Transcript The Business Case for Emotional Intelligence Training

The Business Case for Emotional Intelligence Training & Development to Reduce
Occupational Stress in the Workplace
Presented by Pieter Walker
Director, impact21
Tel – 90185414 or 0404827113
www.impact21.com.au
Outcomes from today
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To provide an overview of the construct of Emotional Intelligence (EI)
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To demonstrate the strong research base and relationship between EI and Business
Outcomes / Work place Stress
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To see how EI culture change strategies can assist organisations manage workplace
stress more effectively
» Evidence based Strategies for Senior Executives to
recognise signs and symptoms of stress in their workers
and how to manage them more effectively
» Evidence based package for training staff in managing
stress more effectively
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Demonstrate the outcomes of implementing EI Cultural Change Programs
Workplace Stress – Overview
• Incidence of stress-related claims having risen dramatically in the last ten
years.
• Employer duties and the significant costs they can incur should they
breach their obligations to employees.
• Contributing factors - growth in non-standard work and changing work
patterns , can occur at all employee levels of an organisation.
• Industries that have the highest levels of work-related stress include the
education sector, police force, finance, hospitality, transport, retail and
marketing industries
Workplace factors leading to stress
Process
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Increased workload / Work overload
Diversification of work
Lack of control over workload
Coping with organisational change (restructuring, downsizing)
Redeployment or relocation
Job insecurity or redundancy
Long working hours
Shiftwork and arising fatigue
People
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Interpersonal conflict
Poor management practices
Lack of communication or consultation
Bullying, aggression or harassment and trauma.
Poor coping Mechanisms
Costs of workplace stress and effects on employees
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Work Related Mental Disorders in Australia 2006 ASCC- Based on Statistics from the National Data Set
(NDS) for Workers Compensation Claims:
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25% of workers were taking time off each year for stress-related reasons ACTU Survey, 500 workers).
High levels of workplace stress lead to
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Between 92-93 and 00-01, 89% increase in the total number of claims where stress was nominated as the
mechanism of disease or injury.
The number of stress claims as a percentage of total claims was 4.4% in 2000-2001.
Between 1998 and 2002, mental stress claims increased from a total of 18.4% of all disease claims to 30.1% of all
disease claims
Average Cost for a stress claim $25, 300 compared to $15, 400 all other claims (00-01 data)
Increased accident rates and other OHS problems.
Costly in relation to the bottom line in terms of lost time, increased insurance premiums and a less productive
workforce.
Major effect on work performance.
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Absenteeism, diminished performance, negative attitude and cynicism, decline in commitment and creativity, and
a decreased ability to concentrate, learn and interact with other employees.
Stressed workers can also develop a range of symptoms including insomnia, headaches, back pain,
gastrointestinal disorders, fatigue, anxiety, irritability and depression.
The Costs Associated with Managing
Depression in the Workplace
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The Work Outcomes Research and Cost-Benefit (WORC) Project - University of Queensland &
Harvard University.
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6.7 % of Australian workers show signs of stress, depression or anxiety (90,000 Australian workers, 58 organisations) – Only 32% of
these sought treatment
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Employees with depressive symptoms, who are not in treatment, are absent from work for 5.5% of total working (1 Day a Month) time
which is 4.3% more than their non-depressed counterparts. This equates to an annual wage loss of at least $1.5 Billion due to
absenteeism in Australia.
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Each person with undiagnosed depression has a loss of productivity costing $9, 665 p.a. – this cost does not include absenteeism,
turnover etc.
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Presenteeism is the largest threat to employers- people are coming to work, but can't perform their functions adequately.
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People with depression perform on average at 40% of their capacity.
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Cost of depression through absenteeism and loss of productivity is estimated to be $3.5 billion per year www.worcproject.com.au
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"Absenteeism is actually the smaller part of the problem, Whereas absenteeism costs around $1.2B per year for the economy,
'presenteeism' or work cut-back costs almost double that at $2.3Billion." - Professor Harvey Whiteford World Bank consultant, Director
of WORC
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Evidence-based treatment for people with depression can lead to better employment outcomes (Smith, et al 2002). Treatment is
effective in over 70% of cases with employees returning to near 100% functionality.
