I learned that beneath my employee’s tears was the pressure of a high-growth environment that often discouraged rest. Empathy wasn’t just about what I said; it was about the culture I cultivated. But words mattered too. My employee needed me to listen.

Since that day, I’ve supported team members through cancer diagnoses, miscarriages, divorces, as well as both personal and professional setbacks and triumphs. What I’ve learned is this: when leaders embrace empathy, they don’t just support their teams; they strengthen their entire organizations.

In the words of Brené Brown: “the heart of leadership is connection, and connection is about empathy, curiosity, and emotional courage.”

Why Empathetic Leadership Matters

Empathy isn’t just a “nice-to-have” quality, it’s a strategic leadership tool. According to Mindtools’ Building Better Managers report, empathy, along with self-awareness and social sensitivity, is one of the top five capabilities managers need in 2024. Yet only half of employees report being managed by someone they’d describe as empathetic. The consequences are significant: when managers lack empathy, employees are 43 percent less engaged and 34 percent less innovative at work.

Here are three reasons empathetic leadership makes a real difference:

1. Empathy Drives Employee Retention and Loyalty

Retention is a pressing issue for many organizations. The Building Better Managers report found that 64 percent of managers would consider leaving their jobs if not provided with learning and development opportunities. Empathetic leadership plays a crucial role here. Employees who feel respected and valued, often the result of empathetic management, are far more likely to stay. In fact, employees across all racial groups are twice as likely to feel respected when their managers lead with empathy.

Making empathy part of everyday conversations and not just considering it as a tool for crisis management is the goal. Regular check-ins and asking, “How are you really doing?” can go a long way.

2. Empathy Enhances Performance and Innovation

It might seem counterintuitive, but slowing down to listen and understand can actually speed up results. Empathetic managers foster environments where people feel safe to voice ideas, admit mistakes, and innovate.

The Building Better Managers report highlights that organizations with empathetic leadership enjoy higher productivity and performance levels.

I once led a team facing repeated project delays. Instead of pushing harder, I asked them to share what was getting in the way. The conversation revealed burnout and unclear priorities. By addressing these issues through implementing an OKR framework and explaining that better focus at work would mean less taking home work and better work-life harmony, I was able to start a shift.

With OKRs in place, and with all team members taking ownership of these, we were able to sort out workload adjustments and improve communication, meaning the project moved faster and with a fresh energy.

3. Empathy Builds Resilience in Teams (and Yourself)

Resilience isn’t just about bouncing back; it’s about adapting and thriving amid challenges. Empathetic leaders help their teams develop resilience by acknowledging hardships and providing support rather than glossing over difficulties. Compassion leads to resilience. When leaders extend empathy to themselves and others, teams feel stronger and more capable of weathering storms.

Challenge yourself: Reflect on a recent team challenge. How did you respond? How might empathy have changed the outcome?

5 Ways to Become a More Empathetic Leader

Empathy is like a muscle. The more you practice, the stronger it becomes. Here are five practical ways to develop it.

1. Listen to Understand, Not Just to Respond

Active listening means putting aside your agenda and truly hearing what someone is saying. Try summarizing what you’ve heard: “It sounds like you’re feeling overwhelmed because…” This shows you’re engaged and care. It doesn’t mean that you’re agreeing with what is said to you, just that you hear and understand.

2. Create Space for Vulnerability

Your team will only share their challenges if they believe it’s safe to do so. Share your own experiences when appropriate. Leaders who show vulnerability invite connection and trust. Share when you’ve failed at work and be honest about how you bounced back and what you learned. Your team will respect you for it.

3. Check Your Assumptions

It’s easy to assume you know what someone is going through. Pause and ask open-ended questions instead: “What’s been the most challenging part of this for you?” Curiosity fuels empathy.

4. Prioritize Wellbeing as a Business Strategy

Empathy isn’t just about conversations. It’s also about policies and practices. Encourage time off, offer flexible working arrangements, and provide mental health resources. As I learned with my own team, supporting wellbeing improves performance and loyalty. There’s no point having employees at work falling apart. Be generous with paid time off and go above and beyond for your team; they’ll do the same for you.

