It is not just our society that is changing. The world of work in particular is facing new circumstances and challenges: pandemics, climate change, working from home, constantly new regulations and laws, AI, shortages of skilled workers, economic uncertainty. Employers are demanding more, employees want to work less. Old management styles are reaching their limits.
More and more managers are discovering empathic leadership as a new possibility. According to a study by the Boston Consulting Group, this increases employee engagement by 44 percent and loyalty to the company by 30 percent. In times of a shortage of skilled workers and quiet quitting, this sounds like THE solution. But what is empathic leadership and what can it really achieve?
What is empathic leadership – and what is it not?
When many people think of empathetic leadership, they think of a cuddling course where everyone hugs each other, shares their deepest feelings with tears in their eyes, is always nice to each other, no criticism is expressed and work is only a secondary concern.
They believe that empathetic leadership is only about feelings, that performance and company goals are lost, employees achieve less, and managers display a laissez-faire attitude that ultimately harms the company.
Maybe you are one of these people?
But all these are prejudices that have nothing to do with reality.
Empathic leadership has nothing to do with being ready to burst into tears. It’s more about recognizing and understanding the needs of employees and responding to them and seeing them not just as workaholics, but as people whose lives consist of more than just their job. In other words, it’s about awakening intrinsic motivation and creating a workplace that employees and managers enjoy. And companies also gain new employees this way!
Why did your employees choose this job in the company? What motivates them? What are their strengths, what do they enjoy? What do they hope for the future? What do they want in their career? Does one or the other person have ambitions for advancement?
If you know all this about your employees, you can create the perfect environment with them in which these people automatically perform at their best, are less sick, etc.
For most employees, different factors are important in a job and company. It’s not always just about money.
But what exactly does empathetic leadership bring you?
The following survey results from two renowned companies show what empathetic leadership can achieve most impressively.
Empathy is the key to our employee retention!
Satya Nadella, CEO Microsoft.
1. Microsoft
Microsoft conducted a survey among its employees, the results of which speak for themselves:
The figures from the Microsoft survey confirm the statement of the Microsoft CEO:
- 90 percent of employees feel committed to the company.
- 96 percent believe they are treated with respect and dignity by their managers.
- 95 percent have a positive working relationship with their manager.
The empathy-focused culture is the most common reason why employees choose to stay at Microsoft.
2. Boston Consulting Group
A similar survey on the benefits of empathetic leadership was also conducted at BCG – the results:
- Increased innovation capacity by over 48 percent.
- Employee engagement increases by 44 percent.
- Employee loyalty increases by 30 percent.
- 65 percent of employees surveyed who have an empathetic manager are satisfied in their job.
- 83 percent feel seen and valued.
The numbers are clear.
But what does this mean specifically for you as a manager and for the company?
Benefits of Empathic Leadership
1. Increasing employee satisfaction and loyalty
Empathetic leaders are able to create a positive and supportive work environment. A 2019 study by Businessolver shows that 93 percent of employees in empathetically managed companies said they were more likely to stay with their company. Employees who feel valued and understood are less likely to leave the company, which lowers turnover rates and increases retention.
This means that you have to hire fewer skilled workers. This means that you save enormous costs in recruiting and in the HR department.
2. Increasing productivity
Empathetic leadership can directly contribute to increasing productivity. Regular studies by the Gallup Institute show that teams with empathetic leaders are 21 percent more productive than those with less empathetic leaders. By understanding the individual needs and challenges of employees, managers can provide more targeted support and thus increase performance.
This means that your employees achieve more. This means that you need fewer people for the same amount of work. You save on personnel costs.
3. Strengthened employee loyalty
Another clear advantage of empathetic leadership is employee retention. A study by Development Dimensions International (USA) shows that employees do not necessarily leave a company because of the company itself – but because of the manager.
People follow humanity!
4. Promoting innovation and creativity
Empathetic leaders encourage their employees to think creatively and develop new ideas. In a study conducted by Catalyst, 61 percent of employees said that they felt encouraged to develop innovative solutions in an empathetic work environment. Empathetic leaders create a safe space for ideas and feedback, which strengthens the company’s innovative power.
The result: Your company is better prepared for changes, can react more quickly to market changes, and brings new products to the market. This increases your sales.
5. Improve mental health and well-being
Empathetic leadership also contributes significantly to the mental health and well-being of employees. A study by the American Psychological Association (APA) found that employees who work with an empathetic leader have significantly lower stress levels and higher life satisfaction. This not only leads to a healthier work environment, but also reduces sick leave.
Conclusion: Your employees are less sick and at the same time more productive.
To put it in the words of Prof. Volker Nürnberg:Many executives do not understand that soft (NOT financial) factors determine the financial success of a company.Prof. Volker Nuremberg
The advantages are really obvious, don’t you think?
The Principles of Empathic Leadership
How can you lead empathetically and what does it take to develop this relationship of trust in your team:
1. Humanity
Your employees are people, not robots. They have feelings, needs and want to be seen. They need appreciation, respect and recognition. Incidentally, this also applies to you as a manager.
2. Understanding
People want to be understood. Understanding that they sometimes have a bad day, that they want to develop further, their needs, etc. That doesn’t mean that everything they want has to be fulfilled. It’s about you as a manager understanding and seeing your employees. That you show interest in them. Real interest, not just because you read in an article that it’s a sensible idea. People notice whether you’re just feigning interest or whether you’re serious.
3. Openness and feedback
Challenges, criticism and problems must be addressed openly. If employees feel insecure and do not express their opinions, an efficient team and therefore a trusting working relationship cannot develop. Your job as a manager is to create an environment that allows employees to express themselves freely.
4. Self-leadership
Everyone is primarily responsible for themselves. This means that it is not just about you as a manager seeing the needs of your employees, but also about them being able to perceive and communicate them themselves. This also applies to you. You, as a manager, must take care of yourself, show yourself respect and appreciation and thus take your needs seriously.
Do you want to “learn” empathetic leadership?
In view of global developments and changes in the world of work, empathetic leadership is no longer a “nice-to-have” for me, but a “must-have” in order to remain competitive in the future.
If implemented consistently, empathetic leadership has the potential to improve the entire corporate culture.
Because it’s not just about how you behave towards your employees, but also about how you treat yourself, how you see yourself and how appreciative you are of yourself, and that also applies to each individual in your team and among your colleagues themselves.
This creates a working atmosphere in which challenges are solved together, everyone gives their best, innovations emerge and efficiency is practiced every day. Performance, loyalty, motivation and fun increase.
If you now say: “This is a working world I want to live in”, then I would be happy to support you.
