𝗕𝗨𝗦𝗜𝗡𝗘𝗦𝗦 𝗙𝗜𝗥𝗦𝗧 (Compassion pt. 2)

“𝘏𝘮𝘮, 𝘵𝘩𝘢𝘯𝘬𝘴, 𝘣𝘶𝘵 𝘐 𝘩𝘢𝘷𝘦 𝘢 𝘣𝘶𝘴𝘪𝘯𝘦𝘴𝘴 𝘵𝘰 𝘳𝘶𝘯 𝘢𝘯𝘥 𝘵𝘢𝘳𝘨𝘦𝘵𝘴 𝘵𝘰 𝘩𝘪𝘵.”

This phrase or similar will enter the minds of leaders. Many will think it and keep it to themselves. More ‘traditional’ managers may choose to let everyone know. There 𝘪𝘴 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.

𝗦𝘁𝗮𝗳𝗳 𝗮𝗯𝘀𝗲𝗻𝗰𝗲𝘀 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 Seppälä, Ph.D. has done some great research in this area.

Compassionate leadership boosts 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗲𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝘀𝗮𝘁𝗶𝘀𝗳𝗮𝗰𝘁𝗶𝗼𝗻. 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 ‘hidden’ costs. A compassionate culture demonstrably improves both, saving (potentially) significant sums, short and medium term.

There is evidence that a compassionate culture leads to 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆 (12% increase in studies) and 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻, both of which will add to your top line quickly.

A mid-term impact on your top line comes from 𝗲𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝘀𝗲𝗿𝘃𝗶𝗰𝗲 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 𝗽𝗼𝘀𝗶𝘁𝗶𝘃𝗲 𝗯𝗿𝗮𝗻𝗱 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.