Want a Healthy Team: Try Compassionate Leadership
Many leaders I encounter still believe that being a "strong" leader means having all the answers and never showing weakness (you know, or compassion). In meetings, they put on corporate armor, to hide any hint of vulnerability. They over prepare or force their team to over prepare, to preserve their “aura” of perfection and infallibility. For many of these leaders, it’s all about my least favorite corporate word of all time: OPTICS. Optics is corporate speak for we don’t really care about something, we only care about the perception of something.
This approach to leadership is not only ineffective—it actually harms team well-being.
If you still aren’t sold, keep reading.
The truth about leadership's impact on well-being
Recent research from Gallup paints an interesting picture when it comes to employee engagement: “70% of the variance in team engagement can be attributed to leadership style alone.” Add on, a 2023 study published in the Journal of Occupational Health Psychology found that “employees working under non-compassionate leaders are 70% more likely to experience burnout and 50% more likely to report anxiety and depression symptoms.”
Only worried about the bottom line? All those mental health challenges add up to BIG medical dollars and declining productivity. KEEP READING!
Ready for another fun stat? According to research by Google's Project Oxygen, psychosocial safety—”the belief that you won't be punished for making mistakes”—is the number one predictor of high-performing teams.
Want to create psychosocial safety? We do that by building trust.
How do we build trust? Compassionate Leadership
What exactly is compassionate leadership?
Before you roll your eyes thinking this is another "soft skills" piece, let me be clear. Compassionate leadership isn't about being soft—it's about being smart (I also hate the term “soft” for things that very few leaders master, but I digress). The Harvard Business Review shares that organizations with compassionate leaders see “26% higher employee engagement, 21% higher productivity, and a 12% reduction in sick days.”
What skills make leaders compassionate:
They lead with empathy and understanding, by recognizing that their team members have unique backgrounds and lives outside of work
They foster psychosocial safety by normalizing failure (some companies even reward failure)
They actively listen and take appropriate actions to help their team members
They model healthy boundaries and encourage life-work alignment
They aren’t afraid to be vulnerable or make a mistake in front of their team members.
Great leaders admit when they don’t know something and take accountability when they make mistakes.
The cost of getting it wrong (remember a paragraph ago when I promised computational evidence?)
A 2024 report from Deloitte revealed that companies with low compassion scores “experience 48% higher turnover rates and spend an average of $4,000 more per employee on healthcare costs annually.” When leaders fail to show compassion, the ripple effects touch everything from productivity to physical health.
Some Tips to Lead With Compassion.
Replace accusatory phrases like "Why did you _________ (fill in the blank)?" with curiosity: “Tell me what is in your way, and what support from me looks like to you?”
Don’t just ask your team members about their work projects or development, ask them how they are doing, and what you can do to support them.
Acknowledge your own mistakes and share what you learned from them (I literally love throwing myself under a bus when necessary. It sets everyone at ease.)
Foster autonomy! Implement a DYJ (do your job) policy. Where you trust your team to be adults and manage their own time.
Celebrate ALL wins, not just the ones that matter to you! AND, if you are one of those who think the only reward a human requires for a job well done is a pay check. THINK AGAIN.
The biology of compassionate leadership
This isn't just feel-good corporate speak. When leaders demonstrate compassion, their teams experience measurable biological benefits. Research from the Center for Healthy Minds shows that employees working under compassionate leaders have:
Lower cortisol levels (the stress hormone)
Better immune system function
Improved sleep quality
Reduced inflammation markers
Higher levels of oxytocin, the trust hormone
The transformation of workplace culture through compassionate leadership isn't just a nice-to-have—it's a business imperative.
We ALL know the saying, People don't leave bad jobs, they leave bad leaders.
If you're ready to transform your leadership style but aren't sure where to start, remember that compassion, like any skill, can be developed. Start small. Choose one interaction today where you can lead with more understanding. Watch what happens.
The future of work demands leaders who can create environments where people don't just survive, but thrive. And that future starts with compassion.
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Hi, I'm Kacy! I empower individuals & teams to live and work with more purpose & greater alignment.
I am a well-being strategist, a keynote speaker, a women's health advocate, and a life coach.
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Looking for support transforming your leadership style? Book a consultation HERE