Holiday Blues: Q4 Sees Unexpected Slump in Employee Happiness

eNPS® takes a hit in multiple sectors; larger companies see continued employee satisfaction boost

January 30, 2025

In Q4 2024, the latest eNPS (Employee Net Promoter Score) data revealed a concerning trend: a general decline in employee satisfaction across nearly every industry. This is particularly unusual given that Q4 is typically a period of increased happiness and engagement, often driven by the holiday season and year-end activities.

The average eNPS for Q4 2024 was 35, marking a one-point decrease from Q3. This report dives into the specific industries and factors contributing to this unexpected dip, providing insights and potential solutions for HR professionals and organizations to address the underlying issues.

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With the Q4 drop, 2024 ended near May’s five-year low. While most industries’ employee happiness took a hit, there were some positive trends. Companies with mostly tenured employees (3+ years average tenure) were 3% happier on average compared to companies with a majority of newer employees (<3 years tenure). Additionally, companies with more than 150 employees continued to see a boost in eNPS.

To address the challenges facing employee satisfaction, organizations should adopt a proactive approach to employee engagement. This includes revisiting compensation strategies to ensure they align with employee expectations and industry standards.

In this employee satisfaction survey report, based on eNPS data from over 60,900 employees and over 1,700 companies across various industries, we’ll look at the elements driving this atypical drop in employee morale and satisfaction.

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?

  • 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.

Average eNPS Slips to Q2 Levels

Do you think employee happiness increased or decreased in the second half of the year? Fill in the graph below to see the answer.

Employee Satisfaction Key Takeaways

Key Takeaways by Employee Group

Employee Tenure: Tenured employees (3+ years) had 3% happier workers in Q4.

Company Headcount: Companies with 150+ employees continued to see an eNPS boost.

Key Takeaways by Industry

Construction: Dropped in Q4, atypical of this quarter and industry.

Education: Ended the year returning to typical end-of-year happiness levels.

Travel & Hospitality: Large drop from Q3’s four-year high.

Finance: Dropped to a new five-year low.

Technology: Dropped from Q3, a similar trend that occurred in 2023’s Q4.

Healthcare: eNPS ended the year around where it started.

Restaurant, Food & Beverage: New five-year low, ending 2024 at the lowest point since pre-pandemic.

Nonprofit: eNPS dramatically decreased, reaching a new five-year low.

Tenured Employees 3% Happier than New Employees

Continuing the trend seen in Q3, tenured employees remain happier than new employees.

In Q4 2024, employees with more than three years of tenure are, on average, 3% happier than their colleagues with less than three years of experience at their current company. This marks a consistent trend from the previous quarter, indicating that longer tenure is associated with higher job satisfaction.

This trend 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.

Understanding these tenure-related trends can help organizations better support both new and long-standing employees. While it's important to invest in onboarding and integrating new hires, ensuring that tenured employees continue to feel valued and engaged is equally crucial.

Employee Tenure Average eNPS 2020–2024

Companies with Over 150 Employees See Continued Boost

Continuing the trend seen in Q3, larger company sizes continued to see an increase in employee satisfaction, with some variations.

In Q4 2024, companies with 151+ employees continued to see a sustained eNPS boost.
Larger company sizes (151+ employees) experienced eNPS increases in Q4, although organizations with 501+ employees saw a drop from Q3.

Notably, companies with a headcount of 25–75 employees were the only group to show an increase in eNPS from Q3.

It’s important for organizations to tailor engagement strategies to different company sizes. Larger organizations, despite their size, are finding ways to maintain and even improve employee satisfaction. However, the drop in eNPS for the largest companies (501+ employees) suggests that there may be unique challenges in maintaining high levels of engagement in very large organizations.

Understanding these headcount-related trends can help organizations of all sizes better support their employees. While larger companies may benefit from robust engagement programs, smaller companies can focus on creating a more personalized and supportive work environment. Ensuring that all employees, regardless of company size, feel valued and engaged is crucial for long-term success.

