The Great Gloom
What is the Great Gloom?
The “Great Gloom” is a term to describe the ongoing decline in employee happiness since 2020. The trend accelerated significantly in 2023, when the employee happiness index declined 10 times faster than in the previous three years.
Happiness varies by industry, and during the Great Gloom, declined most sharply in sectors like healthcare and education. Meanwhile, happiness in construction remained comparatively stable—and began trending upward in the nonprofit sector.
From the Great Resignation to the Great Gloom
The Great Gloom is predated by the Great Resignation—a period from 2021–2022, when employees were empowered, quit rates surged, and workers demanded change. Fueled by the pandemic-driven burnout, employees re-evaluated their priorities, opted for remote work, or left their jobs completely. They sought better pay, opportunities, and work-life balance.
But the tides shifted again in 2023, as the post-pandemic work landscape began to stabilize. The empowerment of the Great Resignation gave way to the uncertainty of 2023, as economic instability, return-to-office mandates, and sweeping layoffs dimmed workers’ optimism.
What began as a movement for better work evolved into widespread stagnation, stress, and disengagement: the Great Gloom.
Now, instead of leaving, many employees are staying put—but they’re increasingly unhappy, disengaged, or emotionally checked out.
Burnout persists, but options feel more limited than before. Rather than workers taking action to find something better, they feel stuck.
What caused the Great Gloom?
The shift from the Great Resignation to the Great Gloom didn’t happen overnight—it was the result of several compounding forces in a rapidly evolving workplace. As companies scrambled for control in a post-pandemic world, employees were served up with rigid HR policies, economic setbacks, and a lack of clear guidance.
What once felt like a turning point for positive change began to feel like a step backward. Here are a few key factors that fueled this collective dip in morale and workplace satisfaction.
- Return-to-office (RTO) mandates: The abrupt implementation of RTO caused friction and a loss of autonomy for employees accustomed to remote schedules and flexibility, leading to frustration and disengagement.
- Economic uncertainty and industry layoffs: Economic turbulence in 2023 led to widespread layoffs and hiring freezes, especially in the tech sector, increasing anxiety and diminishing motivation among remaining employees who felt stuck without advancement opportunities.
- Leadership gaps and lack of clear communication: Many employees (75%) say internal communication affects their happiness at work, but felt uninformed during the pandemic due to unclear expectations and poor transparency, damaging trust and making them feel less connected and confident in their company's direction.
How to combat the Great Gloom
The Great Gloom isn’t just a matter of short-term employee blues—it’s a growing crisis that could have lasting effects on both workers and organizations. Employee happiness continues to trend downward in 2025, with another steep decline in Q2 of 2024.
Employee satisfaction is a key indicator of an organization’s overall health, influencing everything from productivity and performance to retention and engagement. Companies that fail to prioritize employee happiness risk negative impacts across the board—from increased turnover and burnout to decreased innovation and long-term growth.
Now for the good news: organizations that make a concerted effort to improve employee satisfaction can make a meaningful difference.
Here are proven strategies to combat the Great Gloom:
- Adopt a data-driven approach: Utilize proven, anonymous employee satisfaction tools to understand employee sentiment and proactively address issues before they escalate into disengagement or turnover.
- Focus on industry norms: Benchmark your workforce's satisfaction against industry peers using tools to identify areas where your organization may be falling behind.
- Foster open communication: Encourage transparent and responsive communication from leadership through clear expectations, regular updates, and approachable management practices like open-door policies and town halls.
- Offer flexible work arrangements: Provide options like remote work, flexible hours, or hybrid schedules to empower employees with autonomy, reduce stress, and improve job satisfaction.
- Invest in employee development: Combat disengagement by offering professional growth opportunities, recognizing achievements, and reminding employees that their contributions are valued.