Reflections from CEOs and Gen Z on mental health issues


Businessolver’s State of Empathy in the Workplace 2024 study, which surveyed more than 3,000 CEOs, HR professionals and employees, paints a worrying picture: mental health is declining dramatically among some segments of employees.

Overall, 55% of CEOs and 50% of employees mentioned a mental health issue in the past year, with Gen Z (65%), women (60%), LGBTQ+ (66%), caregivers (71%), veterans (73%), and disabled or neurodivergent employees (77%) especially likely to experience mental health issues. Notably, CEO self-reported mental health issues increased 24 points from 2023, debunking myths of invulnerable corporate leaders.

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Businessolver’s State of Workplace Empathy 2024 study reveals that 55% of CEOs, 45% of HR professionals and 50% of employees have experienced a mental health problem in the past year. Image: Businessolver

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Businessolver’s State of Empathy in the Workplace 2024 data shows how different demographics in the workplace are experiencing mental health issues.
Businessolver’s State of Workplace Empathy 2024 data shows how different demographics in the workplace are experiencing mental health issues. Image: Businessolver

This year’s survey revealed additional surprises. For one, more CEOs than employees consider their company culture to be toxic, at 52% and 35%, respectively. Sixty-five percent of CEOs also report feeling intimidated by their coworkers, a 17-point increase from 2023. The study also found a strong link between mental health issues and workplace toxicity: Respondents who said their workplace is toxic were 47% more likely to cite mental health issues.

There are many factors beyond the control of HR teams that contribute to mental health, but a toxic work environment prevents efforts to create a culture of empathy from thriving. The good news is that toxicity can be mitigated with some practical (and empathetic) HR strategies to promote a healthy and supportive workplace culture.

The antidote to toxicity: empathy

Toxic work environments can take many forms, but ultimately there is one almost universal remedy: empathy. At its core, empathy is about understanding and sharing the feelings of others, and Businessolver’s research shows it has a powerful effect on how employees at all levels experience their jobs.

In 2023, 80% of respondents said they would be willing to leave their job to find more empathetic employers. Just one year later, in 2024, an even higher percentage (88%) said they would be willing to stay with an employer who empathizes with their needs.

The importance of empathy goes beyond fostering a positive work environment. Empathetic workplaces benefit from:

  • Greater employee retention.
  • Increased productivity.
  • Improves overall well-being.

When leaders and colleagues demonstrate empathy, it fosters a sense of trust and psychological safety. Both team members and leaders feel comfortable expressing concerns, seeking help, and admitting mistakes.

Open communication allows for early intervention when stress or mental health issues arise, preventing problems from escalating and fostering a more supportive and collaborative work environment. In fact, nearly 90% of employees, HR professionals and CEOs agree that it’s important for senior leaders to openly discuss mental health issues to foster a safe environment that encourages others to do the same.

How to create a more empathetic work environment

The data paints a clear picture: empathy in the workplace needs a significant boost. This work begins with the fundamental goal of fostering an organizational culture of open communication and understanding, particularly in light of the state of mental health in the workplace.

Building on a solid foundation of empathy, there are practical steps HR teams can take to create a work environment where everyone feels empowered to care for their mental health.

Destigmatizing mental health

In the workplace in particular, mental health issues remain stigmatised. This is especially evident among CEOs, 81% of whom said that companies view people with mental health issues as weak or a burden.

Opening up a dialogue about mental health can be incredibly beneficial, particularly when the message flows from the top. Leaders can foster these discussions by sharing their own personal experiences or participating in employer-sponsored educational sessions.

“Leadership plays a critical role in breaking down the stigma of mental illness that data shows is still prevalent among American workers,” said Rae Shanahan, Chief Strategy Officer at Businessolver. “I have been open about my lifelong journey with mental health within the walls of Businessolver and publicly. Mental health does not discriminate – it is widespread and underreported.”

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Offering the benefits employees want

Top benefits and resources that employees say help them manage their mental health include:

  • Open door policies (91%).
  • Mental health benefits offered upon enrollment (90%).
  • Employee assistance programs (89%).
  • Flexible working hours (89%).
  • Access to online mental health resources or clinics (89%).
  • Encouraging taking breaks outside of work (88%).

Improve easy access to benefits information

An overwhelming majority of employees (90%) said mental health benefits offered during annual enrollment are important. However, only 35% said they were aware that such benefits were offered to them. Even more pertinently, only 10% said they had used a mental health benefit.

Why is there such a disconnect? After enrollment, it can be difficult for employees to remember exactly what their benefits plan includes, and in some cases, the thought of poring over plan documents to find answers is overwhelming. This is where powerful yet easy-to-use tools, like virtual benefits assistants, can be a game-changer.

For example, Sofia, Businessolver’s AI-powered benefits assistant, is available 24/7 to answer employee questions with human-like empathy. Not only does this tool provide access to the information employees need at the precise moment they need it, making it easier for them to effectively use their benefits, but it also reduces the administrative burden that typically falls on the shoulders of HR staff.

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Businessolver's AI assistant Sofia answers employees' questions about pet insurance coverage and the benefits of having a baby.
Sofia, Businessolver's AI assistant, provides quick answers to employee questions about benefits. Image: Businessolver

Empowering managers to be empathetic leaders

By equipping managers with the skills to recognize signs of stress and burnout in their teams and encouraging open communication and support, combining this with an intentional employee wellness program (which can start as simply as lunch-and-learn sessions or an employee wellness committee) and the positive power of empathy will soon spread throughout the organization.

Declining mental health in the workplace is worrying, as untreated mental health can have a significant impact not only on an organisation’s morale and performance, but also on the wellbeing of families and communities. For these reasons, the challenge is critical, but not insurmountable. In fact, small gestures of empathy can be very powerful. By prioritising them now, organisations can create a thriving and resilient workforce for the future.

Marcy Klipfel is the Chief Engagement Officer at Businessolver. Check out the results of their 2024 State of Workplace Empathy survey at businessolver.com.

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