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The research

Why compassionate leadership works

Why we collect this

People are convinced by stories, boards by numbers. When someone asks why an organisation should invest in compassion, this is the page we send them.

Every claim links to its source. Four numbers to start with:

#1factor in team success is psychological safety (Google)
more innovation with empathic leaders (Catalyst)
+19%innovation revenue, diverse & safe teams (BCG)
$9.6Tglobal cost of disengagement (Gallup)
Building psychological safety in teams
a.

Only 21% of employees are engaged

According to Gallup's 2025 report, only 21% of employees worldwide are engaged. Gallup estimates the cost at $9.6 trillion in lost productivity, 9% of global GDP. Earlier Gallup research shows how much managers matter: when they ignore their people, 40% are actively disengaged; when they focus on weaknesses, 22%; when they focus on strengths, 1%.

b.

Psychological safety is the number one factor

Google's study of 180 teams found that how people work together matters more than who is on the team, and that psychological safety is the most important of five factors. A meta-analysis across 22,000 people links psychological safety to learning, information sharing and creativity.

c.

Empathy drives innovation

Research among 6,713 managers in 38 countries found that managers whose staff rate them as more empathic are also rated higher on performance by their own boss. Catalyst's study of 900 employees in the US found that people who see their senior leaders as highly empathic are more than twice as likely to be engaged (76% versus 32%) and nearly five times as likely to be innovative (61% versus 13%).

d.

Diversity only pays off with safety

Boston Consulting Group found that companies with above-average diversity in management report 19% higher innovation revenue. Research by Henrik Bresman and Amy Edmondson shows that diverse teams perform worse than homogeneous ones when psychological safety is low.

e.

Compassion is one of four things people need from a leader

Gallup asked people in 52 countries what the most influential leader in their life gives them. The answers fall into four needs, the same across countries and generations: hope, trust, compassion and stability. Stability, in Gallup's description, is knowing that you can bring your questions and concerns to your leader. That is psychological safety in other words.

When we plant trees, we plant the seeds of peace and seeds of hope. Wangari Maathai

What this means for your organisation

The pattern is consistent. People learn and perform better when they feel seen and safe, and they go quiet when they do not. Leaders have a large influence on which of the two it is.

Why efficient organisations become fragile in the first place, and what compassion has to do with it, is the subject of the essay How compassion makes your organisation more robust.

For the thinking behind the numbers, read What is compassionate leadership? To work on it in your own teams: psychological safety training or leadership training.

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