Businessolver

2026 State of Workplace Empathy Report

Toxic workplaces are winning—for now

Leaders believe empathy drives performance. The data shows a different reality.
Organizations with toxic cultures are 2X more likely to report significant financial growth—even as fear, intimidation, and psychological safety decline. The result: a growing lag between business performance and human cost—pointing to a cultural reckoning ahead.
Built on insights from 1,300+ employees and executives and more than a decade of research in partnership with Edelman Data & Intelligence
Report cover with photo of woman looking into camera

%

of employees say their workplace is toxic

%

of CXO's report coworker intimidation

%

of employees would take less pay for a more empathetic workplace

Inside the 2026 report

  • The empathy paradox:
    Why toxic cultures are driving short-term performance
  • What’s fueling it:
    AI pressure, cost discipline, and rising executive tension
  • Where it breaks down:
    Intimidation, mental health, and psychological safety
  • What comes next:
    Signals of a cultural reckoning already underway

What’s happening?

Empathy isn’t missing in today’s workplace.

It’s being overridden.

Leaders understand its importance.

But they’re not choosing it consistently.

Short-term performance is winning. 

While long-term human risk builds beneath the surface.

The data behind the paradox

Toxic cultures are driving results…

CXOs in toxic organizations are 2X more likely to report significant financial growth.
Non-toxic
Toxic

...while leaders still believe empathy works

Over 9 in 10 CXOs say empathy improves financial performance.

…and the employee experience is breaking down

40% of employees say their workplace is toxic and 33% report coworker intimidation.
2X+ more layoffs and cuts to benefits.
%
Say their workplace is toxic
%
Report coworker intimidation
Empathy is there—it’s just not winning.

Why this is happening

CXOs are under pressure to deliver growth in an era defined by AI, cost control, and uncertainty. That pressure is reshaping decisions—favoring efficiency over experience and short-term gains over long-term culture.
Empathy isn't absent. It's being deprioritized
Jon S

“So how do we rationalize these findings? I interpret them as precursors. Anticipatory signals of what’s on the horizon, and for some companies already here: A cultural reckoning.” 

Jon Shanahan
President and CEO of Businessolver

Get the full download on empathy

Our 2026 State of Workplace Empathy report explores the data behind CXO decision-making, culture building, and leadership—and what today’s trends signal for what comes next.
Report cover and interior pages with photo of woman looking into camera
Methodology:
  • Survey fielded March–April 2026 by Edelman Data & Intelligence (DXI)
  • 1,300+ U.S. employees and executives across six industries
  • Includes expanded representation across C-suite roles