Connect with us

Entrepreneurship

Emotional Intelligence: A Hidden Key to Career and Workplace Success

Published

on

When the term “intelligence” comes up in regular conversation, most of us associate it with a person’s capacity to acquire knowledge and new skills.

This type of intelligence can be measured with IQ, which helps us determine if the test taker is closer to a Stephen Hawking or a Lloyd Christmas on the smarts scale. And certainly, given no other data, a hiring manager would likely prefer to choose someone on the Hawking end of the spectrum.

But while IQ is useful, it’s also clear that emotional intelligence (EQ) can be a difference maker in any professional role.

Defining Emotional Intelligence

Have you ever met an entrepreneur with so much empathy and awareness, that they can read people in every situation and relate? Or a salesperson that will always genuinely put your success ahead of their own personal gain?

These are powerful qualities – and emotional intelligence is all about the ability to better navigate social situations, including with colleagues, bosses, and clients.

Today’s infographic comes from Aumann Bender & Associates, and it defines emotional intelligence while explaining the benefits of higher EQ in both qualitative and quantitative terms.

Emotional Intelligence: A Hidden Key to Career and Workplace Success

Even if someone is smart in terms of IQ, it doesn’t necessarily translate to career success.

In fact, emotional intelligence explains why 70% of the time, a person with an average IQ can actually outperform a person with more smarts.

Quantifying EQ

Although the topic of emotional intelligence may seem “touchy-feely” for some, the benefits of having a higher EQ are cold, hard facts to ponder:

  • A whopping 90% of top performers have high EQs
  • Emotional intelligence explains 58% of a leader’s job performance
  • People with higher EQs make an average of $29,000 more per year than people with lower EQs
  • Every one-point increase in EQ equates roughly to $1,300 in annual salary
  • Research shows that EQ is crucial across all industries and sectors

So the next time you’re looking at how to get an edge at the workplace, consider that it’s not just knowledge or skills that you should be after.

Sometimes there is a higher ROI in the “soft skills”: being more self-aware, learning how to effectively express your opinions or emotions, finding ways to bounce back from adversity, or managing stress or negative emotions can be more important than technical skills in improving career performance.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
Comments

Business

How to Take the First Steps in Scaling Your Business

What are the roadblocks to achieving scale? We look at these growing pains, as well as the steps needed to get past them in scaling your business.

Published

on

How to Take the First Steps in Scaling Your Business

Most entrepreneurs are hungry to bring their company to the next level.

Whether they operate a family-run business or a rapidly evolving tech startup, there is always another milestone in sight. Business owners want to their companies to make an impact with their customers and communities, and they want to keep honing their craft.

But with 27.9 million small businesses in the United States alone, there is no shortage of competition for the same pieces of the pie.

How can you take steps in scaling your business, and do what your competitors are not willing to do?

Roadblocks to Scale

Today’s infographic comes to us from Brunner Consulting, and it breaks down common roadblocks to scaling as well as potential solutions to the problem of decision fatigue.

To begin, we’ll look at a poll of U.S. small business owners, which gives perspective on the challenges most often faced by companies with fewer than 10 employees:

  • Profitability (50%)
  • Hiring new employees (48%)
  • Growing revenue (41%)
  • Cash flow (38%)

Unless a business has deep pocketbooks or is venture-backed, there are several obstacles here that may prevent companies from scaling successfully.

A lack of profitability is an obvious limitation, but it’s also clear that revenue growth, cash flow, and adding new employees can be growing pains that may derail any long-term plans.

Decision Fatigue

Why is scaling your business so challenging?

It’s because most types of businesses are not really scalable to begin with. The only sustainable way to scale for most companies is to grow revenue while decreasing operating costs, and for many traditional small businesses (i.e. bakeries, restaurants, hardware stores, consulting, etc.) this can be incredibly difficult.

Even if you come up with a scalable business model, there is yet another obstacle that can prevent your from growing the right way: decision fatigue.

