hire was making $100,000 in salary, you’re paying $200,000 in lost wages, lost time, resources, and training,” the auto leader said.
Traits to Look For
As the automotive industry navigates these shifts, a new class of tools that combine AI and interactive videos can provide the foundation for embracing EQ-focused evaluation at scale.
Immersive simulations, which use a unique first-person view, immerse job candidates and existing talent in real-world business scenarios. Users are challenged to demonstrate empathy, adaptability, and problem-solving in action. AI delivers data-driven insights and advanced analytics that provide clear, objective measures of EQ, which is typically broken down into five core components:
- Self-awareness: Recognizing your emotions and understanding how they affect your actions
- Self-regulation: Managing emotions effectively, even in stressful or challenging situations
- Motivation: Demonstrating drive, commitment, and a positive attitude
- Empathy: Understanding and responding to the emotions of others
- Social skills: Building relationships, communicating effectively, and working well in teams
These traits aren’t just vibes. They’re foundational to workplace success. Employees lackingthese soft skills struggle to adapt to change, resolve conflicts, collaborate effectively, or lead empathetically. High-EQ employees, on the other hand, successfully navigate interpersonal challenges, engage with customers effectively, and are resilient under pressure. Organizations with this kind of leadership — leaders with intangible skills often referred to as the “X factor” or “it factor” that makes star performers — see a 15 percent higher profit margin.
More than just a hiring tool, these tools can support:
- Retention strategies: Ongoing EQ evaluations that help teams adapt to new challenges and maintain alignment with organizational goals
- Leadership development: Identification of high-potential employees with actionable insights for growth
By integrating EQ into every stage of talent management, organizations can build teams that are ready for the future.
