The corporate landscape has rapidly transformed as the next generation enters the workforce. Traditional structures no longer work and are replaced with greater collaboration and inclusivity. Empathy is at the core of this revolution — the ability to step into another's shoes and understand their feelings.

Empathy — or emotional intelligence (EQ) — is not just a coveted trait but an indispensable quality within leadership. It is essential to the Gen Z and millennial workers who deeply value connection, purpose and authenticity. Here's how leaders can maximize employee trust and participation by supporting and empowering teams with compassion.

Leading With Empathy in the Workplace

Gen Z and millennials experience some of the highest stress levels among all generations. At work, 36% of Gen Z and 30% of millennials feel exhausted, while 42% and 40% struggle to achieve optimal performance levels, respectively.

Past perceptions of empathy among leadership have meant being soft or weak, yet the calls for greater EQ are louder than ever. In fact, workers call out sick less often with mental health problems when managers show them empathy.

Empathy is a superpower in the workplace. It allows managers and teams to relate to one another, anticipate needs and foster positive relationships. As a result, companies create more collaborative, engaged and respectful working environments.

Why Is EQ Critical to Better Leadership?

Empathetic leadership has numerous benefits, especially for Gen Z and millennial employees. Here's how EQ improves workplace culture:

• Self-awareness: Helps one identify biases toward colleagues and become attuned to their emotions.
• Compassion: Encourages teams to show each other kindness and support.
• Innovation: Improves communication, collaboration, and brainstorming to develop new business solutions.
• Productivity: Employees feel valued and have a sense of purpose, motivating them to produce results.
• Self-control: Teaches one to control negative emotions to avoid lashing out or bringing teams down.

EQ also breeds cultural intelligence (CQ), allowing leaders to better understand and work with cultural differences. Companies with solid diversity, equity and inclusion have more robust team-building capabilities, retention and a stronger sense of community. Research also shows a 750% higher profit margin for businesses with CQ than those without.

Practical Tips for Cultivating Empathy as a Leader

It is in a leader's best interest to cultivate empathy to meet the needs of their employees. Of course, attaining emotional intelligence is not straightforward for everyone. These tips can help professional leadership learn empathy and compassion for a more cohesive, happier and healthier workplace.

1. Communicate Openly

If employees feel they must walk on eggshells around leaders, it could indicate workplace toxicity. Instead, managers should foster a communicative environment where everyone feels comfortable speaking up and discussing their concerns without reprimand.

It is crucial to encourage one-to-one conversations and consider an individual's needs when guiding a discussion. Likewise, managers who share personal accounts show how they might relate.

2. Listen Actively

Actions speak louder than words, which is why active listening is an essential skill for becoming an empathetic leader. The idea is to de-center from one's thoughts and opinions and concentrate on what the speaker is saying. Leaders should maintain eye contact, ask open-ended questions, and paraphrase to demonstrate to workers they have their full attention.

3. Look for Signs of Burnout

According to a 2021 American Psychological Association survey, 71% of employees reported feeling stressed or tense during the workday. Low wages, long hours, workplace discrimination, lack of paid time off, and few professional development opportunities are just a few reasons.

Leaders should look for signs of burnout among teams — especially in those entering the workforce — such as lost productivity and engagement, absenteeism, poor decision-making and a negative attitude. These indicators could also mean employees have things going on in their personal lives.

4. Demonstrate a Willingness to Help

It's important to remember everyone is fighting an uphill battle. Meeting employees with compassion and a willingness to assist goes a long way.

Employers can respectfully support team members by acknowledging a loss, providing mental, medical or professional resources, and offering flexibility for caregivers. About 54% of people in their 40s and 27% in their 30s now care for a child under 18 and an older adult — many while working part or full-time. Work-from-home options allow them to better juggle their professional and personal obligations with less pressure.

5. Practice Mindfulness

It's impossible to be empathetic without self-awareness. Daily mindfulness practices teach people to be present and aware of what's around them, including others' feelings. Taking a few minutes to meditate each morning or afternoon can help build this skill.

EQ Is Key to a Successful Workplace

The business landscape will continue to evolve, but the need for empathetic leaders will always remain the same. To reduce stress among today's younger workforce, leaders must learn and demonstrate a heightened level of compassion. In turn, they'll see more positive results for business success.