Small Businesses

Why empathetic leadership is what your employees value most

  • 3 min Read
  • December 3, 2021

Author

Escalon

Table of Contents

Empathy, the ability to recognize and understand others’ needs, feelings and emotions, has always been an important “soft skill” for leaders. But the role of empathy has risen to a new level of importance in the post-pandemic workplace.


Empathetic leadership can be likened to the secret sauce when it comes to retaining and hiring employees amid the Great Resignation, according to the 2021 EY Empathy in Business Survey.  Empathy also contributes to higher levels of happiness and productivity among employees, the survey finds.


Employees want empathetic bosses



It is perhaps no surprise that employees want bosses who exhibit understanding and caring, especially given the challenges of the COVID-19 pandemic. The EY survey’s numbers clearly reflect this sentiment.


In its poll of over 1,000 U.S. employees, EY found that 54% had previously quit a job because the boss wasn’t empathetic to their struggles at work. Meanwhile, 49% had left a previous job because they believed their boss wasn’t empathetic toward struggles in their personal lives.


Below is the percentage of respondents who agreed that empathetic leadership:


leads to better leadership … 89%


inspire positive change in the workplace … 88%


fosters trust among employees … 87%


increases employee productivity … 85%


While empathy in listening to customers has long been deemed essential for building their trust and loyalty, practicing empathy in the workplace is now also deemed crucial by employees. Because the pandemic caused myriad personal and professional challenges for many people, leaders who listen to and act on employee sentiment are more likely to attract and retain talent. The survey also suggests that empathetic leadership offers business benefits such as improved efficiency and higher levels of creativity and innovation.


Trusting that bosses are empathetic is another story



While the survey shows employees prioritize empathetic leadership, it also suggests many feel their companies are all talk and no action when it comes to empathy in the workplace. Among respondents, 46% felt their organization’s efforts toward empathy for employees were “dishonest.” About two in five, or 42%, said their firm “didn’t follow through on promises.”


Despite a business’s pledge to support employees, when a manager or executive takes actions that do not align with the empathy the company espouses as a value, employee trust is quickly eroded.


Empathy is about authenticity



Empathy is more than just an HR initiative. In the workplace, empathetic leadership may require a cultural shift that organizations continually work at. 


Aside from taking the initiative to help employees feel more comfortable in having open discussions, managers should try to model the same behavior. For instance, an employee may better understand why the manager seems distracted at the morning meeting if he shares that he was up all night caring for a sick child.


Wrap-up



Forging a connection with employees and providing a supportive work environment is more important than ever. Leaders must prioritize empathy to foster innovation, stimulate growth and successfully lead business transformation efforts.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

October 15 Tax Deadline: What to Double Check Before You File

If your business or personal tax return was extended back in April, October 15 is the final deadline to submit....

Accounting & Finance

Key Financial Deadlines Every SMB Should Know for Q3 and Q4 

For small and mid-sized businesses, the second half of the year often comes with increased operational demands, from budgeting and...

Small Businesses

From Bookkeeping to Strategic Finance: Preparing Your Family Business for Growth

Is Your Family Business Ready for Its Next Chapter? As a family business leader, you've built something remarkable. Through years...

Accounting & Finance

Subscription Revenue in 2025: Fatigue, Churn, and the Imperative to Diversify 

For much of the last decade subscription models symbolized modern growth, predictable revenue, sticky customer relationships, and rising valuations. But...

Accounting & Finance

Closing the Books in Q4: Common Mistakes That Delay Reporting 

Closing the books at year-end is one of the most important financial events for any growing business. It sets the...

Leadership & Growth

Building a Scalable Tech Stack: How to Choose the Right Tools for Growth 

In today’s business landscape, technology is more than a convenience—it’s a strategic asset that can supercharge growth. But as you...

People Management & HR

The Role of HR Analytics in Strategic Decision-Making 

In the era of big data, human resources (HR) analytics has emerged as a powerful tool that can transform how...

Accounting & Finance

Understanding Customer Lifetime Value and Its Impact on Strategy 

In the world of business, not all customers are created equal. Some make one small purchase and disappear, while others...

Accounting & Finance

Tax Strategies for Succession Planning in Family-Owned Businesses 

Succession planning in a family-owned business is a delicate dance that involves not only leadership and emotional considerations, but also...