Kindness, defined as consideration and empathy, is sometimes characterized as a management weakness. There is a perception that competitive environments, particularly in leadership and business, reward aggressive and assertive behavior. Does kindness really create vulnerabilities that make leadership less effective? Is the adage, “nice guys finish last” valid?

Bartleby, in a recent The Economist column, says it is “cool to be kind.” “A study by Soo Ling Lim of University College London and her co-authors looked at the performance of Master of Business Administration students at London Business School across 10 academic years, and found that agreeableness improves outcomes when levels of uncertainty about a task — and presumably, the need to work together harmoniously — are higher. This reflects the evolution of organizations where teams matter more, along with social skills that ease cooperation. It likewise is a testament to the volatility of present times. We must distinguish between kindness and passivity. Research shows that effective leaders balance kindness with assertiveness. A kind leader does not need to be passive. Instead, empathy is combined with a clear sense of direction and firmness when necessary. Adam Grant, an organizational psychologist, highlights in his book Give and Take that “givers” (those who prioritize others’ needs) often rise to the top of organizations because they build strong networks of support, trust, and reciprocity. These individuals succeed in the long term because of the goodwill they accumulate.

Data suggest that while more aggressive, self-serving leaders may achieve short-term success, they often face challenges in maintaining it. A 2020 study published in the Harvard Business Review found that leaders who exhibited more altruistic behaviors were more successful over the long term in maintaining high-performing teams. While aggressive leadership may yield quick results, it often leads to high turnover, burnout, and resentment, which can undermine long-term organizational stability and growth.

Boris Groysberg and Susan Seligson of Harvard Business School assert that “good leadership is an act of kindness.” Citing Psychology Today on kind bosses, “They have shown to increase morale, decrease absenteeism and retain employees longer.” Mayo Clinic urges the need to intentionally set a goal to be kinder to others. “Acts of Kindness activate the part of our brain that makes us feel pleasure and release a hormone called oxytocin that helps modulate social interaction and emotions,” it said. Overall, it translates to improved morale and performance.

Kind leaders build trust more easily. Employees are more likely to follow a leader they trust and believe has their best interests at heart. Trust enhances a manager’s ability to influence and motivate teams. This contrasts with authoritarian leadership, where fear may achieve short-term compliance but often erodes trust and long-term loyalty. Better relationships are also achieved with clients, stakeholders, and partners. These relationships, based on mutual respect and trust, often lead to better deals, more sustainable business practices, and enhanced collaboration. In the long term, this relational capital can prove more valuable than short-term gains achieved through cutthroat tactics.

Several case studies illustrate how “nice guys” often outperform their harsher counterparts. The value and reward of kindness can be seen in legendary leaders like King Solomon and Desmond Tutu. Satya Nadella, the CEO of Microsoft, is widely regarded as a kind and empathetic leader. His leadership style has been credited with transforming Microsoft’s culture, leading to substantial growth and innovation. Similarly, Jacinda Ardern, the former Prime Minister of New Zealand, demonstrated that kindness and empathy could be key pillars of effective leadership, particularly in times of crisis. General Motors CEO Mary Barra is known for her inclusive, employee-centric style. These leaders achieved significant success, disproving the notion that kindness is a liability in leadership.

According to research from Gallup, employees who feel their managers genuinely care about their well-being are more engaged and less likely to leave their jobs. A kind manager creates a sense of psychological safety, allowing employees to express themselves, take risks, and collaborate more effectively. These conditions enhance overall team performance in a positive work environment.

Kindness is a key component of emotional intelligence (EQ), which is increasingly seen as vital for leadership success. Leaders with high EQ are better able to manage their own emotions, understand the feelings of others, and navigate interpersonal dynamics effectively. Daniel Goleman, a leading psychologist in this field, suggests that kindness and emotional intelligence correlate strongly with successful leadership outcomes. Managers who demonstrate kindness are often better equipped to handle conflict resolution, inspire teams, and maintain morale.

Kindness also fosters an environment conducive to innovation. Employees feel empowered to share new ideas without fear of ridicule or harsh criticism. As a result, teams led by kind managers are often more innovative and creative, since they are encouraged to think outside the box and contribute freely.

Throughout my career, I’ve had my share of working with all kinds of bosses, the harsh autocratic ones as well as the leaders who have been able to balance kindness with assertiveness and a clear vision. It boils down to a measured middle ground, because too much of everything, even kindness, can backfire. As Bartleby asserts: “Kindness is not a management doctrine. But its absence is a management failure.”

The views expressed herein are the author’s own and do not necessarily reflect the opinion of his office as well as FINEX.

Benel Dela Paz Lagua was previously EVP and chief development officer at the Development Bank of the Philippines.  He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is independent director in progressive banks and in some NGOs.