Study Finds Unempathetic Workplaces Report 3X Higher Toxicity and 1.3X More Mental Health Issues

DENVER, COLORADO (May 15, 2025)—Businessolver®,a leader in benefits and HR technology solutions, released initial findings from its 10^th 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 3X higher toxicity and 1.3X 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,” said 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.”

Unempathetic workplaces experience 3X more toxicity and 1.3X more mental health issues

• 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 (YOY), 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: 54% of those employees at unempathetic organizations say they’re likely to change jobs in the next 6 months
• 45% of employees at unempathetic organizations say their workplace is toxic, 3.2X more than employees at empathetic workplaces (14%). Gen Z (36%) is the most likely to view their workplace as toxic
• 66% of employees at unempathetic organizations say that seeking mental health support at work could have negative career repercussions
• 27% of employees at unempathetic organizations said they worked through a mental health issue alone, 2X more than empathetic companies

Return to office (RTO) and lack of flexibility contribute to mental health issues and perceived lack of empathy at work

• 42% of employees and 62% of HR say RTO policies have negatively impacted their mental health
• Flexibility and core mental health benefits rank among the top 10 most empathetic benefits according to employees. But only 30% say they’re aware of these employer-sponsored benefits 
• 90% of employees say Employee Assistance Programs (EAPs) demonstrate employer empathy, however, usage remains low at 15%, underscoring a lack of awareness or access for mental health related benefits 60% of all employees are willing to leave their current job if their employer required them to be back in the office full time. Millennials (56%) and Boomers (65%) are the most likely to do so
• A majority of all employees (61%), regardless of empathy perceptions at work, say they’re ready to leave their current organization for one that has better mental health benefits, posing significant financial risk for an organization

CEO perspectives point to detachment from employee reality, increasing risk for the bottom line

• 8% of CEOs view their workplaces as toxic, down 44 points YOY, compared to 22% of employees and HR professionals
• 90% of CEO’s 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
• 94% of 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.

“As Businessolver marks a decade of tracking empathy in the workplace, the data continues to send a clear message: empathy is not a soft skill—it’s a strategic imperative,” said Shanahan. “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. 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.”

To view the full mental health data preview, visit www.businessolver.com/workplace-empathy. The full report is expected to publish in June.

About Businessolver’s Annual State of Workplace Empathy Report
Since 2016, Businessolver has surveyed a diverse cross-section of more than 20,000 employees, HR professionals, and CEOs across six industries to examine the behaviors and benefits that make a workplace empathetic. In the survey, empathy is defined as “the ability to understand and/or experience the feelings or perspectives of another.” In March 2025, Edelman Data & Intelligence fielded the online survey for the 2025 study among employees, HR professionals, and CEOs within financial services, government, healthcare, hospitality, manufacturing, and technology sectors. To qualify for the survey, respondents needed to be 18 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 trend data from 2016 to today at businessolver.com/workplace-empathy.

About Businessolver
Since 1998, Businessolver has delivered market-changing benefits technology the 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.
 
Media Contact
Nicole Selinger (for Businessolver)
314-805-2165
nicole@kmprcollective.com