Why is Emotional Intelligence Important in the Workplace?
In this age of artificial intelligence, social media, remote work, and an increasingly digitized society, we are seemingly moving further and further away from the fundamentals of humanity. We have never had more ways to connect, yet in the wake of this shift, social and emotional intelligence (EI or EQ), or “soft skills,” have declined, causing significant workforce issues such as disconnects in communication, poor decision-making, and lack of employee engagement and satisfaction. Now more than ever, EI is a valuable and highly sought-after skill in the workplace, especially in leadership. To better understand the benefits and need for EI in today’s workplace, we will define it and its contextual application in the workplace, evaluate its influence on the workforce, and explore resources and strategies for leaders and employees to improve EI in their organizations. What is Emotional Intelligence? According to psychologists and leading researchers Peter Salovey and John D. Mayer, emotional intelligence is the ability to recognize and understand emotions in oneself and others. EI comprises five distinct components: self-awareness, self-regulation, internal motivation, empathy, and social skills. In the 1990s, emotional intelligence was initially established as a psychological construct and gained momentum with Daniel Goleman’s 1995 publication “Emotional Intelligence: Why It Can Matter More Than IQ.” Goleman, an EI expert, argues that while traditional intelligence is essential, emotional competencies are a critical factor in the workplace, ultimately impacting leadership ability, stress management, employee performance, and interpersonal functioning— “The interest in emotional intelligence in the workplace stems from the widespread recognition that these abilities – self-awareness, self-management, empathy, and social skill – separate the most successful workers and leaders from the average. This is especially true in roles like the professions and higher-level executives, where everyone is about as smart as everyone else, and how people manage themselves and their relationships gives the best an edge.” (Goleman, 2012). According to a recent study published in the Journal of Applied Psychology, seven key traits deem someone as emotionally intelligent: Emotional stability (greater ability to manage their own emotions and tolerate stress) Conscientiousness (tendency to be diligent, hardworking, and control impulses) Extraversion (a personality trait that makes people more open and better at establishing relationships with others) Ability EI (individuals’ ability to perform emotion-related behaviors, like expressing emotions, empathizing with others, and combining emotion with reasoning) Cognitive ability (IQ; studies suggest there is at least some overlap between IQ and EQ) General self-efficacy (confidence in the ability to cope with the demands of our job) Self-rated job performance (Bailey, 2015). It may seem obvious how these competencies positively influence the workplace, but understanding the how and why of EI implementation is imperative for your future hiring and employee engagement. The Benefits of EI to Your Organization While there are many areas that emotional intelligence benefits the workplace, two are of vital consideration: job satisfaction and job performance. Not only is higher job satisfaction linked to employees with strong EI, but also to those whom leaders with high EI manage. Many studies have shown a negative correlation between EI and burnout and a positive correlation between EI and internal job satisfaction. In addition to employee happiness, job performance is positively impacted by high EI levels, displayed through increased performance metrics, a boost in employee productivity, and improved evaluations from management. However, how exactly does emotional intelligence influence job performance and benefit businesses? In the hospitality sector, EI is considered extremely important, and according to an article in Elite World Hotels, they have identified five significant advantages of EI in the workplace that can be applied to any industry: Motivation – High EI/EQ translates to better control of our motivation and perhaps even more motivation for our coworkers. Common Vision – Those high in EI/EQ can more effectively understand and communicate with others, making it easier to develop and maintain a shared team vision. Change – Highly emotionally intelligent people can handle the stress, uncertainty, and anxiety that come with working in business. Communication – Clear communication is a telltale sign of emotional intelligence, and it contributes to better relationships, an easier time getting help from others, and more effective persuasion and influence of others. Leadership – Self-leadership, leading others, and influencing others— all of these are vital for those in business. (Elite World