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Tuesday, 27 August 2024

Why Nice Leaders Finish First: The Case for Compassionate Management

The debate over whether it's better to be a "nice" leader or a tough one often leans towards the latter due to a perception that toughness ensures respect and productivity. However, new organizational research indicates that this traditional view migh…
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Why Nice Leaders Finish First: The Case for Compassionate Management

By Dave Edwards on August 27, 2024

The debate over whether it's better to be a "nice" leader or a tough one often leans towards the latter due to a perception that toughness ensures respect and productivity. However, new organizational research indicates that this traditional view might be flawed.

Tough managers often believe that pressure increases performance, but what it actually increases is stress. Studies show that high-stress levels in the workplace are linked to numerous negative outcomes. Employees experiencing high stress have 46% higher healthcare costs compared to those in less stressful environments. Stress is a significant factor in coronary heart disease and other health issues. Workplace stress also leads to higher turnover rates. Stressed employees are more likely to look for new jobs, decline promotions, or leave their current positions altogether.

Contrary to the belief that kindness in leadership is a weakness, research by Adam Grant and others shows that leaders who project warmth and kindness can be highly effective. Here are some benefits of kind leadership:

- Trust and Loyalty: According to Harvard Business School's Amy Cuddy, leaders who project warmth before demonstrating competence build more trust and loyalty among employees.

- Enhanced Team Dynamics: Fair and kind treatment by leaders increases citizenship behavior among team members, leading to higher productivity both individually and as a team. Jonathan Haidt's research indicates that self-sacrificing leaders inspire their employees, fostering loyalty and commitment.

- Stress Reduction: Observing kind behavior at work reduces the brain's stress response. Positive social interactions at work lower heart rates and blood pressure, and boost the immune system, as evidenced by a study from the Karolinska Institute.

Happier employees contribute to a more congenial workplace, better collegiality, and improved customer service. A Gallup poll revealed that employees value happiness over high pay, indicating that workplace well-being significantly impacts engagement and productivity. Furthermore, a large healthcare study found that a kind workplace culture improves not only employee well-being but also client health outcomes and satisfaction.

Creating a compassionate leadership model involves more than offering material perks like flextime or work-from-home options. Engagement, driven by the qualities of leaders such as sincerity, ethical commitment, genuine kindness, and self-sacrifice, is crucial. This approach fosters a culture of trust and mutual cooperation, ultimately leading to higher productivity.

One challenge in promoting kind leadership is societal norms. Research from Notre Dame suggests that agreeableness in men is associated with lower pay, while it does not affect women's salaries, indicating a bias against men who don't conform to traditional gender norms. Changing these norms requires a collective effort to value kindness and agreeableness while maintaining effectiveness and respect.

The traditional belief in tough leadership as a means to ensure respect and productivity is increasingly being challenged by research advocating for kind leadership. Effective leaders can be compassionate without being perceived as weak, creating a more engaged, productive, and happier workplace. This shift in leadership style not only benefits employees but also contributes to the overall success of the organization.

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