A company’s authentic leadership resonance creates the strongest revenue and profit results. Studies have shown for every 1% increase in service climate that a resonant leader or group inspires there is a 2% increase in revenue. Conversely we have all experienced, or are experiencing the results of dissonant leadership. Individuals and groups whose emotional intelligence is so low they are oblivious to the path of destruction and poor results their actions are creating. Far from engaging hearts and minds, the negative energy and confusion these leaders foster produces employee disengagement and burn out. Revenue and profitability worsen as the inevitable result.
Imagine the following: You are the VP of Human Resources and you’ve just hired what you believe is the most qualified applicant for a particular project management team role. Next, see yourself three months later. You are terminating this same person’s employment contract. This person is also the third candidate in the past two years whom you have had to let go in a similar fashion.
The above story is sad, but true. It is also expensive.
I remember recently sitting with the VP of Human Resources in a large organization. She asked, “Why is it that we keep hiring these bright, technically-driven people, who, on their résumés, have all the right stuff, and then shortly after, we have to let them go?”. When I asked her why that series of events was happening, she replied, “They’re lacking some of the key fundamentals like respect, courtesy, treating others with dignity, willingness to return e-mail and phone calls, and, above all, they often have a disturbing sense of arrogance.”
What this VP of HR was talking about was EQ (emotional quotient, emotional intelligence) -or, in the case with her employees — undeveloped emotional and coping skills. The “hard stuff” was in place; the “soft stuff” was wreaking havoc. In the new workplace, the soft stuff (relationships), is the new currency. In addition to commonsense on the issue there is significant evidence based correlation between the strength of one’s EQ, one’s job performance AND one’s engagement.
Summary: for companies serious about recruiting, selecting, hiring, harnessing, and growing their human capital it is absolutely essential that the “soft skills” (EQ) be identified, tested, and integrated. With a well-developed EQ workforce, plus the right technical and intellectual skill sets, there are tremendous financial rewards.
Trevor B. Lee, EP International
We provide C-suite services in the field of talent acquisition, development and retention.