Page 177 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

The HR landscape is undergoing a significant metamorphosis, shifting its focus from solely managing tasks
and processes to cultivating positive workplace dynamics that drive employee engagement, retention, and

overall organizational success. This evolution is fuelled by several key factors:

1. The rise of intangible assets: Intangible assets, like employee experience and emotional intelligence, are

becoming increasingly crucial. A 2022 report by McKinsey Global Institute estimates that intangibles now

account for 84% of the value of S&P 500 companies.

2. Changing employee expectations: Millennials and Gen Z, now forming a majority (51%) of the global

workforce, prioritize work-life balance, purpose, and emotional well-being. A 2023 Deloitte survey reveals
that 70% of Gen Z respondents value an employer who fosters emotional well-being.

3. The impact of technology: Automation is transforming many jobs, demanding adaptability, resilience, and
emotional agility from employees. A 2022 World Economic Forum report predicts that 50% of all current jobs

will be automated by 2030, necessitating a shift in HR practices.

4. The growing emphasis on mental health: The pandemic has shone a light on the importance of mental health
and emotional well-being in the workplace. A 2022 study by the American Psychological Association found

that 75% of employees experience stress on the job, highlighting the need for supportive HR practices.

In this evolving context, emotional intelligence (EI) is gaining increasing recognition as a vital HR

competency:

 Recruitment and selection: A 2022 study by TalentSmart revealed that companies with high-performing
teams scored 27% higher in emotional intelligence than those with low-performing teams. This

emphasizes the importance of incorporating EI assessments into the hiring process.

 Leadership development: A 2021 report by DDI and The Emotional Intelligence Company found that

leaders with high emotional intelligence have teams with 17% higher productivity and 20% higher

customer satisfaction. This underscores the need for leadership development programs that focus on
EI skills.

 Performance management: A 2023 study by Korn Ferry found that employees who rate their manager
highly in emotional intelligence are 4 times more likely to be highly engaged. This highlights the

importance of integrating EI into performance management practices.

 Employee well-being: A 2022 study by the World Health Organization found that depression and

anxiety cost the global economy $1 trillion per year in lost productivity. This emphasizes the need for

HR programs that promote emotional well-being and resilience.

The benefits of integrating emotional intelligence into HR practices are numerous:

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