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Providing treatment for employees with depression may be cost effective, with the costs of treatment considered to be less than the
gains achieved through increased productivity (Wang et al2003).
What does this mean for an organisation of 200 Employees?
• An average of 13 employees are likely to have symptoms of depression
• Out of which 9 will not have sought treatment
• Representing $129,400 in lost productivity (Source WORC)
• For each employee you have with depression is producing a loss of $647
per person in the organisation
Why manage workplace stress?
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Duty of Care in the various OHS Act requires employers to protect employees from risks to
their health or safety. This duty includes protecting workers’ mental or psychological health
as well as their physical well-being.
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Managing workplace stress , in order to limit its impact on the business bottom line.
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A study conducted in 2003 by Morgan and Banks found that sick leave costs Australian businesses
$2.56 billion each year.
Statistical evidence indicates that businesses which have implemented work/life initiatives have
experienced fewer stress-related absences, lower turnover and increased employee motivation.
In conjunction with decreased absenteeism for stress-related illness, managing workplace stress also
has the reciprocal effect of minimising workers compensation payouts and thus premiums.
Employers may be liable to pay compensation in situations where workplace stress leads to
employees suffering serious illnesses Eg Simpson & Simpson v State of SA Department of
Correctional Services, the South Australian Workers Compensation Tribunal found that “the
workers employment contributed to the cancer that caused his death”.
Barriers to managing workplace stress
• Increased work demands over-shadowing personal needs
• Lack of education of middle managers and executives in how to identify
early and manage stress in employees
• Inadequate data to support the implementation of a stress-management
system
• A focus on short term education programs rather than longer term cultural
change initiatives; line managers are not involved enough
• A lack of involvement from senior management.
Sow how can we begin to address some of these issues?
• By developing an interpersonally effective
workplace culture! – A transformational
organisation focused on people and process over
the long term
• Selecting for and developing people skills +
measuring and managing people skills
• Through promoting interpersonally effective
leadership – leaders who walk-the-walk and
don’t just talk it!
Emotional Intelligence
• What is it
• What evidence exists that this is the
medium for development
• When its developed what does that
translate to (ROI).
Emotional intelligence
• In the workplace emotions are a defining factor of how we act and
perform at work.
• Emotions influence our thoughts and the decisions we make…
– deciding not to hire someone because “something just didn’t feel right”
– Who’s going to ask the boss for more resources or a pay rise when the boss is
having “a bad day”?
• Emotions also play a large role in our outward displays and behaviours,
they help define…
– Our tone of voice
– Our body language
– Our facial expressions
Its for these reasons EI is so popular…
Most requested
reprint of the review
for the last 40 years
Most widely read social
science book in the world
Emotional Intelligence
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When applied to the workplace EI involves thinking “intelligently” about our own and
others’ emotions and how they influence our thoughts and behaviours at work. It is
the Strategic use of Emotions in the workplace.
