Emotionally intelligent organizations offer strong customer experiences. Image credit: Four Seasons
Many brands continue to underestimate the importance of emotional intelligence despite the positive impact it can have on a company’s bottom line, according to a new report from Harvard Business Review. The “EI Advantage” report, which was sponsored by hospitality brand Four Seasons Hotels and Resorts, shows that emotionally intelligent organizations have significantly strong customer experiences. As consumers are becoming more perceptive, it is crucial for luxury brands to publicly embrace EI and social purpose. “While EI has been a popular topic since the ’90s, we were surprised to discover how few companies value and prioritize EI within their company,” said Christian Clerc, president of worldwide hotel operations at Four Seasons Hotels and Resorts. “In addition to overlooking the ‘EI Advantage,’ the study also identifies a clear disconnect between what executives say about EI and how it is practiced within the organization – senior leaders aren’t walking the walk. “With changing demographic expectations and new thresholds for transparency, we believe that the evolution of the modern workplace requires a renewed, unabashed focus on the power of emotional intelligence,” he said. “We're excited about elevating the discourse around this important topic as we look to further incorporate the study’s findings into our company culture and business.” The report was based on a survey of nearly 600 respondents across sectors, primarily in North America and Europe. Emotional intelligence at work Less than 20 percent of respondents agreed that their organizations have an ingrained sense of emotional intelligence. EI traits can include integrity, self-awareness, empathy and sense of humor. Companies that emphasize EI were labelled “perceptive” organizations and reported higher levels of employee engagement and productivity. Furthermore, EI-oriented companies were the most adept at establishing goals outside of financial success. Creating a sense of purpose is essential for companies to attract millennials, both as employees and consumers. Millennials account for at least half of the workforce at a quarter of the organizations surveyed. According to the report, more engaged employees contribute to better products, services and experiences for clients. Forty percent of respondents from perceptive companies reported their organizations were “much stronger” than competitors regarding customer loyalty, compared to 12 percent of “detached” organizations. Leading EI organizations also had stronger customer experience, 37 to 8 percent.
Technology is changing how brands and customers interact. Image credit: Four Seasons