โ๐๐ฎ๐ฎ, ๐ต๐ฉ๐ข๐ฏ๐ฌ๐ด, ๐ฃ๐ถ๐ต ๐ ๐ฉ๐ข๐ท๐ฆ ๐ข ๐ฃ๐ถ๐ด๐ช๐ฏ๐ฆ๐ด๐ด ๐ต๐ฐ ๐ณ๐ถ๐ฏ ๐ข๐ฏ๐ฅ ๐ต๐ข๐ณ๐จ๐ฆ๐ต๐ด ๐ต๐ฐ ๐ฉ๐ช๐ต.โ
This phrase or similar will enter the minds of leaders. Many will think it and keep it to themselves. More โtraditionalโ managers may choose to let everyone know. There ๐ช๐ด a point where too much compassion can be damaging, which will be covered tomorrow.
Today: the obvious positives of developing a culture of compassion can translate into significant financial benefits.
๐ฆ๐๐ฎ๐ณ๐ณ ๐ฎ๐ฏ๐๐ฒ๐ป๐ฐ๐ฒ๐ cost money. Most businesses will be paying full sick pay, and it is highly likely that wider productivity will be reduced whilst someone is off. Stress and burnout have a direct impact on our immune systems, and therefore affect two aspects here: the number of times people are getting ill; and the likelihood of employees calling in sick when, in reality, they simply need to decompress. Stress will be far more prevalent in a working culture lacking in compassion. Emma Seppรคlรค, Ph.D. has done some great research in this area.
Compassionate leadership boosts ๐ฒ๐บ๐ฝ๐น๐ผ๐๐ฒ๐ฒ ๐ฒ๐ป๐ด๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐ ๐ฎ๐ป๐ฑ ๐๐ฎ๐๐ถ๐๐ณ๐ฎ๐ฐ๐๐ถ๐ผ๐ป. Studies show that employees who sense empathy from their leaders are more on-side and more loyal. Higher engagement translates into better performance, efficiency, and service quality, which will positively impact your financial performance. In addition, the relatively large savings in reduced recruitment due to lower staff turnover go straight to the bottom line. Operational gains come in here too, with the retention of experience and skills.
Sickness and staff retention are two factors amongst the largest โhiddenโ costs. A compassionate culture demonstrably improves both, saving (potentially) significant sums, short and medium term.
There is evidence that a compassionate culture leads to ๐ถ๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ๐ฑ ๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐๐ถ๐๐ถ๐๐ (12% increase in studies) and ๐ถ๐ป๐ป๐ผ๐๐ฎ๐๐ถ๐ผ๐ป, both of which will add to your top line quickly.
A mid-term impact on your top line comes from ๐ฒ๐ป๐ต๐ฎ๐ป๐ฐ๐ฒ๐ฑ ๐ฐ๐๐๐๐ผ๐บ๐ฒ๐ฟ ๐๐ฒ๐ฟ๐๐ถ๐ฐ๐ฒ levels. Employees in positive moods, and who feel valued, are more willing to help peers and provide better customer service. This leads to increased customer satisfaction and loyalty, securing your order book.
Longer term effects come from building a ๐ฝ๐ผ๐๐ถ๐๐ถ๐๐ฒ ๐ฏ๐ฟ๐ฎ๐ป๐ฑ image. Those known for compassionate leadership and positive workplace cultures develop a more favourable brand image. This positive reputation attracts customers and talent, contributing to long-term financial growth and stability.
So, it would seem that compassionate leadership really can put business first.
Tomorrow, a change of tack as we look into some potential negatives associated with compassion in the workplace.
I try to meet with, virtually or in person, lots of my business and coaching contacts, and I find this an effective way of keeping up to date with the latest relevant issues. It also helps to ‘ground’ me and encourage me to check in with my own work and approach. Along the way I have lots of discussions about leadership which inevitably entails wildly differing views and opinions.
Out of the proliferation of remote work during and after COVID, a new challenge for organisations has emerged: many important skills are not easily, or cannot be, nurtured through screens. In the traditional office environment, the subtle yet powerful process of learning osmotically plays a critical role. Leaders model behaviours, and employees, often subconsciously, absorb crucial skills such as adaptability, emotional intelligence, and intuitive decision-making. Even resilience can be enhanced through witnessing other people’s coping mechanisms.
Reflecting on what I feel makes a leader truly great, I realise that leadership is generally misunderstood. It should not be about rank or authority;