In a growing and evolving company, entrepreneurs can’t do everything – and when they try to make every big and small decision, it affects the quality of those decisions. It can lead to being unnecessarily risk averse, maintaining the status quo, or even avoiding decisions altogether.

Scaling Your Business: First Steps

For a business to grow, there has to be more than one decision-maker.

There are two main routes to this:

1. Delegate Responsibility
In a typical small business, employees find and diagnose problems, while owners focus on solving them. However, by delegating these day-to-day decisions to employees, it frees up owners to work on the big picture items that can fuel growth.

2. Play to Your Strengths
Entrepreneurs can’t do it all, so it’s best to play to your strengths. To do this, outsource business departments that are outside of your wheelhouse. Often those may include things like bookkeeping, marketing, customer service, or website design.

Decentralizing decision-making is one of the first steps in scaling your business – and no matter how you do this, it frees you to focus on the big problems.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Business

The World’s Best and Worst Places for Ease of Doing Business

In some countries, launching a business is easy. In others? It’s a hassle that is littered with bureaucracy, corruption, and a lack of basic services.

Published

on

The Best and Worst Places for Ease of Doing Business

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

When it comes to supporting new businesses, not all jurisdictions are created equal.

Whether it’s the basics, like hooking up electricity and registering the business, or more complex regulatory hurdles, your location can impact the success of your venture in a big way. What makes a country business-friendly, and where are the most hassle-free places to open up shop?

The Ease of Doing Business ranking, by World Bank, breaks countries’ complex regulatory ecosystems down into quantifiable components. The resulting index and ranking system is a global look at who’s making it easy to do business, and which countries are struggling.

A Global View of Doing Business

The visualization below looks at the score (0-100) of 190 economies around the world, as well as a spread between high and low scoring factors in the subindices. While two countries may have the same score, one might have a much wider “spread” which points to outlaying successes or serious challenges in their regulatory framework.

Luxembourg, for example, ranked number one in the Trading Across Borders factor, but 173rd in Getting Credit.

Note: click the graphic below of the full list to expand to a higher resolution.

ease of doing business chart data viz
View a high resolution version of this graphic.

Of the 190 economies covered in the report, New Zealand comes out on top for the third year in a row. Singapore and Denmark round out the top three.

The United States, whose ranking has been slipping in recent years, came in at 8th spot.

This ranking offers up some surprises, such as Macedonia and Georgia, which are both in the top 10. Georgia makes it easy to start a new business, and has the lowest number of procedures to get the process going.

Afghanistan had the biggest year-over-year score increase after making big strides in enhancing the legal framework for businesses.

Rwanda is ranked at a very respectable 29th place – the only low-income economy to crack the top 50.

Building the Index

The data for the ranking is compiled from over 12,500 expert contributors in 190 countries who deal with business regulations on a daily basis. The final score is based on the average of 11 factors:

  • Starting a business – Procedures, time, cost, and minimum capital to open a new business
  • Dealing with construction permits – Procedures, time, and cost to build a warehouse
  • Access to electricity – Procedures, time, and cost required to obtain an electricity connection for a new warehouse
  • Registering property – Procedures, time, and cost to register commercial real estate
  • Procuring credit – Strength of legal rights index, depth of credit information index
  • Protecting investors – Indices on the extent of disclosure, extent of director liability and ease of shareholder suits
  • Paying taxes – Number of taxes paid, total tax payable as share of gross profit, and hours per year spent preparing tax returns
  • Trading across borders – Number of documents, cost, and time necessary to import and export
  • Enforcing contracts – Procedures, time, and cost to enforce a debt contract
  • Resolving insolvency – The time, cost, and recovery rate (%) under bankruptcy proceeding
  • Labor market regulation – Flexibility in employment regulation and aspects of job quality

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
Menē Company Spotlight

Subscribe

Join the 100,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular