The Great Grin-and-Bear It:
Employee Happiness Is Surging—But Is It Gratitude or Survival Mode?

Back in early 2025, BambooHR reported that employees were “satisfied,” but also walking on eggshells—bracing for layoffs, absorbing extra workloads, and approaching workplace conversations with extreme caution.

Now, in Q2, new eNPS (Employee Net Promoter Score) data suggests a continued increase in employee sentiment. But is that recovery real, or a survival response to ongoing volatility?

In Q2 2025, employee happiness scores jumped sharply. This marked the largest quarter-over-quarter increase in over two years and placed employee sentiment back at levels last seen in early 2023.

While overall employee satisfaction climbed to an average of 40—a 7% increase from Q1 (37) and up 12% YoY—it’s worth acknowledging external factors such as economic uncertainty and job market anxiety may play roles in influencing employee sentiment.

In this report, based on eNPS data from over 60,900 employees and over 1,740 companies across various industries, we'll unpack the key factors influencing this latest rise in employee happiness, examining trends by industry, company size, and tenure.

By understanding these underlying dynamics, employers can better address genuine employee needs and foster sustainable, authentic satisfaction, rather than temporary relief in uncertain times.

What’s Employee Net Promoter Score (eNPS)?

eNPS helps employers measure employee satisfaction. It consists of a numeric rating of how likely employees are to recommend the organization as a place to work. Employees select a score from 0–10, and these scores, categorized as Promoters (9 or 10), Passives (8), and Detractors (7 or below), are used to quantify how employees feel about their company.

The eNPS score is then calculated by taking the percentage of Promoters and subtracting the percentage of Detractors. The resulting score can range from -100 to +100, with higher eNPS scores indicating a higher level of employee satisfaction and loyalty. What is a good eNPS score?

• Above 0 is good.
• Above 20 is favorable.
• Above 50 is excellent.
• Above 80 is world class.

*Net Promoter, NPS, and the NPS-related emoticons are registered U.S. trademarks, and NetPromoter Score and Net Promoter System are service marks, of Bain & Company, Inc., NICE Systems, Inc. and Fred Reichheld.

Key takeaways by employee group

Employee tenure: Employees with less than one year and more than 25 years of tenure are the happiest.

Company headcount: Smaller companies continue to report higher satisfaction.

Key takeaways by industry

Construction: Saw moderate happiness gains in Q2, with the highest single-month score since July 2021.

Travel & hospitality: Slight dip in Q2 2025 from Q1, despite gains from Q2 2024.

Finance: Sharp rebound in Q2, reaching sentiment levels not seen since late 2022.

Healthcare: eNPS hit its highest point since July 2022.

Education: Modest Q2 gains continue a slow climb from January’s low.

Technology: eNPS surged in April, hitting a two-year high.

Nonprofit: Small Q2 improvement, but still below last year’s benchmark.

Restaurant, food & beverage: Flat quarter with scores still trailing 2024 levels.

In Q2 2025, employees with more than 25 years of tenure reported the highest average eNPS (56), while those with less than one year followed closely behind at 51. In contrast, employees in the 2 to 3-year range reported the lowest sentiment, with an average eNPS of just 30, and those in the 4–5 year range of 33.

This creates a U-shaped trend in happiness by tenure: the most and least tenured employees are significantly more satisfied than those in the middle years of their employment journey. In fact, happiness levels drop sharply for those with 1 to 5 years of tenure before rising again after the 6-year mark.

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. And for newer employees, strong onboarding and the satisfaction of securing employment in a tough market likely continue to boost early enthusiasm.

Strategies like career path clarity, recognition programs, and mentorship may help smooth the middle years and support long-term retention.

In Q2 2025, small organizations once again led the pack in employee happiness. Companies with 1–24 employees reported an average eNPS of 51—that’s 17 points higher than the largest organizations (500+ employees), which averaged just 34. The gap between the smallest and largest organizations widened to 20 points in May, underscoring the persistent trend of stronger sentiment in more intimate workplace settings.

