The Business Case for Kindness: A People-First Approach to Leadership
A Business Case for Kindness: The People-First Approach to Leadership
In the modern business environment, leaders have unprecedented access to data. Metrics shape strategy, guide investments, and track performance. But dashboards alone cannot galvanize a team, inspire trust, or create a culture that retains top talent. That requires something less tangible yet equally measurable: kindness.
As Sam Schloss, CEO of Annie Aesthetic, shared in a recent Skytale Insights episode, “Values are only valuable if you use them, talk about them, and explain how they guide the decisions you make. We’re very intentional about how we treat everyone in our orbit. That referral channel is our brand. It’s how we find other partners and how we’ve been growing. Kindness is fundamentally the way to do that.”
Sam’s perspective underscores a truth shared by the best leaders: data and a human-first approach are not competing priorities. Used together, they create the conditions for cultures that excel, fostering performance, trust, and results that endure.
Why People-First Leadership Is More Important Than Ever
Today’s workforce strives for high performance while seeking leaders who have authentic care for their teams. An EY survey found that 86 percent of employees believe empathetic or kind leadership improves morale, and 87 percent say it is essential for fostering inclusion¹. The HOW Institute reported that more than 90 percent of employees believe moral leadership is more urgent now than ever before².
This urgency reflects the reality of today’s workplace. Professionals are navigating rapid change, economic uncertainty, and increasing demands on their time and energy. Remote and hybrid work models can leave teams feeling disconnected, while competition for top talent gives employees more choice about where and for whom they work.
In this environment, people-first leadership is not just goodwill. It is a strategic imperative. High-performing managers measure both output and organizational health, using surveys, listening sessions, and one-on-one dialogue to understand the realities their teams face. They make their commitment visible by tying praise to both results and effort, and they systemize commitment to their people with the same rigor applied to tracking revenue and profitability.
The Risk of Ignoring the Human Element
Leadership that focuses solely on metrics risks quietly eroding an organization from within. Gallup research shows that only 22 percent of employees strongly agree their organization cares about their well-being³, which is a staggering gap that speaks to the disconnect between performance targets and morale. When leaders neglect this dimension, the effects are immediate and deepen over time: turnover accelerates, engagement wanes, institutional knowledge is lost, and the creative risk-taking required for innovation begins to dissipate.
The connection between culture and performance is clear. In 2024, only 31 percent of U.S. employees reported being highly involved, enthusiastic, and committed to their work, marking the lowest level in a decade⁶. Those who lack this connection are more likely to leave, deliver lower-quality results, and withhold the ideas. People-first leadership helps reverse this trend. Managers who create environments where team members feel they belong see lower turnover and higher morale.
Understanding that metrics are the output, not the source, of a healthy culture is key to identifying the true drivers of long-term performance and organizational success. Proactive measures such as conducting “stay interviews” with current staff to understand what keeps them engaged or running exit interviews like strategy sessions to identify systemic issues help leaders make targeted changes that improve both culture and outcomes.
By balancing operational rigor with genuine commitment to employee well-being, managers can create environments where people are motivated to excel not out of obligation, but out of shared purpose. In a marketplace where talent is the ultimate competitive advantage, this dual focus is no longer optional, but a defining factor for success.
The Power of Combining Kindness and Data
Data tells decision-makers what is happening. Kindness can help explain why it is happening and how to address it effectively. When people trust their leaders, they share candid feedback, embrace change, and execute decisions more effectively. Research shows that kindness strengthens loyalty, builds trust, and improves productivity⁵.
Leaders with a people-first mentality use analytics as a starting point, then go directly to the source to uncover the context behind the numbers. Discussions about quarterly performance should be paired with conversations about workloads, resources, and team stress levels. A dip in productivity might point to a skill gap, outdated processes, lack of bandwidth, or burnout. By pairing metrics with team conversations, leaders can gain key insights into their business health that no dashboard alone can provide.
What People-First Leadership Looks Like in Practice
This type of approach is not abstract. It is reflected in how managers set boundaries, empower their teams, and create space for every voice to be heard. The most effective leaders allow their teams to have autonomy. Like bumpers on a bowling lane, they define the path and keep things moving in the right direction, but the team takes the shot. Pushing decision-making authority to those closest to the work often produces faster, better results, and, just as importantly, signals trust. This empowerment encourages employees to take smart risks and bring forward innovative ideas, knowing that mistakes will be treated as opportunities to learn rather than grounds for penalties.
Effective communication is another hallmark of the people-first leadership approach. Strong leaders ensure alignment on priorities, expectations, and goals, creating clarity that drives performance. They address performance concerns promptly and constructively, framing feedback as a growth opportunity rather than criticism. They foster a two-way dialogue where employees feel comfortable asking questions, raising concerns, and sharing ideas, which ensures that misunderstandings are minimized and collaboration remains strong.
Small, intentional actions, such as praise, can have an outsized impact on culture. A handwritten note or a public acknowledgment of a job well done can reinforce the behaviors and values businesses need to thrive. Leaders can take this further by making recognition routine. From opening meetings with recent wins to spotlighting cross-functional collaboration, making recognition a habit helps embed appreciation into the daily rhythm of work.
At Skytale, one of our internal core values is that the best idea wins, a philosophy rooted in the concept of idea meritocracy. This principle only flourishes in environments where people feel safe, valued, and respected enough to speak up. Kindness sets the stage for that openness. In practice, it means creating meetings where all voices have space, evaluating ideas on merit rather than title, and publicly crediting the originator when an idea is implemented. Leaders who adopt this approach not only encourage contribution but also unlock diversity of thought, a competitive advantage that can drive overall business outcomes.
Why Kindness Wins for People and Business
Kindness is often looked at as a soft skill, but, in practice, it can be a high driver of competitive advantage. People-first leadership creates workplaces where people feel valued, respected, and safe to contribute. The impact is powerful on its own: it boosts morale, strengthens team cohesion, and builds a culture of trust. But its influence doesn’t stop there. The same conditions that make people feel supported also make businesses stronger.
Externally, kindness strengthens customer and client relationships. In healthcare, where services are deeply personal and outcomes depend on trust, this approach directly impacts retention and reputation. When an organization treats its patients, partners, and community stakeholders with respect and empathy, every interaction becomes an opportunity to build connection and credibility. This reputation for compassionate, people-centered care becomes a brand asset that attracts new patients, strengthens referral networks, and sustains existing relationships. In industries where products and services can be replicated, the culture behind the care is often the most enduring differentiator.
Kindness is not just a moral choice; it is a strategic imperative. When paired with data-driven decision-making, it becomes the engine that powers sustainable growth, building cultures that inspire loyalty and create lasting value for both the people you serve and the business you lead.
Footnotes
- EY: 86% of employees believe empathetic leadership boosts morale; 87% say it’s essential for inclusivity. Randstad Enterprise
- The HOW Institute: 9 in 10 employees believe moral leadership is more urgent than ever. HR Dive
- Gallup (May 2025): Only 22% strongly agree their organization cares about well-being. Gallup
- Gallup: Employees who feel cared for are 3× more engaged, 69% less likely to job-hunt, 71% less likely to be burned out. Gallup
- Dr. Bonnie Hayden Cheng on kindness boosting trust, loyalty, productivity. Financial Times
- Gallup: U.S. employee engagement at 10-year low—31% engaged. Gallup
