While workers are calling for empathetic leadership in the workplace, many say when it comes down to ... [+]
Studies show that the expression of empathy has far-reaching effects in our professional lives. It's increasingly recognized as a pivotal leadership effectiveness tool in today’s global market. Yet, more and more companies are restricting remote options in favor of in-office work. Why are business leaders failing to recognize the impact a return to office could have on employee satisfaction? Is it because they lack empathy for their workers?
In the workplace, CEOs and team leaders never know the hidden emotional burdens employees or peers carry on a daily basis. But when they try to walk in employees’ shoes, it can boost workplace morale, team performance and productivity. However, with so much pressure on leaders to deliver soft skills, a new study found that respondents overwhelmingly expect empathy in the workplace, but many say it feels disingenuous when leaders don’t take action. The EY Consulting Empathy in Business Survey polled more than 1,012 employees—the majority of whom said there’s a lot of talk about empathy but not enough follow-through.
“There is a tremendous gap between organizations and employees that finds companies are not ‘walking the walk’ and simply may be using empathy as a recruitment ploy,” according to Raj Sharma, EY Americas consulting vice chair. “Instead, organizations across industries must embed empathy throughout all decisions and projects, especially amid this challenging economic environment.”
Some of the key findings include:
- 47% of employees increasingly report a lack of follow-through when it comes to company promises, compared to 42% in 2021.
- 86% of employees believe empathetic leadership boosts morale while 87% of employees say empathy is essential to fostering an inclusive environment.
- Mutual empathy between company leaders and employees increases efficiency (88%), creativity (87%), job satisfaction (87%), idea sharing (86%), innovation (85%) and even company revenue (83%).
- 52% of employees believe their company’s efforts to be empathetic toward employees are dishonest—up from 46% in 2021.
“A transformation’s success or failure is rooted in human emotions, and this research spotlights just how critical empathy is in leadership,” says Sharma. “Recent years taught us that leading with empathy is a soft and powerful trait that helps empower employers and employees to collaborate better and ultimately create a culture of accountability.”
To fulfill the authenticity equation, previous EY research indicates offering flexibility is essential. In the 2022 EY US Generation Survey, 92% of employees surveyed across all four workplace generations said that company culture has an impact on their decision to remain with their current employer. In fact, failing to feel a sense of belonging at work or connection with coworkers is a growing reason employees quit their jobs, according to the survey. About half (50% and 48% in 2021) left a previous job because they didn’t feel like they belonged, and more employees now say they left a previous job because they had difficulty connecting with colleagues (42% versus 37% in 2021).
“An empathetic leadership approach considers all, their lived and varied experiences and current needs,” Sharma insists. “If return to office doesn’t provide the flexibility needed for a successful re-entry, many employees will see previous empathetic efforts as inauthentic. Organizations who don’t deliver on promises will certainly see negative consequences and the potential for employee turnover.”
Kim Billeter, EY Americas people advisory services leader agrees. “Time and again we have found through our research that in order for businesses to successfully transform, they must put humans at the center with empathetic leadership to create transparency and provide employees with psychological safety,” she explains, adding, “Empathy is a powerful force that must be embedded organically into every aspect of an organization, otherwise the inconsistency has a dramatic impact on the overall culture and authenticity of an organization.”
But that’s not happening across the board, according to Sharma. “We are seeing leaders who have extra capacity in their business not taking empathy into account in how they communicate and execute on difficult decisions,” he points out. “Empathy is applicable during upturns as well as downturns, but not incorporating empathy during challenges can be damaging for all employees and validate employees’ skepticism. Employees will remember all the details and how leaders made them feel in those moments.”
Sharma notes that employees want to feel supported personally and professionally, and empathetic leadership is a powerful trait that is often overlooked as a soft skill and not focused on enough, in both large and small ways. “Many employees aren’t seeing company promises come to fruition and are more likely than in previous years to feel taken advantage of by their company (up five percent from our last empathy survey in 2021),” he concludes. “Even amid an uncertain economy and job market, employees will leave their job if their well-being is not prioritized and if they don’t feel engaged, with younger generations leading this movement.” He believes that employers must embrace empathy that is authentic and organic leadership. “Time and again we have found through our research that for businesses to successfully transform, they must put humans at the center with empathetic leadership to create transparency and provide employees with psychological safety.”
