Firms of Endearment: How World-Class Companies Profit from Passion and Purpose
by Rajendra Sisodia, David Wolfe and Jagdish N. Sheth contends that companies with more emotionally intelligent employees have stronger bottom line performance than those who don’t. David Wolfe can be a controversial adviser, and some have suggested that being recognized as a good corporate citizen should be sufficient reward for conscientious organizations, without having to convince themselves that both their individual psyches are above par and that their bottom line improves as well.
Regardless of the sniping, the underlying research makes the FoE claims believable. High EI clearly hits the bottom line. Ninety percent of top individual performers across industries have high EI whereas only 20% of low performers do. Those who raise their EI are roughly 25% more productive than before. Insurance agents who score high on EI sell twice as much in policy premiums as agents who score lower. Managers at American Express Financial Advisors who complete a training program focusing on one’s own and others’ emotional reactions achieve significantly higher rates of growth in funds under management than their untrained peers.
Plus, data suggests that employees who are emotionally intelligent are more likely to access and profit from feedback, helping them achieve more over time.
So the logic of companies who have more emotionally intelligent employees out-performing their lower EI brethren (and sisters) certainly makes sense.
The application to law firms and law departments, where checking one’s emotions at the door is standard procedure, is obvious– more emotional intelligence–whether hired, trained, or promoted– will not only improve culture but produce bottom-line results.