Empathy & Strategy: Leading with Heart into the New Year

Empathy and strategy together create a powerful approach to leadership, especially when planning for a new year. Empathy helps leaders understand the perspectives, challenges, and motivations of their team members, building trust and fostering open communication—an essential factor as more people experience the flexibility of remote work.

When combined with strategic thinking, this empathy allows leaders to set goals that not only drive the organization forward but also support their team’s well-being. By merging people-focused understanding with deliberate planning, leaders can cultivate a culture where team members feel valued and motivated, while advancing toward clear, intentional goals. In this article, we explore key principles and practical applications to help guide strategic, empathetic leadership into the future.

Empathy with People in Mind

Empathy, often understood as the ability to feel compassion and to see things from another person's perspective, is a valuable soft skill that can be cultivated over time. In both entrepreneurial and corporate environments, its relevance has grown significantly. Today, empathy is increasingly prioritized in hiring decisions, as organizations recognize its role in fostering better communication and collaboration. This shift in focus is particularly important in a workforce where employees frequently change jobs or positions, often in search of more supportive and favorable work conditions. As workplace dynamics continue to evolve, empathy has become an essential factor in creating environments that attract and retain talent.

According to a 2022 SHRM statistic, the cost to recruit new employees is four time the employees’ salary. To replace them could cost as much as 50-70% of their salary, so retention has become more top-of mind for many businesses. To achieve a low turnover rate takes planning and foresight within company culture, no matter how large or small.

Patagonia

Patagonia is a prime example of how empathy and a values-driven culture can foster employee retention and engagement. The company places a high emphasis on work-life balance , offering flexible policies such as the "Let My People Go Surfing" ethos, which allows employees to pursue personal passions, like surfing, during work hours when conditions are favorable. This policy is a reflection of the company's deep understanding of its employees' needs and interests, promoting both mental well-being and alignment with the company's environmental values.

Patagonia also demonstrates empathy through its comprehensive employee benefits, including paid parental leave, on-site childcare, health insurance for part-timers, and even bail support for employees arrested during peaceful environmental protests. These benefits not only show the company’s commitment to supporting the whole person, but they also encourage a strong sense of belonging and purpose, which is central to their retention strategy.?

The company’s low turnover rate of 4%, compared to an industry average of 57%, underscores the success of their empathetic and flexible approach to management. By treating employees with respect and trust, Patagonia creates an environment where workers feel valued and engaged, which has been key to its ability to retain top talent and maintain a highly motivated workforce

Ways to Demonstrate Empathy

Demonstrating empathy in a business setting involves key actions that build trust and foster strong relationships. One of the most important ways is to listen actively, giving full attention to the speaker without interrupting, which shows that their perspective is valued. Coupled with this is the importance of clear communication, where you convey thoughts and expectations transparently to avoid misunderstandings. Clear communication is extremely important in any contract negotiation as it protects both sides and also protects the integrity of the relationship. Employee/Employer engagement now included in Free Goal Setting Worksheets

Providing constructive feedback is another critical aspect; it involves offering insights that help someone improve without being overly critical, focusing on the issue rather than the individual. It is helpful if the individual is open to feedback and if not, there may be additional issues that need addressed. Showing appreciation for others' efforts, whether through verbal recognition or tangible rewards, helps people feel valued and motivated and is not demonstrated often enough.?

An example of appreciation is the value of positive notes. Some years ago, when I was student teaching, my master teacher told me to start a “positive file” to keep positive notes from students as well as administrators. I still have that file and have added to it from a number of different sources as it has counteracted the amount of negative messages that can often deflate our momentum. I now suggest that others do the same. Lastly, empathetic leaders and coworkers anticipate needs, rather than simply responding to them after the fact. By understanding in advance what others may require, you demonstrate a proactive concern for their well-being, creating a more supportive environment.

Setting Goals and Expectations

Setting goals and expectations is a crucial part of effective leadership and team success. A quote often attributed to Peter Drucker is, "What gets measured, gets managed," though it’s destructive to ignore the human factors that are hard to measure. However, this highlights the importance of defining clear, measurable goals so that both progress and success can be tracked. Including team members in the goal-setting process not only fosters a sense of ownership but also ensures that expectations are realistic and aligned with the capabilities and motivations of those responsible for meeting them. It doesn’t matter how large or small our team is, communicating and collaborating with some of the goal-setting promotes transparency and accountability, making it more likely that everyone is on the same page and invested in achieving the desired outcomes.?

While it's important to be collaborative, maintaining high standards is also essential in today's competitive marketplace. The balance between setting ambitious goals and being supportive of your team’s development is critical. It’s okay, and often necessary, to set the bar high, as long as you provide the tools, feedback, and support required to reach it. I find it’s necessary at times to educate some of my team on new tech or AI tools to not only make their job efficient, but more productive. High standards challenge teams to strive for excellence, fostering innovation and continuous improvement, which are key differentiators in a competitive business environment. By setting clear, high expectations and involving your team in the process, you create a pathway to success that is both aspirational and achievable.

Examples of Challenges

What if you have a valuable employee who needs to take time off for personal reasons? This happened to me, and after careful consideration, I chose to be patient and wait until my part-time assistant was more available. In the meantime, I reassigned some of her work to another assistant and took on a few more tasks myself. It would have been easier to let her go or hire someone else, but through our conversations, I understood that she wanted to continue working after an extended illness and I greatly appreciated the quality of her contributions.?

Decisions like these are never simple, but finding and retaining the right talent is crucial. Often, employees stay in a role not just for financial gain, but for the flexibility it offers, allowing them to maintain a life outside of work. Many people today, especially women, start families later in life once they’ve established their careers. According to a report by Harvard Business Review , 43% of women voluntarily leave their jobs at some point in their careers, with many citing the need for more flexibility to manage personal and family responsibilities. This type of flexibility was a key reason I decided to accommodate the needs of one of my assistants during her pregnancy. Not all businesses can do this, but I felt I could make it work.

Application

Prioritize people by building trust and fostering commitment. Clearly communicate goals and expectations.

·????? Listen actively

·????? Clearly communicate

·????? Give constructive feedback

·????? Demonstrate appreciation

·????? Anticipate needs Remain adaptable without compromising core values or mission.

By merging people-focused understanding with deliberate planning, leaders can cultivate a culture where team members feel valued and motivated, while advancing toward clear, intentional goals. Deborah Johnson

Resources:

Free Goal Setting Worksheets : includes Ways to Keep Employees Engaged and Tips for a Healthy Mindset

A New Way of Doing Business Course

Halftime Success Resources

How Mindset and Mission Drive Business Success article & podcast

Hero Mountain Summit for teams and organizations