Empathy Could Save U.S. Companies $180 Billion in Employee Retention Costs

Yahoo

18-06-2025

Study Finds Employees at Unempathetic Workplaces Are 1.5X More Likely to Quit, Costing Organizations Billions
Unempathetic Organizations Risk $180 Billion in Attrition
Denver, Colorado, June 18, 2025 (GLOBE NEWSWIRE) -- Businessolver®, a leader in benefits and HR technology solutions, released findings from its 10th annual State of Workplace Empathy study which has surveyed more than 26,000 CEOs, HR professionals, and employees over the past decade. This year's findings highlight 5- and 10-year trends alongside the tangible ROI of empathy in today's workplace, including an estimated $180 billion at risk annually due to attrition at organizations perceived as unempathetic.
'Empathy isn't just good for people—it's good for business,' said Jon Shanahan, President and CEO at 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.'
Over a quarter of employees (27%) view their organization as unempathetic and these employees are 1.5X (18 points) more likely to change jobs in the next 6 months.
But there's more at risk than turnover: Employees who view their workplace as unempathetic report 3X higher toxicity and 1.3X more mental health issues, contributing to lower productivity and absenteeism costs. Likewise, employees at unempathetic organizations are 2X more likely to feel disconnected from leadership and 4X less connected to their CEO.
Other key findings include:
Only 55% of CEOs say empathy is undervalued by U.S. organizations, a 28-point year-over-year (YOY) decline; 59% (+12 points YOY) of CEOs view empathy as a perk or 'nice to have'
60% of remote/hybrid employees say they would quit if required to work full-time in-person; and 51% of total respondents would take a pay cut to work remotely
91% of employees say flexible work hours and flexible work location (88%) are top benefits that demonstrate empathy; yet 29% of employees and 21% of HR say they take advantage of flexible hours versus 41% of CEOs
Findings, however, also point to empathy moving in the right direction with 63% of employees saying U.S. organizations are evolving with the needs of working households—a 180-degree change from Businessolver's 2016 inaugural report when 60% of employees said employers were not 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,' said Shanahan. 'Our data continues to underscore how transparency, flexibility, employee benefits—and accountability—are vital expressions of empathy. Leaders may not intuitively know this, but they must respect it if they intend to grow their business.'
About Businessolver's Annual State of Workplace Empathy ReportSince 2016, Businessolver has surveyed a diverse cross-section of more than 26,000 employees, HR professionals, and CEOs across six industries to examine the behaviors and benefits that make a workplace empathetic. In March 2025, Edelman Data & Intelligence fielded the 2025 online survey. In the survey, empathy is defined as 'the ability to understand and/or experience the feelings or perspectives of another.' To qualify, respondents needed to be 21 years or older, U.S. residents, employed full-time or part-time within their respective industry at an organization with 100 or more employees. Learn more and find historical trends at businessolver.com/workplace-empathy.About BusinessolverSince 1998, Businessolver has delivered market-changing benefits technology that empowers empathetic service supported by an intrinsic responsiveness to client needs. The company creates client programs that maximize benefits program investment, minimize risk exposure, and engage employees with easy-to-use solutions and communication tools to assist them in making wise and cost-efficient benefits selections. Founded by HR professionals, Businessolver's unwavering service-oriented culture and secure SaaS platform provide measurable success in its mission to provide complete client delight.
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Unempathetic Organizations Risk $180 Billion in Attrition
CONTACT: Nicole Selinger Businessolver 314-805-2165 [e-mail]