Rebounding employee happiness in Q3 defies trends: report

After a significant drop in employee happiness in Q2 2024, recent data from BambooHR shows an encouraging recovery in Q3, reversing a three-year pattern of decline during this period.

The Employee Net Promoter Score (eNPS)—a measure of employee satisfaction based on likelihood to recommend the company as a workplace—rose to 36, up from 35 in Q2, reflecting heightened morale across industries.

This marks the first Q3 eNPS increase in recent years and hints at potential year-end positivity if the upward trend holds into Q4, a period that typically sees boosts in employee happiness.

“Employee happiness is more than just a metric—it’s a reflection of the culture and values that organizations cultivate every day,” says Anita Grantham, Head of HR at BambooHR.

“By focusing on meaningful engagement and genuine connection, companies can create workplaces where people feel valued and inspired to do their best work.”

Long-tenure employees see rise in happiness

Analysis of data from over 60,900 employees finds a rise in eNPS among organizations with long-tenured employees, revealing that employees with more than three years at a company reported a 1% higher satisfaction rate than newer hires, an inversion of trends seen earlier this year.

“While 1% isn’t much, this marks only the second time since 2020 that more tenured employees have expressed greater happiness. The first time was Q3 2023,” says BambooHR in its report.

“This shift underscores the value of investing in long-term employee engagement strategies. As employees settle into their roles and build deeper connections with their teams, they may find more fulfillment and purpose in their work. This trend also highlights the importance of recognizing and rewarding the contributions of seasoned employees, who bring invaluable institutional knowledge and stability to their organizations.”

Industry-specific data on employee happiness

In addition, industry-specific data show the following trends:

• Construction remained the top industry for employee satisfaction with an eNPS of 52, experiencing steady, if incremental, improvement.
• Travel and hospitality rebounded from a difficult Q2, increasing eNPS by 17% to reach a four-year high, fueled in part by ongoing adaptations in work-from-home policies.
• Finance and education sectors both achieved significant increases, with finance marking its highest eNPS since late 2022 and education rebounding with a four-year high in September.
• Healthcare recovered to Q3 2023 levels, showing signs of stabilizing employee morale.
• Nonprofits, however, continued to see declines, recording a four-year low with a 9% eNPS drop.

Having close relationships with other people has emerged as a top pillar for employee happiness, according to a separate survey.

Impact of company size on satisfaction

Larger companies—those with 500 or more employees—saw the most significant increase in employee satisfaction in Q3, with a 20% boost from Q2, whereas smaller firms (1-24 employees) continued to lead with the highest average eNPS score, found BambooHR.

However, mid-sized companies (151-500 employees) recorded slightly lower scores, underscoring the unique challenges this segment faces in maintaining engagement as they scale.

“In the ever-evolving landscape of business, it’s heartening to see that larger organizations, particularly those with over 500 employees, are experiencing a small boost in employee satisfaction,” Grantham notes.

“This trend underscores the importance of fostering a supportive and engaging work environment, regardless of company size.”

Tips for sustaining employee satisfaction

For HR professionals looking to sustain or improve employee satisfaction in Q4 and beyond, BambooHR’s report suggests several actionable insights:

• Recognize tenured employees: Developing long-term engagement initiatives that address the needs of seasoned employees can build stronger, more resilient teams.
• Industry-specific strategies: Tailoring engagement efforts to industry trends, such as adapting flexible schedules in hospitality or addressing burnout in healthcare, can yield positive outcomes.
• Leverage cultural differences: Acknowledge regional factors and create culturally relevant programs that support inclusivity.
• Continuous feedback: Regular monitoring of eNPS allows timely adjustments to HR strategies, addressing emerging needs and reinforcing successful policies.