Empathy Meets Efficiency: Why human connection is key to business success

Empathy is the most important leadership skill, according to a recent EY survey. But what does it mean to be an empathetic leader, and why is it crucial for business growth and success?

Empathy refers to a leader’s ability to understand, share and respond to the feelings, thoughts and circumstances of those they lead. It involves recognising and validating the emotions and perspectives of others while also considering their needs, motivations and challenges. 

Empathy requires being open and vulnerable to the emotions of others, which some people may see as a weakness, especially in a leader. However, vulnerability is a necessary component of forming deep connections and fostering trust in relationships, and it takes courage to be open and authentic with others. Empathetic leaders are effective communicators and active listeners which allows them to build strong connections with their team members. 

You can lead with empathy and preserve competitive advantage at the same time. Establishing mutual empathy between leaders and employees leads to increased efficiency, productivity, creativity, job satisfaction, even retention and company revenue. 

Why empathetic leadership is needed NOW

Businesses today are facing unprecedented challenges and uncertainty at fast pace, requiring organisational agility and strategic change to keep up. But organisational change can be messy. What many leaders often fail to take into account is the emotional impact change has on their teams, and the emotional response it requires from leaders.  

While standing still is seldom an option, moving too fast or being in a constant state of change is unlikely to result in success unless leaders engage their teams effectively from the beginning. 

Let’s look at that in the context of strategy planning and execution.

It is common for leaders to design the strategy behind closed doors while the implementation falls on frontline staff who may not be fully invested or even aware of the broader strategy. This disconnect between strategy planning and execution creates a misalignment between leaders and their teams. Lack of alignment often results in low engagement, poor accountability, and conflict.

 Leaders often approach strategy as a cerebral activity revolving around data analysis and tasks but it has an emotional component and that is frequently overlooked. Strategy usually means change and change is often met with resistance. This resistance, whether conscious or subconscious, is a natural reaction to the uncertainties and fears that change introduces. 

Here are three tips for leaders to bring more empathy into their strategy execution with teams, in order to create the momentum they need for change and business success:

Acknowledge Human Emotions and Empathy

When communicating change, it’s crucial to remember that we’re human beings first and employees second.

While a rational process is necessary to establish the basis for change, it’s essential to recognise that change profoundly affects individuals’ emotions and fears. 73% of employees affected by change reported moderate to high-stress levels during and after the change.

The unknown or unfamiliar can be intimidating, leading to resistance and apprehension. In this context, empathy from leaders plays a vital role in helping people navigate the change process. Communicating change requires understanding and respecting what people may lose during the transition, both personally and professionally.

Empathise to Connect

For leaders, the spotlight should be on the “why” behind the strategy. This isn’t just about business objectives but about translating vision and objectives into something an employee can relate to and invest in. People care less about a change than why it’s happening and how it will affect them. 

This requires viewing empathy as a professional skill – a trait that allows leaders to gauge and respond to the emotional needs of their people. Focus on human-oriented communication to ease their worries and concerns, connect deeper, to help people understand how change relates to them and reframe changes into valuable opportunities for those implementing them.

Embrace empathy as your guiding principle

We can learn a great deal from companies that have accomplished their strategy objectives successfully. Microsoft successfully transformed its operations, under the leadership of CEO Nadella, resulting in a remarkable increase in revenue. As a leader, Nadella showed bold vision and bold action and took all necessary steps to move the organisation forward before it became irrelevant.

As part of his approach, Nadella championed empathy and placed it at the heart of his company’s transformation. In his words, “Ideas excite me. Empathy grounds and centers me.” Here is a leader who understands the power of emotions and used them to create a culture of collaboration to ensure successful execution of strategies and positive business outcomes.

Empathy is a critical leadership skill that can positively impact key business metrics and strategy implementation is just one example of a people-centred challenge that requires an empathetic approach from leaders. 

It is time to dispel the misconception of empathy as a weakness. Leading with empathy is a strategic advantage in today’s business environment. Thus, it comes as no surprise to hear that the European Council has identified empathy as a key competency for the future.

Olga Valadon is a corporate empathy expert and the founder of leadership, strategy and culture consultancy Change Aligned®. 

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