Ei and employee engagment (bus case for ei jan 2011)


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Ei and employee engagment (bus case for ei jan 2011)

  1. 1. Emotional Intelligence and Employee Engagement A research-based business case for enhancing your business performance by increasing the emotional intelligence of your leaders
  2. 2. Executive Summary <ul><li>This document presents research on the relationship between a leader’s emotional intelligence and their employee’s engagement. </li></ul><ul><li>A strong positive correlation ( r = .60), between a leader’s level of emotional intelligence and the level of engagement of their staff report was found. The more a leader demonstrates emotionally intelligent workplace behaviour to their staff, the more their staff will demonstrate the three composite behaviours of employee engagement, which are: </li></ul><ul><ul><li>Praise the organisation to others </li></ul></ul><ul><ul><li>Perform above and beyond what is expected of them </li></ul></ul><ul><ul><li>Persist in the face of adversity </li></ul></ul><ul><li>A wide body of research has consistently shown that organisations with high levels of employee engagement out perform their peers with lower levels. Genos has shown that it can improve leaders’ capacity to demonstrate emotionally intelligent workplace behaviour by an average of 15-20%. Collectively this research shows that higher levels of employee engagement, and therefore business performance, will result from our emotionally intelligent leadership development programs. </li></ul><ul><li>If your organisation would like to examine this link within please let us know. We are looking for other organisations to participate in this global research effort. </li></ul>© 2011 Genos Pty. Ltd. - www.genosinternational.com
  3. 3. Employee Engagement <ul><li>Employee engagement is the collective level of intellectual and emotional commitment employees have toward their work and organisation. </li></ul><ul><li>It is measured empirically by asking employees to indicate (on a likert scale), the extent to which they praise their organisation to others; perform beyond what is expected of them; and persist in the face of adversity. </li></ul><ul><li>The Genos Engagement Survey measures the extent to which employees demonstrate these three composite behaviours (i.e., praise, perform, persist), as a consequence of their thoughts and feelings about their Role , Manager , Team and the Organisation itself. </li></ul><ul><li>Extensive academic and corporate funded research has shown meaningful correlations between employee engagement and a wide number of business performance metrics including variables such as productivity, revenue, profitability, Total Shareholder Return (TSR), absenteeism, and retention. </li></ul><ul><li>Employee engagement also correlates meaningfully with safety incidents, job satisfaction, occupational stress, and motivation. All organisations should strive to create an enjoyable and satisfying employment experience for their employees. </li></ul>© 2011 Genos Pty. Ltd. - www.genosinternational.com
  4. 4. Employee Engagement <ul><li>Different businesses use different employee engagement surveys. Therefore comparisons with industry benchmarks should be made cautiously. However, most engagement surveys report overall engagement scores as a percentage of employees that are ‘engaged’ as per the aforementioned definition. </li></ul><ul><li>Research indicates that organisations should aim to achieve an Engagement Score of 60% or higher. This percentage is described as a ‘tipping point’, where there is a critical mass of engaged employees positively impacting the performance and culture of the business. Research has also shown that: </li></ul><ul><ul><li>Companies with an engagement score of 60% or higher have an average five year shareholder return of more than 20%, while companies with engagement scores of less than 40% usually have a negative return of 10% to shareholders (source: Gallup) </li></ul></ul><ul><ul><li>Companies with a highly engaged employee population turned in significantly better financial performance (a 5.75% difference in operating margins and a 3.44% difference in net profit margins (source: Towers Watson) </li></ul></ul><ul><ul><li>88% of fully engaged employees believe they can positively impact the quality of their organization’s products and services; 38% of disengaged employees feel the same way (source: Towers Watson). </li></ul></ul>© 2011 Genos Pty. Ltd. - www.genosinternational.com
