In the aftermath of the 2008 financial crisis, two Chief Executive Officers faced challenges but responded very differently. One sent a company-wide email announcing layoffs while vacationing on his yacht in the Mediterranean. The other, Alan Mulally of Ford Motor Company, took a $1 salary, sold his corporate jet, and spent days on factory floors talking with worried workers. While one showed the team that we are in this together, the other sent a signal that I don’t care what happens to you.
Crisis period is a time for leaders to show empathy towards their team members. Crisis moments require leaders to demonstrate that they care for the people they lead. During crisis, there is fear, hopelessness, despondency, uncertainty and a tense atmosphere. This is the time when your team members need the leader the most. They demand sensitivity to their plight and comfort.
During the early days of the COVID-19 pandemic, Better.com’s CEO Vishal Garg infamously laid off 900 employees via a three-minute Zoom call, stating bluntly that “if you’re on this call, you are part of the unlucky group being laid off.” The backlash was immediate and severe, not just because of the layoffs, but because of the cold, mechanical way they were handled. He later apologized after recognizing his mistake. “I failed to show the appropriate amount of respect and appreciation for the individuals who were affected and for their contributions to Better,” he said. Compare this with Airbnb’s CEO Brian Chesky’s approach during the same period. When forced to lay off 25% of his workforce, Chesky sent a detailed, heartfelt letter explaining the situation, provided generous severance packages, and created a talent directory to help displaced workers find new jobs. “These people aren’t just employees,” Chesky wrote. “They’re our friends and family.”
The impact of empathy on leadership outcomes can never be overemphasized. Empathy is what distinguishes those who are leading from those manipulating their followers. True leaders influence others to follow them and one of the ways they do this is through empathy. People get naturally attracted towards someone who cares about their feelings. The crisis period exposes many team leads as they are unable to rally their team. They don’t give hope hence they intensify the already tense atmosphere. They contribute to the state of despair because their words are depressing. They complicate the pain their followers are going through. This is not a trait of leadership.
Sounding insensitive and tone-deaf in times of crisis isn’t just a communications failure; it’s a fundamental leadership breakdown. Research from the Center for Creative Leadership found that managers who demonstrate empathy have employees who report feeling more innovative, engaged, and willing to stay with their companies. This isn’t just feel-good management theory – it’s practical business sense.
Satya Nadella’s leadership examples remain consistent in my writings. His demonstration of empathy contributed to the transformation of Microsoft. When he took over as CEO in 2014, the company was known for its cutthroat internal competition and declining morale. Nadella, whose personal experience raising a son with severe cerebral palsy had deepened his capacity for empathy, made cultural transformation his priority. “Empathy makes you a better innovator,” he frequently tells his teams. Under his leadership, the revenue of Microsoft increased from $86.8B in 2014 to $211.92B in 2023. Microsoft’s stock price moved from $38 in 2014 to $428.48 in 2024.
During crisis periods, true leaders distinguish themselves through their emotional intelligence. Delta Air Lines’ CEO, Ed Bastian, strongly demonstrated this during the pandemic. While other airlines were quick to lay off staff, Bastian held weekly virtual town halls where he answered unscripted questions, shared personal stories of his struggles and uncertainties, implemented a profit-sharing program even during difficult times, and personally called families of crew members lost to COVID-19. The result was that Delta Air Lines maintained the highest employee satisfaction scores among major U.S. airlines during the crisis.
Leaders are expected to show empathy to their team members through active listening sessions. For example, Starbucks’ Howard Schultz famously instituted “Open Forums” where employees could share concerns directly with leadership. There is also the imperative of walking the floor. During the 2011 tsunami crisis, Nissan CEO Carlos Ghosn immediately flew to affected areas in Japan, visiting workers and their families, and understanding their needs firsthand. Also crucial is transparent communication: When Marriott’s revenues plunged 90% during the pandemic, CEO Arne Sorenson’s emotional video message to employees became a masterclass in crisis communication, combining hard truth with genuine care. Leaders who fail to show empathy during crises face lasting consequences such as increased turnover. Research shows that 71% of employees would leave an employer who demonstrated a lack of empathy. They also suffer reduced productivity as teams with empathetic leaders are 76% more engaged. There is also the consequence of a damaged brand reputation. Companies known for poor crisis handling see an average 27% drop in customer trust.
The most effective crisis leaders combine emotional intelligence with strategic thinking. Consider Jacinda Ardern’s leadership during the Christchurch shootings. She didn’t just express sympathy; she took action while maintaining a deeply human connection with her community. Her response included immediate presence at the scene, personal meetings with victims’ families, clear, empathetic communication, swift policy action, and consistent follow-through.
Being empathetic isn’t optional for leaders, it is essential. The demands of an empathetic leader include regular face-to-face interactions with team members, creating safe spaces for honest dialogue, demonstrating vulnerability when appropriate, taking concrete actions to support team members, and following through on commitments.
True leadership isn’t just about managing resources or hitting targets – it’s about understanding and connecting with the humans who make those achievements possible. In times of crisis, this truth becomes stronger than ever. As we navigate an increasingly complex business environment, the ability to lead with empathy will only become more crucial. After all, as Maya Angelou wisely noted, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
- Dada is a management and marketing professional. He writes from Lagos, Nigeria.
