1. The Dynamic Effects of Emotional Intelligence on Employee Engagement and Retention:
Creating a Better Workplace for Employees
COMM 4902 - 1 Capstone Seminar
Alissa Weiher
University of Denver University College
November 02, 2014
Instructor: Dr. Michelle Kruse-Crocker, PhD
Interim Academic Director: Dr. Michelle Kruse-Crocker, PhD
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Abstract
Employee engagement and retention are integral components in the workforce. One
factor creating higher employee engagement and retention is an emotionally intelligent
workforce. However, not all individuals within an organization possess a high degree of
emotional intelligence. Leaders within organizations must identify gaps within their
organization relating to emotional intelligence. Then, they can work with organizational
development professionals to develop a strategy to create an emotionally intelligent
organizational culture. This Capstone will demonstrate how emotional intelligence influences
employee engagement and retention through secondary research. It will propose an approach
to integrate the development of emotional intelligence skills in the workplace through a
blended-learning approach. The findings showed improvements in retention an employee
engagement when emotional intelligence was demonstrated by leaders.
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Table of Contents
Title Page...........................................................................................................................................i
Abstract............................................................................................................................................ii
Table of Contents............................................................................................................................iii
Background......................................................................................................................................1
Importance of Topic....................................................................................................................1
What is Emotional Intelligence?...................................................................................................2
Problem Statement......................................................................................................................4
Literature Review.............................................................................................................................5
Factors Influencing Employee Engagement.................................................................................5
Factors Influencing Employee Turnover......................................................................................8
The Effects of Emotional Intelligence........................................................................................10
Approach........................................................................................................................................14
Solution..........................................................................................................................................16
Discussion......................................................................................................................................18
Strengths....................................................................................................................................18
Weaknesses................................................................................................................................19
Recommendations.........................................................................................................................22
Conclusion......................................................................................................................................24
References.....................................................................................................................................26
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Background
Importance of Topic
Employers continue seeking ways to win the war on talent. Employers strive to
differentiate themselves from their competitors using salary, medical and dental insurance, on-site
perks, and other benefits. Employers want to find the perfect formula that will not only
allow them to recruit the top talent, but also retain their high-performing workforce. Some
organizations fair better than others; yet, the solution still seems illusive for many.
In the field of organizational development, it is imperative to take measures to improve
the organizational culture yielding high employee engagement and retention. Creating an
environment where people want to come to work and are motivated by what they do and who
they work with can help build a culture of engaged employees. The turnover costs add up
quickly for organizations, costing upwards of “200% of the lost employee’s salary” (Wollard
2011, 528). Minimizing these costs creates a positive impact on the bottom-line. The financial
ramifications don’t stop there. According to Gallup, “organizations with an average of 9.3
engaged employees for every disengaged employee…experienced 147% higher earnings per
share compared with their competition” (2013, 9). The financial impact of a disengaged
workforce coupled with high turnover cannot be ignored if an organization wants to succeed.
Identifying the means to improve both retention and employee engagement in a lasting
manner is imperative for long-term financial maintenance, stability, and potential
improvement.
Learning and organizational development professionals must identify ways they can
contribute toward the improvement of employee engagement and retention. They can do this
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by offering opportunities for professional growth and development as well as assessing the
strengths of the current workforce in relation to their roles and responsibilities. By continuously
assessing the talent-pool, learning and organizational development professionals can identify
skills and behaviors lacking in the organization and develop a strategy for development.
What is Emotional Intelligence?
Understanding the definition of emotional intelligence (EI) creates greater opportunity
for learning and organizational development professionals to evaluate how to address needs in
the organization related to EI. Bradberry and Greaves (2009) define EI as the “ability to
recognize and understand emotions in yourself and others, and your ability to use this
awareness to manage your behavior and relationships” (17). Similarly, Mayer, Salovey, and
Caruso (2000) define EI as “the ability to perceive and express emotion, assimilate emotion in
thought understand and reason with emotion, and regulate emotion in the self and others”
(396). There are numerous other definitions, all with a similar denotation. EI is one variable that
can influence relationships in the workforce. Cherniss and Goleman (2001) indicate that EI is
the greatest indicator of professional success in the workplace. Recognizing that one individual
possesses the ability to influence the state-of-mind of those within his or her sphere of
connections is a powerful concept. Goleman (2005) indicates there are five components that
comprise EI: “self-awareness, managing emotions, motivating oneself, empathy, and handling
relationships” (43). Nurturing and developing these competencies will yield more emotionally
intelligent individuals. If more individuals within the workforce possess skills and behaviors in
these areas, an evolution of an emotionally intelligent workforce is probable.
