Just as the workplace has
Polling employees from 1,600 companies since January 2020, HR software company
After analyzing more than 1.6 billion employee responses, 2023's average score for employers is 36, an over 16% drop since June 2020, declining 10 times faster than it had in the last three years. The trend indicates that the uncertainty of the last several years is taking its toll.
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"Because of the constant uncertainty, like COVID, banking collapses and war, there are just so many different things that continue to interfere with people's ability to get back to 'neutral,'" says Anita Grantham, head of HR at BambooHR. "Then there's the remote challenge: Some people are in the office, some people are hybrid and there's uncertainty about where you can work. All that leads to the mess we're in today."
Mass layoffs, record inflation rates and high interest rates haven't helped either. The percentage of disposable income Americans save on average has fallen to 3.9%, far below the decade-long average of 8.9%, according to the U.S. Bureau of Economic Analysis. To make matters worse, employers are slowing the growth of salaries to a 2.5% increase in the new year, estimates Salary.com.
Many employees are now in a tougher financial spot than they were three years ago, as the demands for a
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Some industries are happier than others
Notably, the construction industry has maintained the highest happiness score, placing at 47, dropping only 2% since last year. Grantham points out that the construction industry has seen job stability, increased wages and fewer disruptions to their way of working.
"They never stopped working," she says. "Our water heaters still break, our pipes still break, our AC units still break — they had to be out fixing and building."
On the other hand, the restaurant, food and beverage industry ranks last in happiness, with a score of 31, a 22% drop compared to last year. Education and healthcare scored 33, which was actually an improvement since the last quarter. However, Grantham notes that both industries are consistently on the lower end, with healthcare showing no substantial changes in the last year.
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"I know from talking to my friends in healthcare that the environment has not gotten better for them," she says. "A lot of their colleagues have left, they work extra shifts for below-market pay and their leaders aren't fostering a culture where they feel valued."
Unsurprisingly, tech is on a decline, with a score of 36, an 18% drop in happiness since the previous year. Grantham points to shrinking VC capital, massive layoffs and return-to-office mandates as contributing factors to the industry's downfall.
Make happiness a mission
Grantham advises employers to use this data as a wake-up call — the workplace cannot revert back to what it was in 2019 and not every COVID-induced benefit or policy should remain in place.
She suggests that employers reevaluate their benefits, company mission and culture to fit employees' expectations and needs today.
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For example, while many companies added mental health apps to their benefits in 2020, Grantham has noticed that utilization has dropped off for many employers. Now's the time to explore what else employees need to improve their wellness.
"I encourage leaders to really talk to their people," says Grantham. "Don't be depressed by the data. Use it as a tool to arm yourself to make a difference at work, where we spend so much of our time."
