CEOs and Empathy

It’s been documented that those at higher levels of a company often have lower levels of empathy. There’s an experiment I’ve wanted to carry out for some time. If it were possible for CEOs to increase empathy in some observable way, what affect would that have on their company as a whole? In what ways would it or would it not be a factor in bringing about systemic change within that company? A way for me to actually observe such an experiment fell into view when I saw an interview with Stephen Lambert.

Stephen Lambert created the reality TV series Undercover Boss in which CEOs pose as entry level workers in their own companies. The executives alter their appearance and assume an alias. The presence of a camera crew following them around is explained as they are being filmed as part of a documentary about entry-level workers, or there is a competition with another individual with the winner getting a job with the company. They spend a week undercover, in a different location each day.

It seems that the motivation to participate may be for corporate advertising. However, both the producers and the participants insist the show is unscripted. It appears that at least some of the CEOs have a deep and powerful, often humbling and even transformative experience. They see employees working in difficult situations and struggling with job stress as well as home, health and family situations. They learn of their employees’ ambitions and see the depth of their struggles. Employees become more than numbers on a spread sheet.

Each segment ends with the CEO expressing what often feels like heartfelt and touching reflections on their undercover week. Then they give a very small number of employees one-time gifts and perks. This doesn’t in the least resemble systemic change. In fact I would guess it might lead to resentment from other employees.

I wanted to know what happens after the show is over. Were any of the CEOs truly affected? What, if any change did this bring about? I learned some of what I wanted to know when the network did a follow up show celebrating “Epic Bosses” who had been on the show.

Stephen Cloobeck, the founder and chairman of Diamond Resorts, was on the show. He has set up a crisis fund ($1 million of his own money plus corporate money) for all his 5,600 employees. He said: “I realized I couldn’t just give to a couple of members [of my resorts],” …. “‘Being on ‘Undercover Boss’ changed my life forever. … I learned it’s important to take care of as many people as possible.” The fund reportedly has paid for an employee’s cancer treatment among other things. “Without that help, I wouldn’t be here today,” the employee said, “I’d be dead.”

“Meanwhile, Diamond Resorts’ average salary for it workers –$42,775 — is on par with the average salary among all workers in the U.S., according to the salary information website, Glassdoor. (Cloobeck’s annual salary is not publicly available, as Diamond Resorts is a privately held company. But his net worth is estimated to be $100 million, according to Celebrity Net Worth, an online digest of celebrities’ financial information.)”

“The lengths that Cloobeck had gone to simply overshadowed those of other bosses who took their turn on the “Epic Bosses” episode, as they described minor shifts they’d made at their companies. Subway now invites its workers to pitch sandwich ideas, the company’s chief development officer, Don Fertman, announced. And Rick Silva, the CEO of Checkers and Rally’s, announced a new gift of $15,000 to workers there who turned around a branch that he shut down during his appearance…Sheldon Yellen, CEO of Belfor, a property-restoration company, told the cameras Friday that he feels more in touch with his workers — so much so that he now wants to take public transportation.”
By Dan Fastenberg Posted May 20th 2013

Another CEO was sympathetic about low wages and helped out a particular individual but said that he wouldn’t support raising salaries for everyone. “Worker’s pay is a result of how the market sees you and your value” he said.

The bottom line: Very, very little change that might fall in the category of systemic change occurred. What I learned is that these CEOs seem as stuck in a system as their employees. Does being a CEO attract people with less empathy or does moving up in a company simply require a person to put blinders on? Perhaps it’s a little of both. It seems that stepping into the shoes of their employees did truly affect some CEOs personally and that empathy could be a factor in bringing about some changes. However, it appeared that additional factors impact bringing about more significant change.