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As previously mentioned, leaders of organizations continuously seek ways to reduce
costs and by reducing turnover, leaders can eliminate some unnecessary costs. Organizations
must find a way to reign in these costs to improve the bottom line. Recognizing some turnover
is good (e.g., the exit of poor-performing employees and retirement), turnover remains a major
issue when losing top-performing talent to competitors. Factors such as alternative work
arrangements and commute time may be a factor for some individuals. The leaders within the
organization should consider their own policy on such matters and create an environment that
encourages managers to allow for creative scheduling to meet such needs. Being empathetic to
the needs and desires that will engage their workforce is an enabling force for leaders.
Creating an organizational culture with high employee engagement supports a positive
corporate brand that reinforces recruitment efforts for highly desired talent. In Forbes Top 100
Companies to Work For in 2013 report, many common themes exist amongst the organizations
that ranked on this list: work/life balance, on-site amenities, opportunity for growth within the
organization, manager relationship, and many more exist. (Smith 2012). Demand exists for
meeting both physical and emotional needs of employees for them to feel a sense of
engagement.
If learning and organizational development professionals define and create
interventions to develop behaviors that create an environment where people feel happy to
come to work, they may create a more engaged workforce demonstrated through
organizational commitment. However, creating happiness throughout all levels within the
organization is important. Peer’s and business partner’s affect also have varying degrees of
influence on an employee’s engagement, just as their direct supervisor and others members of
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management impact engagement, especially when those individuals are highly engaged (Cross
et al. 2012). When employees are disengaged, they are more likely to seek new employment
(Gallup 2013). Therefore, focusing on the development of EI behaviors across all levels of the
organization remains critical.
Problem Statement
The researchers at Gallup report that employees leave managers, not organizations
(2013). They also indicate that salary and benefits play a minimal role in retaining talent,
though it may support initial attraction of talent (Gallup 2013). This indicates that leaders of
organizations must assess the organizational culture to determine the root cause of turnover as
opposed to focusing on salary and benefits. Leaders must identify what changes will result in
long-term improvement. If the employees are leaving the managers, understanding what skills
and behaviors the managers lack will help the leaders within the organization identify trends
and opportunities for development.
One such improvement that influences why an employee stays with a manager is the
manager’s ability to leverage EI skills effectively. A manager who can regulate his or her own
emotions or empathize with a direct report can build a stronger bond, which may yield a more
engaged team member (Kilduff, Chiaburu, and Menges 2010). Therefore, understanding how EI
influences employee engagement and retention can support learning and organizational
development professionals in designing, developing, and implementing performance and
behavior interventions to improve the culture. Creating an emotionally intelligent
organizational culture therefore yields improved employee engagement and retention.
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Literature Review
Emotional Intelligence continues to gain traction as a means to improve performance in
organizations (Giorgi 2013; Kilduff, Chiaburu, and Menges 2010). Understanding the impacts EI
has on both employee engagement and retention allows leaders in organizations to identify
more effective ways to address challenges within their own organizations. The following
research investigates what the influencing factors are for emotional intelligence and employee
turnover while also uncovering the effects of emotional intelligence.
Factors Influencing Employee Engagement
Various factors impact employee engagement. Organizations leverage external partners
such as Gallup or the Corporate Executive Board to measure employee engagement. Gallup
(2013) measures twelve items for employee engagement:
(1) Employees know what is expected of them at work.
(2) Employees have the required tools to perform their job.
(3) Employees have the opportunity to do what they do best.
(4) Employees received praise or recognition in the past week.
(5) Someone cares about them as an individual.
(6) Someone encourages their development.
(7) Their opinion seems to count.
(8) The mission makes the individual feel like their job is important.
(9) Their colleagues are committed to performing quality work.
(10) They have a best friend at work.
(11) Someone has spoken with them about their progress in the past six months.
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(12) They had the opportunity to learn and grow in the past year.
In addition to Gallup’s findings, Dávila and Piña-Ramírez (2014) also assert that one of the
primary factors driving employee engagement is the manager-employee relationship. Other
factors include leadership, career development, incentives, organizational image, and brand
alignment (Dávila and Piña-Ramírez 2014). Leaders of organizations should identify their
current state of employee engagement before identifying and implementing a strategy for
improvement. This allows for isolating factors contributing toward improvement.
