JUNE 2016

Empathy at Work

BUSINESSOLVER

Forces driving U.S. employee disengagement

2

THE PROBLEM

War for Talent Disposable Workforce Turnover

Retention Workforce Productivity

✓

Resulting in conflicting trends

3

THE PROBLEM

Find the most qualified employees

Manage a global workforce

Increase local employee engagement

Keep a lean workforceRetain employees

Do more with less

Contributing to a widening gap between employers and employees

4

THE PROBLEM

1 in 3 LESS THANHALF 31%

Employees don’t trust their employers

Of employees are satisfied with their jobs

Of employees believe profit is all that matters

to their employers

An Introduction: Methodology

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THE POWER OF EMPATHY

• U.S. Employees

• CEOs

• HR Professionals

• Total: 1,740

• U.S. General Population: 1,500

• CEOs: 140

• HR Professionals: 100

April 23, 2016 — May 6, 2016 15-minute online survey

WHO HOWMANY WHEN HOW

THOUGH ONLY

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THE PROBLEM

of CEOs say organizations are empathetic.60%

24% of employees believe organizations are actually empathetic.

What’s the solution?

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Empathy is the missing ingredient

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THE SOLUTION

of Americans believe empathy is undervalued by U.S. organizations

80%

Empathy is the investment businesses have to make…

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THE SOLUTION

83% of Americans believe the state of empathy in U.S. organizationsneeds to evolve 60% of Americans believe that U.S.

organizations are not evolving with the needs of the working household

more likely to stay with a company that empathized with their needs

…to reap the benefits of engaged employees

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THE SOLUTION

would switch companies, for equal pay, if they were more empathetic

would be willing to work longer hours for an empathetic employer

56% 35% 40%

Nearly 1 in 3 believe their organization does not care about employees (29%)

1 in 3 believe profit is all that matters to their organization (31%)

Nearly 1 in 2 believe their organization places higher value on traits outside of empathy (48%)

But there’s a lot of work to do

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THE SOLUTION

63% Of the remaining

of Americans believe empathy is highly valued in their organization and is demonstrated in everything they do37%Only

There’s a problem with perception

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THE SOLUTION

D2: How important is it for each of the following to demonstrate empathy? (Top 3 Box on a 10-point scale)D3: How empathetic are each of the following currently? (Top 3 Box on a 10-point scale)

of U.S. CEOs believe it is important for CEOs as a whole to demonstrate empathy.

but only

of employees believe U.S. CEOs are empathetic.

81%

20%

of CEOs fear showing empathy means they’ll receive less respect.41%At the same time…

Discrepancies in how we define it and talk about it

45% of CEOs versus 13% of employees

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THE SOLUTION

as a characteristic of empathy versus

believe charm is a key characteristic of empathy

vs.

26%74%

of CEOs

of employees place a high value on sincerity

Conflicting expectations

Traits people view as important, such as leadership and intelligence are not associated with being empathetic

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THE SOLUTION

B2: How important are the following for an organization/employer to demonstrate? (Top 3 Box on a 10-point scale)C4: For each of the following traits, please select those you believe are associated with being empathetic. (Select all that apply).

TRAITS LEAST ASSOCIATED WITH BEING EMPATHETIC(% of Americans who say it is associated with empathy)

26%24%

15%13%

10% 9%

Intelligent Diplomatic Charming Is a leader Ambitious Businesslike

of Americans say it is important for an organization to demonstrate LEADERSHIP

of Americans say it is important for an organization to demonstrate INTELLIGENCE

79%

78%

And an unaligned outlook

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THE SOLUTION

of CEOs (52%) feel empathy can get in the way of productivity

CEOs (27%) believe the state of empathy is sufficient in U.S. organizations overall of employees feel this way

of employees (45%) do

Only 23% of CEOs believe that demonstrating empathy will allow others to advance before them

Additionally, employees see more consequence to their career than CEOs recognize:

35% of employees feel this way

1 in 4

OVERHALF

ONLY20%

UNDERHALFand

while

while

But empathy matters…organizations can benefit from being empathetic

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THE SOLUTION

D7: Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you believe are empathetic? Please select all actions you have taken.D8: Thinking back over the past 12 months, have you taken any of the following actions in relation to companies that you believe are not empathetic? Please select all actions you have taken.

PEOPLE ARE MORE LIKELY TO BUY PRODUCTS FROM AND RECOMMEND AN ORGANIZATION THAT DEMONSTRATES EMPATHY

42% of Americans say they have chosen to buy products from organizations that are empathetic

…and 40% of Americans say they have recommended the company to a friend or colleague

CONVERSELY, PEOPLE ARE MORE LIKELY TO REFUSE TO BUY PRODUCTS FROM AN ORGANIZATION THEY DO NOT VIEW AS EMPATHETIC.

42% of Americans say they have refused to buy products from organizations that are not empathetic

Where do we start?

