How Kindness & Compassion Can Reduce Company Turnover

(Forbes Magazine – December 9, 2019)

Rob Dube – (He  writes about leadership, business, and meditation.

Employee retention and happiness is often a top priority for many organizations. In today’s job market, a low turnover rate has become more critical—and more difficult—than ever. 

To keep their teams intact, employers increasingly rely on professional growth, salary, benefits, and even foosball tables to earn long-lasting loyalty. However, as great as these perks are, these days, they are simply a ticket to the game. The modern workplace must-haves. 

Ok. Maybe not the foosball table. But, if the other essentials aren’t enough, how can a company succeed at holding onto their best people? According to Leah Weiss, Ph.D., retention really starts with a company that prioritizes kindness, compassion, and empathy—most notably from those on top. As a Stanford Graduate School of Business lecturer, researcher, and author of How We Work: Live Your Purpose, Reclaim Your Sanity, and Embrace the Daily Grind, Leah has focused her studies on compassionate leadership, and the positive effect it has on organizations. She also helped to develop Stanford’s Compassion Cultivation Training, which was initially conceived by the Dalai Lama.

Through Leah’s discoveries and research, find out why simple acts of kindness within the workplace decrease turnover, increase loyalty, and can even boost your bottom line.

A More Compassionate Company Culture

“The costs of an organization where people are not deeply committed [to compassion] far outweigh what the investment would have been to help.” — Leah Weiss, PhD

Most organizations do strive to show their team appreciation. Maybe it’s shown in the form of holiday parties, happy hours, or bonus programs. These symbols of gratitude are wonderful, but is it truly showing compassion? Or, are these perks merely fill-ins for more authentic human connections?

Too often, leaders are so busy that they fail to genuinely acknowledge their employees’ real emotions. “It’s a common mistake,” says Leah. “It’s a very human mistake, but it is not a smart mistake to make as a leader.”

By failing to recognize those emotions, it won’t be long until team members flee to a company that treats them like people. “They’re going to rethink all the times they stayed late, put in time on the weekend, and gave it their all,” Leah says. “But at the moment they need you, you’re not there.” 

They gave you loyalty. Where’s yours? 

It’s pivotal for leaders to show authenticity, empathy, and compassion towards every person that they lead. Engage in honest conversations. Support your employees during difficult times. Show some flexibility. These small gestures on your part can mean everything. 

“If you don’t extend resources to them to support them,” says Leah, “They’re going to have an experience of you as a leader—and of your organization—that’s negative.”

Especially in today’s connected world, we all know how easy it is for criticism to spread fast. Once word gets around that your company doesn’t reciprocate loyalty, expect for engagement, retention, and your overall reputation to sink. 

“You can skip over ‘compassion’ and say, ‘I don’t have time to worry about all this,'” Leah says. “But it’s going to come back and bite you.” 

Start Integrating Empathy into the Workplace

Be kind to your employees. Easy enough, right?

Not necessarily—especially if your goal is to incorporate these practices throughout your company and make it last. This will take intention, thought, and time.

First off, clarify your intentions. Why do you want to create a more compassionate work culture? Just like every leader, team, and business differs, so too will this answer. “It’s easy to say I’m too busy to touch base with intention,” says Leah, “but cut that corner at your own peril. If you don’t have clarity about your plans, how can you know where you’re going?”

Leah suggests checking in with your values surrounding compassion and empathy. “How have they played out in your history and narrative,” she says? “What do we feel like when we’re out of alignment with our values physically, mentally, and emotionally?” 

Use these observations as fuel when making decisions regarding compassion. By looking back and within, you can tap into your own emotions. How did you feel when faced with a similar obstacle? What did your superiors do? Should you handle it differently?  

Next, take a step back and focus on your company’s true purpose. “We need a purpose to be healthy and happy,” says Leah. “It’s not a nice-to-have. It’s a must-have.”

She uses the healthcare industry as an example. There, the purpose isn’t about prescribing medications, taking measurements, or booking appointments. It’s about helping patients live happier and healthier lives. 

Once again, it goes back to finding compassion for other people.   

This takes reminding your team, and yourself, about your company’s purpose. Typically, this involves bringing empathy into the bigger picture. What does your business do to make your customers’ lives even just a little bit better? How does each individual contribute to making this a reality? 

With a reinvigorated sense of purpose, expect you and your team will feel more engaged than ever.

Spend More Time With Yourself

Compassionate leadership isn’t always easy. Life gets stressful. Sometimes, extending compassion does feel like too much to handle.

That being said, as leaders, our actions matter. We must mentally and physically show up for our team as often as possible. And by caring for ourselves, we can be at our best in caring for others. 

Leah says silence, space, and introspection are her three favorite ways to periodically unplug from her daily rigors and gift valuable time to herself.

“I think silence is the most under-appreciated resource, especially in a time when we’re so busy,” she says. “There’s constant pressure to consume and stay on top of information. We need to be aware of the power of attending to our inner experience with greater intimacy and precision.”

But if you’re not used to regularly checking in with yourself, where do you begin?

Leah suggests finding a few minutes during the day—perhaps first thing in the morning, while exercising, or on the commute home—to power every device off and reflect inwards without distraction.  

If you prefer something more structured, meditation is also an incredible practice that more high-level leaders like Bill Gates, Jack Dorsey, and Marc Benioff have embraced. Thanks to apps like Headspace, Calm, and Insight Timer, it’s easier than ever to start a meditation practice of your own.