Leaders of an organization must consider many when evaluating the organization’s
employee engagement data. Houlihan and Harvey (2014) suggest reviewing hiring strategies,
onboarding processes, compensation plans, paid-time off, mentoring programs, employee
appreciation, opportunity to make and learn from mistakes, treatment by co-workers, and the
organization’s values. Evaluating employee appreciation, opportunities to make and learn from
mistakes, and treatment by co-workers provides insight into the EI of the employees (Gooty et
al. 2010). If employees indicate they do not feel appreciated or that they are not treated well by
co-workers, further investigation can uncover if there is a lack of empathy and if employees
may not be effectively managing relationships. If employees fear making mistakes at work, their
colleagues may not be managing their own emotions effectively in these situations (Goleman
2005). Recognizing these shortcomings may provide an opportunity to improve these
behaviors.
In addition to evaluating various aspects of the engagement data, leaders of
organizations must assess how employee engagement influences performance. Anitha (2013)
uncovered secondary research supporting that “high levels of employee engagement enhances
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job performance, task performance, and organizational citizenship behavior, productivity,
discretionary effort, affective commitment, continuance commitment, levels of psychological
climate, and customer service” (313). Anitha (2013) reviewed seven components in her
research evaluating varying factors impacting the effects of employee engagement on
employee performance: “working environment, leadership, team and co-worker relationship,
training and career development, compensation program, policies and procedures, and
workplace wellbeing,” (317). Anitha’s (2013) research demonstrates that the highest degree of
factors that correlate with impacting employee engagement are leadership, working
environment, employee wellbeing, and team and co-worker relationships. Additionally, O’Boyle
et al. (2011) conducted a meta-analysis of 43 studies further validating that emotional
intelligence has a positive impact on job performance. Therefore, taking the time to validate
performance in areas that impact employee engagement will help determine factors that will
benefit from development in emotional intelligence.
Lastly, it is critical that leaders also understand the detrimental effects a disengaged
workforce has on many areas of the business. Wollard (2011) provides an important distinction
in articulating that an employee may be satisfied while also disengaged. Wollard (2011)
indicates that an employee may be satisfied with a job based on salary and commute time as
this can afford the employee the ability to pay the bills or spend more time with family. Yet, this
does not mean employees are invested from an emotional, physical, or mental aspect to the
organization (Wollard 2011). This disengagement can result in small business failure, fraud,
theft, embezzlement, absenteeism, tardiness, and more (Wollard 2011). Additionally, Gallup
(2013) indicates that the cost of a disengaged workforce costs U.S. organizations between $450
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and $550 billion annually (9). Understanding that the negative consequences are greater than
just employee turnover allows leaders in the organization to fully appreciate the importance of
employee engagement.
Factors Influencing Employee Turnover
Employee engagement is one component that impacts retention. In fact, Houlihan and
Harvey (2014) indicate that an engaged workforce “reduces turnover by 87 percent” (23).
Understanding factors such as this helps leaders determine where to invest resources to
improve employee retention. This information influences leaders to make a concerted effort to
identify how to improve employee engagement if they are motivated to change.
Various factors influence employee turnover. It is important to understand that some
attrition is good, such as poor performers leaving the organization or employees retiring.
However, when top talent leaves the organization, understanding the contributing factors
allows the organization to make the necessary changes to improve retention in the future.
Work/life balance is one factor affecting turnover. According to Shankar and Bhatnagar
(2010), work/life balance is not just about the opportunity to balance time between work and
family, but it also encompasses a balance of time for one to pursue and participate in the other
interests they possess. Providing time away either through flexible work-arrangements, paid-time
off programs, and holidays creates an environment where employees feel rejuvenated
when they return to the office and are more productive (Houlihan and Harvey 2014). Work/life
balance can be afforded to employees in myriad ways: alternative work arrangements; paid
time off; dependent care benefits (inclusive of both children and adult dependent family
members); health, financial, and legal guidance; sabbaticals; etc. (Shankar and Bhatnagar 2010).
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Providing such benefits demonstrates increased employee engagement, retention, mental
health, and productivity (Shankar and Bhatnagar 2010). Recognizing the benefits of work/life
balance helps leaders identify which, if any, of these benefits they would like to integrate into
their organizations benefits package. However, work/life balance is just one component
effecting employee engagement.