At the top

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EMPATHY IN ACTION

E10: Which of the following are true for you? Demonstrating empathetic behavior should be pushed from the top down within an organization (Select all that apply)

of employees believe empathy should be pushed from the top down, opening the door for CEOs to take control46%

HR professionals, specifically, have a role to play too…

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THE SOLUTION

D9b: Please select one. 1) Overall, the current state of empathy in U.S. organizations/employers is sufficient 2) Overall, the current state of empathy in U.S. organizations/employers needs to evolveF1c: Please select one. 1) The empathy my human resources department shows me is genuine 2) The empathy my human resources department shows me is not genuine

87% of HR believes the state of empathy in organizations needs to evolve compared to 80% of employees.

HR EMPLOYEES

61% of employees believe the empathy their HR department shows them is genuine. HR is uniquely positioned to champion this change.

CEOs, HR leaders and organizations have to

put empathy into action by…

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Focusing on how they treat employees

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EMPATHY IN ACTION

D1: How important is it for an organization/employer to do each of the following in order to demonstrate empathy? (Top 3 Box on a 10-point scale)

Top 5 Most Important Behaviors in order for an Organization to Demonstrate Empathy

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TREATING EMPLOYEES WELL83% of Americans agree it is important

LISTENING TO CUSTOMER NEEDS AND FEEDBACK80% of Americans agree it is important

CARING ABOUT EMPLOYEES’ MENTAL HEALTH78% of Americans agree it is important

CARING ABOUT EMPLOYEES’ PHYSICAL HEALTH77% of Americans agree it is important

HAVING ETHICAL BUSINESS PRACTICES78% of Americans agree it is important

Three of the top five most important behaviors for an organization to show they demonstrate empathy directly relate to the treatment of employees

1

2

3

4

5

Coaching their managers and employees on more empathetic behaviors

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EMPATHY IN ACTION

C4: Which of the general behaviors below demonstrate empathy? (Select all that apply)C5: Which of the following behaviors demonstrate empathy while in conversation? (Select all that apply)

Top 5 Behaviors that Demonstrate Empathy in Conversation(% of Americans who say it demonstrates empathy)

Verbally acknowledging that you are listening (e.g. saying, “I understand.”)

Maintaining eye contact

Asking questions

Making physical contact appropriate for the situation (i.e. touching his/her hand or arm)

Showing emotion (i.e. crying when you share a sad experience)

Top 3 Behaviors that Demonstrate Empathy (% of Americans who say it demonstrates empathy)

Listening more than talking

Being patient

Making time to talk to you one-on-one

76%

72%

70%

62%

62%

79%

71%

62%

Recognizing that communication can make a difference

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EMPATHY IN ACTION

E11: Of the below forms of communication, which lend themselves best to demonstrating empathy? (Select all that apply)

Personal email is seen as less empathetic when in day-to-day life, with only 36% who say it is empathetic.

MOST EMPATHETIC FORMS OF COMMUNICATION AT WORK

74% of U.S. employees say face-to-face conversation

51% of U.S. employees say phone call

48% of U.S. employees say handwritten letter

44% of U.S. employees say personal email at work

LEAST EMPATHETIC FORMS OF COMMUNICATION AT WORK

12% of U.S. employees say mass email

16% of U.S. employees say instant message

Offering additional benefits

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EMPATHY IN ACTION

F4: Of the below statements, please select the ones you agree with. (Select all that apply)

NEARLYHALF

48% of employees say employers need to empathize with their employees by offering benefits promoting work-life balance

OVER HALF

51% of employees say offering benefits that go above and beyond is a way for organizations to demonstrate empathy

35% of employees care about their benefits year round, not just at annual enrollment

OVER1 IN 3

1 IN 3 33% wish their company offered more customized benefits

Addressing employee well-being at the holistic level through benefits that go “above and beyond”

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EMPATHY IN ACTION

F3: Some benefits employers offer can be perceived as above and beyond expected benefits. From the below list, please select which benefits you would consider to be above and beyond what you would expect from an employer. (Select all that apply)

BENEFITS THAT ARE EXPECTED (BELOW AVERAGE)

▶ Medical health insurance ▶ Dental▶ Vision▶ Life Insurance▶ Disability▶ Flexible spending accounts▶ Unpaid 12-week maternity leave

BENEFITS PERCEIVED TO BE ABOVE AND BEYOND (ABOVE AVERAGE)

▶ Gym reimbursement/membership▶ Flexible work hours▶ Flexible work location (working from home or remotely)▶ Wellness programs▶ Paid paternity leave ▶ Employer contributions to retirement plans (401(k))▶ Commuter benefits▶ Paid time for community service hours▶ Paid 12- week maternity leave

What are the outcomes?

Employers that are more empathetic have an employee base that is:

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THE OUTCOMES

MORE PRODUCTIVE

1 in 5 employees would switch companies, for less pay, if they were more empathetic

MORE LOYAL

1 in 3 employees would switch companies, for equal pay, if they were more empathetic

Nearly half of employees would be willing to work longer hours for an empathetic employer

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In an enterprise where empathy is a priority,people will extend themselves beyond their normal limits, become

more intensely loyal and want to join the company’s mission as employees and even be net promoters to customers.

Thank You

Businessolver.com/empathy

Join the conversation:#EmpathyAtWork

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