Part 3 of 3
Why It Matters More than Personality.
Previously we outlined and defined the five key Emotional Intelligence competencies that have been correlated to workplace success. Now we will summarize several workplace studies to show the positive impact it has had on the bottom line.
Emotional Intelligence’s Impact on the Bottom Line
To date, many companies have focused their selection criteria and training programs on hard skills (e.g., technical expertise, industry knowledge, education) and the assessment of personality traits. Topics including competencies like stress management, assertiveness skills, empathy, and political/social acumen were never measured in the selection process or focused on in training and development programs. In reality, these are critical success factors that should not be dismissed, and have a direct impact on the bottom line.
For example, the Hay Group states one study of 44 Fortune 500 companies found that salespeople with high EQ produced twice the revenue of those with average or below average scores. In another study, technical programmers demonstrating the top 10 percent of emotional intelligence competency were developing software three times faster than those with lower competency.
Additional research unearthed the following success stories. A Fortune 500 company in financial services proved that their high EQ salespeople produced 18 percent more than the lower EQ salespeople. One recent study conducted by a Dallas corporation measured that the productivity difference between their low scoring emotional intelligence employees and their high scoring emotional intelligence employees was 20 times. A Texas-based Fortune 500 Company had utilized personality assessments for candidate selection for years with little results in reducing turnover in their high turnover sales force. After turning to an emotional intelligence-based selection assessment and EQ training and development program, they increased retention by 67 percent in the first year, which they calculated added $32 million to their bottom line in reduced turnover costs and increased sales revenues. A large metropolitan hospital reduced their critical care nursing turnover from 65 percent to 15 percent within 18 months of implementing an emotional intelligence screening assessment. A community bank that reduced staff by 30 percent due to the sluggish economy assessed the remaining workforce for their emotional intelligence competencies, placed them in the right role for those competencies, and the bank is now producing more with less people.
Lastly, through a series of recent studies conducted by ZERORISK HR, Inc., a correlation was found among low emotional intelligence and theft and shrinkage. One other study in the construction industry yielded results showing workers with low emotional intelligence had a higher likelihood of getting injured while on the job.
All of these cases are starting to prove the value of having highly emotionally intelligent employees make up your workforce if you want a competitive advantage in this highly competitive business world.
Mike Poskey is vice president of ZERORISK HR, Inc., a Dallas-based human resources risk management consulting firm specializing in the identification and retention of Top Talent. For more information, visit www.ZERORISKHR.com or call Mike at 800-827-5991 x 347.