The rise of human-centric leadership

At Birn+Partners, we continually follow management's direction. In recent years, the business world has shifted toward human-centric leadership, a management style that places people at the core of an organization's mission and strategy. This approach differs from traditional leadership models, which prioritize profitability and efficiency over employee well-being.

Human-centric leadership emphasizes empathy, collaboration, and the growth of individuals within the company, which ultimately drives both innovation and long-term success.

New technologies, especially AI, create a greater need for human-centric leadership. New technological solutions can also perform and deliver some of a leader's administrative tasks, focusing more on the human approach. Finding the right balance within the human-centric leadership style takes work. Some leaders may need help implementing human-centered leadership in their decision-making. Like any leadership style, leaders must clearly define and fully understand human-centered leadership before practicing it effectively. Leaders should understand the implications for their organization and identify the key individuals to focus on, employees, customers, other stakeholders, or perhaps all of them. Some people or groups might need more of a human-centered approach than others.

The key lies in identifying the right leadership style for the right target group.

Human-centered leadership helps employees build confidence, improve well-being, and develop resilience to stress, making it easier for them to adapt to constant change and disruption. This leadership approach involves striking the right balance between behaviors that may seem contradictory and applying them to make employees feel valued, connected, and supported in their professional development. By doing so, leaders can create a sense of belonging and empowerment, encouraging growth even in challenging environments. Human-centric leaders focus on creating environments where employees feel valued, supported, and heard. By fostering open communication and encouraging the sharing of ideas, these leaders build trust and psychological safety within teams, allowing employees to take risks and contribute creatively without fear of judgment.

In a competitive job market, human-centric leadership is becoming increasingly important, as employees now prioritize work-life balance and well-being just as much as compensation. Younger generations are drawn to workplaces that emphasize personal growth and uphold ethical values. As a result, organizations that embrace human-centric leadership are better equipped to attract and retain top talent, stimulate innovation, and strengthen their organizational culture.

Why should you care about a human-centric approach? A survey of over 3,400 full-time employees across 11 countries, conducted by Harvard Business Publishing Corporate Learning, reveals widespread stress and burnout among employees and leaders. Nearly 45% of respondents reported feeling stressed or burned out at least once a week. This stress level can pose a significant challenge, as it may reduce people's ability and willingness to embrace future changes, creating obstacles for individuals and organizations in adapting to new challenges. (How Human-Centered Leadership Helps People Adapt to Change - Harvard Business Publishing, January 19, 2024, by Mark Marone, PhD.) 

The "How": Placing Human-Centric Leadership into Practice

While understanding the "what" and "why" of human-centric leadership is the first step, truly understanding it requires a focus on the "how." It's about moving beyond a mindset and implementing tangible, daily actions that support your team. Here's a practical guide on how to make human-centric leadership a reality within your organization.

1. Develop Foundational Skills

Human-centric leadership builds on a set of core skills that you can cultivate and refine over time. These are not "soft skills" in the traditional sense, but strategic capabilities that directly impact your team's success and well-being.

Active Listening, this is more than just hearing words; it’s about fully concentrating on what a person is saying, understanding the message, and responding thoughtfully. When an employee expresses a concern or an idea, set aside distractions and give them your full attention; ask clarifying questions to ensure you've truly grasped their perspective.

Emotional Intelligence (EQ): A high EQ allows you to recognize and manage your own emotions while also understanding and influencing the emotions of others. This helps you respond with empathy and calm during stressful situations, creating a stable and supportive environment for your team.

Purposeful Delegation: Delegate tasks not just to lighten your own load, but to empower your employees. By assigning projects that align with their career goals or challenge them to learn a new skill, you show that you invest in their personal and professional development.

2. Implement Actionable Frameworks

Beyond individual skills, leaders can use specific frameworks and tools to embed human-centric principles into their routine.

Structured One-on-One Check-ins: Transform your one-on-ones from a simple status update to a dedicated session focused on your employee's growth and well-being. Ask questions like, "What challenges are you facing?" or "What new skill are you interested in developing?" This shows you care about more than just their output.

Foster Psychological Safety: Create an environment where employees feel safe to take risks, voice concerns, and admit mistakes without fear of judgment or punishment. This is the

foundation of innovation and creativity. You can assess your team’s psychological safety through anonymous surveys or by having candid, non-judgmental discussions about failures and lessons learned.

Collaborative Development Plans: Instead of imposing a rigid career path, work with each employee to create a personalized development plan. This plan should be a shared document that outlines their goals, identifies areas for growth, and maps out the support and resources you will provide. This demonstrates a genuine commitment to their success. 

Human-centric leadership's rise is more than a trend; it's a shift in how we define success in the modern workplace. We now recognize that a company's greatest asset isn't its technology, products, or profits, but the people who drive them. By prioritizing empathy, well-being, and individual growth, leaders create resilient organizations where employees are not only productive but also engaged, innovative, and fulfilled. This approach also supports a culture of self-leadership, empowering every individual to take ownership of their own development, motivation, and professional journey. In an age of constant disruption, this dual focus on leading with empathy and empowering self-leadership is the key to building a sustainable future where both people and businesses thrive together.

For a more in-depth conversation and personalized insights on human-centric leadership, including how to identify the right style for your organization, please contact one of our expert consultants. We're ready to help you drive success by placing people at the heart of your strategy.

/Mona-Maria Ilola, Managing Director Birn+Partners Finland