Tying Staff Satisfaction to Increasing Your Bottom
Imagine knowing that by simply increasing
the level of staff satisfaction in your company, you could increase
Connecting an increase in a company’s success
to an upbeat, positive, energized workplace has been made by many
business pundits over the years. But a study done in 2001 by Lyle
Spencer for the Consortium for Research on Emotional Intelligence
in Organizations found that "for every 1 percent improvement
in the service climate, there’s a 2 percent increase in revenue.”
||For every 1 percent improvement in the service
climate, there’s a 2 percent increase in revenue.
That little known fact catches the CEOs I work with
off guard every time.
A client I was working with was very frustrated.
His company had steadily increased profitability over the years
then it hit a plateau and nothing he did worked. In his mind, the
problem was a financial one and so the help he sought focused on
his business design. When I started working with him, it became
clear early on that his was a leadership competency issue.
This guy had as much empathy for his staff as a politician
has for his opponent. In a word – zero.
His perception of his staff was fairly negative.
He had not developed a strong vision for the company, had not articulated
any values and took the attitude that people should be able to do
the job they were hired for. Consistent communication, recognition
of effort, providing feedback didn’t exist. And he didn’t
see any reason why it should.
The importance of understanding how leadership competencies
affect a leader’s ability to grow their business has been
well documented. Studies support that the more emotionally aware
a leader is, the more successful they will be.
The challenge? To become more self-aware requires
a leader to want to seek the truth about how they come across as
a leader. Those that test reality, assess themselves and allow others
to assess them, have the greatest opportunity to change, grow and
become a leader others want to follow.
Unfortunately, my client with the declining profits
felt becoming more self-aware, exploring his own strengths and limits,
guiding his company with a compelling vision wasn’t near as
important as determining how to trim the fat in his organization
by cutting back on staff. A company with already low morale now
added fear to their water cooler talk and production slipped even
Another client refused to address the lagging performance
of a new hire. Three months into this employee’s employment,
the leader was going to let them go. She called me for advice. Pushed
to admit she hadn’t had any difficult talks with this employee
in the three months of their employ, she admitted to being terrified
of conflict. Conflict management, another competency that you can
learn, was not a competency this leader had mastered. Feel for this
employee who heard a very difficult message for the first and last
time, at least at this company.
A leader who brings a level of self-awareness to
their leadership capabilities will be a more successful leader.
Why? Because developing effective relationship management skills
is a magnet to getting and keeping exceptional people. And the good
news is that these leadership competencies are not innate talents,
but learned abilities and each of these competencies have the ability
to make leaders more effective.
The following competencies are from the book Primal
Leadership by Daniel Goleman. A must read for any
leader who wants to improve their bottom line.
How would you rate?
- Emotional self-awareness:
Reading one’s own emotions and recognizing their impact
- Accurate self-assessment:
Knowing one’s strengths and limits
- Self-confidence: Having
a sound sense of one’s self worth and capabilities
- Emotional self-control:
Keeping disruptive emotions and impulses under control
- Transparency: Displaying
honesty and integrity, trustworthiness
- Adaptability: Flexibility
in adapting to changing situations or overcoming obstacles
- Achievement: The drive
to improve performance to meet inner standards of excellence
- Initiative: Readiness to
act and seize opportunities
- Optimism: Seeing the upside
- Empathy: Sensing other’s
- Organizational awareness: Reading
the currents at the organizational level
- Service: Recognizing and
meeting staff and customer needs
- Inspirational leadership:
Guiding and motivating with a compelling vision
- Influence: Wielding a range
of tactics for persuasion
- Developing others: Bolstering
others’ abilities through feedback
- Change catalyst: Initiating,
managing and leading in a new direction
- Conflict management: Resolving
- Teamwork and collaboration:
Cooperation and team building
Our research supports the fact that a self-aware
leader is a better leader. By understanding which competencies you
are strong in and which ones need attention, you are setting your
company on a path to success.
Are you ready to increase your service climate in
order to increase your revenues?