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

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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.

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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

“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.

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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

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