3 Ways Leaders can Transform Workplace Challenges Into Opportunities

Deep social and workplace divisions demand a bolder, more empathetic approach to leadership—here’s how to start.

[First posted on FastCompany]

Leading a team has never been simple, but today’s challenges demand something extra. With deep divisions in America spilling over into our workplaces, simply carrying on “business as usual” won’t cut it.

Employees are craving authenticity, transparency, and leaders who genuinely care. So, how can you step up, even when the path forward seems uncertain? Through conversations with leaders at Fortune 500s and fast-growing startups, we discovered three actions that can help you navigate this moment with courage and empathy.

Cultivate Trust Through Transparency & Curiosity

In an era marked by mass layoffs, arbitrary return-to-office mandates, and eroding faith in institutions, trust in leadership is waning.

Our firm, The Courage Collective, held conversations with leaders that revealed two keys to restoring and sustaining trust: curiosity and transparency. Aisha Washington, Global Vice President and Chief Diversity, Equity and Inclusion Officer at HPE shared, “Leaders who approach conversations with curiosity rather than judgment uncover deeper insights. It’s about asking questions, being open to all perspectives, and using those insights to make informed decisions.” A recent Gallup poll found that leaders who strongly exhibited clear communication, showcased an inspirational vision for the future, and supported change were trusted by 95% of their employees. 

Cultivating trust during precarious times demands acknowledging uncertainty and being honest about not having all the answers. Carolyn Moore, former CHRO and current Managing Director at Momentum People explained, “It’s about honesty and vulnerability— admitting we don’t know everything but creating trust by being open and realistic.” Leaders should be ready to ask the difficult questions: who’s being left out of the conversation? How can I showcase that every employee’s feedback is valuable? 

Transparency without fear tactics fosters openness and empowers teams to navigate challenges together. Leaders who embrace open dialogue, share information honestly, and leverage insights to inform decisions create a strong foundation for trust. 

Generating an uplifting vision, rather than setting punitive standards, is the emerging core competency of successful leaders. Defining the organization’s direction (the vision), while allowing  “the how” to emerge through team collaboration is essential. Let go of the (impossible) burden of having all the answers and lead through curiosity, transparency, and trust. 

Invest in Opportunities for Connection & Community Care

If a return to office is necessary to foster a healthy work culture, leaders must communicate their intentions effectively. Positioning it as a faux productivity boost sends a message of mistrust. Employees will quickly poke holes in this rationale and absorb the implicit message, “if I can’t see you working, I don’t trust that you’re doing your best.”

Marc Berger, EVP at DH observed that “rigid [return to work] policies can lead to frustration and disengagement, particularly when there is a lack of intentionality with how the time is spent.” The truth is, leaders from a variety of work structures have found employees willing—and sometimes eager—to be in person if they’re given flexibility and purpose. 

Leaders should lean into a new normal by creating opportunities for meaningful connections. Below are a variety of tactics leaders are using to make in-person days feel more purposeful, connected and collaborative.

• Purpose-Driven Office Days: Leverage in-office days to foster collaboration with all-hands meetings or cross-team working opportunities 
• Meaningful All Company Retreats: Host at least and invest in one or two all-hands meetings annually with balanced agendas that blend structured discussions with team-building events. 
• Invest in the Experience: Allocate resources for well-organized, engaging events to encourage alignment and connection. 
• Encourage Feedback and Continuous Improvement: Gather employee input to refine future meetings and ensure they align with team needs.

Prioritize the Human Experience Through Active Listening & Meaningful Response

In times of compounding crises, employees long to be seen, heard, nurtured and encouraged. 

More than ever, employees are seeking workplaces where they can share feedback, experience deep listening, and see change enacted as a result. While many organizations have created systems to signal care about receiving feedback, failing to act on it often leaves employees feeling frustrated and micromanaged.

Elaine Gibbons, Chief Impact Officer at Panorama Global shared, “One of the biggest gaps in organizations is a lack of true listening. Leaders must go beyond collecting employee feedback—they need to act on it consistently and authentically. When employees see their input driving real change, not only do they feel valued, their commitment to the organization strengthens.”

Simply put, if you ask for feedback, ensure that there is follow-through and follow-up. When employees see leaders actively listening and enacting real change, it builds connection, motivation and trust.

For many organizations, employee morale is at an all-time low. The simple act of deep listening and connecting to employees on a human level can drive meaningful change, especially in challenging times.

As workplace dynamics evolve, leaders have a unique opportunity to rise to the occasion and demonstrate effective, human-centered leadership. The future of leadership demands courage, empathy, and a steadfast commitment to growth. While some challenges may seem daunting,  they also present an opportunity for leaders to create workplaces where people feel empowered to do and be their best.

The world of work is evolving. The way you lead should, too.