Bridging the Empathy Gap

Bridging the Empathy Gap: The Disconnection Between Service Leadership and Frontline Workers

In today's competitive landscape, service-oriented companies face a conundrum: the gap between the vision of leadership(refer our? article on Organisation intent) and the reality faced by frontline workers.

This 'Empathy Gap' can have a detrimental impact on service operations, customer experience, and overall business performance. It's not just a question of misunderstanding; it's a systemic failure that needs addressing.

?Why The Gap Exists

1.???? Misalignment of Objectives: Leadership often has a bird's eye view, focusing on KPIs, revenue targets, and scaling. Frontline workers, on the other hand, face real-world challenges that are often neglected in the C-suite's discussions—issues like workload, outdated systems, or lack of training.

2.???? Inadequate Communication: While managers are swamped in strategy meetings, frontline workers may lack a forum to express their challenges, leading to unaddressed issues and waning morale.

3.???? Underestimation of Frontline Impact: Executives may overlook the profound impact frontline workers have on customer experience. These are the people who directly interact with customers and bear the brunt of service failures.

The financial services industry is not immune to the empathy gap between leadership and frontline workers. Here are real-life examples where this disconnect has manifested:

1.???? Bank Branch Operations: Leadership in banking is often several steps removed from branch-level activities. For instance, executives may push for aggressive sales targets for new accounts or loan products without understanding the challenges faced by tellers or customer service representatives.

Wells Fargo's 2016 scandal is a striking example of this. The pressure to meet unrealistic sales targets led employees to create unauthorised bank accounts, causing a major ethical and legal crisis. This serves as a cautionary tale about the consequences of a severe empathy gap.

2.???? Wealth Management: Wealth management advisors are often caught in the crossfire between company strategy and client expectations. Firms may push for the inclusion of specific products in portfolios that are more profitable but not necessarily in the best interest of the client. When frontline workers have to manoeuvre between ethical considerations and leadership directives, the empathy gap is evident.

UBS faced a similar issue in the 2000s, which resulted in a substantial legal settlement over claims that it steered clients into risky mortgage-backed securities.

3.???? Call Centres for Credit Card Services: Many financial service companies outsource their customer service to save costs, sometimes to locations with vastly different cultural norms. While this may make financial sense to executives, the frontline workers in these call centres often deal with frustrated customers who are irritated by the cultural and linguistic differences.

Capital One, for example, has faced multiple instances of customer dissatisfaction owing to such outsourcing strategies, indicating a need to align resources more effectively to bridge the empathy gap.

Of course some?more examples pertain to large retail chains? during? heavy? rush of? festivals, cash collection during? demonetisation, mobilisation? weeks celebrations, constant? process changes at financial institutions as welland regulatory changes, introduction of? new products? and processes,? system? downtimes,? the list? is long. Covid-19 pandemic? was a? rare? example of disconnect of lack? of PPE kits,? emotional? exhaustion and long working? hours were seen.?

Closing the Gap

1. Open Forums: Facilitate channels of communication where frontline workers can share their grievances and suggestions directly with leadership.

2. Empathetic Leadership: Executives need to immerse themselves occasionally in frontline tasks. This hands-on experience can offer invaluable insights into the challenges faced by their team.

3. Resource Alignment: Whether it's manpower, technology, or training, leaders need to ensure that the frontline teams have the necessary tools for effective service delivery.

In an era where customer-centricity determines a company's success or failure, closing the empathy gap is not a 'nice-to-have' but a business imperative. Prioritise frontline experiences and bring them to the decision-making table. It's time to redefine leadership as a service—not just to the customer but also to the very people who interact with them.

The financial services sector is particularly prone to the empathy gap due to its complexity and the critical nature of its services. Leadership needs to be more in tune with the realities faced by frontline staff. Open communication channels, resource alignment, and a culture of empathy can go a long way in bridging this gap. The focus should be on aligning teams to improve service operations, a strategy for a cohesive, customer-centric model.