The Business Benefits of Displaying Empathy
The Development Dimensions International Global Empathy Index, which is published annually in the Harvard Business Review, refers to empathy as “a cognitive and emotional understanding of others’ experiences.” As consumers, carriers, and associates increasingly demand greater transparency and authentic interaction, the quality grows ever more important.
The Index shows a direct link between empathy and business success. It substantiates that empathy for those individuals you serve – clients, associates, carriers, and community – is an essential and powerful initiative for fueling growth, profitability, and agency value. In fact, the top 10 most empathetic employers generated 50% more net income than the bottom 10.
Overall, organizations are more profitable and productive when they:
- Act ethically
- Treat their staff with dignity, respect, and compassion
- Engage openly and honestly with their customers
Corporate empathy includes the cognitive and emotional understanding of others’ experiences so that an appropriate action can be taken. The survey found three benefits of displaying empathy, specifically for insurance and risk management firms:
- 76% of workers who experienced empathy from senior management felt more engaged at work. This translated into higher close ratios, improved customer service, and fewer documentation errors.
- 61% of employees with empathic leaders said they thought “innovatively” at work. They gained more confidence in developing new business development and marketing strategies as well as improved workflows and processes.
- 90% of Gen Z employees said that they are much more likely to stay with a firm that demonstrates empathy. This reduced the high cost of recruiting and training.
Overall, business leaders who display empathy show a receptiveness to the requirements of clients and employees, as well as an authentic desire to engage with any situation needing resolution. These traits of strong, ethical leadership are increasingly tied to business profitability.
Empathy is a powerful business tool you can implement!