A study released in the summer of 2016 from Businessolver, the Workplace Empathy Monitor, suggests empathy is a key factor in employee engagement, talent management, recruitment and retention, as well as customer loyalty.

The study found large gaps between management’s rating of its empathy and the empathy perceived by employees and customers. For example, 24 percent of Americans find organizations to be empathetic, a striking contrast to the 60 percent of CEOs who answered affirmatively. 

One-third of employees responded that they would switch to a more empathetic company if it offered equal pay, and nearly a third of employees felt that their organization did not care about its employees and focused only on profit.

The survey includes data from more than 1,000 individuals, including CEOs, human resources professionals and employees. 

According to Businessolver’s analysis, when employees do not feel empathy from management, it can lead to lower satisfaction, engagement and morale, as well as higher rates of employee turnover. High levels of empathy, as perceived by employees, can lead to easier recruitment, even with lower salaries. These benefits extend to customers, who are increasingly concerned with the behaviour of companies in addition to their products.