What’s Happening with Employee Happiness? Trends to Watch in 2024
Four reasons why employee satisfaction is important to your company’s success
Editor’s note: this is part 1 of a two part series
Let’s dive into what’s going on with employee satisfaction today. BambooHR’s latest insights show a big shift in how employees feel at work, with signs that satisfaction is dropping across several industries. The data highlights some serious challenges—so if you’re an employer or a team leader, it’s time to pay close attention.
Here’s a look at where things stand now and why employee satisfaction is critical to every company’s future.
1. eNPS Scores are Falling
Employee Net Promoter Scores (eNPS), the scores that measure how satisfied employees are, have taken a significant dip—down 9% since early 2023. This drop is a warning sign. Low eNPS scores are connected to increased burnout, absenteeism, and higher turnover, which all impact the bottom line in any company. What’s happening here is clear: employees are feeling disconnected and less motivated, which impacts everything from productivity to company culture.
Rolling into 2024, these numbers have suggested that companies aren’t just facing low morale, they’re facing a real risk to their performance. A low eNPS means employees are less likely to recommend their workplace to others, less engaged, and more likely to leave. That translates to higher hiring costs due to turnover, longer onboarding times, and, ultimately, lost revenue.
2. New Hires are Disengaged Early On
This one’s a tough pill to swallow for many companies. eNPS scores for new hires have hit an all-time low of 36, which means we’re missing the mark when it comes to welcoming and engaging new talent. When new employees feel lost or disconnected from the get-go, they’re more likely to check out mentally—or leave entirely—before they ever have the chance to make a real impact.
The first few months are critical for retention, and if companies don’t address this early disengagement, they’ll be fighting a losing battle to keep talent. Without effective onboarding and early engagement that support create a culture of care, companies risk high turnover among new hires, which leads to a revolving door of talent and inconsistent or even declining team dynamics.
3. Big Companies are Struggling More Than Small Ones
When it comes to satisfaction, size matters. Smaller companies (under 25 employees) are leading the pack, with higher engagement and satisfaction levels than larger companies (150+ employees). Smaller teams tend to feel more connected and have clearer communication channels, but as companies grow, they often struggle with transparency and cohesion.
Larger organizations face unique challenges in communication and trust-building, which can leave employees feeling like just a number. Employees want to know what’s going on—especially during uncertain times—and when transparency falters, trust and engagement decline. Going forward, big companies that want to stay competitive will need to tackle this head-on.
4. Industry-Specific Struggles
Certain industries are having a harder time maintaining satisfaction levels. Construction, for instance, is holding steady, thanks to demand and competitive wages, but tech and food service industries are struggling. Tech employees worry about job stability and the effects of automation and AI, while food service workers face low wages and unpredictable schedules.
Employees in these high-stress fields are especially vulnerable to burnout and disengagement. Without being proactive to address these unique challenges, turnover rates could increase even further in the coming years.
What’s Next?
So, where does that leave us? The data is clear: Employee satisfaction is in a fragile place, and companies that ignore this risk face significant consequences. But there’s good news here, too—this isn’t a lost cause. There are real, actionable steps leaders can take to turn things around.
In the next article, we’ll break down exactly what companies can do to improve satisfaction, boost engagement, and create a culture where employees want to stay and thrive. Stay tuned for strategies that put people first, help future-proof your organization and improve the quality of your employees’ work-life.
Related content:
Building Small Business Growth Through Happy Employees [Video]
9 Trends Affecting the Future of Work in 2023
The Pursuit of Happiness- 3 Ways to Raise Your Happiness Quotient
