5 Empathy-Driven KPIs Every CEO Should Be Tracking

CEOs are under pressure—I get it. Economic instability, lingering tariffs, AI reshaping the rules, a shifting talent market—the list is long. Every day, we make tough calls to navigate these headwinds. And more often than not, those calls come down to one thing: the data in front of us.

CEOs chase what they can measure: revenue, margin, market share. Empathy, however, is too often sidelined as a “nice to have.” But I’m a firm believer that it should be one of the core metrics an organization’s success is measured on.

After 10 years of studying the state of empathy in the U.S. workplace, our data shows unempathetic organizations risk $180 billion annually in attrition. Even so, 59 percent of CEOs still say empathy is a “nice to have”—perhaps because they find it hard to measure?

CEOs are wired to focus on quantifiable success drivers, and anything fuzzy can carry the risk of deprioritization. But empathy does have measurable, bottom-line impact. Beyond the billions empathetic organizations save in attrition costs, our data also shows CEOs who view their organizations as empathetic are half as likely to have undergone layoffs in the past year. And, employees at empathetic organizations are 36 percent less likely to leave—and four times more likely to view their CEO as empathetic.

This data tells me that empathetic leadership doesn’t just boost morale. It’s a predictor—and protector—of long-term business health.

Empathy is your next competitive advantage—here’s how to track it

Many executives will agree empathy in the workplace matters, but there’s a real challenge in making it measurable. What gets measured gets managed, and empathy is no exception.

For more than five years now, we’ve been operationalizing empathy at Businessolver, tracking metrics where we believe they have an impact on both the business and for our employees. Based on what we’ve seen firsthand, there are five empathy-driven KPIs I believe every CEO should consider incorporating into their executive dashboard.

• Employee and client retention rates. Empathetic cultures attract talent—and keep it. Retention data, in particular, can tell a CEO a lot about how well their culture is resonating with employees and clients. In 2020, we transitioned from an in-office work environment to a fully remote workforce which has fueled improvements across the board, but in particular to our employee and client retention rates, which both now hover above 90 percent.
• Absenteeism, engagement, and productivity trends. Businesses perform better when employees are present and engaged, so high rates of unplanned absenteeism are worthy of examination. Are there deeper issues with stress or burnout? Are employees supported in caring for their physical, mental, and emotional well-being? Since committing to an empathy-led work environment, both our employee engagement metrics and company culture score have increased.
• Employee and client sentiments. Real empathy begins, and ends, with listening. Though 70 percent of CEOs say they’ve become more empathetic since 2020, the majority of employees disagree, saying leadership empathy has either stagnated or declined. That perception gap is a warning sign. Regular employee and client “pulse surveys” have proven to be valuable tools for helping our organization ensure C-suite beliefs are in tune with employee reality. Regular pulsing helps ascertain whether employees feel connected to the company mission and culture, if they have opportunities to grow and develop, if they have the resources to do their job, and if they enjoy what they do. Getting honest feedback can be uncomfortable, but it’s essential for building trust and a more effective organization.
• Benefits usage. Over 90 percent of employees say workplace flexibility is a top expression of employer empathy. But offering benefits isn’t enough—leaders must track usage. Low PTO or mental health benefits utilization, such as Employee Assistance Programs, can signal fear, stigma, or burnout. Measuring what’s used—not just what’s offered—reveals whether your culture truly operationalizes the empathy needed to supports holistic wellbeing.

• Diversity, equity, inclusion, and belonging (DEIB). Our empathy data shows employees who feel their organization invests in DEIB are 32 percent less likely to leave, and 79 percent of employees say DEIB efforts demonstrate employer empathy. By combining DEIB initiatives with our company’s mission, we’ve been able to dramatically improve employee engagement, retention, culture scores, and operational resilience. Over the past five years since formalizing and integrating DEIB into our business, our Employee Net Promoter scores have improved 92 percent, and 87 percent of employees report having a sense of belonging at work.

Empathy is an executive metric

Empathy can, and should, be measured with the same rigor as revenue or market share. Because investing in people isn’t just good for culture, it’s good for business. Employee well-being is a powerful growth lever, and in the long run, the most empathetic leaders will also be the most successful.