Businessolver, a leader in benefits and HR technology solutions, has released findings from its annual State of Workplace Empathy study, which surveyed more than 3,000 CEOs, HR professionals, and employees. This year’s findings reveal stark contrasts between organizations viewed as empathetic and those perceived by employees to be unempathetic, including three times higher toxicity and 1.3 times more mental health issues cited by employees at organizations viewed as unempathetic — putting these organizations at greater risk of attrition and absenteeism.
“Across five years of mental health data, the trends show that the employee mental health experience has largely remained unchanged,” says Rae Shanahan, chief strategy officer at Businessolver. “CEOs simply aren’t thinking about mental health as a business imperative, but they should be. Mental health issues are shown to increase risk, from employee absenteeism to reduced productivity, costing employers billions of dollars annually. This underscores the need for C-suite leaders to dismantle the mental health stigma by investing in mental health benefits, access, and awareness. Not only will this reduce financial risk, but it also drives a culture of delight. Employees want to stay where they’re supported.”
On a positive note, overall perceptions of workplace toxicity have improved compared to last year. Only 22% of employees view their workplace as toxic, down 13 points year-over-year, and HR professionals and CEOs likewise report improved mental health. However, data reveals sharp contrasts between organizations perceived as empathetic by employees versus those viewed as unempathetic.
- Nearly half (45%) of employees at unempathetic organizations say their workplace is toxic, 3.2 times more than employees at empathetic workplaces. Gen Z (36%) is the most likely to view their workplace as toxic.
- More than half (54%) of employees at unempathetic workplaces say they’re likely to change jobs in the next six months.
- More than two-thirds (66%) of employees at unempathetic organizations say that seeking mental health support at work could have negative career repercussions.
- More than a quarter (27%) of employees at unempathetic organizations say they worked through a mental health issue alone, two times more than empathetic companies.
Return-to-office (RTO) and lack of flexibility contribute to mental health issues and perceived lack of empathy at work, the report finds, with 42% of employees and 62% of HR saying RTO policies have negatively impacted their mental health.
Over half (60%) of all employees are willing to leave their current job if their employer requires them to be back in the office full time. Millennials (56%) and boomers (65%) are the most likely to do so.
Flexible work location and mental health benefits rank among the top 10 most empathetic benefits according to employees, but only 30% and 22% respectively say they’re aware of these employer-sponsored benefits.
CEO perspectives point to detachment from employee reality, increasing risk for bottom line. Just 8% of CEOs view their workplaces as toxic, down 44 points YOY, compared to 22% of employees and HR professionals.
Most (90%) CEOs believe that flexible hours are important, but only 41% of employees say flexible hours are available versus 53% of CEOs, a 12-point gap between executive perception and employee reality.
Most (94%) CEOs say their company has created a safe environment for employees to come forward about their mental health experiences, yet only 76% of employees share this view.
“When leaders fail to acknowledge the emotional and mental wellbeing of their people, the costs are steep: increased turnover, reduced productivity, and a culture defined by toxicity rather than trust,” says Shanahan. “By closing the gap between leadership perception and employee experience, organizations can take meaningful action, investing in empathetic practices, benefits, and cultures that not only reduce risk but foster resilience, loyalty, and long-term success.”