Leah also suggests trying a mindful meditation retreat. Unlike a daily meditation practice, retreats allow for participants to fully escape from the world’s distractions and immerse themselves in mindfulness. It’s the best way to give your mind the uninterrupted space to think, reflect, and grow.

“Instead of filling up space with noise and input,” Leah says, “you can start to see what’s happening. You’re more aware of your own physical, emotional, and cognitive patterns.” Then, you can take everything you’ve discovered, bring it home, and use it when it matters most.

She recognizes that retreats, meditation practices, and self-care can require personal and financial investments—something that already causes many leaders anxiety. “But,” she says, “part of us knows we need them, and they might benefit us massively.”

Even if you’re still on the fence, why not take a chance and give it a try?

“Take it as an experiment,” Leah says. “Do the thing and thoughtfully put everything you can into it. Then, reflect on whether it was worth it. Maybe it will be a one-time experiment.

“Or maybe it’ll unlock a whole set of life experiences that you would’ve otherwise denied yourself.”

Listen to Rob’s entire conversation with Dr. Leah Weiss on the do nothing podcast

You’ll learn more about how she started studying kindness and compassion, what other leadership strategies she loves, why compassion can make you physically healthier and so much more.

Will You Be Prepared for the Next Recession?

What to Expect and How to Prepare for a Recession 

Economists generally determine that our country has fallen into a recession after two consecutive quarters of negative gross domestic product (GDP) growth. Since 1967, the United States has experienced seven recessions.

The thing is, predicting a recession is a little like predicting a tornado. Experts are never exactly sure if or when one will occur, but they can cite when conditions a ripe for one based past experience. The good news for predictors is that the economy follows a similar pattern of indicators in the months leading up to a recession.

The bad news is that many of those indicators have recently emerged. For example:

  • Inverted Yield Curve – This is when the yield on longer-term Treasury bonds is lower than the yield on shorter-term Treasury bonds, which happened recently for the first time since 2007. On average, an inverted yield curve has occurred 14 months in advance of every recession in the past 50 years.
  • Corporate Profits – Estimates for corporate earnings growth have dropped substantially since last year, from 7.6 percent to 2.3 percent.
  • Global Trade – The ongoing U.S. trade war with China has resulted in weakness in the manufacturing and farming industries. Moreover, global trade volume is also down, which further reduces the market for U.S.-manufactured goods.

What to Expect in a Recession

The worst recession in U.S. history was the most recent one, between 2007 and 2009. Dubbed the Great Recession, it was short (compared to the Great Depression of 1929-1939) but it took a powerful toll on a large chunk of the population. For example, close to half of U.S. households lost at least 25 percent of their net worth; one out of every four households lost at least 75 percent of their net worth.

About one-third of households experienced one or more of the following:

  • Fell more than two months behind on their mortgage
  • Had their home foreclosed
  • Had their home equity drop into negative territory
  • Lost a job

That was a bad recession. Fortunately, while economists are seeing signs of another one on the horizon, as of now (absent any significant shocks) they do not expect it to be as severe.

Tips to Prepare for a Recession

With multiple warning signs evident, it appears we do have some time before a recession potentially hits. It’s a good idea to use this time to protect your financial situation to help minimize any impact that a recession can have on you personally. The following are some tips to consider.

Shore Up Your FinancesStart by reducing your debt as much as possible, particularly any accounts exposed to a variable interest rate. The interest on credit cards and home equity lines of credit have a habit of increasing when you can least afford it. If you have a variable rate mortgage you might want to refinance at today’s low fixed mortgage rates so your monthly payments do not increase. One way to generate a robust savings fund is to temporarily suspend contributions to a retirement plan and save that money in a readily available account.

Minimize Household ExpensesMost people have to cut back on household expenses during a recession, so you might as well start now to help you prepare. For example, consider trading in a gas-guzzling car for one with better gas mileage and lower monthly payments, or pull the plug on cable TV and switch to a streaming service. Deploying these cost-reduction strategies now not only reduces your expenses during a recession but will also help contribute to your savings fund.

In many areas of the country, real estate prices are at the top of the market. It might be worth considering selling your house now while you can get a good price. This will give you a pot of cash to sit on during the recession, which is especially helpful if you lose your job. In fact, after the sale you may consider renting until real estate prices drop and you can purchase another home at a good price – and maintain a healthy cache of savings. This strategy could also save you from raiding your investment portfolio for money – helping protect your future financial security.

Protect Your Investment PortfolioTake a good look at your portfolio and give it a recession stress test. Consider reallocating some funds to options that tend to perform reliably during an economic decline, such as:

  • Government bonds
  • Treasury Inflation-Protected Securities (TIPS)
  • Corporate Inflation-Protected Securities (CIPS)
  • Consumer staples stocks
  • Well-established dividend stocks
  • Fixed Income Annuity (FIA)

Recognize that it is generally not a good idea to completely cash out of the market. The best way to accumulate wealth over time is to stay invested regardless of temporary economic declines. In fact, investors who maintained their market positions between 2007 and 2017 experienced an average 240 percent growth rate.

Once the recession has ended, think about rebalancing your portfolio to realign its strategic asset allocation with your investment objectives and timeline. This allows you to cash in on outperforming assets and buy into depressed securities that could be poised for post-recession growth.