The power of empathy: Building stronger teams through compassion

Exploring the power of empathy in leadership, showing how understanding and compassion can build stronger teams, boost engagement, and drive success.

03 Mar, 2025 • 9 minute read

In today’s demanding world, leadership is no longer just about driving results, it’s about truly understanding people. Empathy in leadership is emerging as a defining trait of successful leaders, yet it’s often overlooked or dismissed. In reality, leaders who listen, understand, and care for their teams don’t just build stronger connections, they unlock higher levels of engagement, productivity, and loyalty in their employees.

Why understanding in leadership matters

When managers lead with empathy, the results speak for themselves. The Harvard Business Review “Leading with compassion has research-backed benefits” study (1) has shown that workplaces with high levels of compassion report stronger team collaboration, higher employee satisfaction, and reduced burnout. According to Business Solver’s 2024 State of Workplace Empathy Study (2), 67% of Employees, 79% of Human Resource Professionals and 85% of Chief Executive Officers say they are also willing to work longer hours for an understanding employer.

In contrast, leaders who lack this skill can unintentionally create a culture of disconnection, where employees feel undervalued and are more likely to quit when their work relationships are merely transactional. Empathy bridges that gap, reminding people that they’re not just working for someone but with someone who truly cares.

How compassion improves employee wellbeing

Employees don’t leave their emotions at the door when they come to work. Stress, personal struggles, and the pressures of modern life all play a role in how people perform.

“A workplace that prioritises support encourages resilience among employees, reducing the risk of mental health issues” Dr. Mohamed Maan, Regional Head of Clinical Operations at Bupa Global, says. “When employers create a nurturing environment, it not only benefits the workforce but also enhances overall productivity and morale” (3).

Offering flexibility during challenging times and simply asking, “How are you doing?” can have a profound impact. These small moments of connection make employees feel seen and understood, boosting their emotional wellness and morale. When people know their leaders genuinely care, they’re motivated to show up, work hard, and contribute their best.

At the same time, emotional intelligence helps leaders address difficult conversations constructively. Rather than placing blame when performance slips, an empathetic leader might ask, “What challenges are you facing, and how can I help?” This approach builds solutions while strengthening trust and loyalty.

Practical ways to build empathy

According to the National Library of Medicine “Emotional intelligence, leadership and work teams: A hybrid literature review” study (4), emotional intelligence isn’t something you have or don’t have, it’s a skill that can be developed. Leaders can incorporate this into their leadership skill style in ways that feel authentic and effective, such as:

Active listening

Make a point to listen without interrupting or multitasking. Give employees your full attention, ask follow-up questions, and show you genuinely care about their perspective. The Center for Creative Leadership,” Actions Speak Louder Than (Listening to) Words” (5) states that active listening is positively related to work process improvements, organisational innovation and creativity. Effective leadership isn’t just about hearing their words, but about understanding how they feel so action can be taken if needed.

Diversify your team

Along with a personal approach, businesses need to evaluate their existing systems, processes, and internal governance to ensure they create a more inclusive workplace. Part of that involves examining the makeup of the company. The Harvard Business Review “How Investing in DEI Helps Companies Become More Adaptable” study (6) shows that a diverse workplace is important for building empathy as it opens our minds and encourages differing perspectives and insights. This diversity helps create more innovative, collaborative, and supportive environments where employees feel valued and understood.

Prioritise regular check-ins

Schedule one-on-one conversations to ask how your team members are doing beyond just work updates. Go deeper, and ask questions such as: “What’s been challenging for you lately? How can I support you?” Leaders who take the time to connect, listen, and understand their teams don’t just create better workplaces, they create stronger, more successful businesses. By embracing workplace empathy as a core leadership skill, businesses can create a culture of care, trust, and purpose where people can thrive.

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