Why CEOs Need To Take Empathy Seriously 

The ongoing empathy gap between employees and their CEOs has financial consequences—to the tune of $180 billion just in attrition risk. Here’s how CEOs can lean into empathy as a business imperative. 

While employee demand for empathetic support is on the rise, CEOs are showing that they aren’t necessarily prepared to be the Chief Empathy Officer their employees—and their bottom line—desperately need. 

Here are the hard stats from this year’s State of the Workplace Empathy Report: 

• 72% of employees say they’re not willing to sacrifice their mental health for work anymore.  

• But 59% of CEOs still view empathy as a perk or nice-to-have. 

And since empathy and mental health are intrinsically linked, this disconnect has significant consequences. 

Without empathy, apathy takes its place, leading to a ripple effect across organizations. In empathy’s absence, U.S. organizations are losing a staggering $180 billion annually. Because when employees feel genuinely supported, it directly enhances their well-being, retention, and productivity—and their willingness to stick around. 

Why empathy is a strategic imperative 

Empathy isn’t just a people strategy, it’s a business strategy. According to the Work Institute’s 2025 Retention report, employee attrition costs U.S. employers $1 trillion annually, with the estimated cost to replace an employee 33% or more of their salary. When comparing empathetic and unempathetic employers:  

• 51% of employees at unempathetic organizations would take less pay to work for a more empathetic employer 

• 72% would change their job, role, industry, or career path 

Those numbers have a drastic effect on bottom line and performance.  

But inversely, CEOs tie empathy to lower turnover during periods of recruitment difficulty. Up 6% from last year, 38% of CEOs said lower turnover is a benefit of being an empathetic organization—showing that when empathy is present, retention and turnover exist at a manageable rate. 

The CEO’s role in driving empathy 

But what role does a CEO play in empathy? Kelli Thomspon, an award-winning author, keynote speaker, and executive coach put it best: “Emotionally unaware leaders can be more critical, angry, or even detached, which can fuel disconnection with their teams. Empathetic and self-aware leaders are emotionally intelligent, and thus, can connect with their teams at a deeper level—leading everyone to feel seen, heard, and understood—even if they can’t always make a popular or easy decision.” 

And while 91% of CEOs say their organization is empathetic, only 62% of employees say they think their CEO really is. So what can CEOs do to get their employees and organization back on the empathy track?  

• Lead by Example: Whether you lead with either empathy or apathy influences others down the chain of command. Focus on trying to understand the feelings and perspectives of others—even if it’s difficult to directly relate to their experiences.  

• Prioritize Mental Health Benefits: Your organization may already have certain mental health benefits in place. If so, help ensure with proper communication that your population is aware of these benefits and the support they provide. If you don’t already offer mental health benefits, consult your CHRO on what areas of coverage you may be able to expand. 

• Foster Flexibility: Data from the 2025 State of the Workplace Empathy Report shows that 70% of fully remote employees think their CEO is empathetic, compared to only 59% of in-person employees. Moreover, 87% of total respondents say companies that allow some form of remote work or flexible work arrangement prioritize employee wellbeing. Meaning, if it’s feasible for your organization’s employees—or even a portion of people—there are long-term benefits to offering more remote-work flexibility. 

Empathy as a competitive advantage 

Companies mandating full-time office attendance have expanded by an average of 0.3%, but those embracing flexible work models have grown at a 0.6% rate—twice as fast. 51% of respondents in the 2025 State of the Workplace Empathy Report—who work hybrid or fully remote—would even take a pay cut to keep their flexibility. So, with employee groups such as Gen Z having a strong value-driven approach to where they work, and how long they will stay, it’s important to consider how empathy and flexibility can give your organization a competitive advantage in the talent pool.  

Our data shows this type of autonomy is one of the greatest expressions of empathy an employer can offer: 91% of employees agree/strongly agree that flexible work hours and flexible work location are top benefits that demonstrate empathy. 

From Chief Executive Officer to Chief Empathy Officer 

The majority of CEOs (59%) have got it wrong. Empathy isn’t a perk or something “nice to have.” It’s the driving force of happy, healthy employees—and a thriving organization. It’s time to rethink the position of Chief Executive Officer, and instead: Chief Empathy Officer. Because while we all have a part to play, as a CEO, it’s our responsibility to be the champion for that kind of strategic change.   

I understand it can feel difficult and complicated for CEOs to steer away from the command-and-control leadership model. But by understanding the clear value empathy and flexibility can provide your organization—it makes it easier to see the long-term picture of deliberate and consistent change for those that lead with it.  

The 2025 State of the Workplace Empathy Report has more great insights and info on empathy in the workplace. Check out the report and consider new ways to be the driving force of empathy at your organization.