5 min read

Is Empathy Important for Positive Employer-Employee Relationship?

By CHOYS Community
08 Jul 2023

The global economy has gone through a significant transformation in recent years.

Since Covid-19, we have witnessed a complete shift from traditional work environments to non-conventional and hybrid organisational structures.

Technological advancements and the growing emphasis on globalisation have forced both public and private companies to work hard and boost the economies of their respective countries.

However, it's equally important to ensure employees' well-being is addressed. This is where empathy plays a significant role.

Empathy is equally important to the financial accommodation of an employee.

In today's world, global trends suggest that people, especially Gen-Z employees, prefer to work in corporations with better work-life balance and empathetic bosses.

Thus, it is important to address employee wellbeing through empathy.

Global Trend in the Economy

The world economy has gone through some big changes lately.

Emerging economies are becoming more powerful. This refers to the fact that the economic power is shifting from the West to the East, which has resulted in a drastic shift in the way companies do business.

Now, global economies are more interconnected than ever before, requiring businesses to respond flexibly and inventively.

Moreover, the COVID-19 pandemic has profoundly affected the global economy, causing many companies to shut down and resulting in unemployment and financial insecurity.

As per a survey conducted by IMF, the global growth projections have shown a massive decline from 5.9 percent to 3.8 percent.

Global Trends in the Economy and How They Affect the Employer-Employee Relationship

With everything that's been going on lately, it's become even more important for organisations to look after their employees and build a strong, positive relationship between employers and employees. After all, we're all in this together!

Recently, some global trends have marked their ways into becoming movements and standards, being followed by organisations from various regions.

The most popular practice that organisations are focusing on nowadays is empathy - putting yourself in someone else's shoes and understanding where they're coming from.

According to a recent survey, 93% of employees prefer to work in an empathetic work environment, while 82% believe they will leave their jobs for a better and more empathetic boss.

It's not just a nice idea, either - studies have shown that companies with a more empathetic approach tend to have happier employees and better overall performance. So, it's something worth thinking about!

Emotional Intelligence in the Workplace

Emotional intelligence is becoming increasingly important in the workplace. Employers now recognise the importance of empathy, good communication skills, and the ability to work in teams.

Because of this, hiring processes have shifted to a greater emphasis on these soft skills and technical abilities.

So, it's not just about what you know but also how you relate to others and manage your emotions in the workplace.

Emphasis on Employee Well-Being

Organisations are becoming more aware about the importance of employee wellbeing.

To support a healthy environment within workplaces, employers offer mental health resources, promote work-life balance, and provide opportunities for professional development and career growth to employees.

Now, it's not just about conventional modes offered in a job but also about creating a positive and supportive work environment.

Diversity & Inclusion in the Workplace

Diversity, equity, and inclusion are increasingly critical in creating a positive and supportive work environment.

Ensuring everyone feels valued and included is important as organisations become more diverse. Employers are taking steps to create inclusive workplaces and address issues of racism and discrimination.

This includes training on unconscious bias, creating diversity committees, and fostering a culture of openness and respect.

Rise in the Freelance Work Culture

The gig economy is rising, with more workers opting for short-term contracts or freelance work.

This can create challenges for employers using traditional employment models with long-term benefits.

Finding ways to foster a positive relationship with these workers is important, even if they're looking for something other than traditional employment.

This might involve offering flexible working arrangements or providing opportunities for professional development.

Rise in Remote Work

Technology has changed how we work, with many employees working remotely or using digital tools to collaborate.

This has created new opportunities for flexibility and productivity but also challenges for employers who need to find ways to foster communication and connection among their employees.

It's important to have the right tools and technology along with clear communication protocols to ensure everyone is on the same page and feels connected to the rest of the team.

In recent times, there has been a noticeable trend towards greater empathy in the workplace.

This shift is driven by a focus on creating a more human-centered approach to employment, prioritising employees' well-being, diversity, and inclusion.

As we adapt to the changing work landscape, employers must put empathy at the forefront of their priorities. Doing so can create a supportive and empowering environment that helps employees thrive.

How Organisations Have Helped Build the Economy of Countries?

Organisations have had a crucial role in developing countries' economies. They have created numerous job opportunities, invested in research and development, and significantly contributed to the nation's GDP.

Despite these significant contributions, organisations need to pay more attention to the wellbeing of their employees, leading to high turnover rates and low morale.

Unfortunately, this can have a detrimental effect on an organisation's productivity and reputation.

