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Employee satisfaction has hit a four-year low, according to BambooHR's Employee Happiness Index. The survey recorded a score of 35 out of 100 in May 2024, trending down from 44 in May of 2020. Most recently, employee happiness fell 5% from June 2023 to June 2024.
The second-quarter (Q2) decline reversed the modest first-quarter gains, continuing the downward trend of employee dissatisfaction since 2020, known as the “Great Gloom.” This trend features rising disengagement, burnout, and dissatisfaction. While fewer employees are quitting, employers are finding it increasingly challenging to engage their workforce.
BambooHR's Employee Happiness Index analyzes over 57,000 employee responses across 10 industries, measuring job satisfaction, engagement, and workplace support.
Key Results
BambooHR’s survey found that in Q2 2024, employee happiness was highest in smaller companies (fewer than 75 employees), consistent with Q1 data. These companies reported 47% higher happiness levels on average than larger firms. Additionally, employees with less than three years of tenure were 2% happier on average, likely due to less burnout.
Job satisfaction experienced a notable decline in Q2, with scores falling across various industries. The survey found that:
- Healthcare's score dropped 7% from Q1, with compensation as the main cause of dissatisfaction.
- Construction saw a slight decline but remained the happiest industry, thanks to minor improvements in workplace conditions, policies, and engagement initiatives.
- Nonprofits and construction were the only industries to see slight increases during Q2.
- Technology hit a four-year low in Q2 due to inflation and recent layoffs.
- Restaurant, food, and beverage workers face heat-related illnesses and fatigue during summer months.
Employer Takeaway
Increased workloads, limited managerial support, stagnant compensation, unclear career paths, and inadequate recognition are major factors diminishing employee happiness and satisfaction.
As employee happiness declines, employers must stay attuned to talent trends and meet evolving worker needs. Monitoring employee sentiment, offering growth opportunities, and providing meaningful recognition can foster a more engaged, productive, and loyal workforce. Download the bulletin for more details.
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