Compassionate leadership: Leveraging emotional intelligence to connect and inspire teams

Leaders today are often pulled between driving results and fostering a people-centered culture. Yet, those who make the most meaningful impact are the ones who prioritize authentic connection. Compassionate leadership isn’t about softening standards or being nice for its own sake; it’s a strategic choice grounded in emotional intelligence (EQ) that builds trust, drives motivation, and strengthens team cohesion.

Throughout my years working in executive roles at Chrysler and now as a leadership coach, I’ve seen the tangible difference made by leaders who lead with EQ. These leaders don’t just manage people; they connect with them. And that connection can drive real results.

What Is Compassionate Leadership?

Compassionate leadership is a style that marries emotional intelligence with a genuine commitment to the success and well-being of those we lead. It’s built on three essential pillars:

1. Emotional Intelligence (EQ): At the core of compassionate leadership is the ability to understand and manage both one’s own emotions and those of others. This isn’t only about empathy; it’s about self-awareness, self-regulation, motivation, and social skills that make others feel seen, heard, and valued. Research supports this approach, showing that leaders with high EQ can boost their team’s performance by up to 30%.
2. Creating a Motivating Environment: Compassionate leaders set the stage for their team’s success. They motivate and empower individuals by providing the tools and support they need to thrive. Studies indicate that motivation tied to compassionate leadership can increase employee retention by as much as 20%, with Gallup reporting that 70% of the variation in employee engagement is directly tied to management quality.
3. Delegation and Empowerment: Effective leaders know when to delegate and trust their team members to carry out responsibilities. Empowering others isn’t about relinquishing control; it’s about creating growth opportunities and fostering a culture of shared responsibility. According to LinkedIn’s 2023 Workplace Learning Report, employees in environments that emphasize development are 10% more engaged and 12% more likely to stay with their companies long-term.

Building Relationships: The Heart of Compassionate Leadership

In my time at Chrysler, I quickly realized that no amount of technical knowledge or business strategy could substitute for genuine relationships. Early in my career, I focused on connecting with people, not only to understand their professional capabilities but also to create trust. Whether it was working with fellow executives or meeting with dealership teams, I made relationship-building a cornerstone of my approach. Research backs this up, showing that companies where leaders build meaningful relationships outperform competitors by an average of 21% in profitability, according to Harvard Business Review.

Today, when I work with leaders, I stress the importance of this relationship-building foundation. People aren’t just motivated by paychecks; they’re motivated by leaders who care about their success. In my sessions, I often ask leaders, “Where do you think you stand in terms of emotional intelligence?” Most place themselves in the 5 – 7 range out of 10—a reflection of the gap many feel in this area. This gives us a starting point to build from, helping leaders understand that EQ isn’t a “nice-to-have” but an essential leadership tool.

Compassionate Leadership in Action

One client, a manager based in California, came to me with concerns about connecting with his team. He was hesitant to dive into personal conversations, fearing he might blur professional boundaries. I explained that compassion doesn’t mean crossing boundaries; it means understanding where your team members are coming from and showing empathy. Showing that you care.  As a result, he saw positive changes as his direct reports opened up more, feeling seen and valued in a way that didn’t compromise professionalism.

Accountability is also essential. Compassionate leaders set clear expectations, are upfront with feedback, and provide guidance that’s as supportive as it is constructive. This fosters loyalty and buy-in, even in tough situations.  

Becoming a Compassionate Leader

Not everyone enters the workplace with high emotional intelligence, but EQ is a skill that can be cultivated with the right tools and mindset. In my sessions, we begin with foundational concepts, such as gravitas and effective communication, and from there, focus on practical applications. Leaders can’t learn EQ solely from a book; it’s something developed through, awareness,  real-life interactions and the willingness to ask, “What does my team need, and how can I help them succeed?”

For leaders looking to get started on this journey, here are a few actionable steps:

1. Listen More Than You Speak: Truly hearing your team members out can reveal insights into what drives them and what challenges they face. Research from McKinsey shows that managers who actively listen are three times more likely to build a high-performing team.
2. Ask for Feedback on Your Leadership Style: Knowing how others perceive you can guide you in making necessary adjustments. A study by Zenger Folkman found that leaders who regularly ask for feedback are rated as more effective by 86% of their teams.
3. Focus on Relationship-Building as Much as Task-Completing: A compassionate leader knows that investing time in people reaps long-term rewards in loyalty, productivity, and innovation. Research from a Gallup report, show that highly engaged teams show 21% greater profitability.

If you’d like to learn more about compassionate leadership, here are some articles I recommend:

1. https://www.inc.com/justin-bariso/emotional-intelligence-research-how-to-get-respect-strengthen-relationships.html
2. https://www.forbes.com/sites/tracybrower/2021/09/19/empathy-is-the-most-important-leadership-skill-according-to-research/
3. https://www.theglobeandmail.com/business/careers/management/article-the-career-advice-that-turned-tom-bradys-life-around/

The Ripple Effect of Compassionate Leadership

Compassionate leadership isn’t about being soft; it’s about building resilience in teams that are empowered to face challenges head-on. Leaders who practice emotional intelligence cultivate a work culture where people feel valued and motivated to do their best. We see the impact every day at Growthspace—leaders who connect meaningfully with their teams foster environments where innovation and dedication thrive, ultimately driving the business forward.

For those looking to deepen their leadership impact, the journey starts with asking: how can you better connect, motivate, and support those you lead? Compassionate leadership isn’t just about being nice; it’s about empowering people to bring their best selves to work, creating a ripple effect that positively influences business results.