| The
Business Case for Emotional Intelligence
There are numerous case studies and research programmes across
many industries and cultures showing how Emotional Intelligence
contributes to the bottom line in organisations. We have selected
a range for information.
Whitbread
How EI impacts on performance?
Whitbread established a study to examine the extent
to which EI impacts on the performance of Beefeater General Managers
in the four key areas of:
- Team Turnover
- Team Satisfaction
- Guest satisfaction
- Profit Growth
The research base consisted of 161 managers using Reuven BarOn EQi
profiles.
The study found that restaurants run by managers with high EI
demonstrated:
- Greater Team Satisfaction
- Less Employee Turnover
- Increased Guest Satisfaction
- Higher Annual Profit Growth
The bottom line increase of these restaurants was found to be 34%
higher than the average restaurant in the sample.
A benchmark profile for the “Great Restaurant Manager”
was developed to identify the top 6 EI areas from the 15 used in
the EQi inventory.
This led to a programme of EI development for 250 managers and
250 deputies in the key areas.
Conclusion:
Key EI competencies can be identified and isolated. EI impacts
on:
- bottom line profitability
- team relationships
- staff retention
- client relationships
Reference: EI( UK )Ltd Emotional Intelligence Conference 2003
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How does EI impact on Morale and
Stress?
As part of Mark Slaski’s PhD studies, he explored the link
between stress and EI within Tesco Managers.
Tesco’s own internal staff surveys, covering 110,000 staff
showed that 36% of managers reported feeling stressed “all”
or “most” of the time compared to 25% of the whole workforce.
These stress levels were also increasing over time.
His first survey was of 228 managers.
The results showed that those with low EI ratings:
· Scored significantly higher on the indicators of poor
health and wellbeing.
· Their scores were twice as high on psychological distress
· They were seen by managers as having lower levels of performance
Further research
Slaski began a second study to test the effect of EI training.
60 managers were trained in EI for 4 days over 4 weeks. 6 months
after the training all the managers were assessed for their stress,
morale and quality of life ratings and compared to a control group
of 60 managers.
The combined results showed that:
The “trained” managers had increased their levels of
morale and quality of working life. The levels for the control group
had fallen.
Stress levels for the “trained” group had marginally
fallen but remained constant for the control group.
Conclusion:
- EI improves through training
- EI improves stress tolerance
- EI improves levels of morale
Reference: EI ( UK )Ltd EQi Accreditation Programme, Helpful Materials.
Top
US
Air Force Recruiters
How does EI impact on retention of
staff?
This case study, conducted between 1996—2000, became a landmark
study showing the benefits of EI on retention of staff.
There was a serious turnover problem amongst USAF Recruiters –
they were losing 100 out of every 400 recruited per year.
Richard Handley, Head of Recruiting Services, introduced a study
that compared the EI competencies of 476 successful recruiters (meeting
100% of their target) with 114 unsuccessful recruiters (meeting
30% or less of their target).
This research led to the development of an EQ Profile of a”
Successful Recruiter”. The top 5 EI areas were identified
and used in the recruitment process to screen new candidates.
A successful recruiter was strong in the following EI areas:
- Assertiveness
- Empathy
- Happiness
- Emotional Self awareness
- Problem solving
Over the next 4 years the results showed that:
There was a reduction of 92% in staff turnover. Only 8 left instead
of 100 in the previous year
This retention saved $2.7 million in training costs and associated
costs.
Conclusion:
- EI saves significant costs
- EI improves staff retention
- EI enhances recruitment success
Reference: EI ( UK ) EQi Accreditation Programme, Helpful Materials.
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American Express
How does EI impact on Sales and Management Performance?
Amex launched an experimental Emotional Competency training programme
in the company in 1992.
Case Study 1 – Sales performance
This looked at the sales performance of financial advisers, comparing
a training group and control group. These were compared before and
after the Emotional Competency training programme.
Results showed:
- The “trained” group increased their total sales
revenue by 10 % compared to the control group and by 16% across
the company
- A measure of optimism and coping skills demonstrated that the
“trained” group had improved their score by 13.5%
compared to 0.9% in the control group.
- The programme was so successful that it was incorporated as
a core programme for all new Financial Advisers.
Case Study 2 – Management performance
This study compared the performance of advisers working under
“trained” managers against those working for managers
who had not yet been trained.
Results showed:
- That advisors working under “trained” managers grew
their business by 18.1% compared to 16.2% for advisers working
with “untrained” managers.
Conclusion:
- EI improves performance and productivity
- EI improves management performance and team relationships
Reference: Consortium for Research on Emotional Intelligence in
Organisations
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L'Oreal
How does EI impact on Sales and Staff
turnover?
At L’Oreal sales agents selected on the basis of certain
emotional competencies significantly outsold salespeople selected
using the company’s old selection procedure. On an annual
basis, salespeople recruited on the basis of emotional competence
returned a $2,558,360 net revenue increase.
There was also a 63% reduction in staff turnover in the salespeople
selected on the basis on emotional competence.
Conclusion:
- EI improves performance and productivity
- EI improves staff retention
- EI improves recruitment success
Reference: Consortium for Research on Emotional Intelligence in
Organisations
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