New Research Proves Interpersonal Skills Make High-Performing Managers; Study Shows That Building Effective Relationships is Critical to Managerial Success

Business Wire,  August 31, 2005  

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HIGHLANDS RANCH, Colo. -- A research study released today links interpersonal skills to effective managerial job performance. The study shows that interpersonal skills are an important element of overall success comparable to intelligence, previous work experience and personality.

The study, conducted by The TRACOM Group, examined 127 managers within an international publishing company. Researchers compared the managers' scores on various aspects of job performance with their Versatility scores. Versatility is a concept closely related to social or emotional intelligence. A person's level of Versatility indicates his or her ability to interact effectively and gain the approval and support of coworkers.

"Most people recognize the importance of interpersonal skills in the workplace, but it's often hard to measure," said Dr. Casey Mulqueen, TRACOM's Director of Research. "This study offers proof that such skills are directly related to effective job performance, and that Versatility does in fact make for better performing managers."

TRACOM used separate assessment tools to measure Versatility and job performance, which included 47 variables such as "ability to effectively manage conflict," "ability to influence," "initiative" and "effective team leadership." For Versatility scores, managers in the top 25th percentile were given a rating of "high," and managers in the bottom 25th percentile were rated "low." Managers were rated by their supervisors and direct reports.

Statistical analysis identified a strong correlation between Versatility and job performance. Correlation measures the likelihood that two items are related with higher numbers showing greater connection. Versatility had a correlation of .47 with the "ability to work well within a team" and .44 with the "ability to effectively coach others." As a point of comparison, the correlation of SAT scores with subsequent college GPA is .20 and the correlation of antihistamine use and reduced runny nose and sneezing is .11.

The study also revealed that managers with high Versatility (top 25 percent) outperformed low Versatility managers (bottom 25 percent) on all of the 47 measured performance factors. Highly Versatile managers received ratings at least 20 percent greater in areas such as "leader effectiveness," teamwork," "conflict management" and "overall performance."

Compensation data for the managers was analyzed to identify any Versatility-related differences. It was found that highly Versatile managers received 29 percent more in total compensation than low Versatile managers. The average annual difference between the groups was $30,000, showing that organizations place higher value on those managers with higher Versatility. Compensation was not significantly related to job tenure.

"This study reinforces what we've seen in hundreds of companies," said TRACOM President John Myers. "With nearly 50 years of experience, we have gathered significant evidence of Versatility's impact on productivity. The new research quantifies that impact, proving that the TRACOM Versatility measure is a powerful indicator of workplace effectiveness."

Additional details on the Versatility research study results are available at www.tracomcorp.com.

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