Happiness at work saw its sharpest rise in more than two years during April to June, but reports suggest that this is not necessarily linked to growing satisfaction with workplace culture or benefits.
BambooHR’s latest Employee Net Promoter Score (ENPS) showed an increase to an average of 40 in the second quarter, up seven per cent from the first quarter and 12 per cent year-on-year.
“This marked the largest quarter-over-quarter increase in over two years and placed employee sentiment back at levels last seen in early 2023,” the report read.
The ENPS is a metric used to gauge employee satisfaction and loyalty. The score is based on data from over 60,900 employees and over 1,740 companies across various industries.
Driver of employee happiness
But the sharp increase in ENPS score may not necessarily mean employees are finally happy with their benefits or overall culture.
It attributed the increase in happiness as a “survival response” to ongoing layoffs, economic anxiety, as well as AI disruption.
“Given the current employment environment, the rise in eNPS scores may indicate an appreciation for job stability more than an upward trend in true employee happiness,” said Jonathan Vaas, Head of HR, Chief Legal Officer, BambooHR, in a statement.
Concerns over layoffs and the impact of AI have long topped employees’ worries, leading to what Korn Ferry experts describe as “job hugging.”
This refers to employees choosing to remain with their current employers due to a pessimistic outlook on job opportunities.
“Employee satisfaction is rising, but it doesn’t always tell the full story,” BambooHR said in its report. “The rise in employee sentiment might not be a celebration. It might be a sigh of relief.”
A ‘reset’ for HR leaders
HR leaders should consider the spike in overall happiness as a “reset button,” according to the report.
“HR teams need to ask the right questions to better understand what’s really going on with employee happiness, and then align with leadership to address concerns—and celebrate wins!”
According to the report, newer employees and those with more than 25 years of tenure reported the highest ENPS, with 51 and 56, respectively.
On the other hand, mid-tenure employees are reporting the lowest ENPS.
Employees with two to three years of tenure at their firms reported the lowest satisfaction score, at just 30. Those with four to five years of service reported a slightly higher satisfaction score of 33.
“This dip in sentiment among mid-tenure employees may reflect a challenging transition period—far enough along to experience heavier responsibilities but not yet benefiting from the deeper stability and recognition that come with long-term tenure,” the report read.
Newer employees, on the other hand, may appear happier because of strong onboarding and the satisfaction of securing employment amid a tough job market.
“Strategies like career path clarity, recognition programmes, and mentorship may help smooth the middle years and support long-term retention,” the report read.