After years of steady decline, employee morale is finally on the upswing. According to a recent global survey by HR software platform BambooHR, workplace happiness is climbing back from historic lows, though the recovery remains uneven across different demographics and industries.
The Bounce-Back in Morale
BambooHR’s latest Employee Happiness Index, which analyzed data from 51,000 employees using Employee Net Promoter Scores (eNPS) and turnover metrics, reveals a promising trend. The eNPS—a gauge of how likely employees are to recommend their workplace—rose to 40 during the first half of the year. This marks the strongest first-half performance since 2023, snapping a four-year streak of declining morale. While eNPS typically peaks in the first six months of the year, this 4.4% year-over-year increase significantly surpassed the usual seasonal bump.
The High Cost of Unhappiness
The operational stakes of employee satisfaction are stark. The index found that the happiest companies experience 46% less turnover than those with lower eNPS scores. To put that in perspective, unhappy companies see an average of 18 additional exits for every 100 employees annually. Furthermore, while organizations with low morale see a 2.7% early-turnover rate within the first year, companies boasting a "perfect" eNPS maintain a much lower rate of 2.1%. (The report notes, however, that while the correlation is strong, it does not definitively imply causation).
Happiness by Tenure, Age, and Gender
The survey uncovered distinct happiness curves based on an employee's tenure. New hires tend to start off highly optimistic, but morale dips significantly for those reaching the two-to-three-year mark. Fortunately, contentment rebounds for employees with the longest tenures, who report being the most satisfied.
Significant generational divides also exist. Workers aged 26 to 30 represent the unhappiest demographic, posting an eNPS of just 31—17 points lower than the 48 recorded by employees aged 51 to 60. This aligns with previous research, such as a Conference Board survey last year that found 72% job satisfaction among workers 55 and older, compared to just 57% for those aged 18 to 24. Industry experts suggest younger workers are currently grappling with anxiety over AI’s impact on their long-term career trajectories.
Additionally, while male employees continue to report higher happiness levels than their female counterparts, the gender gap has narrowed to 6.8 points, an improvement from the eight-point average seen over the prior three years.
The Tech Sector’s Morale Crisis
Despite the broader upward trend, the rebound in happiness is far from universal—most notably in the technology sector. Once the happiest industry in 2023, tech has now slipped to below-average morale. The sector has been heavily disrupted by mass layoffs and the rapid, often unsettling, integration of artificial intelligence.
Earlier this year, Meta laid off 10% of its workforce, prompting CTO Andrew Bosworth to admit that employee morale was hovering near the "worst it’s ever been." The discontent is palpable on anonymous workplace forums; on Blind, posts expressing negative sentiment toward AI at Meta surged to 83% by late 2025—a staggering 300% jump from 2024. Other tech giants, including Amazon, Microsoft, and Oracle, have also executed mass layoffs in recent months, further compounding industry-wide anxiety.
An Uneven Recovery
While the macroeconomic picture of employee happiness is brightening, the data paints a clear picture of a fractured recovery. With younger generations and tech workers continuing to struggle, the post-pandemic morale rebound is proving to be anything but universal.