Another factor affecting employee engagement is EI. In research conducted Jordan and
Troth (2011), a statistically significant correlation between EI and the intention to leave an
organization emerged. Wong and Law (2002) discovered similar findings when evaluating work
groups engaged in emotional labor which was deemed as such by the supervisors of the
employees in the study. Those working within a highly emotionally intelligent work group
indicated a lower intent to leave while those in a work group with low EI indicated a higher
intent to leave (Jordan and Troth 2011; George and Bettenhausen 1990). Recognizing that
working in a team with individuals who struggle with regulating their own emotions, let alone
managing or empathizing with the emotions of others, can result in an intention to leave the
organization is crucial information for leaders. This creates a concerted opportunity for what
improvements are necessary in the EI within the organization.
Additionally, it is helpful for leaders to understand how low employee engagement
correlates with turnover. Wollard (2011) references an example of a top-performing employee
leaving an organization for an opportunity that paid less because of low morale, a frustrated
workforce, and because “she was tired of the backstabbing and favoritism” (527). Wollard
(2011) also indicates that the cost of employee turnover such as this can cost the organization
up to “200% of the lost employee’s salary” (528). This staggering cost indicates something must
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be done to reduce turnover and the costs incurred with it. Wollard (2011) defines the process
of disengagement as often being progressive where someone is initially engaged, but as they
seek knowledge or explanation to no avail, frustration begins to set in, followed by a lack of
trust in leadership for their inability or unwillingness to address needs, which ultimately results
in the desire of the employee to leave. Additionally, Gallup (2013) found that a highly engaged
workforce decreases turnover between 25 and 65 percent (26). Disengagement happens over
time and is often a gradual process (Wollard 2011). If leaders can focus on maintaining the
engagement of employees from the time they hire an employee, they have an opportunity to
increase retention.
The Effects of Emotional Intelligence
Understanding how EI influences both employee engagement and retention helps
leaders identify a strategy for improving the organizational climate. Leaders should take into
consideration that this influence is not only about having an emotionally intelligent leadership
team, but also about having EI skills developed at all levels in the organization. Leaders and
followers possess the ability to influence those around them.
Demonstrating a correlation between EI of leaders and the level of employee
engagement of their direct reports is one way to show this relationship. Palmer and Gignac
(2012) conducted research via a survey after managers at selected organizations underwent EI
training. They found that 100 percent of managers who were identified as having high EI
boasted an engaged or nearly engaged workforce (Palmer and Gignac 2012). Additionally,
Rajah, Song, and Arvey (2011) evaluated a decade’s worth of research regarding the influence
leader’s emotional intelligence has on emotional intelligence and found that higher emotional
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intelligence has a positive impact on employee engagement. In both sets of research, the
researchers clearly show a strong decrease in employee engagement with the decrease in EI of
the leader (Palmer and Gignac 2012; Rajah, Song, and Arvey 2011). This demonstrates the
importance of developing EI in leaders.
Similar research was conducted on the moods and behaviors of leaders and the
subsequent outcomes of their followers. In evaluating the effects of the leaders’ moods, two
concepts emerged overall, employees respond more favorable to favorable moods, and
negative moods are received positively when faced with adversity or challenges (Gooty et al.
2010). Additionally, leaders demonstrating positive behaviors maintained more positive feelings
on their teams; however, little research has been conducted on the effect of negative behaviors
and moods of the leaders on their team’s feelings (Gooty et al. 2010). Ngirande and Timothy
(2014) also found that leaders with high EI had teams with higher job satisfaction who were
engaged. Therefore, a leader who manages his or her emotions and displays the appropriate
emotion based on the circumstance is likely to yield higher team member engagement and
improved affect.
However, this begs the question: How does EI in followers correlate to improved
employee engagement and retention? Wong and Law (2002) specifically studied this
relationship; they hypothesized that employees with high EI were less likely to have intentions
to quit, and were more likely to have a high organizational commitment. Their findings
indicated that this relationship was insignificant and therefore, EI of followers did not have a
meaningful correlation to employee engagement or intent to quit unless another factor
measuring the type of labor was a variable (Wong and Law 2002). No other research uncovered
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investigates this aspect. This indicates that the further research must be conducted to validate
the findings of Wong and Law’s research.