Hotels, 2018) Therefore, a lack of emotional intelligence in the workplace can negatively impact a company’s communication, decision-making, and organization. Moreover, much like standard workplace metrics, emotional intelligence can be assessed and measured in the workplace. Strategies and Resources There are many reliable and valid measures of EI available, two of the most credible being the Multidimensional Emotional Intelligence Assessment – Workplace (MEIA-W) and the Work Group Emotional Intelligence Profile (WEIP). The MEIA-W measure provides a personality-based measure of EI through 144 short items that are intended to measure ten distinct facets of emotional intelligence: recognition of emotion in the self, regulation of emotion in the self, recognition of emotion in others, regulation of emotion in others, nonverbal emotional expression, empathy, intuition versus reason, creative thinking, mood redirected attention, and motiving emotions and takes about 20 minutes to complete. The WEIP is a self-report measure consisting of 30 points rated from 1 (strongly disagree) to 7 (strongly agree) between two scales determining the ability to deal with one’s own emotions and the ability to deal with others’ emotions. Utilizing these two resources is essential in beginning the process of measuring EI in an organization. From there, leaders can further train their employees on EI and how to teach it to their staff and themselves. A helpful guide created by EI experts (Cherniss et al., 1998) details four phases to use when implementing emotional intelligence training in your organization: Phase One: Preparation Assessing the organization’s needs Assessing personal strengths and limitations Providing feedback with care Maximizing learner choice Encouraging participation, not requiring it Linking learning goals to personal values Adjusting expectations Gauging readiness. Phase Two: Training Fostering a positive relationship between the trainer
The Importance of Thank You Notes
Our client had told us that the candidate had hit it out of the park during her interview – she checked off all the boxes, save one. Unfortunately, they did not receive a post-interview thank-you note (via email), so they went with another candidate. The other candidate had similar qualifications, although slightly less stellar in the interview. However, he had taken the time to send a thank-you email to express his interest in the position, the projects they were working on going forward, and how he could contribute. Our client was direct and to the point – “No thank you note – no offer.” A missed opportunity. In 2019, Jessica Liebman, the Executive Managing Editor of Insider Inc., stated in a Business Insider article that she has a simple rule when she is hiring. “We shouldn’t move a candidate to the next stage in the interview process unless they send a thank-you email.” Liebman went on to state that bringing someone into your company is always risky. However, a thank you email (not snail mail – too slow) signals a candidate’s motivation and desire for the position and generally means they’re a “good egg.” There are only so many data points one can collect in an interview, she reasoned, that sometimes the thank-you note will make the difference in the selection of candidates. Our client obviously agrees. She further clarified and stated, “To be clear, a thank-you note does not ensure someone will be a successful hire. But using the thank-you email as a barrier to entry has proved beneficial, at least at my company.” So, it makes sense, right? Not necessarily. Unfortunately, back in 2019, and it continues today, social media went into hyperdrive to cancel her and her statements. Other hiring managers, reputable organizations (SHRM and LinkedIn), and publications joined the fray, with several siding in large part with those who disagreed. Liebman followed up with another article humorously titled, “Thank you for reading my story about thank-you notes!” to clarify what she meant a few days later. Many people were seemingly offended that anyone would actually “require” sending a thank-you note after an interview. She went on to explain she was trying to be helpful and shed some light and that, “The biggest factors we consider are a candidate’s talent and fit for the role.” It was a “rule of thumb” and not official company policy. What are the disagreements with Liebman’s piece on sending thank you notes that continue today? Any online search regarding the necessity of thank you notes after the interview will bring up a lot of articles and pundits that say they are not necessary. For example, thank you notes are antiquated and pointless [apparently not to her and the many hiring managers and business leaders we talk to regularly at BEST]. Thank-you notes are to stroke the ego of the interviewer. Seriously? A thank-you note? The application and job description said nothing about sending a thank you. Liebman’s response