5. Reflect Regularly

Empathetic leadership starts with self-awareness. Take time to reflect:

• How did I handle that conversation?
• Did I really listen, or did I rush to solutions?
• How can I show more compassion in future interactions?

What's Next?

Resilience and empathy are the foundation of transformational leadership. As the Building Better Managers report makes clear, organizations that invest in empathetic leadership reap rewards in retention, engagement and overall performance.

I challenge you to lead with courage and compassion. Reflect on how empathy can transform your leadership, and, in turn, your workplace. Leadership is all about connection. Connection begins with empathy.

For a primer on empathy, see our article on Empathy at Work. And for a more in-depth exploration of empathy in management, watch Debra Kurtz's video, How Can I Be a More Empathetic Manager?

Tip of the Week

How to Use OKRs

By Melanie Bell, Mindtools Content Writer and Editor

Rachael’s article above references OKRs, which are probably more familiar to some readers than others. So, what are they, and how can you use them for your organization’s benefit?

OKRs stand for “Objectives and Key Results.” Using them can help to clarify objectives and connect individual actions to your organization’s wider goals.

Here are the steps to set OKRs:

1. Set objectives: agree on personal and team goals that fit your company goals. Work with team members to set clear, achievable goals that support organizational objectives.
2. Set key results: create two or three results to measure for each goal, discuss them with team members, and make sure that each one shows you’re achieving the goal.
3. Monitor progress: use quarterly reviews and weekly check-ins to see how your OKRs are going and address any problems that arise, as they arise.
4. Repeat: once your OKRs have been achieved, discuss the results with your team, and set the next set!

Pain Points Podcast

Don't miss the latest episode of our Pain Points podcast, exclusive to Mindtools members!

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Video of the Week

Matt Saunders, Staying Ahead of the Competition

Competition is intimidating – but it's also an opportunity.

At least that's according to business coach and consultant Matt Saunders. Find out why you should embrace competition with open arms in this expert video.

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News Roundup

This Week's Global Workplace Insights

Task-Masking: The Troublesome Return-to-Office Trend

If you’ve been on TikTok lately, you may have heard of “task-masking.” Return-to-office (RTO) mandates in many companies have led, in many cases, to office cultures where employees do their best to look busy, as WorkLife reports.

Task-masking might look like pacing around the office, looking at notes, or carrying a stack of files. Remote working has its own versions of “pretending to be busy,” such as employees whose hours are being tracked using mouse jigglers to look like they're always online.

Employees working in an office environment might feel the pressure to perform more intensely, though. Bospar Principal Curtis Sparrer claims that working from home “cuts down on the theatrics and emphasizes and prioritizes the deliverables,” and a Bospar survey found that 61 percent of employees report being more productive when working from home.

Additionally, a survey from WorkHuman found that over a third of workers fake activity, whether at home or in the office, and half of these are above-average performers. Career coach Amanda Augustine notes that, rather than task-masking or being handed more busywork, high performers should be offered growth and development opportunities.

AI Use and Ageism

Harvard Business Review reports that many employers are making assumptions about AI use and employee age. While managers may assume that midcareer and older workers won’t be as proficient in adapting AI technologies as younger generations, this isn’t the case – and this bias means that companies may be losing out.

A recent survey from Generation on the use of generative AI in the U.S. and in four European countries found that employees prefer younger candidates for roles using AI tools. And the use of these tools is widespread, with about half of American hiring managers providing AI tools to employees already.

Earlier surveys from Generation suggest that workplace age bias is unfounded. While younger candidates are ranked more favorably, the same hiring managers doing the ranking reported that the older and midcareer workers in their workforces performed as well as, or better than, younger colleagues.

And HBR noted that, of the 15 percent of midcareer and older workers who have adopted AI tools at work, most are self-taught and use these tools several times a week or daily. These "power users" have harnessed AI for higher performance and may be able to share their knowledge with colleagues, half of whom, across all age groups, are unsure how to use AI technology to perform as highly as employers expect.

HBR suggests that employers would do well to harness the skills of power users and educate the workforce, without letting age stereotypes get in the way.

For more insights into working with different generations, see our article How to Thrive in a Multi-Generational Workplace.

See you next week for more member-exclusive content and insight from the Mindtools team!