Emotional Intelligence – Does it impact Bottom line ?
Business Case FOR Emotional Intelligence
Following research findings by Dr Cary Cherniss clearly implies “employing emotionally intelligent staff and/or training teams in emotionally intelligent competencies” directly impact profitability of Organisations.
- L’Oreal found that those staff who tested strongly in emotional competence experienced 100% higher sales than average (Hay/McBer Research and Innovation Group 1997)
- When AT&T’s Bell Labs undertook Emotional Intelligence training over a seven year period research showed that participants experience :
- 10% increase in productivity immediately following the program,
- 20% increase after 6 months
- 25% increase in the first year.
- At an American insurance company, agents who tested strong in 5 of 8 key emotional competencies, sold twice as much insurance as those who tested average
- $114,000 per annum versus $54,000 per annum
(Hay/McBer Research and Innovation Group 1997)
- Sales people at Metlife who rated highly in the emotional competence of ‘learned optimism’ sold 37% more life insurance in first two years (Seligman 1990)
- At a national consulting firm, the partners who scored above the median multiple emotional competencies delivered 139% more profit than the average - at a value of $1.2million (Boyatzis, 1999)
- In an article published by Harvard Business Review ‘How Bell Labs Creates Star Performers’ managers who undertook the training doubled their productivity against the control group.
Reference: Dr Cary Cherniss, prepared for Emotional Intelligence in Organizations
