Leaders set the tone for workplace culture. They influence performance, productivity, and profitability, and they shape the environment in which employees either thrive or disengage.
According to a US study conducted in response to the Great Resignation, which saw employees leave their jobs in record numbers after the COVID-19 pandemic, employees reported greater levels of creativity (61%) and engagement (71%) under highly empathetic leadership.
A critical yet often overlooked factor in unlocking employee productivity is the extent to which employees feel secure enough in the workplace to be themselves, voice their ideas, and contribute to their organisation’s success. This factor is what we refer to as psychological safety.
Leadership and employee well-being
As good leaders know, a company’s most valuable asset is its people. Research consistently shows that organisations with high levels of psychological safety outperform their peers as employees are more empowered to take risks, share ideas, and work collaboratively without fear of negative consequences. Robust business outcomes and a solid bottom line are natural byproducts of an environment with employee satisfaction as its foundation.
Yet, despite the clear link between psychological safety and performance, many businesses struggle to prioritise employee well-being beyond structured programmes and corporate initiatives. True inclusion is not about expensive interventions; it is about creating a workplace where employees genuinely feel valued and part of something bigger than themselves.
Why does leadership empathy fluctuate?
A striking pattern in modern leadership is the surge of employee-centric policies during times of crisis, only for them to fade away when ‘normality’ resumes. During COVID-19, businesses implemented mental health support, focus groups, stipends and increased engagement efforts. Leaders actively listened, adapted policies, and prioritised employee wellbeing. However, as workplaces transition back to pre-pandemic structures, many of these benefits are being revoked. Reduced flexibility and a decline in employee feedback mechanisms suggest that many organisations have reverted to traditional, rigid leadership models, foregoing many of the learnings and successes that came out of the pandemic.
This begs the question: Why does leadership empathy peak in times of crisis but wane during stability? The answer lies in short-term retention concerns. When businesses fear mass resignations, they prioritise employee needs to maintain workforce stability. However, once immediate risks subside, long-term commitment to well-being often takes a backseat to operational efficiency. This reactive approach is counterproductive; employees are not just seeking benefits—they are seeking belonging, purpose, and leadership that genuinely support their growth.
Sustainable well-being beyond box-ticking
Inclusion is often misinterpreted as diversity quotas and compliance-based interventions. It is about creating a work culture where all employees, regardless of background, feel they belong and can contribute meaningfully. In South Africa’s diverse labour force, inclusion is especially critical. Studies show that employees who feel a strong sense of belonging are more productive, experience lower stress levels, and are less likely to leave their organisations. However, inclusion cannot be sustained through policies alone. It must be embedded in leadership practices and within corporate cultures.
Leaders must actively engage with employees to understand their daily challenges, aspirations, and motivations. This means cultivating open communication, encouraging idea-sharing without fear of judgment, and recognising contributions at all levels. Psychological safety is about ensuring that employees feel heard, respected, and empowered to challenge ideas constructively. It can’t be achieved by avoiding difficult conversations.
The key to sustainable employee well-being is not another wellness programme, it is leadership. While structured initiatives can provide valuable resources, the true impact comes from how leaders interact with their teams daily. Amy Edmondson, a leading researcher on psychological safety, emphasises that the most successful workplaces are those where leaders build trust, show vulnerability, and model inclusive behaviours.
In South Africa, where work environments are often high-pressure and performance-driven, developing a culture of psychological safety is essential to maintaining long-term productivity. Many companies make the mistake of focusing disproportionately on the small percentage of non-performers rather than nurturing the many employees who consistently deliver results. Instead of punitive performance management, leaders should focus on creating environments where employees feel supported in achieving excellence.
Building a future-focused leadership model
The future of leadership must balance digital transformation with human-centric management. Technology is reshaping the workplace, but human connection remains irreplaceable. Employees are drawn to companies that align with their values, provide meaningful work, and create a sense of shared purpose. Retention strategies should not rely solely on financial incentives but on creating a work culture where employees feel inspired to contribute.
For psychological safety to become an enduring aspect of an organisation, leadership development must prioritise inclusion, trust-building, and emotional intelligence. Equipping leaders at all levels, from junior to senior, with the skills to lead inclusively will create a ripple effect throughout the organisation. Leaders must shift from a directive mindset to a facilitative one, where their role is to empower rather than control.
This facilitative mindset should become the cornerstone of high-performing, engaged workplaces. It will not be achieved through one-time interventions but through a sustained commitment to empathetic leadership. South African businesses must move beyond traditional, compliance-based approaches to inclusion and instead cultivate environments where employees feel genuinely valued, heard, and empowered.
The most successful organisations of the future will be those that build cultures of trust, purpose, and human connection. Leaders who embrace this approach will drive not only business success but also long-term workforce resilience and satisfaction. It is time for leadership to evolve from responding to crises to placing empathy as a core tenet of sustainable business strategy.
Humsha Ramgobin, Group CHRO at Mediclinic