was priceless on this point, “Neither is being on time to the interview.” Our favorite? Expecting a thank-you note is elitist and shows discrimination and bias because many people have never been taught this skill. Diversity, Equity, and Inclusion (DEI) are critical to any organization today. Different perspectives can lead to increased creativity, innovation, productivity, better decision-making, and a better work environment and culture, among many other benefits. Since 2019, we have been through a pandemic and social justice movement that has brought DEI to the forefront in hiring. However, we have never seen it be used as an excuse not to be courteous and to send a thank you. Laziness would be a better excuse. After all, especially in a customer-facing role, would you want anyone on your team that doesn’t know how to say thank you? But it’s a candidate’s market – you see the news – there are more jobs than people to fill them. So they [the interviewer] should be sending the candidate a thank you. We can concede this point to a degree in that all companies need to do a better job notifying candidates and letting them know why they did not get the position. Point well taken, and it is also something we strive for at BEST. A lot of the consternation on this could be the culturally questioning and upending times we live in – where being contrary on social media is expected and merely aiming for “likes” and that all-important re-share. However, at BEST, we can only speak to our own experience working with clients and candidates and heartily thank those who disagree (because it is indeed helpful). As business leaders, hiring managers, and recruiters, it is often about overcoming buyer’s remorse. When a hiring manager or company leader is getting ready to make a hiring decision, they are looking for those elements, however small, that can put a candidate over the edge and calm their fears about making a bad hire. For example, our client mentioned that they liked the candidate, but she had not sent a thank you. To the client, it was a reasonable expectation – another box to check. By sending a thank you note, the other candidate checked that box and received the offer instead. For the candidates we work with, our resources stress the importance of the thank-you email. A candidate should always ask for the interviewer’s email address during the interview (whether on the phone or in person). Rarely, if ever, has it been questioned. After all, it is another opportunity to sell yourself to the prospective company. It doesn’t have to be a long note – say thank you, say that you want the position, and use it also to state why you are the best fit for the role (one or two reasons you are the best candidate for the job or maybe there was something you missed during the interview) and that you would welcome further discussion. Then, send it within 24-hours while you are still fresh in the interviewer’s mind. Is that so hard? As the “Great Resignation” continues, there
Starting A Great Retention
Strategies for Keeping and Attracting the Best and Brightest Talent Vast numbers of employees reporting burnout and wishing to leave, record-level quit rates, and millions of unfilled positions have led to concerning new terms, such as “The Great Resignation” or “The Great Reshuffle” and for Baby Boomer employees who’ve had enough – “The Great Retirement.” However, for most business leaders, it is becoming a “Great Headache.” We live in a time of “greats,” and they are generally not too good. In addition, we see firsthand high levels of career unhappiness across multiple generations. So, as employees continue to leave in record numbers and leaders worry about keeping their best and brightest while bringing others on board to fill gaps and continue their growth, how do we begin to get a handle on this and start a “Great Retention”? Of course, the pandemic is often seen as the root cause. After all, entire industries and labor pools have been affected (i.e., travel and hospitality), and some are seemingly changed forever due to the last 18 months. However, many of these challenges were already underway well before the pandemic – skills shortages, “war for talent,” record low unemployment, demographic shifts, generational attitudes concerning work, technology, and more. The pandemic has simply accelerated many of these changes. As business leaders, how do we move our own companies from a “Great Resignation” to a “Great Retention”? How do we change from the reactive mindset of the last 18 months to a more proactive approach designed to not only attract great candidates but to keep your best and brightest employees from seeking greener pastures elsewhere? In our discussions with clients and candidates, there are three “Cs” to pay attention to in the ever-changing employment landscape: culture, communication, and capital (the human form). Spoiler alert – although important, “Compensation” is not one