While small companies continue to excel, mid-to-large organizations (especially those with 250–500 employees) recorded some of the largest quarter-over-quarter gains in employee happiness. This may indicate that recent culture or engagement initiatives in bigger workplaces are beginning to make an impact.

The consistent decline in eNPS as headcount grows suggests that scale presents unique engagement challenges. For employers, these findings highlight the importance of replicating the benefits of small-company culture at scale—fostering strong team connections, empowering employees with autonomy, and maintaining open lines of communication regardless of headcount.

While several industries continued on a steady or upward path in Q2, some surprising shifts reveal how complex employee sentiment really is—especially in an economy where holding onto a job may feel like the biggest win of all.

Construction remained the top-performing industry in employee happiness, once again reporting the highest average eNPS across all sectors. This consistent satisfaction makes construction a rare case where the sentiment appears both stable and authentic, quarter after quarter.

Finance saw the largest quarter-over-quarter jump in eNPS. On the surface, that suggests a significant boost in sentiment. But in an industry often tied closely to macroeconomic fluctuations, this rise could reflect momentary relief more than long-term satisfaction—an important distinction in a market where layoffs have loomed large.

In contrast, travel and hospitality—despite ranking among the top three industries for overall happiness—saw a drop from Q1. This decrease raises questions: Is burnout building beneath the surface? Was last quarter’s high simply a post-holiday spike in optimism?

Meanwhile, the restaurant, food, and beverage industry continues to struggle. This sector not only remains among the lowest in employee sentiment, but also experienced a further decline in Q2. It’s a clear reminder that not all industries are riding the same wave of “recovery,” and that deep-rooted challenges like high turnover and inconsistent scheduling may still be driving dissatisfaction.

Employee satisfaction is rising, but it doesn’t always tell the full story. In some industries, this may signal a rebound; in others, it might simply reflect relief that the worst hasn’t happened—yet. In any case, leaders need to dig deeper to understand what’s behind the numbers.

Below, we break down what’s happening across each industry, and what it might really mean.

• eNPS increased from Q1 to Q2, with an average of 54.
• There was a 3-point increase from Q1 to Q2.
• Compared to Q2 last year, eNPS is 5 points higher—a 5% increase.

The construction industry continued its impressive streak as the highest-scoring sector for employee satisfaction, maintaining its lead for over two years straight. In Q2 2025, construction saw a moderate increase in eNPS, rising from 51 in Q1 to 54—a 5% gain quarter-over-quarter.

In May 2025, eNPS went up to 55, the highest-scoring May on record. While sentiment dipped slightly in June, construction remains the most consistently satisfied workforce in the dataset.

• eNPS decreased from Q1 to Q2, with an average of 38.
• There was a marginal 2% decrease from Q1 to Q2.
• Compared to Q2 last year, eNPS is 2 points higher—a 7% increase.

In Q2, travel and hospitality remained in the top three for overall happiness, experiencing only a marginal dip (2%) from Q1. Given the sector’s reliance on seasonal demand and high customer interaction, sustaining this level of satisfaction will likely require continued focus on workload balance, staffing stability, and employee recognition.

• eNPS increased from Q1 to Q2, with an average of 42.
• There was a 6-point increase from Q1 to Q2.
• Compared to Q2 last year, eNPS is 6 points higher—a 17% increase.

Finance saw the most significant quarter-over-quarter jump, climbing 6 points to reach an average eNPS of 42—the highest since late 2022. This momentum suggests increasing confidence despite economic pressures.

• eNPS increased from Q1 to Q2, with an average of 37.
• There was a 3-point increase from Q1 to Q2.
• Compared to Q2 last year, eNPS is 6 points higher—a 19% increase.

Healthcare continued its upward trend, increasing by 3 points quarter-over-quarter to an average eNPS of 37—its best result in nearly three years. April and May were particularly strong, possibly reflecting seasonal staffing stability or successful workforce support initiatives.

