The people-centric pivot: What modern leaders must embrace

Leaders aren't lauded for giving commands from above any more. Shifts in workplace dynamics, technological advancement, and evolving employee expectations have made the accepted leadership style far more people-centric. One of the main reasons for this change is the rise of remote and hybrid work that required leaders to foster trust, clear communication, and emotional support rather than rely on physical oversight. Without traditional office structures, leaders have had to engage employees through empathy, autonomy, and purposeful connection.

The growing influence of Millennials and Gen Z in the workforce has also reshaped leadership priorities. These generations value inclusivity, transparency, and meaningful work, prompting leaders to adopt coaching and mentoring roles over authoritative styles. For instance, Satya Nadella’s transformation of Microsoft is a clear example. He emphasised a 'learn-it-all' culture driven by empathy, which revitalised team morale and innovation.

Moreover, the COVID-19 pandemic accelerated the need to address mental health, flexibility, and psychological safety. Companies like Salesforce and Unilever implemented well-being programmes and open dialogue to support their teams, leading to better engagement and loyalty.

Ultimately, leadership has shifted from controlling to enabling — creating environments where individuals feel valued, heard, and empowered to contribute. This human-centered approach is proving essential for performance in today’s complex, fast-changing world.

Why this shift?

Very simply, performance. Organisations recognise that engaged, and motivated individuals are crucial for success in today's environment. Also, the nature of engagement and motivation has changed with generations and sociopolitical shifts.

In terms of demographics, Millennials and Gen Z represent the majority of the global workforce and they demand purpose, autonomy, balance, and values alignment. They favour workplaces that respect their emotional well‑being and encourage growth, not just task execution. A Gallup study found highly engaged teams are 21% more productive and 25% less likely to leave. Gen Z in particular is actively rejecting traditional managerial hierarchies in favour of ‘conscious unbossing’, choosing autonomy over status and pushing leaders to reimagine talent pipelines.

Remote and hybrid working also forced leaders to focus not just on workflows, but on trust, well‑being, and communication. Without in‑office monitoring, command‑and‑control tactics broke down. Leaders had to learn empathy, psychological safety, and the nuances of digital connection to maintain productivity.

On top of this, the world of work has been constantly disrupted for the last five years. DEI, AI, geopolitical instability, and public trust issues have placed employee trust and ethical behaviour at the forefront. Executives from big corporate houses have highlighted the need for empathetic and inclusive leadership alongside tech transformation. Meanwhile, leaders must bridge the gap between global directives and local concerns with empathy and emotional intelligence. 

What does people‑centric leadership look like?

People-centric leadership prioritises empathy, psychological safety, collaboration, transparent communication, and employee growth — fostering trust, motivation, and innovation by placing people at the center of decision-making and organisational culture.  A leader who puts people first demonstrates certain values and approach: empathy and emotional intelligence, shared leadership, kindness, transparency, a focus on developing themselves and their people.

Empathy comes into play for understanding employees’ perspectives. A Harvard Business Review report found 84% of employees consider empathy critical in leaders — correlating with higher engagement, productivity, and loyalty. Similarly, kindness creates psychological safety, or conditions where employees feel safe speaking up, failing, and innovating. Research has shown that kindness in leadership (distinct from mere 'niceness') is effective in building trust and loyalty. Google’s Project Aristotle also echoed the power of such environments: teams with psychological safety delivered better results. 

Shared leadership, or the promotion of delegation, co‑creation, and collective decision‑making, is a form of empowerment. It has been linked to higher cohesion, innovation, and performance. In Volvo’s electric‑truck initiative, leaders used Kaizen‑style meetings to ‘co‑develop solutions’ and address change anxiety.

There is also servant leadership, which takes the viewpoint that leaders are in their position to serve employees by removing obstacles, providing clear direction and guidance, taking care of their professional needs.

As part of the above, modern leaders frequently embrace radical transparency. They share both successes and challenges and solicit feedback even when it's uncomfortable. At Starbucks, Howard Schultz openly discussed company struggles, which built credibility and team buy‑in. Transparency is a pillar of authentic leadership, and a study linked high levels of transparency and trust with better financial and customer outcomes.

Finally, people‑centric leaders invest in career development and mentorship for both themselves and their teams. The University of Buffalo demonstrates that leaders who empower their teams to grow make more well‑rounded decisions. According to a LinkedIn report, more than 90% of employees stay longer with companies that invest in learning.  Many companies now offer internal career mapping, micro‑learning, and cross‑functional projects to support growth.

The future of leadership is about the complexity of people

Traditional command-and-control management has given way to styles rooted in coaching, emotional intelligence, and continuous feedback. Organisational hierarchies are increasingly flattened, so that decision-making is distributed through agile teams, employee voice platforms, and cross-functional task forces. Leaders who cling to a top-down hierarchy and attempt to maintain power distance will not find success in this paradigm.

Metrics for success are also changing; instead of solely tracking performance outcomes, companies now prioritise people-focused indicators like psychological safety, employee happiness, and well-being. At the same time, leaders are being called to integrate technology, especially AI, thoughtfully and ethically, ensuring innovation that enhances rather than erodes human connection. This shift reflects a broader truth: leadership today isn’t just about directing outcomes, but about cultivating trust, purpose, and resilience in a people-powered workplace.

As we move deeper into an age shaped by AI, global uncertainty, and workforce diversity, leaders who prioritise people will outperform. The evidence is accumulating: organisations led with empathy, shared decision‑making, transparency, and empowerment outperform across engagement, innovation, and financial metrics. The only question that remains: how long it will take all organisations to make this the norm.