The majority of employees (86%) believe empathetic leadership boosts morale, and 87% say it’s essential to fostering an inclusive work environment, a new study has confirmed.
As many employees face downsizings, restructurings and a looming global recession, most say that empathic leadership is a desired attribute but feel it can be disingenuous when not paired with action, according to the 2023 Ernst & Young LLP (EY US) Empathy in Business Survey.
In fact, half (52%) of employees believe their company’s efforts to be empathetic toward employees are dishonest; up from 46% in 2021. Additionally, employees increasingly report a lack of follow-through when it comes to company promises; 47% compared to 42% in 2021)
The study of more than 1,000 employed US workers examines how empathy affects leaders, employees, and operations in the workplace. The survey follows the initial EY Consulting analysis of empathy in 2021 and finds workers feel that mutual empathy between company leaders and employees leads to increased efficiency (88%), creativity (87%), job satisfaction (87%), idea sharing (86%), innovation (85%) and even company revenue (83%).
“A transformation’s success or failure is rooted in human emotions, and this research spotlights just how critical empathy is in leadership,” said Raj Sharma, Vice Chair at EY Americas Consulting. “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.”
EMPATHY AT WORK
According to the report, there are many upsides to empathetic leadership in the workplace. Benefits include:
- Inspiring positive change within the workplace (87%)
- Mutual respect between employees and leaders (87%)
- Increased productivity among employees (85%)
- Reduced employee turnover (78%)
“Time and again we have found through our research that in order for businesses to successfully transform, they must put humans at the centre with empathetic leadership to create transparency and provide employees with psychological safety,” highlighted Kim Billeter, People Advisory Leader at EY Americas. “Empathy is a powerful force that must be embedded organically into every aspect of an organisation, otherwise the inconsistency has a dramatic impact on the overall culture and authenticity of an organisation.”
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.
HOW EMPATHY CAN COMBAT FUTURE CHALLENGES
While leaders may experience lower employee attrition rates now when compared to the Great Resignation, a resurgence is brewing. Many economists expect a soft landing from the looming recession and with it may come turnover, particularly if employees already feel disconnected from their employer or from each other.
In fact, failing to feel a sense of belonging at work or connection with coworkers is a growing reason why employees quit their jobs. About half (50% and 48% in 2021) left a previous job because they didn’t feel like they belonged. Additionally, more employees now say they left a previous job because they had difficulty connecting with colleagues (42% compared to 37% in 2021).
“What happens outside of work has a direct impact on how people show up. It’s no longer enough for leaders to think of a person in one dimension – as an employee or as a professional within the organisation,” said Ginnie Carlier, Vice Chair – Talent at EY Americas. “Leading with empathy helps move from the transactional and to the transformational Human Value Proposition, where people feel supported both personally and professionally.”
Click here to find out more about the report.
RELATED ARTICLES
Empathetic leadership is ‘critical’ to employee wellbeing as more staff return to the workplace, confirmed several experts.
Empathetic leadership is the secret sauce to attracting and retaining staff, revealed a recent study.
Empathetic leaders are key to retaining staff, and reducing employee burnout, confirmed another recent study. Click here to read more.
Sign up for our newsletter