Let us quickly list some ways in which organisations have contributed to the growth of the economy:

They create jobs

By providing employment opportunities to people, organisations help reduce the unemployment rate, thereby boosting the economy.

They invest in R&D

Research and development activities initiated by organisations tend to innovate and create new products, increasing revenue and economic growth.

They contribute to the GDP

Organisations contribute substantially to the GDP of the country, thereby supporting sustainable economic development.

However, it's essential to acknowledge that while organisations have played a significant role in the economy's growth, they must also prioritise their employees' wellbeing.

This can positively impact their productivity and reputation, which, in turn, will benefit the economy.

Employer and Employee Relationship: How It Has Been

In recent times, it is observed that organisations have adapted a more collaborative approach to practise the employer-employee relationship.

Employers are starting to understand that their workers are their greatest asset and that treating them with respect and trust can lead to better productivity, job satisfaction, and higher retention rates.

Additionally, many companies are implementing new strategies such as flexible work arrangements, employee engagement programs, and open communication channels to foster a positive work culture.

This new approach has benefited both employees and employers, as they have seen improved performance, increased innovation, and a better bottom line.

Overall, it's clear that a healthy and positive employer-employee relationship is essential for a successful and thriving workplace.

Is Lack of Empathy in the Workplace a Deal-Breaker for Millenials?

Since the COVID-19 pandemic, there have been significant changes in the way organisations operate.

With remote work becoming the norm, organisations have had to find new ways of communicating and collaborating with their employees.

As a result, employer-employee relationships have evolved towards a more collaborative and empathetic approach.

Nowadays, organisations recognise the importance of empathy in fostering a positive work culture. They understand that employees are not just resources but human beings with emotions and aspirations.

By practising empathy, employers can better understand their employees' needs and create a work environment that supports their growth and development.

Employee Retention Trends 2023

Identifying Employee Needs for Retention

When it comes to keeping employees around, employers should keep a few key things in mind.

For starters, it's crucial to prioritise employee wellbeing. Workers who feel supported and valued are more likely to be productive and engaged.

Employers can create work environments that foster wellbeing by showing empathy towards employees.

Another important factor is career growth opportunities. If employees see a clear path for advancement within an organisation, they're more likely to stick around for the long haul.

Employers who show empathy by genuinely investing in career development opportunities of employees most likely to retain them.

To sum up, retaining employees requires focusing on employee wellbeing and career growth opportunities.

Employers prioritising empathy towards their employees through these practises build a loyal and dedicated workforce.

These factors include:

Meaningful work

Employees want to feel that their work is making a difference and has a purpose. Providing opportunities to employees to work on meaningful projects or initiatives can increase their job satisfaction and engagement.

Personal development: Providing opportunities for employees to learn new skills and develop professionally can help to retain them. This includes opportunities for training, mentorship, and coaching.

Recognition and rewards

Employees want to feel that their hard work and contributions are recognised and appreciated.

Employers can provide recognition and rewards such as bonuses, promotions, or special perks to show employees that their efforts are valued.

Work environment

The physical work environment can affect employee retention. A comfortable, clean, modern workspace can help employees feel motivated and engaged.

Work-life integration

Many employees today seek employers who provide flexible work schedules and locations. Employers who offer remote work options, flexible scheduling, or other work-life integration benefits may be more attractive to employees.

In another survey, 76% employees state that work related stress affects their mental health, which is a significant factor in increased adoption of both empathetic workplaces as well as a more hybrid work structure.

These factors are critical in retaining employees, and empathetic employers understand why empathy is important; employers can create an engaging, supportive, and rewarding workplace for employees.

This will also increase employee retention and create a mutually synergised win-win situation between the employee and the employer.


Empathy is vital in promoting a positive relationship between employers and employees.

Organisations must recognise that employees are not just resources but human beings with feelings and goals.

Employers who show empathy towards their employees create a work culture that prioritises their well-being, resulting in increased productivity, higher employee engagement, and lower turnover rates.

As the world changes, organisations must acknowledge the significance of empathy in building a sustainable future for their employees and themselves.

How CHOYS can help you in fostering this relationship?

CHOYS provides a holistic wellbeing subscription service to help organisations customise employee benefits.

Our mascot, Bo serves as a digital Chief Wellbeing Officer, enabling employers to deliver a more humanized, data-driven work life culture while enhancing employee impact.

To know more about our work, book a demo with CHOYS today!