I was recently coaching a small group of leaders who were struggling with a core tension of modern leadership: how to find the sweet spot between focusing on the work and stepping into a leadership coaching style.
They all understood the value of being people-centered, but they were struggling to put it into practice. They pointed to the relentless pace of their environment: everything is urgent, priorities change quickly, many teams are virtual, and layoffs have left them with more work and fewer resources.
Their dilemma is one I see constantly: organizations say they want people-centered leaders, but pressure them for efficiency.
This tension leads to a critical question: What is the real cost of focusing too much on efficiency? We often give lip service to connection, but when a leader focuses exclusively on work efficiency at the expense of caring for their team, the costs are not just cultural but financial, immediate, and staggering.
The High Cost of an Efficiency-Only Mindset
My research and client experience confirms that this leadership imbalance is a primary driver of three massive, measurable costs: employee disengagement, high turnover, and employee burnout.
When leaders treat team members as “units of production” rather than people, employees mentally and emotionally check out. An excessive focus on tasks at the expense of people is shown to deaden innovation, lower morale, and create a toxic “fear of failure” culture that grinds progress to a halt.
In fact, the research shows that a leader’s focus on “caring” is not a soft skill—it is the most critical driver of financial performance. A leader who ignores their people for pure efficiency will ultimately achieve neither, as they will be leading a disengaged, revolving-door team plagued by burnout and low-quality work.
Why Caring Is the New Efficiency
In a modern, hybrid workplace, empathy isn’t a “soft skill”—it’s a hard-edged business strategy. For anyone who is skeptical, the data is clear:
- Higher Performance: Empathetic leaders are viewed as better performers by their own bosses.
- Increased Productivity: One study found that relationship-oriented leaders (those who lead with care) had higher actual team productivity than task-oriented leaders.
- Better Teams: Google’s “Project Aristotle” famously found that the #1 secret to a high-performing team was psychological safety—a concept built on a foundation of empathy and trust.
- Talent Retention: Empathetic leadership boosts engagement, builds cohesion, and significantly increases loyalty, which directly reduces costly turnover.
How to Show You Care
Showing you care is not about a single grand gesture; it’s about small, consistent, intentional actions that build trust. Here are three strategies you can integrate into your workflow without sacrificing results.
1. Be Genuinely Present and Curious
The most powerful way to show you care is to give people your full, undivided attention
- Intentional Check-ins: Schedule “no-agenda” virtual coffees with remote employees just to see how they are, personally and professionally.
- Active Listening: In 1:1s, close your laptop, put your phone down, and listen to understand, not just to solve the next problem.
- Asking Open-Ended Questions: Instead of “Is the project done?” you ask, “How are you feeling about the timeline for this project, and what’s one thing that’s getting in your way?”
2. Champion Their Growth and Wellbeing
Show you care about their long-term career and their short-term health, not just their immediate output
- Protect Their Time: Respect work-life boundaries by not sending non-urgent emails or messages after hours.
- Invest in Their Future: Actively look for “stretch” assignments or training that align with their personal career goals, even if it’s not directly related to their current role.
- Advocate for Them: “Have their back” in meetings, defending them from unfair criticism or ensuring their work is visible to other leaders.
3. Build Trust Through Safety and Recognition
Create an environment where people feel secure, valued, and safe to be their authentic selves.
- Own Your Mistakes: Be vulnerable and admit when you’re wrong or don’t have the answer. This makes it safe for others to do the same.
- Give Specific Praise: Instead of “Good job,” say, “The way you handled that client’s objection in the meeting was brilliant. I was impressed with how you used data to calm the situation.”
- Celebrate Learning: When a project fails or someone makes a mistake, frame it as a “learning opportunity” and focus on the “what,” not the “who,” to prevent a culture of blame.
Summary
In today’s fast-paced, high-pressure work environment, it’s easy for leaders to default to focusing purely on efficiency. However, research shows this imbalance is financially costly, leading to disengagement, turnover, and burnout.The solution is to redefine efficiency. True high performance comes from leaders who balance managing the work with caring for the people. By being genuinely present, championing their team’s growth, and building psychological safety, leaders can foster the trust and loyalty that drive sustainable results.