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PotentialCoach

My Thoughts

The Kindness Advantage: Why Being Nice Isn't Soft Leadership (It's Smart Business)

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Look, I'm going to tell you something that might make a few hardheads in corner offices squirm a bit. After seventeen years in corporate consulting across Brisbane, Melbourne, and Sydney, I've seen enough "tough guy" managers crash and burn to fill Suncorp Stadium twice over.

The biggest myth in Australian business? That kindness is weakness.

Complete rubbish.

Here's what I learned the hard way during a particularly brutal project in 2019. I was brought in to fix a manufacturing team in western Sydney that had a 78% annual turnover rate. The previous consultant - some hotshot from overseas - had implemented what he called "performance accountability measures." Translation: he'd basically terrorised everyone into submission.

The workers hated coming to work. Productivity was in the toilet. And the floor supervisor, Sharon, looked like she hadn't slept properly in months.

My first move? I scrapped every single punitive measure and started having actual conversations with people. Asked about their families. Remembered their kids' names. Brought decent coffee for the morning meetings instead of that instant swill from the vending machine.

Within six weeks, absenteeism dropped by 43%. Not because I was soft - because I was smart enough to realise that emotional intelligence actually drives results.

The Cold Hard Facts About Warm Leadership

Here's where it gets interesting. Companies with kind, empathetic leaders see 20% higher employee engagement scores and 15% better customer satisfaction ratings. I've seen this pattern repeat across industries - from mining companies in WA to tech startups in Melbourne's inner east.

Take Atlassian, for instance. Scott Farquhar and Mike Cannon-Brookes built their empire on what they call "Team Anywhere" culture. They prioritise psychological safety, flexible working arrangements, and genuine care for employee wellbeing. Result? One of Australia's most successful tech companies with employees who actually want to stick around.

But here's the thing most leadership books won't tell you: kindness isn't about being everyone's mate or avoiding difficult conversations. Real kindness in business means having the courage to give honest feedback when someone's struggling, rather than letting them fail in silence. It means making tough decisions that protect the team's overall wellbeing, even when it's uncomfortable.

I learned this lesson spectacularly wrong in my early days as a consultant in Adelaide. There was this brilliant analyst, David, who was clearly struggling with some personal issues. Instead of addressing it directly, I kept making excuses for his declining performance because I wanted to be "nice."

Months later, when his project failures finally forced a conversation, he told me he'd been waiting for someone - anyone - to care enough to check in on him properly. My misplaced kindness had actually been cruel neglect dressed up as consideration.

The Neuroscience Bit (Bear With Me)

Research from the University of Melbourne shows that when leaders demonstrate genuine care and empathy, it triggers the release of oxytocin in their teams. This isn't just feel-good fluff - oxytocin literally improves collaboration, reduces stress hormones, and increases creative problem-solving abilities.

Translation: Nice bosses get better results. Not despite being kind, but because of it.

I've watched middle managers transform their departments simply by implementing what I call "tactical kindness." This isn't about group hugs or participation trophies. It's strategic emotional intelligence applied to business outcomes.

Some bloke from a construction company in Darwin once told me this approach was "too Melbourne for his taste." Six months later, after his best project manager quit and took half the crew with him, he was asking about our workplace wellbeing programmes.

Where Kindness Gets Complicated

Now, before you think I've gone completely soft, let me be clear about where kindness can backfire. There's a difference between being kind and being a pushover, and I've seen plenty of well-intentioned leaders cross that line.

Kindness without boundaries is just enablement with better PR.

The worst example I ever witnessed was a regional manager in Queensland who was so concerned about being liked that she avoided every difficult conversation for three years. Her team was chaos. Deadlines meant nothing. Standards became suggestions. When head office finally stepped in, the whole department had to be restructured from scratch.

True kindness requires backbone. It means setting clear expectations and holding people accountable - not because you want to punish them, but because you believe they're capable of better.

The Practical Stuff That Actually Works

Here's what tactical kindness looks like in practice:

Remember the human stuff. Not just birthdays and work anniversaries, but the real details. Sarah's daughter just started Year 7. Mark's dealing with his dad's Alzheimer's diagnosis. These aren't performance metrics, but they directly impact everything else.

Over-communicate appreciation. Australians are notoriously bad at this. We'll spend five minutes complaining about something that went wrong and thirty seconds acknowledging something done well. Flip that ratio and watch what happens to morale.

Invest in people's growth, even when it's inconvenient. The best managers I know actively help their people prepare for roles outside their department. Seems counterproductive? It builds loyalty that money can't buy.

Create psychological safety for failure. Google's Project Aristotle proved this is the single biggest predictor of team performance. People need to know they can surface problems, admit mistakes, and propose crazy ideas without career suicide.

One of my favourite success stories involves a procurement team at a logistics company in Perth. Their manager, Julie, implemented what she called "failure parties" - monthly sessions where team members shared their biggest mistakes and what they learned. Sounds ridiculous, right?

Within a year, that team was identifying and solving supply chain issues 40% faster than any other department. Why? Because people stopped hiding problems and started solving them collaboratively.

The Bottom Line on Being Human

Look, I get it. Kindness feels risky in competitive environments. There's this persistent belief that if you show empathy, people will take advantage. Some will. Most won't.

But here's the math that really matters: the cost of replacing a good employee ranges from 50% to 200% of their annual salary. The cost of being kind to retain them? Basically nothing.

After nearly two decades in this game, I can tell you that the leaders who genuinely care about their people as humans first and resources second consistently outperform the command-and-control crowd. Not by a little bit. By massive margins.

The manufacturing team I mentioned earlier? Three years later, they're still operating at peak efficiency with 91% retention rates. Sharon got promoted to regional supervisor and now uses similar approaches across four facilities.

Being kind isn't about lowering standards or avoiding tough decisions. It's about making those decisions from a place of genuine care rather than ego or fear. It's leadership that acknowledges we're all just humans trying to do good work and go home to the people we love without feeling completely drained.

In a business environment where everyone's talking about engagement, retention, and performance, kindness isn't just nice to have.

It's your competitive advantage.


Want to explore more insights on workplace dynamics? Check out our thoughts on conflict resolution and team collaboration strategies.