Empathy: An Entrepreneur's Killer App

I hang out with a lot of other entrepreneurs, ranging from clients and colleagues to friends. Nearly all conversations I have with them these days focus on the economy: It's so bad the experts don't know what to make of it.

The only positive factor for many entrepreneurs is the ability to find and keep talent. A common sentiment I hear is that companies will finally be able to hire qualified talent at reasonable salaries, and our employees will be grateful to have jobs. After years of the power balance shifting toward employees, it's coming back around.

This is a dangerous road to travel.

While it's true that talent will be easier to hire and employees are less likely to leave in a recession, we shouldn't be delighted about this. Employees have long memories, and what sticks with them is how they're treated when things are down. They expect good treatment when times are good--after all, the market ensures it. But there's a wide variance on how companies treat employees when times are tough. Here's your opportunity to leave the indelible impression that your company is the kind of place employees (and clients) want to stay long after the market improves.

Of course, you should take all the financial measures required to adjust to a changing market. It's not about what you do, but how you do it. That's where empathy fits in.

I call it the killer app because it's such a powerful quality in a leader. It has the potential to inspire loyalty, productivity, accountability and job satisfaction. In tough and uncertain times, good leaders practice empathy often and remember that they set the tone for the entire company.

Here are a few situations where empathy is key to sending the right message:

1. Eliminating positions, salaries or benefits to save costs. We've seen a lot of this already, and economists predict we're still early in the game. It's tempting to think that because our employees read the news, they understand our need to cut costs. Leaders often downplay these measures, when actually we need to communicate even more when times are tough.
   
   Empathy opportunity: Look at the situation from an employee's point of view. Consider the perspective of an entry-level employee who may not yet understand how the business pieces fit together. Or adopt the viewpoint of someone nearing retirement who's depending on his or her income to meet retirement goals. What are budget items to you are very personal to other people. When you make cuts, address your team and emphasize the care and consideration with which you've made them. Underscore the point individually to those most impacted.
   
   
2. Dealing with anxiety and uncertainty in your work force. You have your own stress to deal with, so it's tough finding time to listen to other people's issues. After all, you're trying to keep the business afloat so everyone has a job, right?
   
   Turns out it's a little more complicated than that. Uncertainty breeds anxiety, which can seriously affect productivity and work quality.
   
   Empathy opportunity: Establish an open-door policy in your company and encourage people to come to you with concerns and rumors. Practice good listening skills, and answer any questions you can with an open mind. Remember to be human and admit your own concerns. Employees may find it comforting to hear that you, too, experience anxiety--although you need to counterbalance this by showing confidence that you can find solutions.
   
   
3. Changes in the company's strategy. What might seem to you like a natural adjustment to a changing marketplace can be shocking to those who haven't been privy to your thinking. Even good change is hard, and people often resort to the FUD factor (fear, uncertainty and doubt) when faced with it.
   
   Empathy opportunity: Corporate change should be communicated early and often, and include not just what you're doing but why you're doing it. Remember to explain to employees "What's in it for me?" so they understand how it will impact them directly.
   
   Have a process for generating buy-in. Hold cross-functional, multi-level strategy meetings to test your ideas and polish them before rolling them out to the whole company. Not only will the ideas be sharper, but you'll have an entire team of supporters to spread your change message.
   
   
4. Setting an ongoing vision even when you don't know what the future holds. My company weathered the tech recession seven years ago, and I remember vividly how challenging it was to be upbeat and forward-looking when I had no idea what the future would hold. But maintaining a forward vision is vital. Only you can give people a road map for the days ahead and a promising picture of the future. Dig deep, and do it.
   
   Empathy opportunity: Be honest; tell people that you'll adjust the company's vision regularly as the market demands, and that you need everyone's input to make it successful. Don't be afraid to make bold declarations about what you intend--now more than ever, people need a boost. It's fine if you don't achieve all your goals, as long as you communicate what happened and what you learned. Constantly outline what to expect, even if it's more change, to give some comfort and context for what lies ahead. No one expects you to predict the future, only to be a leader they can rely on to guide them there.

You'll find that providing empathy to your employees is well worth the effort expended. When the recession is a mere dot in the rear-view mirror of this roller-coaster ride, your staff will remember the support you and your company provided during these tough times.