of them. Your Culture When talking with candidates, we typically ask what is prompting them to seek a new opportunity? Far and away, the number one answer is culture. They report no empathy, understanding, work/life balance, and how their company handled the challenges of the pandemic has them looking to leave. In fact, according to a recent PI People Management Report, nearly 50% of employees are considering striking out for something new. Moreover, this trend is primarily driven by those earlier in their careers – 49% of millennials and 56% of Gen Zers are looking to leave their current positions. As we dig further into cultural challenges, we find a significant disconnect between company leaders and their employees in perceptions versus reality. For example, research from Human Resource Executive finds that 84% of CEOs believe empathetic organizations get stronger business results. On the flip side: 83% of employees would consider leaving their job to join a more empathetic employer. A case in point, we spoke to a candidate recently who was deeply insulted by his company leadership. He stated that the company went to a hybrid work schedule, usually a positive. “However, when they presented the plan, it was office days on Mondays-Wednesdays-Fridays because the boss said he didn’t want anyone taking 4-day weekends. They don’t get it – we have been working harder than ever, the company’s growth has been exploding, and he flat out accused us of being lazy. I’m burning out, working more overtime and weekends than ever, and more than a few of my team said, ‘I’m outta here.’ It is never enough.” Sadly – a true disconnect and a wasted motivational opportunity. Since the pandemic started, people who work from home across all generations are logging an average of two more hours of work per day. According to a recent Finery Report survey, 83% report working overtime was the norm, and 70% regularly work on the weekends. Pandemic burnout, resetting priorities, and a need for work-life balance are real. However, it also creates opportunities for companies with cultures that better address it through more flexible work schedules and letting employees have choices, setting clear work-life boundaries (fostering the need for a life outside of work), and increasing support. According to the Adobe survey, 78% of millennials and 74% of Gen Zers would switch jobs for a better work-life balance, even if offered the same compensation. Communication: Talk or They’ll Walk Working from home and hybrid work arrangements, while showing increased productivity, also make the employee feel less seen, heard, and valued. Our strategic partner, 15Five, a leader in employee engagement and management software, has just released their 2020 Workplace Report, and while there is no quick fix, a solution is emerging – frequent one-on-one meetings. When managers regularly communicate through ongoing one-on-one meetings, especially in WFH and hybrid environments, they increase their effectiveness as managers and their teams and company overall. The results are staggering: 82% of employees with weekly one-on-ones say they’re getting the support they need during the pandemic from their managers. 78% of employees state that weekly one-on-ones provide the necessary feedback they need to improve performance. 71% express more trust in their leaders, 72% feel more comfortable bringing up issues, and 73% are more motivated to go above and beyond in their role. Importantly, 1.4x are more likely to say they are currently looking for a new job with monthly or less frequent one-on-ones instead of weekly. Regular communication helps bridge the gap. Consider the outside pressures your employees have been under the last (18) months. It is no wonder that “burnout” is often cited as the reason for leaving a company or manager – they are losing the feeling of connectedness to their manager, team, and company. Staying up to date with an employee through weekly meetings helps managers understand how their people handle their work and where they need more support and guidance. The message– Talk, or they will walk. Communicate with your people frequently and one-on-one. Human Capital Investment Another casualty of the last 18 months has been learning and development (L&D) programs – only 29% of organizations have clear development plans for their employees. In
The Missing Employees