Additionally, the type of labor, as Wong and Law (2002) alluded to, is another factor for
consideration in the effects of EI on employee engagement and retention. While Wong and Law
were referring more specifically to the functions of a position, industries as a whole are another
aspect for consideration. Three such studies focused on these effects within the fields of
banking, policing, and nursing (Wallace, de Chernatony, and Buil 2013; Brunetto et al. 2012;
Güleryüz et al. 2008). This can further isolate if there are certain industries that will experience
a greater benefit from developing EI in their workforce. In evaluating the research by Wallace,
de Chernatony, and Buil (2013) and Brunetto et al. (2012), it is identified that both the fields of
policing and nursing can be highly stressful environments as the workforces are exposed to life
and death situations. Banking requires a great deal of customer interaction and when dealing
with financial situations, these customers can become more emotional when situations are
stressful (Wallace, de Cherntony, and Buil 2013). Walter, Humphrey, and Cole also found that
higher EI is a critical component for success for employees in positions that involve frequent
interaction with others that involve feelings and emotions, such as customer service and
teaching (2012). This reinforces the importance of employing emotionally intelligent talent at
various levels in the organization.
Assessing the impacts of EI on organizational commitment in the fields of policing and
nursing create a foundation that can lay the groundwork for future evaluation in other
industries. Brunetto et al. (2012) found that there is a positive correlation between EI and
organizational commitment if there is also job satisfaction in the field of nursing. Similarly,
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Güleryüz et al. (2008) found that higher EI demonstrates an improvement in employee
engagement through improved job satisfaction and a decreased likelihood of leaving the
organization in the policing industry. This indicates that employees with higher EI have a
greater intent to remain with their organization. Understanding this commitment should enable
learning and organizational development professionals to further consider the importance of EI
within their own organizations.
Groups within the organization can be further broken into generations and identifying
the impacts of EI on the engagement of different generations is another consideration. Njoroge
and Yazdanifard (2014) investigated the correlation of EI on employee motivation, specifically
isolating employee retention as one of the factors. They identified that employees across all
generations have an increased rate of retention when working with emotionally intelligent
leaders. This further reinforces the significance of developing an emotionally intelligent
organizational culture.
However, not all the effects of integrating EI are positive. According to Kilduff, Chiaburu,
and Menges (2010), some individuals use EI skills to manipulate others, falsify emotions for
personal gain, and for self-promotion. Recognizing that one can manipulate their emotional
response or behavior to attempt to get ahead or meet self-serving purposes sheds light on one
of the drawbacks of a highly emotionally intelligent employee. This can prove especially
troublesome when this individual is a manager and his direct reports feel manipulated and
taken advantage of when such tactics are employed.
Ultimately, the majority of the researchers illustrate EI relates strongly to employee
engagement and retention. There are exceptions, primarily relating to peer-level or follower
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correlation between EI and employee engagement and retention, as well as manipulation of EI
skills. The improvement of employee engagement and retention is most prominent when the
direct supervisor demonstrates EI in an authentic manner or the industry or position deals with
a high level of emotions on a consistent basis.
Through researching the factors influencing both employee engagement and retention,
as well as the effects of emotional intelligence, it is apparent that emotional intelligence
impacts employee engagement and retention. Understanding how this can be used to benefit
the organization is critical.
Approach
The issue of how to improve employee engagement and retention became apparent
when the organization I currently work for received our latest employee engagement results.
Engagement was low and the intent to leave the organization was high. In reviewing the data, I
tried to isolate one intervention that could create the most positive impact on a variety of
aspects of employee engagement. My initial inclination was to isolate the focus to
communication; but after further research, the idea of EI and the ability to not only manage
and express one’s own emotions, but also the ability to empathize with and influence other’s
emotions seemed like a more specific intervention for addressing the challenge.
When I mentioned this to my supervisor, her immediate response was to send me to a
workshop for certification and developing a greater EI skills bank. However, understanding the
lasting effects of developing EI skills was important to justify if this was a worthwhile
investment. I wanted to better understand what possibilities for improvement lie ahead based
on previously conducted research.
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Therefore, I determined further research on EI was required. I wanted to uncover what
research already exists to determine trends relating to the effects of EI on an organizational
culture. Initially, the scope was going to focus solely on the EI of leaders within the
organization, but after further evaluation of the “Gallup State of the Workplace 2013” report, I
felt it was important to include all employees, as there are facets of engagement that can be
influenced by other individuals beside a direct supervisor. I believed the manager/direct report
relationship was insignificant.
Based on the idea that EI would influence engagement and retention at all levels, I
wanted to find at least 20 percent of sources that conducted primary research as part of their
research. Additionally, identifying research that honed in on different focus groups would help
isolate trends and outliers, such as research isolated to specific industries, professions, or roles
(such as managers) within an organization. As the field of EI has gained more traction in recent
years, I felt it was important that between two-thirds and three-fourths of the research I
leveraged were conducted in the past five years. However, I also recognized that some of the
initial work related to defining EI and its roots would best be understood through the seminal
works on the topic, such as the various publications written by Daniel Goleman.
