Building Empathy: Why It Matters for Human-Centered Teams

Creating a genuinely human-centered workplace starts with fostering empathy at every organizational level, from HR to front-line employees. Yet, many companies overlook the importance of empathy, especially in challenging situations like employment termination. An empathetic approach in handling internal processes doesn’t just benefit employees; it directly impacts the quality of customer service, reinforcing that empathy must be embedded in the organizational culture.

The Case for Empathy in Workplace Practices

Imagine a termination meeting that lacks empathy, communication, and a genuine approach to understanding the individual’s experience. This scenario, inspired by the opening scene of Margin Call, is a stark example of what happens when empathy is sidelined in favor of procedure. In this scene, the employee, with over 19 years of service, is informed of his termination in a manner that feels both dismissive and cold. With security present in the room, abrupt announcements, and a formal apology lacking sincerity, the meeting communicates a lack of respect and care for the employee’s emotional experience. This atmosphere, tinged with intimidation and a mechanical approach, highlights what employees often encounter in a toxic workplace.

These elements—lack of empathy, cold language, and superficial gestures—may seem minor, but they contribute to a culture that ultimately affects every interaction, both internally and externally. When companies don’t prioritize empathetic handling of employees, they create an environment that translates into similarly detached, transactional customer experiences.

Why Empathy in HR Practices Translates to Better Customer Service

It’s unrealistic to expect employees to create positive, human-centered customer experiences in an environment that lacks empathy toward them. Research consistently shows that employees who feel valued and respected are more likely to go the extra mile in providing excellent customer service. Gallup’s research indicates that teams with high employee engagement achieve 10% higher customer loyalty and retention. An empathetic approach to managing teams fosters this engagement by creating an environment where people feel supported and understood.

Empathy should be woven into the company’s DNA, starting with HR and extending to every department. From onboarding and daily operations to conflict resolution and, yes, even terminations, every process should reflect a genuine interest in the well-being of employees. When companies make empathy a core part of their values, employees are not only more engaged but also more likely to replicate that empathy in their customer interactions.

Examining the Toxic Culture of Empathy-Deficient HR Practices

The aforementioned scenario is laced with behaviors that undermine trust and foster a culture of fear. Here’s a breakdown of the toxic elements that arise when empathy is neglected:

1. Security Guard Presence: Having security in the room for terminations might serve procedural needs, but it also introduces a sense of intimidation. This power dynamic can create an environment of fear rather than support, signaling that the company views employees as potential threats rather than valued team members.
2. Dismissal of Employee Concerns: In the scenario, the employee’s question about ongoing work is brushed aside with a vague reassurance. Addressing concerns with dismissive language doesn’t just impact the departing employee—it sets a precedent for current employees. When team members see that concerns are met with indifference, they may feel undervalued, disengaged, or anxious about their own standing within the company.
3. Token Gestures Over Genuine Support: Offering a business card with vague words of help, as seen in this scenario, comes across as insincere, particularly when not backed by a clear support plan. Employees can easily see through token gestures, which can have the opposite effect of what’s intended, increasing mistrust rather than alleviating it.
4. Awkward Silence and Emotional Disconnect: The lack of meaningful dialogue or acknowledgment of the emotional toll of job loss is a missed opportunity for showing compassion. This oversight communicates a lack of emotional intelligence, reinforcing an unsympathetic, transactional approach to employment.

These elements contribute to a culture where employees feel disposable. Such an environment fosters an atmosphere where empathy becomes optional rather than essential, eroding trust and making it difficult for employees to feel invested in their roles or motivated to deliver exceptional customer experiences.

How Empathy Training Can Reshape Organizational Culture

Empathy training can be transformational for HR and management, setting the foundation for a healthier, more supportive work environment. Training shouldn’t be limited to front-line employees; it must be embedded at every level, including senior leaders and HR representatives who shape employee experience policies. Here’s why empathy training is essential for everyone in an organization:

• Empathy-Driven HR Practices: HR professionals play a pivotal role in setting the tone for how the organization treats people. Empathy training helps them handle sensitive situations—like terminations or conflict resolution—with grace, understanding, and respect. This approach can ease tension and mitigate negative feelings, allowing even difficult situations to be managed with dignity.
• Increased Emotional Intelligence: Empathy training can equip employees and leaders alike with the tools to better read, understand, and respond to the emotions of those around them. Emotional intelligence is essential for handling challenging interactions, both internally and externally, enabling employees to connect with colleagues and customers on a more human level.
• Encouraging a Culture of Openness: When empathy is practiced consistently, it encourages employees to speak openly and voice concerns, creating a more collaborative and transparent environment. This approach not only reduces misunderstandings and fosters loyalty but also increases the likelihood of constructive feedback loops that can drive continuous improvement.
• Direct Impact on Customer Experience: An empathetic approach naturally spills over into customer service. Employees who feel genuinely cared for by their organization are more likely to create empathetic, human-centered experiences for customers. Harvard Business Review reports that empathy leads to a 17% increase in productivity, as employees feel more motivated and engaged in environments where empathy is a norm.

From Empathy in HR to Empathy in Customer Service

A human-centered workplace starts with understanding that empathy is not just a soft skill but a critical business function. When empathy is central to company values, it shows in every touchpoint, both for employees and customers. Companies that prioritize empathetic HR practices see a ripple effect; employees feel valued and motivated, which translates into a more positive, proactive approach to customer interactions.

Imagine an employee who has experienced genuine empathy in difficult times. This individual is likely to carry that experience into their own interactions with customers, showing more patience, understanding, and care. This is the impact of empathy training: employees who understand the importance of compassion are equipped to create memorable customer experiences that reinforce the company’s human-centered values.

Taking Action: Making Empathy Part of the Company DNA

To truly become human-centered, companies need to make empathy training a foundational part of their culture. Here’s how to get started:

1. Leadership Commitment: For empathy to resonate throughout the organization, leaders must commit to empathetic practices themselves. Leaders should model empathetic behavior, be transparent in their communications, and approach all interactions with openness and respect.
2. Continuous Empathy Training: One-time training won’t transform a culture; empathy training should be ongoing and woven into the fabric of professional development. Encourage workshops, role-playing scenarios, and team exercises that help employees build empathy as a practiced skill.
3. HR Policies with Compassion at Their Core: HR policies should reflect empathy in every procedure, from onboarding and feedback to terminations. Companies can create policies that ensure fair treatment, transparency, and support, making these values evident in all interactions.
4. Encouraging Open Communication: Create channels for employees to share feedback openly and make empathy part of daily operations. When employees feel heard and valued, they’re far more likely to engage meaningfully with customers.

By making empathy a core part of company culture, businesses can build human-centered teams that feel motivated, respected, and ready to create exceptional customer experiences. A genuine, empathetic culture ensures employees feel valued in every interaction, fostering a supportive environment that naturally extends to customers, creating lasting loyalty and trust. Empathy isn’t just a tool—it’s the foundation of sustainable business success.