Are you missing employees? Where did they go? I just got off the phone with a restaurant owner who temporarily closed one of his locations so that he could redistribute the staff to the other three. I’ve also heard or seen in the last week: A Starbucks closing at 4:00 PM for lack of staff. A director in a large accounting firm reporting that two pay raises in 9 months (for remote employees) are being characterized by the 30-something accountants as “non-competitive.” Apple employees publishing an internal letter saying the company’s plan to require 3 days a week attendance is “unacceptable.” A wire service story noting that only 12% of office workers in Manhattan have returned to their offices. The manager of a new restaurant scheduling 27 interviews, then sitting through 26 no-shows. Wait times for services businesses that are are unworkable for customers. Our tree trimmer offered me a date 4 months out. The pool contractor’s backlog is seven months. Both claimed insufficient crews to handle the business. I talk to at least a dozen employers a week, and all are complaining about the lack of qualified applicants. Several have raised their starting wage rates multiple times, with no discernable change in the flow of applicants. What the hell is going on? To start, I don’t believe that it’s all the fault of supplementary unemployment benefits. It is true that the states which discontinued the supplements have somewhat lower unemployment rates, and that $300 a week is enough to entice a $10/hour employee, but the missing employees are across the wage range. Factors Driving the Shortage and Wageflation One fact is that the economic rebound since 2009 has not previously had much impact on wages. They were bound to catch up at some point. The Federal Minimum Wage of $7.25 an hour is now insufficient to pay for basic apartment rent anywhere in the USA. Supplementary benefits or not, no one wants to put in 40 hours a week and not be able to live on what they earn. Another is the absorption of women into the workforce. For much of the ’80s and ’90s, women working for the first time represented a net addition to the number of available workers. This had a depressing effect on wages, as there were more bodies chasing limited jobs. The employment market has adjusted to this new normal. Remote working has frayed the cultural relationship between employers and employees. Where workers often stayed in a job because they had friends there, or were comfortable with their responsibilities, now salary is rapidly becoming the only factor they consider. The inflationary pressures of deficit spending are shrinking the buying power of static paychecks. The lessening of COVID-19 is releasing a backlog of employees who “wanted to move anyway,” but were hanging on to what security they had through the pandemic. Most importantly, over 50% of the Baby Boomers are now over 65 years old. Generation X is much smaller, so these retirements impact mid-level employees and managers the most. The available pool of experienced people is literally shrinking. Missing Employees and Exit Planning If you are one of the Baby Boomers who are now 21% of the population but still own 51% of the private companies in the U.S., missing employees will impact you in more ways than just on your daily workload. Increased labor costs will have a direct impact on profitability, and therefore valuations. The challenge of retaining employees long enough to develop true proficiency is growing. Higher turnover means you’ll need more people for the same tasks. The long-term commitment of a relationship where someone is in training to assume control of the business becomes in many cases, unimaginable to an employee. Lack of experience in a management team also detracts from enterprise value. In businesses that depend on repeat customers, relationships may need to be reestablished regularly. I saw a cartoon a few weeks ago. An owner is talking to his employees. He says “When we said you were essential workers, we didn’t mean you should be paid like essential workers.” Perhaps they can be forgiven for misunderstanding. In our mission statements, we often say that employees are our most important asset. It looks like we may have to put our money where our mouth is. John F. Dini, CExP, CEPA is an exit planning coach and the President of MPN Incorporated in San Antonio, Texas. He is the publisher of Awake at 2 o’clock and has authored three books on business ownership. The single largest transaction and transition of your life deserves special attention. Are you planning to exit and sell your business? Business Exit planning is quickly becoming a buzzword in the legal and financial communities. Your professional advisors position themselves to provide tax, risk management, wealth management, and contract preparation services. BEST Exit Plan Advisor has been trained to manage your team of tax, legal, business, and financial planners to navigate your exit strategy. Click here for more details and a video on how to get started. If you want to see how prepared you are for transition, take the 15-minute Assessment at no charge: There is one indisputable fact – 100% of owners will eventually exit their business. The Assessment is a multiple-choice questionnaire that does not ask for confidential or financial information. Nevertheless, it is a critical first step in starting the discussion and planning process. Click here for more information concerning our free, no-obligation exit planning assessment.
