Bridging the empathy deficit: an 8.8 trillion-dollar problem

Empathy is a term that is often heard in life, even if not in the workplace. But how important a role does empathy have to play in the corporate world post-pandemic? According to Chief Engagement Officer Marcy Klipfel, in an article for Forbes, “A lot.” She isn’t the only one who sees the correlation between the practice of empathy and greater workplace performance. Mimi Nicklin - Empathy Advocate highlighted the importance of corporate leadership recognising empathy’s place in a leader’s toolbox.

A global empathy deficit

“There has never been a time when we need more understanding and open communication from our leaders if we are to reach our organisational potential and yet we are not training our senior managers and teams anywhere near enough to face the realities they sit within,” Nicklin argued. “According to the Harvard Business Review, research shows that organisations with open communication channels are 3.5 times more likely to outperform their peers, yet today, only 32 per cent of employees feel that their leaders are genuinely open to listening.”

She pointed out that research conducted by the multinational analytics advisory company Gallup indicates that this continued disconnect in corporate culture has led to a disengaged workforce. “This is an 8.8 trillion-dollar problem,” she emphasised during a conversation with Ceylon Today. “76 per cent of people are disengaged or disconnected at work, and that is the calculated loss our collective disengagement at the workplace is costing businesses.”

For Nicklin, the lack of interest corporate leadership has had in embracing the concept of empathetic work culture in the past is surprising. “For decades, these leaders have chosen to believe that we are primarily rational beings in the workplace and that this drives output and performance, but we now know definitively that it’s our emotional engagement which drives employees to have any chance of fulfilling their performance goals,” she explained.

This is particularly true in the Asian region. A Live Science study from 2016 on the most and least empathetic countries in the world identified Southeast Asian countries to have comparably lower empathic concern compared to other regions. Nicklin pointed out that interest in the practice of empathy has improved among corporate leadership based on her exposure working with businesses in the country, there is still much to improve.

Identifying empathy

“A common mistake people often make is believing that empathy and ‘being nice’ are the same. The truth is they are vastly different,” she pointed out. “It is a skill that industry-leading organisations use as a dataset for every leader and HR team. Organisations that have an empathetic culture are 23 per cent more profitable, 17 per cent more efficient, and 43 per cent more innovative. This is an organisational power skill, not an optional afterthought.”

In ‘The War for Kindness’ by Jamil Zaki, the author points out that empathy is a skill that needs to be nurtured, similar to training a muscle. “Through practice, we can grow our empathy and become kinder as a result,” Zaki’s book claims. In an interview with McKinsey and Company, Zaki describes empathy as, “an umbrella term that describes at least three ways we connect with other people’s emotions,” pointing out that empathy is an experience while kindness is a behaviour that can be fuelled by empathy.

Connecting the dots

Empathetic leadership has proven its efficacy over multiple studies and in practical experience from Zaki, who points out that, “employees who believe their organisations and especially their managers, are empathic tend to call in sick with stress-related illnesses less often. They report less burnout. They report better mental health and a greater intent to stay at their organisations. People who feel empathised with tend to innovate more and take creative risks.”

“Statistically, data from Gallup shows that highly engaged teams are 21 per cent more profitable and 17 per cent more productive compared to their less engaged counterparts,” Nicklin highlighted.

A culture of empathy

Despite corporate leadership beginning to recognise the importance of a work culture that nurtures empathy, transforming an existing workplace culture by instilling empathy is a lengthy process that requires time, and won’t be achieved through one-off programmes conducted internally. “A lot of leaders think creating a more empathic culture will need a gigantic swing. Big, single events like volunteering days are great. But empathy, as with any other skill, requires habitual practice. I give leaders and organisations prompts to infuse more empathy in regular conversations — for instance, by asking more or better questions,” Zaki explained in the interview.

Nicklin’s words echo Zaki’s. “This is a fundamental shift for leaders and one that takes investment, training and time,” she said. “This is a barrier, but it is also the reason that I work so often here in Sri Lanka.” Nicklin said that the “fundamental human need to be ‘seen’ and ‘heard’” is growing in recognition, particularly in the workplace and “as leaders, politicians and Chief Talent Officers, we need to recognise the impact of this human fundamental on our sustained organisational success.”

Sri Lanka will only benefit from addressing the empathy deficit in its corporate climate now, before suffering the economic loss of procrastinating the ongoing global trend of transitioning to a more listening-led leadership culture. The good news; the value of empathy in the workplace is already on the path to mainstream business topics and perhaps we will see a more empathetic corporate Sri Lanka in the near future.