More than a quarter of employees — 27% — see their organization as “unempathetic” and are 1.5 times more likely to change jobs in the next six months, according to a June 18 report from Businessolver, a benefits and HR technology company.
The report noted the return on investment of empathy in the workplace, totaling an estimated potential $180 billion annually in employee attrition savings. Businessolver defined empathy as the “ability to understand and/or experience the feelings or perspectives of another.”
“Empathy isn’t just good for people — it’s good for business,” said Jon Shanahan, president and CEO of Businessolver. “Collectively, companies that fail to operationalize empathy are leaving $180 billion on the table and missing out on a high-ROI lever for long-term growth.”
In a survey of U.S. workers, employees who viewed their workplace as unempathetic also reported three times higher toxicity and 1.3 times more mental health issues, which can contribute to lower productivity and absenteeism costs. These workers were also two-times more likely to feel disconnected from their leaders and four-times more likely to feel disconnected from their CEO.
Notably, employees said flexible work hours and work location demonstrate empathy, yet only 29% of employees and 21% of HR pros said they take advantage of flexible hours compared to 41% of CEOs.
At the same time, a focus on workplace empathy appears to be growing, with 63% of employees saying U.S. companies are evolving with the needs of working households. This represents a major shift from Businessolver’s 2016 inaugural report, which found 60% of employees said their employers weren’t evolving.
“While there’s clearly work to be done, I’m encouraged by the 73% of employees who say their organizations are empathetic, reinforcing that many leaders are leaning into empathetic practices that help employees feel seen and heard,” Shanahan said. “Our data continues to underscore how transparency, flexibility, employee benefits — and accountability — are vital expressions of empathy.”
Nearly half of workers say their boss doesn’t understand them or what they contribute at work, according to a report from The Predictive Index. This disconnect can be more damaging than burnout and cost companies their top talent, the report found.
In contrast, kindness at work can boost well-being and reduce stress, according to a study by University of Hawaii researchers. Workers who received kindness were more likely to perform acts of kindness as well, the researchers found.
Managers who lead with empathy are also more likely to increase their team’s performance and productivity, according to a study by researchers at Durham University and Athens University. Remote and hybrid workers felt closer to their managers who showed care and clearly communicated their vision, which helped employees to handle their work better, the researchers found.