Rethinking Hiring in Horticulture
Effective Strategies for Hiring in the Horticulture Industry By Benjamin Molenda & Harrison Downing, Human Capital Advisors at BEST Human Capital & Advisory Group Are you excited at the prospect of increased demand in the Horticulture Industry over the next few years? But, on the other hand, are you concerned that you will struggle to supply material to meet consumer demand? You are not alone in these thought processes. Most companies are identifying areas to invest increased revenue in satisfying new requirements. Whether through R&D, new market channels, LEAN manufacturing approaches, supply chain amelioration, or bringing on talent for these and additional departments. When hiring in today’s changing climate, it is important to understand options, strategize a plan, and develop expectations, as the industry’s talent pool is critically thin compared to talent needs. The Process Scheduling interviews can be complicated, especially acknowledging that not only are your team members busy with their responsibilities, but the prospective candidate is likely busy in their current role. The chances of finding a quality applicant who is currently unemployed are slim. Thus, it is imperative to be realistic when setting a start date for a new hire. The traditional “2 weeks’ notice” is often satisfactory. However, occasionally, more time is required for the individual to leave their previous employer, potentially your same customers, and put them in a position for success. None of us want to burn any bridges. It is now a commonly accepted, if not begrudged, belief that quality professionals are not frequenting job boards and applying to postings. In discussions with many companies, posting a job is often more about marketing than actually identifying candidates. Utilizing current relationships to network opportunities, involving HR teams and other departments to brainstorm candidate flow, and inquiring with customers or suppliers on star players they interact with are among the options to identify talent in our close-knit industry. The graphic at right represents a recent mid-level position hire. The hiring project timeline included posting job descriptions on job boards, networking with industry leaders, and actively sourcing candidates through executive search. At a minimum, it typically takes (3) weeks to identify qualified individuals, (3) weeks to interview and offer, and (3) weeks for the individual to transition and start in their new role. For senior-level positions, plan to add a minimum of (2) weeks for each of the three steps. Because of this dynamic and the budgeting process, many companies start their hiring process a year in advance to identify what roles are needed in their organization. Hiring from within is a practical approach as it is quick, cost-effective, fluid with the company culture, and can motivate loyal employees who aspire to grow professionally. These items add up to expose less risk than hiring externally. However, internal promotion is not always the best option. Animosity between internal applicants can arise, leading team members not chosen to question loyalty. Another critical element to hiring from within is succession planning. As one hole is filled, another is created in the previous position. Active cross-training prepares team members for succession, strengthens the organizational chart, and motivates the team. Finally, from a legal and efficacy standpoint, a hybrid approach of external search and looking within ensures all available talent is vetted as there is a lack of candidates in our industry. Positions in Operations, R&D, Supply Chain, eCommerce, Analytics, and Sales are being created as companies match changing markets with innovation. Yet, retirement rates are increasing, reducing what is already a thin talent pool for horticulture. Add to this that CEA, Cannabis, and Hemp are hiring from the same talent pool as Ornamental, Nursery, Landscaping, Turf, and Greenhouse – there is indeed a growing talent gap. Casting a broad and flexible net when sourcing talent is crucial. One strategy includes considering all candidates, regardless of age. Another is compromising the amount of required product knowledge, customer relationships, or years of experience and instead focusing on a professional’s behaviors. This option requires increased front-end work through strategic planning and assessments. However, it will ultimately unlock a lucrative talent pool, allow for culture alignment, and increase productivity based on the candidate’s behaviors. We should not ignore experience and product knowledge. Painting a “purple squirrel” (what we call a perfect candidate) is an important thought project when conceptualizing a position, but how many purple squirrels have you seen? If there are (5) “boxes” that you believe must be checked for a role, it may be worth reducing it to a top (3). If a candidate shows strong behaviors, perhaps they can achieve the (2) boxes they cannot check with proper training and management. Conversely, it is nearly impossible to train or manage behaviors as they are set early in life. Behavior-based hiring dramatically opens the talent pool outside of the industry for the right fit. There will be repetitive conversations in interviews, but developing separate focus areas for each interviewer is integral to moving quickly. This approach also gives the prospect an understanding of potential interactions with the interviewer. Continuing to utilize virtual meeting resources early in the interview process allows for flexibility. One-on-one interviews with senior leaders are expected, but interview teams of 2-3 display company culture for the candidate and expedite the process. Once in interviews, an element to consider is how the candidate will be led based on their personality and responsibilities. The initial conversation with a candidate may be the most important. Spend it listening and learning. Listen 80% of the time and speak 20% of the time. Engage them about experiences, listen to what motivates them professionally, and focus on behaviors illustrated when describing achievements. Do not oversell the position or company as there is no perfect job or company. Accentuate the positives but be transparent about challenges and difficulties in the role. Truly understanding your prospect’s personality traits and professional behaviors will create a stronger relationship leading to higher buy-in, more productivity, and continued transparency. Congratulations, you have hired a strong professional! However, the process of engaging them is