Therefore, I identified certain criteria in identifying qualifying research in addition to
how recent a journal article was published and inclusion of primary research in the peer-reviewed
journal articles. First, all sources must address at least two of the three following
concepts: EI, employee engagement, and employee retention. Then, they must include
correlative research on how the two or three concepts are or are not interrelated. If the article
failed to address (1) how EI connects to employee engagement, (2) how EI connects with
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employee retention, or (3) how employee engagement relates to employee retention, then the
exclusion of the article occurred. Therefore, an article was included if they met the prescribed
criteria. If they did not meet these three criteria, they were excluded. The only exceptions to
this approach were articles, websites, or books that served to provide explanations or clarity
key terms and concepts addressed throughout the paper. Identifying sources that defined EI
and employee engagement and how they are measured was also necessary.
Solution
Improving employee engagement and retention by means of focusing on EI involves
careful consideration to the approach. Based on research previously conducted, focusing on the
development of EI skills in leaders is where an organization should see the greatest impact
(Palmer and Gignac 2012; Gooty et al. 2010). No significant data exists indicating that
developing EI skills within individual contributors has any meaningful impact on employee
engagement or retention (Wong and Law 2002). While additional researchers demonstrated a
positive impact on creating an emotionally intelligent organizational culture had beneficial
effects on employee engagement and retention, this was limited to specific industries and types
of work (Wallace, de Chernatony, and Buil 2013; Brunetto et al. 2012; Güleryüz et al. 2008).
Therefore, the solution addresses developing EI in leaders as opposed to creating an
emotionally intelligent organizational culture as a whole.
Developing EI within leaders would commence through a multi-pronged approach. First,
a baseline assessment would be administered utilizing the Emotional and Social Competence
Inventory (ESCI). According to McCain (2005), demonstrating where performance was prior to
an intervention and again after demonstrates whether learning occurred. Additionally, to
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obtain proper data about the overall impact, employee engagement would be assessed prior to
beginning the EI intervention, as well as evaluating current turnover data within the
organization. The senior leaders would then set realistic targets for the level of improvement
they would like to see in employee engagement and retention to demonstrate a successful
improvement as a result of the intervention, such as 5 percent improvement overall within one
year. This would be followed up by a series of five workshops, one focusing on each of the
elements of EI, pending all five areas showed room for improvement. These five areas are
determined based off the ESCI instrument. The workshops would be spread out over thirty
weeks at six-week intervals, allowing time for intersession work and application of the skills
around each topic. The first segment would focus on self-awareness, the second on managing
emotions, the third on motivating oneself, the fourth on empathy, and the fifth on handling
relationships. The participants would then regroup at the end to tie the five components of EI
together. Weekly meetings would transpire where leaders would discuss action items for the
week in applying the new skills and share successes and challenges. To reinforce the
importance of integrating these new skills, incorporating the application of EI skills would be
integrated into employees’ performance reviews. According to Stevens and Frazer (2005),
integrating coaching with the blended learning strategy will create greater retention of the new
knowledge and more accountability to integrate the new skills. Ultimately, it is critical that a
strategy be employed that strives for long-term change in behavior so the improved employee
engagement and retention will be more permanent.
To verify the success of the intervention, three metrics would be reviewed in
conjunction six months after the final workshop commenced: EI levels of the managers who
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attended the training, employee engagement scores for the teams of those managers, and
turnover data for the managers’ teams. The data would also be reviewed collectively to see the
larger impact on the organization as a whole. However, in also evaluating the data at the
manager level will allow learning and organizational development professionals to identify
trends related to the manager’s own EI and the resulting impact on employee engagement and
employee retention on his or her own team. In evaluating employee engagement and retention
by manager, they can grasp a better understanding of the detailed impacts of the intervention
to be considered for future development within the organization. This will demonstrate if the
intervention yielded the desired impact identified by senior leaders within the organization
prior to administering the intervention. Additionally, the senior leaders can look at the data for
the whole organization to identify trends.
The intervention would initially be rolled out with a pilot group. This allows for a control
group and a variable group. Senior leaders can also evaluate the levels of improvement in
employee engagement and retention for the managers who attended the intervention
compared to those who did not attend during the initial pilot. If statistically significant
improvements were demonstrated, this intervention would be rolled-out full scale to all the
leaders in the organization. However, if there were no statistically significant improvement in
employee engagement or retention, the program would be reevaluated to determine a new
approach to move forward with.
