90% of US Workers Believe Empathetic Leadership Leads to Higher Job Satisfaction and 79% Agree It Decreases Employee Turnover

Table of Contents

Most workers (88%) say that empathetic leadership helps build employee loyalty toward their managers, suggesting that empathy may play a key role in keeping and attracting talent during what’s been called “The Great Resignation.”

Ernst & Young LLP (EY US) released findings from its 2021 EY Empathy in Business Survey, which explores the impact of empathy on leadership, workplace culture, and innovation. The survey, which included responses from over 1,000 employed Americans, found that over half had left a job because their manager failed to show empathy for workplace challenges (54%) or personal struggles (49%).

“Since the start of the COVID-19 pandemic, leaders have been working to rebuild and evolve their organizations to meet new demands,” said Steve Payne, EY Americas Vice Chair – Consulting. “Our study shows that empathy is more than a soft skill – it’s a powerful driver of transformation. It fosters trust and sparks innovation, making it essential for business success in today’s world.”

State of empathy in the workplace

Employees believe their companies show support through words but fail to demonstrate genuine empathy through actions in the workplace. According to 46% of surveyed individuals, employees believe their company's attempts to demonstrate empathy toward its workforce are insincere. The company does not honor its commitments, according to 42% of employees.

People working under an empathetic leader say that this type of leader demonstrates transparency and fairness while following through with their actions. Employees search for these five main qualities in empathetic senior leaders:

Open and transparent (41%)
Fair (37%)
Follows through on action (37%)
Encourages others to share their opinions (36%)
Trusted to handle difficult conversations (34%)

Many employees have quit their jobs due to workplace empathy deficiencies, which may be responsible for this year’s “Great Resignation” movement. Over one-third (37%) of employees departed from their organization due to challenges in forming connections with coworkers.

Benefits to leading with empathy

An overwhelming 89% of employees believe that empathy results in stronger leadership. Nearly the same amount, 88%, say empathetic leaders help drive positive changes at work, while 87% think it helps build trust between employees and leadership. On top of that, 85% say it boosts productivity across teams.

While empathy clearly supports employee morale and lowers turnover, it also brings measurable benefits to business performance. Survey results show that when empathy is mutual between staff and leadership, it helps improve:

Efficiency (87%)
Creativity (87%)
Innovation (86%)
Company revenue (81%)

Looking ahead: empathy in 2021 and beyond

Undoubtedly, COVID-19 brought personal and professional challenges, making honest communication at work more essential than ever. Most employees (85%) believe it's vital for companies to create a culture that values different viewpoints. Yet, nearly one-third (30%) say they don’t feel confident speaking up to drive cultural change, and about one in four (26%) are uneasy about reporting ethical concerns.

The following efforts could help employees feel more at ease when speaking openly with leadership:

Holding regular one-on-one meetings (45%)
Offering ways to give anonymous feedback (42%)
Including team-building activities (37%)
Sending consistent messages that the environment is safe for open dialogue (36%)
Providing training or communication workshops focused on open discussions (36%)

As Payne puts it, “Connecting with employees and building a supportive workplace matters more than ever. Empathy must lead the way to spark innovation, encourage progress, and guide successful business transformation.”

2021 EY Empathy in Business Survey methodology

EY US worked with an independent research firm to conduct the first-ever 2021 EY Empathy in Business Survey. The survey gathered responses from 1,010 employed adults – both full-time and part-time – between July 1 and July 12, 2021. The results have a margin of error of approximately ±3 percentage points, with a confidence level of 95%.