01-07-2025
The Empathy Equation: Balancing Compassion And Performance
Wayne Elsey, Founder & Head Coach/CEO, The Funds2Orgs Group.
In some ways, the value of empathy in leadership has disappeared or gone out of style. Now, at a time of enormous social change that's impacting business, some leaders have changed their tune and are operating as if the ideas of compassion and performance are mutually exclusive. They're not. In fact, the two of them can coexist, and leaders can have a forward-facing and action-oriented culture that surpasses performance while still having an empathetic culture.
As a global social entrepreneur who continues to build brands and overcome others' doubts, I believe one can lead with empathy and not compromise performance. The answer to the puzzle lies in realizing that it's incorrect to think you have to choose one or the other. These values are complementary and, when balanced, can exceed performance metrics.
Understanding Empathy In Leadership
As a leader, it's essential to realize that empathy goes beyond being kind and considerate. It's also important to understand that being an empathetic leader doesn't mean the staff will steamroll or take advantage of you in the office. Most people are decent, hard-working members of the team. Still, empathy goes beyond being kind, and it also means genuinely connecting with the team. It means realizing, first and foremost, that your team is made of humans, and none of us is perfect. We all bring with us, including leaders, our experiences, views and even biases. As a result, we should all learn to continuously be better leaders, team members and people. In our culture, we want and encourage people to speak up and share their challenges (even personal ones, in case we can support them in some way).
According to reporting, '76% of people with highly empathic senior leaders say they are 'often or always' engaged, compared to 32% of people with less empathic senior leaders.' In other words, team members have high engagement, and as we know, that's a driver of high performance. When people feel like valued members of a work team, they're invested in the company's success.
The Performance Imperative
Still, we know that managers and leaders are responsible for ensuring that organizational goals are met for every company. If a business is able to meet those goals, that means company growth and competitive advantage. As a result, it's essential for empathetic leaders to set clear expectations and not make things murky. Clarity drives success and allows managers to hold team members accountable in performance management.
It's also essential for leaders and managers to realize that an empathetic environment doesn't mean they don't need to make tough decisions, including letting go of non-performers. Sometimes, the best thing a company can do is to let go of or move a team member to a position that better suits their skills. The moments of conflict between empathy and high-performance standards aren't easy, but they're part of the business landscape.
Strategies For Balancing Empathy And Performance
Even when performance and empathy conflict, an empathetic environment will always outperform one that's only performance-driven. Workers value empathy, which provides them with four key benefits: improved satisfaction at work, motivation, increased productivity and improved company culture. So, how can managers balance empathy and performance?
Clarity is essential for a team where leaders seek to balance compassion and performance. In fact, a leader can view a clear explanation of team expectations as the kind thing to do because they are not worried that team members don't know what's expected. Clarity allows employees to feel supported in their roles.
When individual team members and teams understand their goals and objectives, it's essential to provide consistent feedback. Continuous feedback allows them to adjust any areas where there might be a need for improvement. It's also essential to celebrate the wins. Our team celebrates wins daily (even small ones), which is great for motivation.
Team members need to feel that they can share their thoughts and concerns. When that exists, empathy and trust are created. The reality is that high performers know how to do their jobs well—many times, even more so than managers. So, asking for constructive critiques and open channels of communication with management are essential to innovations.
Empathetic leaders must provide the resources needed for team members to succeed. Moreover, leaders must continuously look for ways to give teams the right resources to perform. These include everything from upskilling and training to burnout and mental health support.
Leaders set the tone for any organization's culture, so it's critical to embody the values of empathy and high performance. This means showing resilience in the face of challenges and failure, holding everyone on the team—including management—accountable for performance and maintaining a genuine concern for people and the company.
The Choice Of Balanced Leadership
Leaders who balance empathy and high performance create dynamic, engaged, action-oriented and innovative cultures. Empathetic leadership provides psychological safety, and team members know they're allowed to voice ideas without fear of retribution. In the end, the best leaders know how to balance empathy and performance as interconnected values for success.
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