["Journal of Organizational Behavior, EarlyView. ", "\nABSTRACT\nThere is increasing interest in understanding and recognition of the importance of empathy effects at work. However, despite the two‐party nature of empathy, little research has distinguished between empathy‐giving versus empathy‐receiving, or between empathy‐giver versus receiver. This conflation arguably creates an incomplete or even misleading understanding of empathy effects on workplace outcomes and limits the development of theories that can synthesize mechanisms and boundary conditions to explain how empathy influences outcomes for both parties. Thus, to refine and advance existing knowledge, we systematically review 234 articles (188 empirical and 46 conceptual) that have examined empathy effects on work outcomes. We employed a 2 × 2 matrix (empathy‐giving vs. empathy‐receiving × empathy‐giver's outcomes vs. empathy‐receiver's outcomes) to categorize existing studies into four empathy–outcome pathways. This framework not only highlights significant research emphases and omissions but also provides a structured approach for advancing our understanding of empathy effects in the workplace. This approach contributes new knowledge by identifying a range of empirical, theoretical, and methodological findings within existing literature—dominated by studies on empathy‐givers, beneficial effects, and only one party. Drawing on and extending these findings, we propose a research agenda comprising three new lines of inquiry—relating to empathy‐receivers, detrimental effects, and two parties—recommending that scholars explore these avenues to collectively advance understanding of the complex processes and outcomes involved in the effects of both giving and receiving empathy on work outcomes.\n"]