Employee Happiness Rebounds From Lows, Survey Indicates

Employee morale is recovering from recent lows, according to a new global survey by HR software provider BambooHR. The survey, which analyzed data from 51,000 employees, found that the Employee Net Promoter Score (eNPS) rose to 40 between January and June 2024. This marks the strongest first half of the year since 2023 and follows four consecutive years of decline.

BambooHR reported a 4.4% year-over-year increase in eNPS during the period, exceeding typical seasonal gains. The index also highlighted a correlation between employee happiness and retention. Companies with higher eNPS scores lose 46% fewer employees than their less satisfied counterparts, translating to an average of 18 fewer departures per 100 employees annually.

The survey identified varying levels of satisfaction based on tenure and age. While new hires tend to start with high morale, dissatisfaction often peaks around two to three years of employment. Employees with the longest tenure, however, generally report the highest contentment.

Significant differences in happiness were also observed across age groups. The 26- to 30-year-old demographic reported the lowest eNPS at 31, a notable gap compared to the 51- to 60-year-old group. While male employees still report higher happiness than female employees, this gender gap has narrowed.

However, the rebound in employee happiness is not uniform across all industries. The technology sector, previously a top performer in happiness, has fallen below average. This trend is attributed to factors such as mass layoffs and the impact of artificial intelligence within the industry. Companies like Meta have undergone significant workforce reductions, coinciding with increased negative sentiment regarding AI's role in the workplace.