I have always considered myself a natural empath. Mostly it has led to a lot of strong, positive personal and professional relationships. I have found that treating people with respect is the most important aspect of any social interaction. Believing in, and striving to abide by this principle has helped me to resolve conflicts and make friends relatively easily.
Empathy helps you build better software because it makes you take into account the other people that are affected by your code. Obviously, understanding the user's needs and inclinations will help you design a better product. It's also important to keep in mind other developers that may be working on your project. Is your code clear and easily understood by human beings? Who else will be looking at and/or using your work, and how can you make their job easier?
Solid communication and empathy is crucial to the effectiveness of any team. It is important that everyone is engaged and motivated to contribute to the best of their ability without fear of failure or embarrassment. People naturally want to feel included, valued, and respected. Simply listening to what people have to say goes a long way in gaining their respect and letting them be open to you. Sometimes even the most hostile people can be disarmed by a simple expression of openness and understanding. Even in disagreements, respectful and open discourse can build trust.
Working in the restaurant business, my ability to empathize has helped me handle various situations. For example, conflicts between the front/ back of the house are common in the industry. As a member of the front of the house staff with previous kitchen experience, I understand challenges that the BoH faces, and relate to their point of view. This helps me communicate effectively and respectfully with the kitchen staff and fosters an atmosphere of teamwork and collaboration versus bitterness and negativity. Empathizing with fellow bartenders and waitstaff when they're in the weeds or having a bad day inclines me to lend a hand when I can, greeting guests, running food/drinks and/or bussing tables. In turn, I don't even have to ask for help when I need it, because my teammates are already right there supporting me.
Empathy becomes a challenge for me when coworkers obviously aren't giving the necessary effort to do a good job, or when their performance falls short due to bad decisions the night before. On the hospitality side, some customers just cannot be pleased and simply have a horrible attitude. It's difficult to empathize with people who habitually come up with excuses and/or want to be unhappy. I can work on handling these types of situations by exercising patience, and addressing issues politely and with professionalism before I let them build up in my head. Maybe there's something this person is struggling with that I'm unaware of. Also, acknowledging that some things are out of my control, and that's okay, can help.