Furthermore, more than half of employees at unempathetic organizations say they are likely to change jobs in the next six months, and 66% of employees at such organizations say that seeking mental health support at work could have negative career repercussions. More than one quarter of employees at unempathetic organizations said they worked through a mental health issue alone, which is twice the number of employees who did so at empathetic companies.

Related: Enabling culture regardless of RTO

Return to office policies and a lack of flexibility are contributing to mental health issues and a perceived lack of empathy, the report revealed. Forty-two percent of employees as well as 62% of HR professionals said RTO policies have negatively impacted their mental health, and 60% of employees are willing to leave their job if they are required to return to the office full time. Millennials and Baby Boomers are most likely to consider quitting over RTO mandates.

Meanwhile, flexible work location and mental health benefits build a perception of empathy among employees. However, fewer than one-third of employees indicated they are aware of these employer-sponsored benefits.

In contrast with employee perceptions, only 8% of CEOs view their workplace as toxic, down 44 points from last year. That compares with 22% of employees and HR professionals who view their workplace as toxic. The majority of CEOs agree that flexible hours are important to creating an empathetic workplace and 53% of CEOs said they offer flexible hours, but less than half of employees say flexible hours are available to them. That represents a 12-point gap between executive perception and employee reality, said the report.

A gap in the perception of resources available for mental health also exists, with 94% of CEOs saying their company offers a safe environment for employees to seek help with mental health concerns, while only 76% of employees share this view.

“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.”