Company Size
Average eNPS Q3 2024
Average eNPS Q4 2024
1–24 EE
51
49
25–75 EE
41
42
76–150 EE
36
35
151–300 EE
31
31
301–500 EE
32
32
500+ EE
35
31

Company Headcount Average eNPS Q4 2024

“In the second half of 2024, hiring slowed due to a combination of economic uncertainty, rising interest rates, and ongoing inflation concerns, which made companies more cautious. Many organizations, especially in tech, were still adjusting to post-pandemic realities and, in some cases, were conducting layoffs or halting hiring to right-size operations.

Rising costs and labor market mismatches also contributed to the slowdown, as businesses faced higher expenses and struggled to find candidates with the right skill sets. Overall, companies adopted a more cautious approach to hiring while awaiting clearer economic conditions.”

Wende Smith | Head of People Operations | BambooHR

Employee Satisfaction by Industry

All Industries See a Decrease in Happiness Except Tech

In Q4 2024, the landscape of employee satisfaction across industries revealed some significant trends. The education sector, while experiencing a slight drop, still maintained its position as the second-happiest industry overall. Meanwhile, the restaurant, food & beverage industry hit a new five-year low, with an eNPS of 29, indicating a critical need for improvement in employee engagement and satisfaction.

The construction industry, which has consistently held the highest eNPS, saw a 4% decrease from Q3 to Q4, suggesting potential challenges that need to be addressed. In contrast, the technology sector stood out as the only industry that did not experience a decrease in eNPS; however, there was no change in its score, indicating a stable but not improving situation.

These trends underscore the varying dynamics and challenges faced by different industries in maintaining and enhancing employee satisfaction.

Industries Ranked from Happiest to Unhappiest

Ranking
Industry
Average eNPS Q4’24
Avg eNPS Q3’24 v Q4’24 Change
1
Construction
50
4% decrease
2
Education
36
1% decrease
3
Travel / Hospitality
36
16% decrease
4
Finance
34
10% decrease
5
Technology
33
No change
6
Healthcare
33
6% decrease
7
Restaurant, Food & Beverage
31
7% decrease
8
Nonprofit
31
7% decrease

Construction

Construction Average eNPS 2023–2024

  • eNPS decreased from Q3 to Q4, with an average of 50.
  • There was a 2-point decrease from Q3 to Q4.
  • Compared to December last year, eNPS is 2 points lower, a 4% decrease.

The construction industry maintained its typical high level of employee satisfaction in Q4 2024, with an eNPS of 50. Despite this, the 2-point decrease from Q3 to Q4 is a fluctuation to pay attention to. The atypical year-over-year decrease of 2 points suggests that while the industry remains the highest in eNPS, there are areas for improvement to maintain the industry’s strong performance.

Travel & Hospitality

Travel & Hospitality Average eNPS 2023–2024

  • eNPS decreased from Q3 to Q4, with an average of 34.
  • There was a 16% decrease from Q3 to Q4.
  • Compared to December last year, eNPS is 4 points lower, a 12% decrease.

This industry saw a significant decrease in employee satisfaction in Q4 2024, with an eNPS of 34. This 16% decrease from Q3’s four-year high indicates a critical need for the industry to address employee engagement and satisfaction. The year-over-year decline of four points further emphasizes the ongoing challenges in this sector.

Finance

Finance Average eNPS 2023–2024

  • eNPS decreased from Q3 to Q4, with an average of 34.
  • There was a 1.6% decrease from Q3 to Q4.
  • Compared to December last year, eNPS is 4 points lower, a 10% decrease.

The finance industry reached a new five-year low in Q4 2024, with an eNPS of 34. This 1.6% decrease from Q3 and a 4-point decline from the previous year indicate a significant drop in employee satisfaction. The industry needs to take a closer look at why employees are so unhappy and how to reverse the trend.

Education

Education Average eNPS 2023–2024

  • eNPS remained consistent from Q3 to Q4, with an average of 36.
  • There was a slight decrease from Q3 to Q4.
  • Compared to December last year, eNPS is 1 point lower, a 2.8% decrease.

Education typically returns to a 35–36 eNPS at the end of the year, and 2024 was no different. The education industry maintained a relatively stable level of employee satisfaction in Q4 2024, with an eNPS of 36. This slight decrease from Q3 and a 1-point drop from the previous year indicate a resilient and steady environment for employees in this sector.