Discussion
Honing in on one area for development allows for a shift in the culture of the
organization. This creates focus on one common theme as opposed to a flavor-of-the-month
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approach if the intervention is approached with buy-in from the senior leadership team and has
components for accountability and measurement. Creating consistency with the approach
allows for evaluation that is more effective. For instance, if after the intervention is complete,
there is no marked improvement in managing emotion, the facilitators can assert that the
delivery approach, the follow-up intersession work, and action items were ineffective. This
indicates a need to revisit this area with a new delivery approach. This allows the leaders of the
organization to clearly identify if and how the intervention has improved performance. If it has
not, it demonstrates a need to revisit the intervention.
Additionally, developing EI is not something that can take place overnight or with a one-day
workshop. Developing a strategy that reinforces the new skills over time supports long-term
change (Wlodkowski 2008). This solution carefully considers the need for practicing the
new skills on the job. Also, adequate time is necessary to practice each skill before working
toward developing the next skill. Since EI is comprised of multiple components (Goleman 2005),
it is imperative to dedicate time and training to developing each of these five facets.
Weaknesses
While isolating EI can help identify improvements in employee engagement and
retention, it cannot be developed in a vacuum. Other changes can transpire during the
intervention that may also yield improved employee engagement, such as introductions of new
systems or software that simplify or complicate the day-to-day tasks of the worker, or a major
restructure of organizational alignment that shifts reporting structure creating flaws in
evaluating pre- and post-intervention improvement of employee engagement and retention by
the manager (Gallup 2013). Attempting to isolate the effects of the EI on employee
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engagement and retention may be extremely difficult for the learning and organizational
development professionals to demonstrate as other factors come into play.
Another obstacle in this solution is the vast number of contributing factors that
influence employee engagement and an employee’s intent to leave the organization. While
developing EI skills may have positive effects on both engagement and retention, it does not
cancel out other issues that may exist. For instance, if an employee does not earn enough to
support his or her family, finding an opportunity with an organization that will pay a higher
wage may be important. If an employee is commuting an hour to and from work every day,
having the flexibility to work from home one day a week may be important. If an individual has
children, having the flexibility to leave work early to watch a child play baseball, soccer, or
participate in a ballet recital may be more important. Work/life balance and financial needs still
remain a factor with retention (Houlihan and Harvey 2014; Shankar and Bhatnagar 2010).
Ultimately, the leaders in an organization must identify the factors that have the largest impact
on employee engagement and retention in their organization. While developing emotionally
intelligent leaders may address some of the challenges, it will not address all of them.
To yield better understanding of the data, breaking down as many of the influencing
factors of employee engagement and retention as possible would be beneficial. This may
include factors such as changes in benefits and compensation, new systems, software, or other
tools to aid in job performance, and changes in team members, including management.
Identifying the teams with the fewest changes in any of these other areas will allow the
learning and organizational development professional to look for trends within these teams to
better isolate the impacts of the improved EI (pending the manager has demonstrated a high
25. Weiher-21
level of EI as indicated by the ESCI instrument). This is important so the learning and
organizational development professionals can determine if the EI improved and if it showed a
positive correlation with changes in employee engagement and retention.
One of the biggest concerns stems from the intervention strategy to create an
emotionally intelligent organizational culture. If there is not support from the top down to hold
individuals accountable for a change in behavior, it is unlikely that there will be meaningful
improvements to the EI of the organization (Wlodkowski 2008). If there is an investment in
developing these skills, yet there is no accountability, the intervention will likely be a workshop
where people attend to complete a check-box indicating they finished a task. There must be
accountability and support for engaging in new behaviors. As Stevens and Frazer (2005)
reinforce through their research, without coaching and accountability, even the best blended-learning
strategies can fail.
One trend in the research is that there is a focus on the effects of a leader’s EI on job
performance, employee engagement, and employee retention (Dávila and Piña-Ramírez 2014;
Giorgi 2013; Palmer and Gignac 2012; Jordan and Troth 2011; Rajah, Song, and Arvey 2011;
Kilduff, Chiaburu, and Menges 2010; George and Bettenhausen 1990). With so much emphasis
on how the leader contributes to influencing an employee’s performance, engagement, and
retention, there was little attention paid to how peers in an organization influence these
factors. Focusing on the data that exists, narrowing the scope for development of EI skills to the
leaders within an organization makes a better starting point than working on developing all
employees’ EI skills.
