Leading with Kindness: A Strategic Advantage for UK Businesses

The pandemic has fundamentally reshaped the way we work.  Remote and hybrid working was for the first time in the UK a necessity for most which exacerbated stress, burnout, and mental health issues.

According to a 2023 report by the CIPD, 76% of UK employees reported increased work-related stress following the pandemic, with many citing uncertainties, workload pressures, and a blurring of work-life boundaries as their key challenges during this time.

Employees began to expect greater flexibility, expressed a higher need for security and emotional support from their employers, which left many leaders baffled on how to deliver. They themselves were experiencing unprecedented times but were being called upon to deliver a deeper level of leadership than had ever been required of them before.

Companies that failed to acknowledge and step-up to these challenges found themselves with disengaged employees and diminished productivity. The era of the great resignation was upon us and saw record numbers of people resigning from their posts in pursuit of a better balance for work and lifestyle. Talent retention is now a pressing issue for businesses in the UK with the cost of replacing an employee averaging at £30,000, according to Oxford Economics.

The authoritarian and hierarchical leadership that was deeply rooted in organisations globally needed to be re-shaped. A new leadership style, offering a more holistic approach to leading teams has emerged. Across the UK, a growing body of research and real-world examples demonstrate that leading with kindness is not just a moral choice but now a strategic advantage.

A 2022 study by the Chartered Institute of Personnel and Development (CIPD) found that:

“Employees who feel valued and supported by their leaders are 27% more productive and 45% more likely to stay with their company long-term.”

A further study conducted by the University of Warwick found that:

“Happy employees are 12% more productive.”

This research aligns with the findings of the UK’s Health and Safety Executive, which reports that work-related stress, anxiety, and depression contribute to a staggering amount of over 17 million lost working days annually.

If an organisation was to adopt a leadership approach centred on kindness, they would foster a supportive culture, mitigating workplace stress and boosting overall productivity, ensuring organisational stability and huge financial savings.

To demonstrate these facts, here are some examples of UK based businesses that harness the power of kind leadership to drive success:

• John Lewis Partnership: Known for its employee-owned model, John Lewis prioritises fairness and well-being. The company consistently ranks among the best UK employers and enjoys strong customer loyalty due to its ethical approach.

• Timpson: This high-street retailer is renowned for its progressive, kindness-driven leadership. CEO James Timpson champions hiring ex-offenders and providing extensive staff support, fostering a culture of trust and inclusion that has resulted in strong business performance.

• Unilever UK: With a leadership philosophy rooted in sustainability and employee well-being, Unilever consistently scores high in employee satisfaction and has seen sustained financial success.

The UK business environment is rapidly evolving, and we face ambiguous times. Kindness is emerging as a defining trait of effective leadership and a pivotal tool to strategically lead through times of uncertainty.

 As organisations grapple with the ongoing challenge of talent retention, workplace well-being, and sustainable growth, kind leadership offers a powerful solution that is not only cost effective, but implementable in every business.

By prioritising kindness, UK businesses can build resilient, engaged, and high-performing teams, ensuring long-term success in an ever-changing world.

In the words of Sir Richard Branson: 

“Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”

UK leaders can no longer afford to not embrace kindness— it is no longer just a desirable value, but a strategic imperative.