Empathy: a leader’s must-have in the age of broken trust

According to a Harvard Business Review article, empathy is one of the most undervalued yet critically needed leadership skills today—especially now, when the psychological contract (the unspoken agreement of mutual expectations between employer and employee) is seriously weakened.

The psychological contract isn’t a document—it’s a feeling of fairness, recognition, and mutual respect. When that feeling disappears, frustration, disengagement, and resignations follow. Leaders who understand and practice empathy can help bridge those gaps by creating space for open communication, listening, and honesty.

Empathy is more than just feeling for others—it is an active process that includes:

Research in the field of ethics of care, particularly inspired by Carol Gilligan’s work, shows that when organizations embrace values like mutual care, respect, and partnership-based leadership, they experience greater loyalty, motivation, and performance.

A 2021 study by Catalyst found that employees whose leaders demonstrate empathy report up to 76% higher engagement. They also feel better supported in maintaining work-life balance—a critical factor in talent retention.

Empathy can be cultivated—not just through formal training, but through daily, conscious actions:

1. Listen to understand, not to respond.
2. Ask, “How are you really doing?” and wait for the answer.
3. Pay attention to what’s not being said—emotions often speak louder than words.
4. Share your own vulnerabilities—authenticity builds connection.

Being empathetic doesn’t mean accepting everything without boundaries—it means understanding the broader context of people’s behaviors. In an era of shifting employee expectations, hybrid work, and fractured psychological contracts, we need leaders who build bridges, not walls.

Empathy is that bridge.
And building it begins with a single decision:
Prioritising people over performance.