Healthcare

Healthcare Average eNPS 2023–2024

  • eNPS decreased from Q3 to Q4, with an average of 33.
  • There was a 6% decrease from Q3 to Q4.
  • Compared to December last year, eNPS is consistent with the start of the year.

The healthcare industry maintained a consistent level of employee satisfaction in Q4 2024, with an eNPS of 33, returning to where it started the year. This stability, despite a 6% decrease from Q3, suggests that the industry has maintained its performance from the start of the year. However, there is always room for improvement to further enhance employee happiness.

Restaurant, Food & Beverage

Restaurant, Food & Beverage Average eNPS 2023–2024

  • eNPS decreased from Q3 to Q4, with an average of 31.
  • There was a 7% decrease from Q3 to Q4.
  • Compared to December last year, eNPS is 8 points lower, a 26% decrease.

The restaurant, food, and beverage industry reached a new five-year low in Q4 2024, with an eNPS of 31. This significant 7% decrease from Q3 highlights a critical need for the industry to address employee engagement and satisfaction. The year-over-year decline of 8 points—unusual for Q4, when this industry typically sees a surge in happiness around the holidays—further emphasizes the ongoing challenges in this sector.

Technology

Technology Average eNPS 2023–2024

  • eNPS decreased from Q3 to Q4, with an average of 33.
  • There was a marginal decrease from Q3 to Q4.
  • Compared to December last year, eNPS is 2 point lower, a 7% decrease.

The technology industry saw a marginal decrease in employee satisfaction in Q4 2024, with an eNPS of 33. This slight drop from Q3 and a 2-point decrease from the previous year suggest that while the industry remains relatively stable, there is room for improvement to enhance employee happiness.

Nonprofit

Nonprofit Average eNPS 2023–2024

  • eNPS decreased from Q3 to Q4, with an average of 31.
  • There was a 5% decrease from Q3 to Q4.
  • Compared to December last year, eNPS is 2 points lower, a 7% decrease.

The nonprofit industry reached a new five-year low in Q4 2024, with an eNPS of 31. This 5% decrease from Q3 and a 6-point decline from the previous year indicate a significant drop in employee satisfaction. The industry needs to focus on improving employee engagement to reverse this trend.

HR professionals can use their understanding of these trends to improve employee satisfaction and drive organizational success. Here are seven key takeaways from Q4’s report:

  1. Continue Investing in Tenured Employees: Given that tenured employees are consistently 3% happier, focus on retaining and supporting these employees. Implement mentorship programs, career advancement opportunities, and regular recognition to keep them engaged and motivated.
  2. Address Industry-Specific Challenges: For the travel/hospitality and finance industries, which saw the steepest declines, conduct detailed surveys to identify specific issues. Implement targeted interventions such as stress management programs, improved work-life balance, and enhanced communication channels.
  3. Stabilize Fluctuations in Larger Companies: For companies with over 500 employees, focus on stabilizing eNPS scores. Implement consistent and transparent communication, regular feedback mechanisms, and employee wellbeing programs to reduce fluctuations.
  4. Support Mid-Sized Companies: For companies with 300–500 employees, despite their higher moving average, address the recent decline. Enhance employee engagement through regular check-ins, team-building activities, and personalized development plans.
  5. Improve Work-Life Balance in High-Pressure Industries: In industries like finance and restaurant, food, and beverage, focus on improving work-life balance. Offer flexible working hours, options for work modes, and mental health support to reduce burnout and increase job satisfaction.
  6. Enhance Employee Wellbeing in Low-Scoring Industries: For the sectors with the lowest eNPS scores, prioritize employee wellbeing. Implement wellness programs, and create a supportive work environment.
  7. Regularly Monitor and Adapt: Use employee satisfaction survey tools to continuously monitor eNPS data to stay informed about employee sentiment. Use this data to make timely adjustments to policies and practices, ensuring that employee needs are met and satisfaction is maintained.

By implementing these strategies, HR professionals can help improve employee happiness and address the specific challenges faced in each industry.

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 December 2024, and includes more than 1,700 companies, tracking anonymized responses from over 60,900 unique employees since January 2020. Data analyzed includes more than 2.38 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.

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