Human-Centered Leadership Powers Business Growth—Here’s Where to Start

Jacinda Ardern entered the global spotlight when she became New Zealand’s prime minister in 2017 at only 37. Young and ambitious, but wise and compassionate, she addressed various crises head-on—from passing gun reform laws in response to the Christchurch mosque tragedy to maintaining transparent communication with the public during the COVID-19 pandemic. 

People lauded Ardern for her swift efficiency, but especially her dedication to empathy. She proved to the world that impactful leadership didn’t necessarily have to look cunning and ruthless, but could also put humans first in all key decision-making and still see positive outcomes. In a time when profit, power, and privilege are often put above people, Ardern’s leadership provides a blueprint for a kinder, equally successful path. 

What is human-centered leadership in business?

The definition is in the name: humans and their needs are at the core of key decisions and organizational shifts. Target's removal of its DEI initiatives was an example of the opposite, and the retail giant continues to face low foot traffic. On the other hand, having voted to preserve its DEI programs, Costco continues to have a favorable edge over its competitors in both brand image an

While many factors contribute to the contrast between the two stores, it's clear that consumers still greatly care about the values of their preferred brands. The more aligned they are with their moral priorities, the more likely they are to open their wallets. 

Employee trends suggest the same. Nearly half of millennials and Gen Zers have reportedly turned down an employer due to conflicting beliefs, and an organization's ability to offer work-life balance continues to be a major deciding factor for job seekers. 

Whether workers or consumers, people want to be treated like people, not like cogs in a machine. The best part? Basic decency is profitable, according to data. After analyzing its 100 Best Companies to Work For list, Great Place to Work states the following: 

A wealth of research supports the notion that successful companies are propelled forward by happy employees. Company culture rooted in trust, transparency and caring helps give people clarity and a sense of purpose leading to higher employee engagement, better customer service, greater innovation and strong business results.

While company stock performance cannot be linked solely to company culture, the recent and long-term performance of the 100 Best index relative to the broad index begs a number of questions and certainly advances the argument for making workplace culture a central part of any organizational strategy.

The impressive relative long-term performance for the 100 Best index since 1998 suggests that employer branding and company culture, as experienced internally by employees and externally by investors, can make a substantial difference in company stock performance over time.

Happy employees nurture organizational growth, and it all starts with a strong, people-first culture. Here, we explore some top dos and don’ts for effective human-centered leadership. 

Do be intentional with your words and actions.
Don’t be inconsistent in your messaging. 

Building trust is a slow and steady effort. Whether you know it or not, your community is always watching what you say, how you say it, and what actions you commit to afterward. If you promise to roll out a new flex work policy, stick to it. If you don't have the resources to deliver on a promise, be transparent about your progress. 

The last thing you want to do is send mixed signals and compromise your credibility. If your messaging shifts along with external factors—for instance, you only commit to DEIA when it’s culturally relevant—people will be less inclined to believe your intentions.

Do cultivate psychological safety.
Don’t assume you know everything.

Your work environment can only be innovative if your employees feel safe to speak freely. Create a space where healthy dissent can thrive, and respectful disagreements are seen more as a part of the collaborative process. Your team can only achieve so much in a homogenous echo chamber.

Secondly, no one has all the answers. Be open about your uncertainties, welcome feedback and collaboration, and humbly listen when people offer their insights. Some of your best solutions will come from moments you didn’t expect, but they can only happen when uncertainty is welcomed, and everyone feels their voices are heard.

Do set reasonable boundaries.
Don’t close yourself off to different perspectives. 

Just because you’re an empathetic leader doesn’t mean you have to stretch yourself thin. Setting clear lines at work preserves your energy and professional relationships, modeling healthy habits and expectations for others to adopt. 

With that said, there's a fine line between being assertive with your boundaries and being inflexible or stubborn. You won’t get it perfectly, but try to stay open to learning, listening, and evolving alongside others. The road to success isn’t meant to be a solo endeavor. 

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