  5. 5. Employee Engagement Scores <ul><li>In this report, total employee engagement is calculated at the individual level by averaging employee responses to the 12 engagement items. Additionally, to help provide insight, two series of employee engagement subscale scores are also reported. </li></ul><ul><ul><li>Series 1: Praise, Perform, Persist </li></ul></ul><ul><ul><li>Series 2: Role, Management, Team, Organisation </li></ul></ul><ul><li>Items are measured on an 8-point Likert scale. An example is shown below. </li></ul><ul><ul><li>Q: The effectiveness of my manager inspires me to do everything I can to make this business successful. </li></ul></ul><ul><li>Average engagement scores are then interpreted based upon the guidelines below. </li></ul><ul><li>The organisation’s (or business unit’s) Engagement Score represents the percentage of employees who have an average engagement score between 6.50 – 8.00. </li></ul>© 2011 Genos Pty. Ltd. - www.genosinternational.com Absolutely Disagree Strongly Disagree Moderately Disagree Slightly Disagree Slightly Agree Moderately Agree Strongly Agree Absolutely Agree 1 2 3 4 5 6 7 8
  6. 6. Information on the Research Data <ul><li>The Data: </li></ul><ul><li>Genos included the 12 engagement questions as part of the Leadership Development Program Emotional Intelligence 360-degree assessment Time 2. Only direct reports of the LDP participants were asked to complete these supplemental questions. </li></ul><ul><li>A total of 108 direct reports (or individual respondents) were included in the data collection effort. </li></ul><ul><li>Of these individuals, 99 completed both the EI assessment of their manager and the employee engagement questions. </li></ul>© 2011 Genos Pty. Ltd. - www.genosinternational.com
  7. 7. The Findings of the Research A positive correlation of .40 or above represents a significant statistical correlation. The EI of a manager is therefore highly correlated to overall employee engagement of their direct reports and all three individual dimensions of employee engagement. © 2011 Genos Pty. Ltd. - www.genosinternational.com Engagement Dimension Correlation Overall Employee Engagement .60 Praise .55 Perform .50 Persist .53
  8. 8. EI and Engagement : Scatter Plot Data <ul><ul><li>Scatter plot data of all 99 direct report responses demonstrate that leaders with overall EI scores that exceed 75% have employees who almost entirely rate as ‘engaged’ and none who rate ‘not engaged’ or ‘disengaged’. </li></ul></ul>© 2011 Genos Pty. Ltd. - www.genosinternational.com .
  9. 9. The Skills of Genos EI and Employee Engagement The Skills of Genos EI– A Silver Bullet? While all 7 skills of Genos EI correlate positively with employee engagement, the top correlated EI skill is emotional management of others, followed by emotional awareness of others and emotional reasoning. Getting these skills right create the greatest positive impact on your employees’ level of engagement. © 2011 Genos Pty. Ltd. - www.genosinternational.com . ESA EE EAO ER ESM EMO ESC Praise .50 .50 .57 .51 .50 .60 .50 Persist .42 .48 .54 .52 .43 .57 .40 Perform .52 .56 .56 .56 .49 .55 .44 Average .48 .52 .56 .53 .48 .58 .45
  10. 10. Sample Employee Engagement Results— Research Client <ul><li>Actual employee engagement results from the research client were as follows: </li></ul><ul><li>Approximately half of the employees were found to be engaged. </li></ul><ul><li>However, none of the employees in the sample were found to be disengaged, and only a smaller percentage were not engaged. </li></ul>© 2011 Genos Pty. Ltd. - www.genosinternational.com
  11. 11. Sample Engagement Results: Praise, Perform, Persist <ul><li>Sample engagement results from the research client across the three composite behaviours of engagement are listed above. </li></ul><ul><li>Engagement levels were roughly comparable across Praise, Perform, and Persist. </li></ul>© 2011 Genos Pty. Ltd. - www.genosinternational.com
  12. 12. Sample Engagement Items— Rank Ordered © 2011 Genos Pty. Ltd. - www.genosinternational.com
  13. 13. About Genos International <ul><li>Genos International is a global organisation dedicated to helping leaders create cultures that result in highly meaningful, passionate, and productive workplaces. We help our clients create these cultures with unique products and services built around the concepts of emotional intelligence and employee motivation. We use emotional intelligence as a medium to help leaders become more effective in their organizations. In the area of employee motivation, we use the concept of motivational “fit” to help leaders create alignment between what motivates their employees and what they actually experience in their everyday work lives. With clients across the globe and a dedicated team of learning and organisational development specialists, we aim to help leaders make work a more meaningful and satisfying experience. </li></ul>© 2011 Genos Pty. Ltd. - www.genosinternational.com