The Importance of Emotional Intelligence in Business
Posted Jul 23rd, 2015 by Expedite | 0 comments
Success of an organisation is inevitably connected to the efficiency of its workforce; and contrary to popular belief, intelligence and competency are not the only factors that predict success. According to studies in the field of Emotional Intelligence, EI is the single best predictor of performance in the workplace and one of the strongest drivers of leadership and excellence.
To develop solid, trusting relationships in your business arena, it is essential to increase your effective use of Emotional Intelligence. We often underestimate the importance of feelings and emotional processes in a workplace. Nevertheless, it’s essential to remember that your professional relationship with clients is largely influenced by your overall emotional state and your awareness of it.
Internal relations within a company – the ones you have with colleagues and team members are equally important. Experts in the field of EI suggest that the quality of these relationships determine an organisation’s business success. If you are in tune with your own emotions, it is much more likely that you will be able to understand and empathise with the emotions that impact the attitudes and behaviors of others.
Emotional Intelligence Research
"People join companies and leave managers," Marcus Buckingham, senior managing consultant at Gallup -Global performance-management consulting company.
Research indicates that Emotional intelligence (EI) in the leadership of an organisation directly affects the retention of quality employees and overall productivity. Daniel Feldman, president of Leadership Performance Solutions and author of The Handbook of Emotionally Intelligent Leadership, explains: "Research suggests that effective leaders use their personal power to influence others, as much as their position power. Position power is based on the authority from the formal position that one holds. Personal power is based upon one’s relationship with others. Personal power is built through the use of the skills of emotional intelligence."
A study by Gallup Organisation reveals that most workers rate having a caring boss even higher than money or fringe benefits. In interviews with two million employees at 700 companies, Gallup found that the length of time employees stay at companies and their level of productivity are directly related to the relationship they have with their immediate supervisor.
Clearly EI has a significant impact on an organisation’s productivity. How many people do you know who are academically brilliant but have not managed to succeed professionally, despite having opportunities handed to them? Have you ever come across an employee who excels at the skill set required, but has difficulty communicating or listening to his team members? Often, the answer is linked to Emotional Intelligence.
Interesting facts about the EI-business Connection
- A study of over 40 Fortune 500 companies revealed that sales people with high Emotional Intelligence outperformed those with medium to low EI by 50%.
- Technical programmers who were measured in the top 10% of the Emotional Intelligence competencies were creating new software three times faster than those with lower measurements.
- Companies who do a better job of communicating with their employees outperform those who do not, financially. On average a company with an exceptional communications program delivered a 47% greater return to shareholders than the least communicative firms.
- According to JCA Global, an 18% improvement in productivity for senior managers, resulting from emotional intelligence training, would lead to 150% increase in pre-tax profits.
- A series of studies found that that approximately 30% of occupational performance is based on EI.
Expedite Consulting hosted the Strategic HR Taskforce meeting last week, with the aim to challenge your take on Emotional Intelligence and how it applies to HR and beyond. This networking lunch was an opportunity to share your EI stories and take away ideas to build stronger more successful HR teams. Please find details here: http://bit.ly/1IXLfWh