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

Leadership & Growth

Implementing Lean Management Principles in SMBs

“Lean management” might conjure images of big manufacturing plants fine-tuning assembly lines, but the principles of lean are highly relevant...

Read More
People Management & HR

Developing a Competitive Compensation Strategy for SMBs

For small and medium-sized businesses, a competitive compensation strategy is key to attracting and retaining the talent needed to grow...

Read More
Accounting & Finance

The Role of Financial Reporting in Small Business Growth

Financial reporting often appears to be a routine exercise, but for small businesses, it can be the difference between reactive...

Read More
Accounting & Finance

The Impact of Accurate Financial Operations on Business Success

Financial operations encompass the systems and processes that govern every monetary aspect of a business—from managing payables and receivables to...

Read More
People Management & HR

The Benefits of Outsourcing Payroll for Small Businesses 

For many small business owners, running payroll is a time-intensive chore that requires meticulous calculation, familiarity with tax codes, and...

Read More
Accounting

Introducing C3: Your All-in-One Financial Management Platform

Managing your business’s finances can often feel like juggling too many tasks at once, especially when you’re trying to keep...

Read More
Accounting & Finance

Tax Planning Strategies to Maximize Small Business Savings

Small business owners often grapple with tax obligations that can swallow a large portion of their profits if not managed...

Read More
People Management & HR

Streamlining HR Processes, Best Practices for Small Business Owners 

Human Resources (HR) might feel like an afterthought for many small business owners juggling day-to-day demands, yet it has a...

Read More
People Management & HR

Leveraging AI for Efficient People Operations

Artificial intelligence (AI) isn’t just for tech giants anymore—it’s increasingly accessible to small and mid-sized businesses seeking a competitive edge...

Read More