Empathy is a superpower. As one of the most essential soft skills for effective leadership, it has become critical for the continuous cycle of business transformation. This should not come as a surprise. For the past ten years, studies have shown the importance of empathy in the workplace.
The Global Empathy Index from Harvard Business Review illustrates this point. The top ten companies in the index realize 50% higher earnings than the bottom ten companies. This may be due to improved employee engagement and retention. According to a recent Korn Ferry article, “The vast majority of employees, 87% in one study, say empathy boosts morale and increases efficiency, creativity, idea sharing, and innovation.”
There is no shortage of opportunities to display empathy, in meetings, during lunchroom conversations, and through email communications, to name a few. The key to empathy is active listening. Pay attention to what others are saying instead of thinking about what you want to say next, “listen to employees’ concerns, recognize their challenges, and respond with support that fosters both well-being and productivity…to understand both what motivates people and what gets in their way.”
The challenge for leaders is to be genuine in their desire to show empathy. More than 50% of employees view their leadership’s empathy as fake, coining the term ‘empathy washing’ – a performative or insincere display of care or concern. This becomes a problem when it is a company value that is not practiced in real life.
Great leaders must first and foremost be trusted, and empathy is a proven way to build trust. According to EY, “This breakdown in trust happens when workers see empathy as a program being rolled out, and not a fundamental shift in behavior change from the CEO on down. To really make a change, organizations need to reward empathy as a management style — as much as productivity and profitability. Empathy must be embedded into every employee experience.”
However, a recent study stated that nearly 40% of CEOs don’t think empathy should be shown in the workplace. Demonstrating empathy can be difficult at the office, especially with the level of anxiety many of us face and the pressures of day-to-day work.
“In a series of six studies with over 1,300 total participants, researchers found that of all the emotions, anxiety and surprise were most likely to cause egocentrism and make people unable to consider the feelings and perspectives of others. Turns out, an incessant ruminating about the past or trying to control the future makes attuning to those around you far more difficult.”
Yes, we need empathy, but it can be difficult to cultivate. With global economic uncertainty and the increasingly faster pace of technological change, executives are facing a multitude of challenges, not least of which is employee engagement and retention. Keeping employee well-being in mind can support growth goals through connection and understanding.
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