EI
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Emotional intelligence is comprised of five specific capabilities…
Feelings /
Behavioural
Workplace
Reasoning
Emotions
outcome
event
/ Decision Making
Swinburne University/ Genos EI
1. Recognizing and
Expressing Emotions
(Self) - The skill of perceiving and
understanding one’s own emotions
- The skill of expressing one’s own emotions
effectively
7 Years University Research – Numerous Publications
Data base of over 3000 senior executives
& 12, 000 general workplace
The only workplace specific assessment of EI
3. Decision Making
- The skill of using emotional
information (self & others) in decision
making
2. Understanding
Emotions (Others)
-The skill of perceiving
and understanding other’s emotions
4. Managing Emotions
- The skill of effectively managing one’s own emotions. The skill of
influencing the moods & emotions of others
5. Controlling Emotions
- The skill of effectively controlling strong emotional
experiences and associated behaviours
Large Body of Literature Linking EI to Business Outcomes
Innovation
& Creativity
(r=0.35)
Teamwork
Effectiveness
(r=0.38)
Customer
Service
(r-0.35)
Transformational
Leadership (36%)
University Research
Links
Emotional Intelligence to
Sales
Job Satisfaction
(0.49)
Organisational
Commitment
(r=0.47)
Stress &
Absenteeism
(-0.43 & -0.54)
Case Studies Demonstrating Return on Investment from EI Cultural Change Programs
Large Retailer – Feedback on 35 Executives by 350 staff
% of improvement
Emotional Self-Control - Time 2
10%
72
Emotional Self-Control - Time 1
62
Emotional Management Self/Others - Time 2
interpersonal effectiveness
6%
organising and planning
42%
quality
45%
28%
67
Emotional Management Self/Others - Time 1
61
Emotional Reasoning - Time 2
76
Emotional Reasoning - Time 1
34
23%
1
82
Emotional Understanding of Others - Time 2
25%
output
33%
59
Emotional Understanding of Others - Time 1
28%
80
Emotional Self-Awareness/Expression - Time 2
Identity
52
Emotional Self-Awareness/Expression - Time 1
19%
76
Total EI - Time 2
0
20
Value
22%
54
Total EI - Time 1
40
60
Percentile Scores
80
20%
0%
100
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
One of Australia’s Largest Logistics Companies
– Feedback on Executives by100 staff
Leadership Outcomes Perceived by Staff
Percentage of change (raters)
Emotional SelfAwareness/Expression
0%
2%
4%
6%
8%
10%
12%
13%
Customer Focus
25%
Emotional Understanding
of Others
59%
Innovative Thought
76%
Emotional Reasoning
Emotional Management
of Self/Others
Percentage of
change (raters)
10%
13%
Motivating Staff
54%
Developing Staff
11%
Role Model
11%
34%
Emotional Self-Control
0%
20%
40%
60%
Percentage
80%
100%
14%
16%
18%
20%
Overcoming the Barriers to Managing Workplace Stress
People
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Provision of support to employees in the form of
– competent colleagues (executive development and coaching)
– coaches and mentors
– professional networks
– training in stress management
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Establishing a standard conflict resolution mechanism through which employees can address matters such as conflict with
peers or supervisors
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Promotion of work/life balance and introduction of flexible work options
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Having an effective counseling procedure
Process
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Assessment & Tracking of - ability to manage stress in self and others, employee workload and stress
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Training & Development + Policy & Procedure (standardization) on Managing significant changes in the organisation
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Standardises decision making criteria & guidelines
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Moving to standardized and simplified work practices (elimination of waste & duplication in systems)
Our Core Services to assist your Business: Cultural Change for
Reduced Workplace Stress
PEOPLE
• Emotional Intelligence Leadership Coaching & Development Programs – to enhance transformational leadership in
current & future leaders: Assist leaders identify the signs of stress in others and how to manage them through it
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Team Building – to improve interactions between team members for a more unified team with
Managing the Generations Programs – to improve the interactions between GenX, GenY & Baby Boomers
Customer Innovation Workshop – hear directly from your customers / stakeholders / staff on what they really want in order to exceed
their expectations
PROCESS
• Lean Thinking & Process Re-engineering – to improve systems & processes, by identifying wastes and inefficiencies
• Enhanced Decision Making – to enhance decision making and improve buy-in
• Igniting Innovation – to enhance innovation & creativity
PROFIT
• Executive Roundtables – to leverage knowledge & innovation and increase the ability to find solutions to existing problems rapidly
• Strategic Planning & Visioning – to ensure successful planning, implementation, change management and follow-up
If you believe your organisation could benefit from improving People, Performance & Profit,
please contact us to discuss how we can partner with you [email protected] or call 61-3-901845414