Why empathy is the key
Sudath Munasinghe
Why empathy is the key to human connection in the workplace
Organizations are more digitally connected than ever, but at the same time, employees are experiencing a lack of emotional connection. For leaders navigating complexity and constant change, the real competitive advantage now lies in leading the human experience of work.
We are living in a paradox. Organizations are more connected than ever through technology and systems, yet employees report feeling increasingly disconnected from their work. Across industries, people are disengaged, resistant to change and struggling to bring their best thinking to work.
This disconnection erodes trust, slows decision-making and limits innovation. For CEOs facing complex business challenges, the question is no longer how to manage change but how to lead the human experience of it.
Empathy is the leadership capability that will define competitive advantage. Far from being soft or a ‘nice-to-have’, it is essential for understanding the human dynamics behind organizational decisions while balancing them with rational clarity.
Leading with empathy enables CEOs to break through resistance, create alignment and shift organizational focus with intent and clarity toward what matters most.
Empathy drives performance and engagement
Disconnection has a measurable cost. Nearly 60 percent of employees worldwide report feeling disengaged at work, leading to higher turnover, decreased productivity and reduced psychological safety. But employees are twice as likely to remain in organizations where leaders demonstrate empathy.
Empathy builds trust. Those small acts of trust – what I describe as performance multipliers – compound over time, accelerating collaboration and turning connection into measurable results.
Empathy is the leadership capability that will define competitive advantage.
At the executive level, consider a board navigating a major strategic pivot. Different divisions hold conflicting priorities, and the executive team is resistant to change. A CEO who listens to concerns, acknowledges competing pressures and co-creates the plan secures alignment across the organization.
Empathy enables innovation, inclusion and the next-generation workforce
Innovation flourishes when diverse perspectives are valued and a culture of psychological safety is present. Most organizations today are composed of culturally diverse teams, each with distinct communication styles and perspectives on the world. Leaders who adapt their approach to meet the needs of different people open doors to authentic dialogue and deeper understanding.
The workforce of 2026 will be more diverse, digitally native and values-driven than ever before. Employees will expect purpose, connection and flexibility – not just financial reward. Environmental and social conditions; hybrid and flexible work models; and technology-driven disruption are shaping expectations for leaders who can meet them. Empathy is the skill that allows leaders to understand what drives, motivates and challenges people in this new context.
In a globally connected business environment, senior leaders across regions bring different perspectives shaped by local culture, market dynamics and social norms.
A CEO who intentionally seeks input from quieter or underrepresented voices – whether regional heads, minority groups, or cross-generational teams – uncovers insights that reshape strategy, identify opportunities competitors may overlook and ensure decisions resonate across geographies.
By anticipating societal shifts, leveraging diverse insights and creating environments where people thrive, empathetic leaders turn connection into organizational advantage, accelerating decision-making, agility and innovation.
Inclusive leadership rooted in empathy is directly linked to loyalty: 92 percent of employees in empathetic organizations say it strongly influences their commitment to their employer. CEOs who lead human-first, recognizing the needs of multigenerational and multidiverse teams, will unlock engagement, innovation and adaptability, creating a workforce prepared for the challenges of 2026 and beyond.
The dynamic duo of head and heart
Many leaders still rely heavily on rational analysis, strategy and financial metrics. Yet organizational success ultimately depends on human behavior, which is shaped by perception and experience. The most effective leaders balance rational clarity with empathy.
Consider a large-scale technology or AI adoption affecting thousands of employees. While a board may focus on efficiency and competitive advantage, the CEO must also consider the human impact. Involving executives in designing implementation strategies, clearly communicating purpose and anticipating resistance ensures buy-in without eroding trust.
Organizational success ultimately depends on human behavior, which is shaped by perception and experience.
Balancing the head and heart connection also requires recognizing the legal obligations every organization holds. In accordance with state, province or national workplace health and safety acts, boards and executives must provide a safe work environment – not only physically but psychologically.
Empathetic leadership helps identify risks early, understand pressures on teams and implement proactive measures that meet legal compliance while maintaining trust and engagement. Leaders who ignore these obligations expose their organizations to regulatory risk, employee harm and reputational damage – highlighting that empathy is as much a governance tool as a human one.
Empathetic organizations often report lower turnover and an improvement in customer satisfaction. This alignment of head and heart reflects what leadership research confirms: most CEOs rank empathy as critical to leadership success.
Empathy as a leadership imperative
Today’s workforce demands authentic, inclusive leaders who balance performance with human connection. Empathy is a strategic imperative, enabling CEOs to unlock engagement, foster innovation and drive change toward what truly matters.
For leaders preparing for 2026, the question is clear. Can you afford the hidden costs of disconnection, with disengaged teams, slowed decision-making and low productivity? Or will you embrace human-first leadership, harnessing the dynamic duo of head and heart to create trust, alignment and performance multipliers across your organization? The leaders who act now are defining the future of leadership.