Worker Morale Reaches Three Year High
The latest 2026 Employee Happiness Index shows that employee morale has climbed to its highest first-half level since 2023 after four straight years of decline. The recovery comes with a clear business case attached: companies with an excellent eNPS lose 46% fewer employees than their unhappiest counterparts.
Recovery Trends
According to the report, the 2026 Employee Happiness Index, based on Employee Net Promoter Score (eNPS) and turnover data from the BambooHR platform, breaks down where employee happiness sits in 2026 and the patterns companies can’t afford to ignore. Behind the headline recovery is a workforce experience that varies by age, gender, tenure, and industry: Gen Z workers remain 17 points less satisfied than their older colleagues, and the technology industry is bucking the recovery trend entirely, sliding from the happiest sector in 2023 to below average today.
In the first half of 2026 (January–June), eNPS rose to 40, up 4.4% year-over-year and marking the strongest first half of the year since 2023. The increase follows an all-time low of 37 in November–December 2024, capping four consecutive years of decline from a 2020 peak of 48.
Key Findings
Happy companies retain more talent. BambooHR’s 2026 Employee Happiness Index found that companies with excellent eNPS (50+) lose 46% fewer employees annually than companies with negative eNPS, 40% turnover vs. 58%. For context, an eNPS score above 20 is considered favorable, above 50 is excellent, and scores above 80 are considered world class.
A negative eNPS drives 18 to 19 percentage points more turnover at companies with 150 or fewer employees, about 14 extra departures a year at a 75-person company. The gender happiness gap is narrowing. Men scored 6.6 eNPS points higher than women in H1 2026, down from an 8-point average gap over the prior three years.
Younger workers are the least satisfied. Employees aged 26–30 posted the lowest eNPS of any age group (31), a 17-point gap from the happiest cohort, ages 51–60 (48). Tenure follows a U-curve. New hires average eNPS 51 and 25+ year veterans average 57, while 2–3 year employees hit the low point at 33.
Industry Variations
Construction leads all sectors in H1 2026, with an eNPS of 51. Finance posted the strongest H1 2026 recovery, up 10.5% year-over-year to an eNPS of 47, though the industry remains vulnerable among its more tenured employees, who report much lower satisfaction levels.
Restaurant, Food and Beverage remains the lowest-scoring industry, with an eNPS of 34 in H1 2026.
Understanding the factors that influence eNPS is essential for companies. One key aspect to consider is how different industries and demographics experience employee happiness, which can provide valuable insights for companies looking to improve their own eNPS. Factors that influence employee satisfaction are complex and can vary by industry and workforce demographics, which is why it is important for companies to analyze their workforce and develop strategies to address the specific needs of their employees.
“To close the gap you need to understand what’s driving a different experience in the first place,” said Nicole Csiszar, Senior Director of HR Services at BambooHR. “The solution isn’t one-size-fits-all. It’s designing experiences that reflect the reality of a diverse workforce rather than an ‘average employee’ who doesn’t really exist.”
The report is based on BambooHR platform data of over 1,400 companies, where findings show early turnover is also costly for unhappy organizations. Companies with a negative eNPS see a 2.7% monthly early-turnover rate, compared to 2.1% for companies with an excellent eNPS, a nearly 30% relative difference.
Because employee happiness follows a tenure “U-curve,” with new hires and veteran employees the happiest and 2-to-3-year employees the least satisfied, a revolving door of new hires keeps companies from building the long-tenured, higher-satisfaction workforce that drives happiness gains over time. For more information, the full report can be accessed through BambooHR’s website, where companies can also find resources to help them improve their employee satisfaction and reduce turnover.
