This week, I don’t want to talk only about EBITDA, growth plans, or cash flow. I want to talk about leadership,about what it truly means to be a CEO.

Because yes, I spend my days helping clients improve their margins, grow value, and strengthen their financial results. But before any of that, I’m also a CEO, one who’s lived through loss, managed teams, and learned that culture and compassion aren’t “soft skills”. They’re financial strategies.

The Tale of Two Businesses

Recently, I was reminded that not all businesses are built the same, some lead with empathy, others with excuses disguised as “policy”.

While my father was in the hospital and later at home under hospice care, my stepmother, a 63-year-old woman still faithfully working, started getting pressured to go back to work. She wasn’t asking for luxury. She was asking for two unpaid weeks after my father’s death to grieve and handle the final arrangements. She even offered to pay 100% of her health insurance, both her share and her employer’s portion, just to make sure it didn’t cost them a single dollar.

They still said no.

Their “policy” allowed only three days of bereavement and two additional personal days. They told her to return immediately or risk her job.

The Missed Opportunity

And don’t get me wrong, I’m a business owner too. I know absences can cause disruption. But she was already on FMLA (“Family and Medical Leave Act”) through the end of December, so coverage was already in place. Those twelve weeks were going to cost the company its share of her medical insurance, while now she was offering to pay the full amount herself for just two more unpaid weeks in November.

They could have chosen grace. They chose control instead.

And I don’t know if she’s an exceptional employee. I don’t know if she’s perfect. But she’s been there for over eleven years, so at the very least, she’s likely responsible and dependable.

And if you truly have issues with an employee’s performance, you document it. You provide feedback. You coach them. You build your case.

You don’t weaponize their grief to force them out.

Using someone’s pain as a way to avoid paying severance or benefits isn’t leadership, it’s cowardice. And the rest of your employees are watching.

The Real Cost of a Broken Culture

I’ve spent my career advising other CEOs, through my CEO Compass sessions, through valuations, through financial growth plans. And I always remind them:

You can’t build sustainable profitability on a broken culture.

When your people feel disposable, your business becomes unstable, quietly but surely.

Let’s talk about the numbers behind that truth:

• Lost productivity. Disengaged employees cost companies an estimated 20% to 35% percent of their annual salary in wasted time and lower output.
• Turnover. Replacing a single employee can cost anywhere from 50% to 200% of that person’s salary depending on the position level according to SHRM. This estimate considers recruiting, training, and lost knowledge.
• Reputation. Today, how you treat employees travels faster than any marketing campaign, and a damaged reputation is a line item you can’t quantify until clients start walking away.

So while leaders think they’re “saving money” by enforcing rigid policies, they’re actually losing it in all the places their P&L doesn’t show.

The CEO Lesson

Empathy, on the other hand, is profitable. When you create a culture where people feel supported, they give their best. They stay longer. They become advocates for your business.

My stepmother’s coworkers were already covering her duties as receptionist and administrative assistant. They knew the situation and wanted to help. The company could’ve simply said, “Let’s give her two more weeks; we’ll manage together”. It would have cost them nothing, but it would have earned them everything: trust, loyalty, and credibility.

I’ve seen the opposite story play out. Years ago, when one of our team members was battling cancer, our company allowed the rest of us to donate our vacation days so she could focus on treatment. No extra expense to the business, just a policy that said: we see you, and you matter. We worked harder, not because we had to, but because we wanted to. That’s what leadership looks like.

And when my father passed away, I saw that same humanity from my own clients, business owners and CEOs themselves. They didn’t just send messages. They said, “Take time. We’ll be here when you’re ready”. That kind of understanding made me even more committed to serving them well once I came back. Because empathy multiplies loyalty, on both sides of the table.

Your Business Check-In

If you’re a CEO, founder, or leader, ask yourself:

1. How am I showing up as the owner or decision-maker? Policies will always protect the company, that’s their purpose. But how you enforce them is what defines your culture. Are you leading with empathy, or hiding behind the rulebook? Leadership isn’t about what’s written in the handbook; it’s about the tone you set when no one’s watching.
2. What do my employees see when they watch me lead? They notice how you handle difficult moments, when someone is sick, grieving, or struggling. That’s when your values are tested. You don’t build loyalty with speeches or posters; you build it when your people see you do the right thing, even when it’s inconvenient.
3. Do my actions match my mission and brand? You can’t claim “we’re a family” and then treat people as replaceable. The same way clients judge your integrity through your delivery, employees judge it through your decisions. Culture isn’t what you say, it’s what they experience.
4. How is my leadership style impacting operations and numbers? Poor morale leads to errors, missed deadlines, and slower output, all of which eventually show up in your P&L. You might think you have a performance issue, but often you have a leadership issue showing up as one.
5. Am I nurturing the next layer of leadership? Your supervisors and managers mirror you. If you lead with fear, they will too. Train them not only in process, but in presence. Teach them that accountability and compassion can coexist.

Cafecito Takeaway

Numbers matter, but people run those numbers. Empathy doesn’t hurt your bottom line; indifference does.

If you want to strengthen your business this year, you can create a donated-time bank where employees can gift unused vacation or sick days to a coworker in crisis. It costs nothing extra. It builds everything.

Because in the end, great CEOs don’t just grow profits, they grow the people who make them possible.