“The Great Gloom,” or what organizations are using to refer to the lack of employee engagement and lower levels of satisfaction since the COVID-19 pandemic is here to stay. A recent study by BambooHR found that despite a hopeful spike in employee happiness during Q1, data from Q2 reveals that employee satisfaction hit an all-time low last quarter.
The study utilized eNPS data, which includes a numeric rating of how likely employees are to recommend their place of work, from over 57,000 employees across various organizations. The data show a steady decline in eNPS rates since January 2020, with a new four-year low in May 2024.
“As leaders, we must enhance our engagement efforts, support our teams in their workplace transitions, and foster open lines of communication,” said Anita Grantham, Head of HR at BambooHR. “It’s not just about improving numbers but building a workplace that genuinely prioritizes the wellbeing and satisfaction of every employee, thereby cultivating a culture of sustained happiness and productivity.”
Notably, the study found that employees working at smaller companies tend to be more satisfied than those working for large organizations. Employees at companies with less than 75 employees rated their happiness 47% higher than those with 76+ employees.
Industry has also had an affect on employee happiness. According to the study, construction continues to have the happiest employees. The education industry is seeing improvement after maintaining the highest June eNPS it has seen in 4 years. Yet, the technology sector reached another new four-year low in Q2.
Also interesting, companies with a workforce that was predominantly composed of newer employees (those with less than 3 years of tenure) experienced a 2% higher average happiness compared to companies with a majority of longer-tenured employees.
In order to help increase happiness among employees, the study recommends that HR professionals encourage work-life balance, offer recognition, start support groups and social events, include feedback mechanisms and show empathy and support for employees’ wellbeing.