• eNPS increased from Q1 to Q2, with an average of 36.
• There was a 2-point increase from Q1 to Q2.
• Compared to Q2 last year, eNPS is nearly 1 point higher—a 2% increase.

In Q2, the education industry's employee happiness averaged 36. This was a slight decrease compared to Q1. While not a top-performing industry in terms of employee happiness, the education sector maintained a consistent, moderate level of satisfaction during the second quarter.

This steady upward trend since January’s low suggests gradual recovery, though year-over-year growth remains modest—just a 2% increase from Q2 2024—indicating there is still room for improvement in engagement and support for education professionals.

• eNPS increased from Q1 to Q2, with an average of 38.
• There was a 4-point increase from Q1 to Q2, an 11% increase.
• Compared to Q2 last year, eNPS is 6 points higher—a 17% increase.

Technology saw a powerful rebound in Q2, jumping from an average eNPS of 34 in Q1 to 38. Notably, April marked tech’s highest monthly eNPS since March 2023 When looking at the last year, there was a 27% increase in eNPS from May 2024 to April 2025. This surge could signal stabilizing conditions in a sector that’s endured layoffs, role shifts, and AI-related transitions.

• eNPS increased from Q1 to Q2, with an average of 35.
• There was a 1-point increase from Q1 to Q2, a 2% increase.
• Compared to Q2 last year, eNPS is slightly lower—a 3% decrease.

In Q2 2025, nonprofit organizations saw a modest uptick in employee happiness, with eNPS rising from 34 in Q1 to 35. While this improvement signals recovery from the sector’s all-time low in December 2024, nonprofits still trail their Q2 2024 benchmark by 3%. This lingering gap suggests that, despite recent gains, the sector faces ongoing challenges in fully restoring employee sentiment to previous levels.

• eNPS held steady from Q1 to Q2, with an average of 31.
• There was a marginal 1% decrease from Q1 to Q2.
• Compared to Q2 last year, eNPS is 3 points lower—a 7% decrease.

In Q2 2025, the restaurant, food, and beverage industry maintained an average eNPS of 31, showing little change from Q1. However, sentiment remains 7% lower than this time last year, continuing its slow post-pandemic decline. Persistent challenges such as high turnover, unpredictable schedules, and ongoing labor shortages may be contributing to the sector’s struggle to rebuild employee satisfaction.

After two years of declining sentiment, employees are finally reporting higher happiness at work. But here’s the twist: this rebound isn’t rooted in perks or culture upgrades—it’s happening in the shadow of layoffs, economic anxiety, and AI disruption.

For HR leaders, this moment is a reset button. The rise in employee sentiment might not be a celebration. It might be a sigh of relief.

So, what should organizations do now?

They should resist the temptation to coast. They should dig deeper. 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!

By carefully analyzing eNPS data and understanding the underlying trends and drivers, companies can make informed decisions and implement targeted strategies to cultivate a more engaged, satisfied, and ultimately more productive workforce.

About BambooHR

BambooHR^® is the leading HR software solution that sets people free to do great work, by managing the complex work of supporting employees and succeeding as a business, while giving leaders all the data they need to make informed strategic decisions.

Intuitively designed and easy-to-use benefits administration, payroll, performance, time tracking, and reporting where everything works together means less focus on process and more focus on growing what matters most—people.

Over the past 15 years, BambooHR has been the trusted partner of HR professionals at 33 thousand companies with employees in over 190 countries and 50 industries, supporting millions of users throughout their employee experience.

Methodology

All source data is from BambooHR^® Employee Satisfaction, gathered between January 2020 and July 2025, and includes more than 1,740 companies, tracking anonymized responses from over 60,900 unique employees since January 2020. Data analyzed includes more than 2.61 million self-reported eNPS scores. The most recent quarter’s data is added to the historical data set on the first day of the new quarter.

Industries included are healthcare, finance, construction, travel and hospitality, nonprofit, restaurant, food, and beverage, education, and technology.

Further demographics included are company region, company headcount, and average employee tenure at a company.