Leaders with EI have strong skills in self-awareness, self-management, social awareness and ... [+]
Coinbase, the large cryptocurrency platform, has instituted a pause on hiring. These actions are in line with a host of other tech firms, as more than 17,000 U.S. workers in the tech sector have been laid off recently.
The downsizing and hiring freezes are attributed to a confluence of events, including runaway inflation, supply chain disruptions, rising costs across the board and the continued war in Eastern Europe that may entrap the U.S. with further involvement. With regards to the tech sector, overly optimistic valuations of startups, without the profits to justify the market capitalizations, and major tech companies’ stock prices getting hammered instilled a chill in the marketplace.
The cryptocurrency exchange, along with Redfin, Twitter and other tech firms, deviated from the methodology of other companies that are issuing job cuts and hiring freezes. They went as far as rescinding job offers to candidates that were ready, excited and prepared to start working. Coinbase announced on its corporate blog, “In response to the current market conditions and ongoing business prioritization efforts, we will extend our hiring pause for both new and backfill roles for the foreseeable future and rescind a number of accepted offers.”
Rescinding Job Offers
Rescinding an offer is an uncommon event. In 25 years of recruiting, I’ve only seen it happen on a few occasions. All of these instances were due to candidates providing misleading or blatantly false information about their backgrounds. This left the companies with little or no other choice, as the job hunters lied on their résumés and in statements made to interviewers.
Most job offer agreements are made with the understanding that it’s “at-will” and either side could decide to change their minds. The company could lay off a person and the worker can decide to leave for a better offer. There is something different, however, when the rug is pulled out from under the recipient of a signed offer letter before they even start the job.
This raises issues about the ethics of a company. It calls into question if they have any empathy for the people they employ. The situation places the person in a precarious position, as they no longer have a job and now find themselves in a challenging job market. A lesson learned is that job hunters now need to seek out companies that have managers who possess emotional intelligence.
Why Emotional Intelligence Is An Important Quality In A Manager
Emotional intelligence (EI) is the ability to treat individuals with respect, empathy and compassion. People with EI interact in an empathetic way. They are keenly aware of the feelings of the folks they are dealing with.
Managers with a high level of EI are curious, ask questions of their team, actively listen and actually want to hear their feedback and constructive criticism. With this knowledge, the supervisor can make the requested changes, thereby improving the work-life of their team. EI leaders remain calm under pressure, offer psychological safety to their employees, keep their emotions in check and put in place thoughtful decisions, while cognizant of how they will impact the team.
In light of the job offer rescission debacle, it should open the eyes of job hunters. Job seekers should have their antennas up to detect if the interviewers are self-aware, empathetic and polite. Flagrant red flags of a management team that lacks EI is demonstrated early on in the interview process. Warning signs include the company forcing you to accept interview times that don’t work for your schedule, canceling meetings at the last minute, interviewers showing up late, unprepared and not having read your résumé, neglecting to share feedback and ghosting you.
What Job Seekers Need To Do Now
You can’t take for granted that the company and its management team will be empathetic to your needs. When you interview for a job, you should ask the tough questions to gain a sense of how leadership will react when confronted with tough times.
You should ask, “What will happen if there is a change in the economy and financial position of the firm? Would one of the first things be to downsize workers or will we be protected?” Inquire about the firm’s previous history. “How did you handle layoffs during the pandemic? Did you provide severance packages and assistance with finding new jobs for the people who were let go or were they left on their own to fend for themselves?”
The pandemic has made people change the way they look at work. Workers want to be treated with respect and dignity. There needs to be a balance between life and work. Employees desire the freedom to have choices, such as flexibility, remote, hybrid, in-office, digital nomad and the option of relocating to other cities while maintaining the same compensation.
How To Spot Managers With High EI
Leaders with EI have strong skills in self-awareness, self-management, social awareness and relationship management. These special breeds of bosses tend to make better decisions, maintain their cool under pressure, deftly resolve conflicts, respond positively to constructive feedback, work well with others and demonstrate leadership abilities.
Management must learn and understand what will make workers happy and productive, and then initiate the appropriate actions. If they have young children, take care of sick relatives, have a disability or other individualized needs, leadership should offer individualized attention to their wants and needs. Companies have to be vigilant in ensuring that their people aren’t silently suffering from mental health issues and burnout. There should be programs in place to prevent these challenges and offer policies in the event that they do suffer.
In the current war for talent and Great Resignation era, managers need high EI to help with attracting, recruiting and retaining talent. Empathetic leaders ensure that workers can bring their true selves to the office and are empowered once they are there.
They offer options on how their people can work. These are the managers who won’t yell or embarrass their people in front of their peers. You won’t get emails, texts or calls on nights and weekends. They don’t manage by fear and intimidation. EI leaders share their mission, ensuring that everyone knows their role and the importance of their contributions.
There will be celebrations of victories and amplifying the efforts of workers who go above and beyond. They’ll help their team reach their full potential. This could be through promotions, lateral moves within the organization or even encouraging a top star to pursue an opportunity outside the company, as it will benefit the person.
Whether you are looking for a new job or deciding if you want to remain at your present company, a key ingredient is having an EI leader on your side.
