DS Cohen & Associates
The Power of Empathetic Leadership and Prioritizing People Over Assets
Employee retention and turnover have always been a pressing concern for organizations, and they remain a high priority Today. In addition to the historical challenges of keeping good people, Today, we see the role of empathetic leadership in retaining talent becoming increasingly important to employees. It is also about how they feel. Entrepreneur Richard Branson once said, “Teach people well enough so they can leave, treat them well enough so they don’t want to.” Branson’s’ quote emphasizes the delicate balance organizations must strike between managing employee turnover and fostering a work environment that values individuals for who they are.
As businesses continue to grapple with the ever-shifting dynamics of the workforce, one issue remains persistently challenging: employee turnover. The numbers paint a stark picture of the current situation at hand. According to the U.S. Bureau of Labor Statistics, the average annual turnover rate in the United States stands at an alarming 47.2%. This means nearly half of the workforce is in a state of constant flux. This is alarmingly high!
Moreover, data from the World Economic Forum reveals that the average time spent in a job is a mere 15 months. The picture becomes more evident when we consider that almost 19 million U.S. workers have quit their jobs since April 2021, as reported by McKinsey research. With these figures in mind, actions addressing employee turnover should be employers’ top concern and focus.
Employee attrition has several underlying causes, but one often overlooked factor is the lack of empathetic leadership within organizations. A study by Ernst and Young found that 79% of employees believe empathetic leadership decreases turnover. Empathy, therefore, is not just a soft skill but a strategic attribute in retaining top talent. Today’s world has seen a shift towards empathy and feelings over the last decade, which has cascaded into the labour force. When leaders understand and connect with their teams on a human level, employees are likelier to stay.
For years, companies have proclaimed that “our most important asset is our people.” The problem is that the equipment – the capital asset, is bolted to the plant floor and will be there the following day and remain there until the plant closes its doors. People do not have to return to work if they feel they are not being treated as they want. When leadership views employees as assets, they say people are no more important than replaceable parts, disregarding their unique contributions and identities. Instead, organizations should focus on responding to people as humans, acknowledging who they are and what is essential to them and fostering that relationship, not relegating them to life as a cog filling a job description. Leave room for empathy.
A workplace based on mutually aligned values and a shared vision or purpose can foster employee engagement, inspire employees to take accountability and empower people to strengthen the business as a whole. This progression, from being seen to being included, accountable, empowered, and eventually taking ownership, stems from integrating an employee’s success with the company’s success; they are not mutually exclusive. When employees feel valued and connected to their organization’s success, they are more likely to stay and contribute to its long-term growth over time.
Retaining employees requires leaders to build authentic human connections, to want to make connections – and to take genuine actions to show empathy and caring for one another by taking time to create real bonds. Additionally, providing resources and opportunities for growth demonstrates a commitment to employee well-being and professional development, reinforcing a caring work environment.
By shifting the focus from seeing employees as replaceable and disposable assets to recognizing and appreciating them as the driving force behind organizational success, companies can absolutely create an environment where people feel valued, included, and empowered. Consider another survey results from the Job Openings and Labor Turnover Survey (JOLTS) shows that 94% of respondents indicated they would stay with their current company if given the opportunity for development. By investing in people, an organization will reduce turnover rates and foster a thriving, accountable, and engaged workforce that will find themselves empowered to create opportunities for the company to thrive.
What Might You Consider?
Employers can take several steps to create an empathetic workplace that enhances employee retention. One of the most significant factors is the presence of leaders who demonstrate genuine and meaningful connections with employees. To reduce employee turnover and cultivate a thriving workplace, organizations may consider the following strategies:
1. Strengthen Relationships: Redesign jobs to allow managers time for one-on-one and group conversations with their direct reports.
2. Establish Clear Expectations and Feedforward: Set clear goals and expectations for employees, coupled with regular feedforward, to make employees feel valued and supported.
3. Foster Empathy: Train managers to be empathetic leaders who connect with their teams on a human level.
4. Open Transparency: Encourage open communication and provide resources for employees’ mental health and work-life integration.
5. Implement Flexible Work Arrangements: Offering remote or hybrid work options to accommodate individual needs.
6. Invest in Employee Development: Align employee development opportunities with the employee’s and the company’s needs and ensure resources are allocated for success.
7. Prioritize Individual Growth: Show genuine interest in employee growth and provide mentorship programs.
8. Create an Authentic and Values-Driven Culture: Define the values that reflect authentic norms of the work environment—creating a safe workplace that reflects the culture on shared values and a common purpose.
9. Build an authentic values-driven culture: Establish a workplace culture based on shared values and a common purpose, empowering employees to feel accountable and invested in the organization’s success.
10. Provide a Line of Sight: Ensure all employees feel their work contributes to something larger than their granular responsibilities and that employees genuinely feel they drive the company’s success.
By addressing employee turnover through a multifaceted approach, organizations can create an environment where individuals feel valued rather than a commodity to be discarded; employees should feel included, empowered, and essential. Prioritizing people over assets while cultivating empathetic leadership is critical to reducing turnover rates and nurturing a thriving, engaged workforce that drives long-term success.
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David Cohen is completing his second book on how to hire for fit to values/culture. His first book is called The Talent Edge. He has conducted workshops globally on Structured Behavioural Interviewing. For more information on the workshop, please contact DAVID.
