Australian businesses are fast cottoning on to Emotional Intelligence (EQ) as a key factor in the successful management of employees. A total of 98% of respondents in last month’s Rewards survey said that handling emotional issues was an important responsibility for managers with all members agreeing that emotional health was directly relevant to employee productivity.

In assessing their own performance, 55% of respondents said that they felt they were always in control of their own emotions at work, while 44% said that they sometimes acted emotionally in extreme situations. A surprising 80% said that challenge was their biggest motivator, compared with 18% who said that money was their primary motivator and only 2% who acknowledged that fear was their biggest driver.

The emergence of EQ is another discipline managers need to master in order to gain the most out of their workforce. The following list, while not exhaustive, defines some key areas that benefit from a deeper understanding of the intangible aspects of human behaviour.

Hiring and Placement
EQ testing is a new tool in the recruitment arsenal, helping employers to identify the most suitable candidate for any vacancy. Gauging the emotional reaction of prospective employees in different situations and environments helps employers to assess their suitability for a position and helps to improve staff retention rates.

Turnover
Staff turnover is a growing expense in today’s competitive job market where the average employment lifecycle is just two years. EQ can be used to improve staff retention by helping to make employees feel challenged, appreciated and respected.

Corporate Culture
EQ can be used to create a corporate culture where employees are valued and trusted by the company to do their jobs effectively. A workplace where employees feel that they are the most important asset, and essential to the successful functioning of the business, results in greater staff commitment to the organisation, and a feeling of everyone working together to achieve common goals.
 
Productivity
Happy employees are productive employees. EQ is instrumental in developing motivation, co-operation and cohesion in the workforce, reducing conflict and insecurity, and adding to the bottom line.

Conflict Resolution
The ability to manage and resolve conflict is perhaps a manager’s most valuable skill. Guiding employees through tense situations or mediating between opposing points of view provides a great opportunity to resolve differences and gain valuable feedback for improvement.

Customer Care
Customer care is an area of business that benefits greatly from a deeper understanding of emotional behaviour and motivation. Making customers feel understood, respected and valued will go a long way to keeping customers coming back. As everyone knows, it costs significantly more to win a new customer than it does to keep an existing one.