Empathy: The Key to Authentic Member Engagement

A government shutdown and the loss of paychecks for literally thousands of federal government workers recently placed a spotlight on scores of credit unions offering special accommodations to those members most impacted by the crisis. Credit unions felt the pain of their members and they responded, quickly and effectively, offering zero-percent-interest loans to help families put food on the table and the keep the lights on until the government paychecks resumed.

Countless members benefited, as well as those shops that offered special assistance since their response ingrained a lasting memory of the credit union’s helping hand when members needed it the most. Think such assistance had any impact on member loyalty and trust as well?

Ask 10 credit union leaders what prompted such action to minimize the pain and anxiety of their members, and nine times out of ten we’ll hear them attribute it to, “people helping people.” However, I suggest it’s far more than “people helping people.” For-profit banking institutions help people all the time. So, what’s so special and different about the way credit unions offer help?

I tend to believe it’s determined by the degree to which the credit union walks in the shoes of its members. It has to do with empathy. It’s about credit union leaders being knowledgeable and willing to share in the experiences of their members, to feel the pain, and to respond in ways that sometimes may even challenge conventional wisdom or the comfort and stability they hold for themselves and their organizations.

Empathy and Trust
In her research paper, The Science of Empathy, published by PubMed, Dr. Helen Reiss, Associate Professor of Psychiatry at Harvard Medical School, writes, “Empathy plays a critical interpersonal and societal role, enabling sharing of experiences, needs, and desires between individuals and providing an emotional bridge that promotes pro-social behavior. This capacity requires an exquisite interplay of neural networks and enables us to perceive the emotions of others, resonate with them emotionally and cognitively, to take in the perspective of others, and to distinguish between our own and others' emotions.”

Dr. Reiss goes on to say, “If we are to move in the direction of a more empathic society and a more compassionate world, it is clear that working to enhance our native capacities to empathize is critical to strengthening individual, community, national, and international bonds.”

Benefits of Empathy
One’s ability to empathize elevates member engagement to a whole new level. Empathy enables understanding — the cognitive foundation of connection. Cognitive empathy (the ability to understand another person’s perspective, thoughts, or feelings) allows us to anticipate the needs of the other and respond appropriately. This understanding fosters smoother communication, reduces conflict, and strengthens interpersonal bonds.

I remember my time working at The Ritz-Carlton Hotel where we were constantly trained and reminded about the importance of anticipating the needs of our guests. It’s no wonder the hotel chain captured two prestigious Malcolm Baldridge Service Quality Awards!

Empathy also builds emotional alignment and trust. Affective empathy (feeling what another feels) promotes warmth, compassion, and trust — the emotional glue that binds people. In relationships, understanding a partner’s viewpoint helps in resolving disagreements and negotiating needs, creating psychological safety and harmony.

A third quality of empathy is its ability to nurture identity and belonging. Empathy signals inclusion. When people feel understood, they feel they belong. Lack of empathy, on the other hand, fosters loneliness, alienation, and a breakdown of social cohesion. Communities and organizations that cultivate empathic cultures experience higher morale, collaboration, and collective trust.

Unlock a Scammer’s Grip
As financial losses attributed to scams and fraud continue to flourish throughout the world, I’ve been calling for an increase in the number of ways credit unions address this crisis, and their ability to show empathy tops the list.

While more action advocating for credit unions on the legislative and regulatory fronts is needed to secure authority to act in the best interest of a victimized member, that’s not enough! Including more community educational events to keep potential victims informed on the latest tactics and threats being employed by today’s sophisticated scam con artists still falls short of the goal.

For credit unions and our adherence to a principle of “people helping people,” it’s also vitally important that we ramp up empathy training to help staff sharpen their skills and abilities to focus more intensely on the victim and his or her wellbeing. Doing so strengthens the ability to win over the trust and confidence of those who refuse to believe or admit that they are being scammed. And how many times have we heard it said that scam victims simply refuse to believe that the person with whom they’ve become romantically involved is actually a scam con artist! Empathy can unlock that grip.

Someone being victimized in a scam or who has fallen victim to one, has no desire to hear a credit union rep say, “What were you thinking,” or “you should never give out your account number!” Rather, they are most in need of hearing a comforting and consoling voice that acknowledges the pain, anxiety, and confusion elicited by the experience. Empathy enables that exchange and should always influence an initial intervention.

Not All Are Onboard
However, I find that not everyone within the credit union community is onboard with the idea that empathy is key to member engagement, particularly when members are being or have been scammed. If they were, then why are so many putting scam prevention education and training on the back burner? Rather than increasing their efforts to safeguard members given the burgeoning increase in the types and number of scams occurring today, they are placing their attention on other areas of concern.

If we are to believe, then, that empathy is key to authentic membe
r engagement and the driving force that intrinsically defines the meaning of “people helping people,” it becomes critical that credit union directors, CEOs, and others demonstrate support and belief in the virtue of empathy. We need to let go of the idea that being empathetic predisposes us to being easily manipulated or exploited. Equally important is to understand that empathy does not undermine logical reasoning or clouds rational judgement.

Empathy is not weakness, but an adaptive social intelligence skill. Its strength resides in one’s ability to understand others without losing boundaries or objectivity. Remember the words of Dr. Reiss who said that empathy enables us to perceive the emotions of others, resonate with them emotionally and cognitively, to take in the perspective of others, and to distinguish between our own and others' emotions.

Indeed, “people helping people,” embodies much more than financial management. It’s a statement of support to the human person and their wellbeing. As such, it embodies and extends far beyond a member’s financial management, calling us to fully understand, appreciate and experience the quality of wellbeing and doing something about it. Is their wellbeing healthy and gratifying, or painful and oppressive?

Our ability to empathize enables an appropriate response. That explains why credit unions differ from banks. That explains why so many were able to keep food on the table and the lights on during the recent shutdown. To them, “people helping people” made all the difference in the world.

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Riess H. The Science of Empathy. J Patient Exp. 2017 Jun;4(2):74-77. doi: 10.1177/2374373517699267. Epub 2017 May 9. PMID: 28725865; PMCID: PMC5513638.