RETURN ON EMOTION: WHY EVERY COMPANY SHOULD USE IT TO TRACK, MEASURE, AND IMPROVE INTERNAL SUCCESS

RETURN ON EMOTION: WHY EVERY COMPANY SHOULD USE IT TO TRACK, MEASURE, AND IMPROVE INTERNAL SUCCESS

July 01, 20264 min read

I have sat in the room for both kinds of leadership.

I have worked with leaders who had almost no emotional intelligence. Meetings where people left quieter than they walked in. Holiday parties that felt like mandatory attendance at someone else's obligation. Leadership retreats where the agenda was packed and the room was checked out by hour two.

And I have worked with leaders who had it in spades. Same budget, sometimes smaller. Same room, sometimes plainer. But people left those rooms standing a little taller. You could feel the difference in the hallway the next morning.

That difference is not a vibe. It shows up in the numbers. Research from the Center for Creative Leadership found that employees who feel understood and supported by their managers report lower stress and burnout and higher job satisfaction. A 2019 Harvard Business Review piece found that a large majority of employers value emotional intelligence over technical skill when they're evaluating candidates. This is not a soft skill anymore. It is a business metric with a paper trail.

Which brings me to culture events. Leadership retreats, holiday parties, all hands meetings, any internal experience that is not aimed at a customer but is still shaping how your people feel about where they work. These get treated like the expense line nobody wants to defend. They should be treated like the highest leverage tool a company has for the thing traditional ROI cannot capture. How your people feel about you.

WHY ROI ALONE FAILS INTERNAL EVENTS

Ask most finance departments how they judge the holiday party and you'll get a shrug. There is no revenue line for "did people feel valued." That is exactly the gap Return on Emotion exists to close. Where ROI focuses on financial return, ROE measures how well the experience met the qualitative goals that were set going in, whether that's a clearer sense of company vision, stronger trust across teams, or renewed energy heading into a new quarter. Both matter. Only one of them has historically been measured.

And the cost of ignoring it is not small. Global employee engagement dropped to roughly a fifth of the workforce in recent years, a decline linked to trillions in lost productivity. That number should make every leader nervous. It should also make the case for why the internal event budget is not the place to cut corners.

WHAT GOOD LOOKS LIKE

The data on well designed internal experiences is not subtle. Harvard Business Review research has tied offsite retreats to a meaningful jump in productivity afterward, and companies with strong team bonding strategies see a sharp decrease in turnover. Highly engaged teams outperform disengaged ones by a wide margin. None of that happens by accident. It happens because someone designed the experience to produce a specific feeling, on purpose, instead of hoping a good caterer would cover for a bad agenda.

THE FIVE CORE EMOTIONS, APPLIED TO CULTURE EVENTS

The same five metrics that measure ROE for a brand activation apply just as directly inside your own walls.

Acceptance. Did your people feel like they belonged in that room, not just invited but genuinely included.

Activity. Did the day involve them, or did they sit and absorb slides for six hours.

Adventure. Did anything about the experience feel new, or was it the same offsite format with a different hotel.

Hope. Did people leave believing something about their future at the company was better than they thought.

Motivation. Did the day push people toward doing something differently when they got back to their desks.

HOW TO MEASURE IT

You do not need a research team to do this. Three tools cover most of it. Ask directly, right after the event, while the feeling is still close to the surface. Watch the language people use about it afterward, in Slack, in hallway conversation, unprompted. And watch behavior in the weeks that follow. Did engagement scores move. Did the people who seemed disengaged before start showing up differently.

If you run internal events and you have never measured any of this, you are not alone. Almost nobody does it well. But the leaders who do are the ones whose people stay, and the culture inside their walls proves it before any survey does.


Jenny Howard-Maxwell

Jenny Howard-Maxwell

Jenny Howard-Maxwell is the founder of The Edgucation Institute and creator of The Tuesday Edge — equipping event professionals with the strategic tools to elevate every experience

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