26. Weiher-22
If the solution is not implemented, various issues may arise. The organization may incur
loss of intellectual capital as employees with certain knowledge and skills others do not possess
leave the organization. Additionally, costs increase in attempt to recruit new talent. If employee
engagement is down, it can also make the employer less appealing to new candidates.
Recommendations
To understand the effects of EI yields on organizational culture better, further studies
are required. Little research has shown understanding of peer-to-peer effects of EI. Rather, it
has primarily focused on leaders toward direct reports or followers to leaders. While the limited
studies show no significant correlation between the followers’ EI in relation to employee
engagement and retention (Wong and Law 2002), these studies are limited and require deeper
investigation.
Focusing on studies that influence EI of peers on the teams in which they work may shed
new light on contributing factors of improving employee engagement and retention. Wallace,
de Chernatony, and Buil (2013), Brunetto et al. (2012), and Güleryüz et al. (2008) clearly
demonstrated EI improves performance, engagement, and retention within certain industries
and roles. Broadening that scope to identify additional industries and positions where
developing an emotionally intelligent workforce can have a positive impact on performance,
engagement, and retention will help leaders of organizations identify how, when, and where to
focus efforts for developing EI. This demonstrates the importance of developing EI across
industries and positions and supports the notion that certain organizational cultures as a whole
will benefit from improving EI.
27. Weiher-23
Furthermore, learning and organizational development professionals must carefully
weigh the approach implemented for developing improved EI. In the event that the learning
and organizational development professionals simply facilitate a one-time workshop, there is a
lower chance that any change in behavior will take place (Wlodkowski 2008). For permanent
changes in performance and behavior, the learning and organizational development
professionals should include a blend of formal training (via the classroom or virtual delivery)
coupled with coaching or mentoring on the job to hold the individuals accountable for changes
in behavior. According to Stevens and Frazer (2005) and Wlodkowski (2008), unless coaching,
on the job application, and communities of practice are included as part of the learning
approach, the success of the learning intervention is less likely. Including coaching coupled with
intersession activities and workshops will create higher retention and application of these new
skills and behaviors.
Additionally, it is critical that the leaders in the organization understand the current
baseline of the EI within the organization. If a high level of empathy already exists, spending
time developing empathy may not yield any significant change in employee engagement or
retention. Also, there may be other mitigating factors contributing toward poor employee
engagement and retention. Therefore, it is imperative that the senior leadership team in the
organization carefully weigh all factors contributing toward the current state of the
organization’s engagement and retention. This will allow the leaders to focus time, money, and
additional resources on the appropriate gaps. While improving EI can yield improvements in
employee engagement and retention, it will not solve all the challenges.
28. Weiher-24
Conclusion
In conclusion, creating an emotionally intelligent leadership culture will yield improved
employee engagement and retention. Developing EI at all levels in the organization is not
imperative for improving employee engagement, yet developing emotionally intelligent leaders
improves job performance, employee engagement, and retention (Palmer and Gignac 2012;
Gooty et al. 2010; Wong and Law 2002). Therefore, it is not the entire organizational culture
that requires focus on EI, rather the leadership culture for the leaders of people that require
this focus if the intent is improving employee engagement and retention. However, senior
leaders within an organization must keep in mind that there are various factors that influence
employee engagement and retention. They must not lose sight of the other factors while
integrating EI or they may have negating effects on any improvements yielded by developing EI.
However, leaders within organizations where there is a higher degree of emotion
utilized on a day-to-day basis should branch out to developing the EI skills of their workforce as
a whole as opposed to focusing just on leaders. Wallace, de Chernatony, and Buil (2013),
Brunetto et al. (2012), and Güleryüz et al. (2008) reinforce that some positions and industries
require more EI skills than others. Understanding the skills required within various positions
and the complexity of emotion in which these employees may deal with on a daily basis is
imperative in identifying the need for developing EI skills.
Identifying the baseline for levels of EI within an organization should take place before
identifying if a gap exists that needs addressing. If employee engagement is low and turnover is
high, EI is just one component that may be a contributing factor. Leaders within organizations
must identify the root cause for disengagement and turnover within their organization to
29. Weiher-25
determine if EI is a gap that needs addressing or if other factors are the culprit. Developing EI
will not resolve all issues related to disengagement and turnover, but it deserves consideration
when evaluating solutions to improve performance in these areas.
30. Weiher-26
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